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A. Introduction

Issued on 14/6/2024
  1. The UAE Sustainable Finance Working Group (SFWG) was established in 2019 to enable the UAE’s economic transition and encourage the adoption of sustainable finance at the national level. The members of the SFWG (the UAE Authorities) include ministries (Ministry of Finance, Ministry of Economy, Ministry of Climate Change and Environment, the Office of the UAE's Special Envoy for Climate Change), financial services regulators (the Central Bank of the UAE, the Securities and Commodities Authority, the Financial Services Regulatory Authority of Abu Dhabi Global Market and the Dubai Financial Services Authority), and UAE exchanges (Abu Dhabi Securities Exchange, Dubai Financial Market and Nasdaq Dubai).
  2. In the UAE’s first set of Guiding Principles on Sustainable Finance published in January 2020, the SFWG committed to promoting appropriate Environmental, Social and Corporate Governance (ESG)-related reporting and disclosures. The SFWG also recommended that ESG reporting be consistent with national disclosure obligations and take into account internationally recognised reporting standards on ESG matters.
  3. This document is the result of the work of the SFWG and contains Principles for Sustainability-related Disclosures (the Disclosure Principles) for the domestic entities or branches and subsidiaries of foreign entities falling under the purview of the UAE Authorities (the Reporting Entities). The SFWG members recognise that adequate transparency in relation to the actual or potential impact of climate change and other environmental, social and governance factors is essential to inform investors and protect consumers, foster efficient functioning of financial markets and promote financial stability, while driving the values of sustainability and social responsibility.
  4. Transparency allows investors to make more informed decisions and evaluate investment risks and opportunities. Measurement and high-quality sustainability-related disclosures allow organisations and their relevant stakeholders to understand better both risk-adjusted returns and the progress being made in managing and adapting to sustainability matters. It can also act as a market discipline mechanism through which investors, shareholders and other stakeholders can exert influence on companies and the investment industry to act in the best interests of society, by directing capital to companies that positively contribute to sustainability.

  5. The members of the SFWG consider it important to encourage transparency on sustainability-related matters.

    Accordingly, in issuing these Principles, the SFWG members undertake to:

    1. Consider implementation of recognised regulatory disclosure frameworks by relevant entities under our respective remits in our respective jurisdictions;
    2. Consider progressing towards full implementation of a prevailing disclosure framework or frameworks to help support the UAE’s Net Zero Strategic Initiative in the context of stable economic development; and
    3. Engage in capacity building activity and industry outreach with the relevant entities in our respective jurisdictions in order to facilitate and prepare any such implementation.