The Central Bank of Bahrain (CBB) has issued new Environmental, Social, and Governance (ESG) reporting framework in line with the apex lender’s commitment to transparency, strong corporate governance, and pursuit of social and climate-related objectives.
The module is directed at all listed companies, banks, financing companies, insurance firms, and investment firms. It provides them with guidelines on the reporting requirements for ESG factors.
The central bank recognises that the ESG landscape is ever-evolving, and this module represents a transformative step towards a more sustainable financial market. The issuance of this module underscores the CBB’s dedication to both national and international social and climate-related objectives.
It also reinforces the central bank’s overarching objective of upholding transparency in disclosures and promoting strong corporate governance standards.
“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 to create reliable, informative, and comparable reports,” said Abeer Al Saad, Executive Director of Financial Institutions Supervision at the CBB.
Bahrain-listed companies, banks, financing companies, insurance firms and investment firms will start the reporting of these requirements in 2024.
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.
CBB called on companies to proactively implement strategies that enhance their environmental and social performance while upholding the highest standards of governance.
