The UAE Sustainable Finance Working Group (SFWG) has announced the launch of its ‘Principles for Sustainability-Related Disclosures for Reporting Entities’.
This is part of the joint efforts of the UAE supervisory authorities to upgrade requirements for sustainability-related disclosures for UAE financial institutions.
The principles highlight four major considerations for reporting entities:
- Implement adequate policies, procedures, and systems for reporting on sustainability-related matters;
- Consider transparency, materiality, relevance, and stakeholder engagement when disclosing information,
- Disclosures must mirror the way they operate, including in the areas of governance, strategy, and risk management, and
- Consider specific elements when dealing with and offering sustainability-related products to enhance the transparency and quality of sustainability-related, product-level disclosures.
The principles were signed in Abu Dhabi by Mohammed Ali Al Shorafa Al Hammadi, Chairman of the SCA; Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE); Essa Kazim, Governor of the Dubai International Financial Centre; and Emmanuel Givanakis, CEO of the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM).
Following the signing, the UAE SFWG member authorities will officially release the principles for licensed financial institutions to encourage them to promote transparency in sustainability-related matters, it was shared.
Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), commented: “Launching the ‘Principles for Sustainability-Related Disclosures for Reporting Entities’ underscores the efforts to accelerate the development of an integrated sustainable finance ecosystem and bolster the resilience of the financial sector as part of the efforts to establish a leading global status for the UAE in sustainable finance and achieve climate neutrality by 2050 at the local and international levels.”
Ahmed Jassim Al Zaabi, Chairman of the Board of Directors of the ADGM, said: “We at ADGM, in collaboration with the UAE authorities, are proud of the SFWG’s continuous efforts to promote sustainable finance by introducing robust guidelines that drive transparency and proper disclosure among financial institutions and other entities in line with international standards. This work is a key component to the UAE economy’s transition to net zero and underscores our unwavering commitment to integrating sustainability into finance.”
Essa Kazim, Governor of the Dubai International Financial Centre (DIFC), added: “The ‘Principles for Sustainability-Related Disclosures for Reporting Entities’ announced today is a further testament to the UAE Sustainable Finance Working Group’s efforts in showcasing how the financial sector can lead the charge in addressing climate change and promoting a just transition to a sustainable economy.”