CFA Society Bahrain Champions ESG Excellence with Seminar on CBB's Module Implementation

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Bahrain Investment Professionals Society (CFA Society Bahrain), recently organized a seminar titled "Roadmap to Implementing CBB's ESG Module," which was presented by Ms. Alya Al Omran, Head of Research and Investor Protection at the Capital Markets Supervision Directorate of the Central Bank of Bahrain.

The seminar delved into the growing importance of environmental, social, and governance (ESG) standards within the banking sector. It emphasized how these standards can play a crucial role in enhancing the sustainability and social responsibility of banks and financial institutions operating in Bahrain.

Additionally, the seminar explored how integrating ESG factors into the banking and financial sector can lead to the design of innovative financial tools. These tools, in turn, have the potential to accelerate the achievement of sustainable development goals. This aligns with Bahrain's broader national plans and programs aimed at reaching net-zero emissions by 2060.

During the presentation, Ms. Al Omran underscored the significance of current trends both regionally and globally, which are increasingly moving towards the implementation of ESG standards in the banking and financial sectors.  Ms. Al Omran discussed the importance of transparent reporting and robust safeguards related to these standards, as well as key developments taking place within the local Bahraini market. Additionally, the presentation highlighted the pivotal role that sustainable finance plays within the broader ESG agenda.

Ms. Al Omran discussed the CBB's recent initiative on environmental, social, and governance (ESG) practices. This initiative mandates ESG disclosure requirements for listed companies, banks, finance companies, insurance companies, and Tier 1 and 2 investment firms. It aligns with the Bank's dedication to national and international climate goals, aiming to enhance transparency in disclosure practices and advance corporate governance standards.

"The CBB urges financial institutions and banks to actively adopt strategies that improve their environmental and social performance while maintaining stringent governance standards. Emphasizing the significance of managing environmental and social governance risks aligned with Bahrain's Economic Vision 2030 and the United Nations Sustainable Development Goals, the CBB has introduced a new framework which leverages global standards to integrate effective ESG practices," said Ms. Al Omran.

The presentation covered various applied concepts of ESG within the financial sector. These encompassed different types of environmental risks, the elements required for preparing sustainability reports, and tools for monitoring and evaluation. Furthermore, the session explored the evolution of concepts and terminology associated with environmental governance, its alignment with international agreements, and its implications for social responsibility within financial institutions. Additionally, a variety of models, examples, and case studies were presented to illustrate the initial stages of implementation and proposed mechanisms.

Mrs. Lamees Al-Baharna, Chairperson of the ESG Practices Committee at the Society, said: "This seminar underscores the crucial need to promote awareness and integrate ESG standards within the banking sector. This initiative aims to support sustainable development efforts and reinforce the Kingdom of Bahrain's financial sector as a prominent hub in the region. By enhancing Bahrain's role as a catalyst for all financial sustainability practices, it seeks to bolster the sector's resilience and readiness to address challenges as the momentum for sustainable finance is rapidly growing throughout the region."

"The Society is committed to enhancing the Bahraini banking sector's capabilities in ESG standards due to their numerous advantages," Mrs. Al-Baharna stated. "These include facilitating access to global financing sources, expanding opportunities to attract international investments, and gaining valuable insights into financing opportunities while mitigating social and environmental risks within the sector. We remain dedicated to spearheading the shift towards a sustainable banking environment and contributing to Bahrain's economic growth goals in promoting sustainable development."