CBB unveils ESG requirements module

TDT | Manama                                                   

The Daily Tribune – www.newsofbahrain.com

The Central Bank of Bahrain (CBB) has unveiled its new Environmental, Social, and Governance (ESG) requirements module, underscoring a steadfast commitment to transparency, robust corporate governance, and objectives related to social and climate considerations.

The module released on the 5th of this month aims listed companies, banks, financing companies, insurance firms, and category 1 and 2 investment firms.

It furnishes comprehensive guidelines for reporting requirements pertaining to environmental, social, and corporate governance factors.

Abeer Al Saad, Executive Director of Financial Institutions Supervision at the CBB, highlighted the evolving business landscape, emphasizing that financial metrics alone no longer suffice for evaluating companies.

She stated, "Shareholders and investors now expect companies to demonstrate greater transparency regarding their impact on the environment, society, and governance practices."

Derived insights from the CBB's ESG Reporting Survey in 2022, involving diverse entities such as listed companies, insurance firms, banks, and investment firms, were incorporated into the module.

Additionally, the module took into account industry feedback received during the consultation on the draft guidelines conducted in mid-2023.

The CBB actively encourages companies to proactively adopt strategies that enhance their environmental and social performance while maintaining the highest governance standards.

Furthermore, it underscores the significance of addressing ESG-related risks in alignment with Bahrain's Economic Vision 2030 and the UN Sustainable Development Goals (SDGs).