Dubai FSA and a group of leading authorities in UAE agreed on the first guiding principles on sustainable finance in UAE. The guiding principles were officially signed in a ceremony at the Abu Dhabi Sustainable Finance Forum during the Abu Dhabi Sustainability Week. These principles will serve as a catalyst for the implementation of the sustainability priorities of UAE. The principles are aimed at the integration of Environmental, Social, and Corporate Governance (ESG) factors into governance, strategy, and risk management, along with the promotion of appropriate ESG-related reporting and disclosures.
The principles signal that UAE recognizes the importance of ESG factors to the investor community. At the regulated community level, the principles aim to facilitate transition of UAE to a more sustainable economy and to help organizations to develop strategies that re-orientate and diversify the economy, help mitigate risks of reduced global demand for oil, adapt to the physical risks of climate change, and explore the new investment opportunities it presents. These principles are voluntary and represent the first stage of the Authorities’ joint work, as part of the effort to ensure that the transition is effected in a gradual and consultative manner.
Following the endorsement of these principles, the Authorities undertake to implement appropriate measures, which may include guidelines and policies, to encourage UAE financial firms, including banks, insurers, financial intermediaries, issuers, asset and wealth managers, and investment funds as well as corporates and other entities under their purview. The aim is to encourage these financial firms to develop strategies to incorporate ESG considerations in their business activities and decision-making, risk frameworks, and in the context of exploring new investment opportunities.
Based on the United Nations Agenda for Sustainable Development, the guiding principles are the result of co-operative efforts among a number of authorities in UAE, namely Dubai FSA, CBUAE, Insurance Authority, Securities and Commodities Authority, Financial Services Regulatory Authority of the Abu Dhabi Global Market, Ministry of Climate Change and Environment, Dubai Islamic Economy Development Centre, Dubai Financial Market, Nasdaq Dubai, and Abu Dhabi Securities Exchange.
Keywords: Middle East and Africa, UAE, Dubai, Banking, Insurance, Securities, ESG, Sustainable Finance, Reporting, Disclosure, UAE Authorities, Climate Change Risk, Islamic Banking, Dubai FSA
Previous ArticleBoE and PRA Invite Feedback on New Insurance Data Release
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.