Manama, Nov. 19 (BNA): In line with its commitment totransparency, strong corporate governance, and the pursuit of social andclimate-related objectives, the Central Bank of Bahrain (CBB) has released theEnvironmental, Social, and Governance (ESG) requirements module on November 5.

This module isdirected at all listed companies, banks, financing companies, insurance firms,and category 1 and 2 investment firms, providing them with guidelines on thereporting requirements for the environmental, social, and corporate governancefactors.

The CBBrecognizes that the ESG landscape is ever-evolving, and this module representsa transformative step towards a more sustainable financial market. The issuanceof this module underscores the CBB's dedication to national and internationalsocial and climate-related objectives while reinforcing its overarchingobjective of upholding transparency in disclosures and promoting strongcorporate governance standards.

"Intoday's business landscape, financial metrics are no longer the sole criteriafor evaluating companies. Shareholders and investors now expect companies todemonstrate greater transparency regarding their impact on the environment,society, and governance practices," Abeer Al Saad, Executive Director of FinancialInstitutions Supervision at the CBB, said.

"The ESGmodule aims to serve as a valuable tool for companies starting their reportingjourney with the aim of creating reliable, informative, and comparable reports.Moreover, all listed companies, banks, financing companies, insurance firms,and category 1 and 2 investment firms shall start reporting these requirementsfrom the financial year 2024," she added.

The moduledraws on global standards and frameworks to ensure effective ESG integration. Itincorporates findings from the ESG Reporting Survey conducted by the CBB in2022, which involved various entities such as listed companies, insurancefirms, banks, and investment firms. Furthermore, the module's developmentconsidered the industry feedback received during the consultation on the draftguidelines held in mid-2023.

The CBBencourages companies to proactively implement strategies that enhance theirenvironmental and social performance while upholding the highest governancestandards. In addition, it emphasizes the importance of addressing ESG-relatedrisks that align with Bahrain's Economic Vision 2030 and the UN SustainableDevelopment Goals (SDGs).