Bahrain: Central bank releases ESG reporting rules
Source: Middle East Insurance Review | Dec 2023
The Central Bank of Bahrain (CBB) has released Environmental, Social and Governance (ESG) reporting requirements in line with its commitment to transparency, strong corporate governance, and the pursuit of social and climate-related objectives. The module represents a transformative step towards a more sustainable financial market.
The ESG module is directed at all listed companies, insurers, banks and other financial services companies, providing them with guidelines on the reporting requirements for the environmental, social and corporate governance factors, according to the CBB. The requirements are set to take effect in the financial year 2024.
CBB financial institutions supervision executive director Abeer Al Saad said in a statement, “In today’s business landscape, financial metrics are no longer the sole criteria for evaluating companies. Shareholders and investors now expect companies to demonstrate greater transparency regarding their impact on the environment, society, and governance practices. The ESG module aims to serve as a valuable tool for companies starting their reporting journey with the aim of creating reliable, informative and comparable reports.”
The module draws on global standards and frameworks to ensure effective ESG integration. It incorporates findings from the ESG Reporting Survey conducted by the CBB in 2022, which involved various entities such as listed companies, insurance firms, banks and investment firms. The module’s development considered the industry feedback received during the consultation on the draft guidelines held in mid-2023.
The CBB encourages companies to proactively implement strategies that enhance their environmental and social performance while upholding the highest standards of governance. M