Gulf Exchanges Announce Optional Unified ESG Metrics for Listed Companies

ESG disclosure guidelines in respective GCC markets are not replaced by the new metrics

Riyadh – 9 January 2023: The GCC Exchanges Committee published an optional unified set of ESG Disclosure Metrics, comprising 29 standards aligned with the UN Sustainable Development Goals, including categories for GHG emissions, energy, and water usage, gender pay, employee turnover, data privacy, ethics and more.

The metrics, which are optional and do not replace existing ESG disclosure guidelines, are an essential step towards standardizing ESG disclosure across the GCC region’s capital markets, serving as a guide for companies wishing to disclose ESG-related performance.

Mr. Mohammad Saud Al-Osaimi, Chief Executive Officer of Boursa Kuwait, hailed the release of the GCC guide, saying, “Boursa Kuwait supports the development of the Kuwaiti capital market and its regional counterparts for the benefit of investors and market participants, playing an important role in fostering the long-term economic development of Kuwait as a partner and supporter of the United Nations’ Sustainable Stock Exchange initiative. The optional GCC Environmental, Social, and Governance (ESG) metrics are a valuable tool for encouraging regional issuers to provide information for investors, helping them assess listed companies more soundly in order to make responsible and smart investment decisions.”

Boursa Kuwait is currently collaborating with the Capital Markets Authority on the implementation of the requisites of sustainable finance, which were mentioned in the Executive By-laws of the CMA as well as in subsequent resolutions by the CMA and Boursa Kuwait on this topic, which aims to make the Kuwaiti capital market more sustainable according to the best standards and practices described by the International Organization of Securities Commissions (IOSCO) and in support of the United Nations’ Sustainable Development Goals.

Additionally, as part of its capacity as the official operator of the stock exchange, Boursa Kuwait launched its own ESG Disclosure Guide in September 2021, which proposed an initial set of sustainability indicators that correspond with the United Nations’ Sustainable Development Goals (SDGs), the Global Reporting Initiative (GRI) framework and the State of Kuwait’s sustainable development ambitions as set out in the Kuwait National Development Plan and the “New Kuwait” vision for 2035. It is also aligned with the recommendations of the World Federation of Exchanges (WFE) and the Sustainable Stock Exchanges (SSE) initiative.

The GCC Exchanges Committee is comprised of Boursa Kuwait, Saudi Tadawul, Bahrain Bourse, Qatar Stock Exchange, Muscat Stock Exchange, Abu Dhabi Securities Exchange, and Dubai Financial Market. The committee aims to support the development of regional capital markets, create an advanced capital market ecosystem in the GCC region, and elevate their position on the global stage.

To view the optional GCC ESG metrics,?click here.