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
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
BIS announced that it will establish new Innovation Hub centers across Europe and in North America in cooperation with member central banks.
FED updated the reporting form for FR 2052a, which is used to monitor the overall liquidity profile of certain supervised institutions.
PRA published a statement that sets out its views on certain amendments made to Capital Requirements Regulations (CRR and CRR2) via EU Regulation 2020/873 (CRR "Quick Fix"), including some guidance for firms.
The Climate Financial Risk Forum (CFRF), which is a joint climate risk forum of FCA and PRA, published a guide written by the industry for the industry to help firms approach and address climate-related financial risks.
IAIS published an application paper on liquidity risk management for insurers.
EBA published its response to the EC consultation on a new Digital Finance Strategy for Europe.
EIOPA responded to the EC consultation on a new digital finance strategy for Europe.
ESMA published its response to the EC consultation on the new digital finance strategy for EU.
FSB published, for consultation, a report on evaluation of the too-big-to-fail (TBTF) reforms for systemically important banks.