CBB to Issue ESG Disclosure Guidelines in First Half of 2023
The Central Bank of Bahrain (CBB) announced that it is developing environmental, social, and governance (ESG) disclosure guidelines to assist companies with ESG integration and reporting against a broad range of ESG factors. The central bank plans to publish the final guidelines by the first half of 2023.
CBB is of the view that ESG reports will be an effective tool for all stakeholders to better examine the efficiency, sustainability, and risk exposure of a company. The ESG disclosure guidelines will be based on international best practices, frameworks, and initiatives and will aim to ensure progressive adoption of ESG disclosures that are relevant, specific, comprehensive, clear, verifiable, balanced, and consistent. Toward finalization of these guidelines, CBB will consider responses received from the ESG Reporting Survey that examined market attitudes toward ESG for all listed companies, insurance firms, banks, and category 1 investment firms. The key results of the survey highlight that, for bank respondents, a majority of the respondents declared ESG issues as "relevant" to their business model and strategy, ESG disclosures as significant means of communication with stakeholders, and that they have in place a management level committee to oversee sustainability related goals and objectives. The ESG disclosure guidelines will be aligned with the objectives of climate-related risks circular, which CBB published in November 2021, and will be addressed to listed companies and relevant CBB licensees. Going forward, CBB will continue its efforts to highlight the need to mitigate risks related to ESG matters and encourage relevant disclosures aligned with the Bahrain Economic Vision 2030 and the UN Sustainable Development Goals (SDGs) in accordance with the commitment of the Government of Bahrain to achieve the global climate goals.
Related Link: Press Release
Keywords: Middle East and Africa, Bahrain, Banking, ESG, Climate Change Risk, Disclosures, Reporting, ESG Disclosure Guidelines, CBB
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