CBB Unveils New ESG Reporting Framework
Aligned with its dedication to openness, robust corporate governance, and the pursuit of social and climate-centric goals, the Central Bank of Bahrain (CBB) unveiled the Environmental, Social, and Governance (ESG) requirements module recently.
This directive is aimed at guiding all publicly listed companies, banks, financing entities, insurance companies, and category 1 and 2 investment firms in meeting the reporting criteria for ESG factors.
Acknowledging the dynamic nature of the ESG landscape, the CBB's introduction of this module marks a significant stride towards fostering a more sustainable financial market.
The issuance underscores the CBB’s unwavering commitment to both national and global social and climate objectives, reinforcing its overarching mission of promoting transparency in disclosures and advancing robust corporate governance standards.
Addressing the launch of the new module, Ms. Abeer Al Saad, Executive Director of Financial Institutions Supervision at the CBB, commented, “In the contemporary business environment, financial metrics alone no longer suffice for evaluating companies. Shareholders and investors now demand heightened transparency regarding companies’ impacts on the environment, society, and governance practices.
"The ESG module aims to serve as a valuable resource for companies embarking on their reporting journey to generate dependable, informative, and comparable reports. Additionally, all entities concerned are mandated to commence reporting these requirements starting from the 2024 financial year.”
The module draws upon global standards and frameworks to ensure the effective integration of ESG considerations. It incorporates insights from the ESG Reporting Survey conducted by the CBB in 2022, engaging various entities such as listed companies, insurance firms, banks, and investment firms. Moreover, the module's formulation took into account industry feedback obtained during the consultation on the draft guidelines conducted in mid-2023.
Encouraging proactive adoption of strategies that enhance environmental and social performance while maintaining the highest governance standards, the CBB emphasises the crucial task of addressing ESG-related risks that align with Bahrain Economic Vision 2030 and the UN Sustainable Development Goals (SDGs).
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Source: CBB
