DFM launches guide to expand best practices in ESG reporting

Business Bureau, Gulf Today

Dubai Financial Market (DFM) on Tuesday launched its Guide on Environmental, Social and Governance (ESG) Reporting, as part of its endeavour to promote issuers’ expansion in embracing ESG best practices.

The DFM is actively engaged in the global efforts to achieve the UN’s Sustainable Development Goals as well as the UAE Sustainable Development Goals 2030, the Dubai’s Strategic Plan 2021 and green economy drive as well as reinforcing its position as the capital of Islamic economy globally.

The DFM is driving the change in the capital markets sector through numerous initiatives in collaboration with various institutions in the UAE and beyond such as; the UN’s Sustainable Stock Exchanges (SSE) initiative and the World Federation of Exchanges (WFE) to instill sustainability and governance within market participants including; listed companies, investors and brokerage firms. One of the four pillars of the DFM Sustainability Strategy 2025, ‘Sustainability Reporting and Disclosures’, demonstrates DFM’s commitment to promoting ESG reporting among listed companies.

Developed in cooperation with Sustainability Excellence, the comprehensive Guide provides listed companies with invaluable insight to instill best practices of Environmental, Social and Governance (ESG) within their reporting processes through the implementation of 32 metrics.

While implementation is voluntary for the time being, listed companies are strongly encouraged to further commit to ESG reporting and refer to the guide as a starting point in their sustainability reporting journey.

Essa Kazim, Chairman of DFM said: “As financial markets play an instrumental role to foster economic development and mobilize the necessary investments to achieve sustainable growth, the DFM has made a formal commitment to promote sustainability in capital markets, further attract international investors as well as encourage responsible investment.”

“The DFM is a Partner Exchange Member of the Sustainable Stock Exchanges (SSE) initiative and we are actively working since 2016 to promote best practices of sustainability amongst market participants, as we are looking to become the region’s leading sustainable financial market by 2025.” “Within this context, we are delighted to launch this guide as our most recent initiative to support listed companies’ sustainability reporting. The guide thoroughly explains ways to enhance ESG reporting and promote transparency and disclosure in financial markets. It is a well-timed initiative considering the growing demand from investors across the world for a broader approach of reporting on ESG matters that are increasingly factored in their decision-making process,” Essa Kazim added.