Marking a significant step in reinforcing ADGM’s commitment to fostering sustainable finances and combating greenwashing in the financial sector, the Financial Services Regulatory Authority (FSRA) of ADGM revealed its sustainability-related initiatives, including guidance for ESG-focused investment vehicles.
ADGM FSRA revealed these initiatives during the Abu Dhabi Sustainable Finance Forum (ADSFF), part of the Abu Dhabi Finance Week (ADFW).
Supporting the FSRA’s claim to be dedicated to aligning with global best practices, the latest guidance ensures transparency, accountability, and the integrity of ESG-focused investment products. It forms a key component of ADGM’s broader sustainable finance vision, aimed at supporting investors, issuers, and market participants in driving positive environmental, social, and governance outcomes.
“The issuance of our guidance for ESG-focused investment vehicles marks an important step in ADGM’s journey to establishing leading sustainable finance practices within its ecosystem”, said Emmanuel Givanakis, CEO of the FSRA of ADGM.
“The issuance of our guidance for ESG-focused investment vehicles marks an important step in ADGM’s journey to establishing leading sustainable finance practices within its ecosystem. Through initiatives like this, we aim to strengthen the trust that the financial services sector and investors have placed in our robust regulatory framework, while also empowering stakeholders to contribute meaningfully to the global sustainability agenda.”
The FSRA has undertaken a number of initiatives to further ADGM’s leadership in sustainable finance. These include the implementation of a comprehensive Sustainable Finance regulatory framework and the release of the UAE Sustainable Finance Working Group’s Third Public Statement.
Besides guidance to address risks of greenwashing, ADGM’s robust regulatory framework for sustainable finance includes the region’s most comprehensive ESG disclosure requirements for appropriate entities within ADGM, a markets framework that includes Environmental Instruments and designations for green and climate transition funds and portfolios, and green and sustainability-linked bonds.
Through leveraging ADSFF’s platform, which facilitates dialogue by bringing together policymakers, industry leaders, and innovators to explore actionable strategies for addressing pressing environmental and social challenges, the FSRA has heightened ADGM’s collective efforts and proactive role in advancing the UAE’s sustainability agenda.