GCC stock exchanges harmonise ESG reporting
Published: 02:09 PM,Sep 11,2023 | EDITED : 10:09 AM,Sep 12,2023
MUSCAT: Following the issuance of ESG guidelines on September 11 for publicly listed and registered as ‘SAOG’ on Muscat Stock Exchange, (MSX), all publicly listed companies are encouraged to voluntarily report on their environment, social and governance (ESG) performance in 2024, covering their activities for this year. MSX said that starting 2025, reporting on the 2024 activities will be mandatory.
At the regional level, MSX actively participates as a member of the GCC Stock Exchanges ESG Committee, contributing significantly to the creation of standardised ESG Disclosure Metrics for Listed Companies within the GCC. This marks a crucial milestone in advancing ESG considerations in the region and bringing GCC markets in line with global best practices.
In December 2022, MSX unveiled its commitment to the UN SSE Initiative as part of its broader 'Sustainable ESG Initiative.' Collaborating with key entities such as the Ministry of Social Development, Ministry of Commerce, Industry & Investment Promotion, and the Environment Authority, MSX is dedicated to fostering an environment of ethical business practices. This includes the establishment of a dedicated sustainable investment team focused on monitoring ESG practices at MSX and assisting listed companies in disclosing their own ESG efforts. To facilitate this, MSX has introduced a comprehensive governance framework encompassing supplementary reports, guidelines, and projects to prepare companies for the global transition to mandatory ESG reporting.
Haitham al Salmi, CEO of MSX said in a statement: “In keeping with global sustainability trends, the Muscat Stock Exchange recently joined the United Nations Sustainable Stock Exchanges initiative as a partner exchange. Our aim is to build a sustainable and inclusive financial culture by adopting the best environmental, social, and governance practices, corresponding to Oman Vision 2040 for achieving a diverse and sustainable economy.
These guidelines are intended to meet the current and future needs of investors, while also achieving sustainable development, which is a crucial part of our world’s future. Companies play a vital role in achieving this noble goal.
While profitability and financial success are important aspects of our businesses, sustainability cannot be measured solely by financial indicators. It also encompasses social responsibility, environmental protection, and strong governance. Therefore, the Exchange is committed to enhancing transparency in these areas as a matter of responsibility. Good governance is an essential pillar for achieving sustainable development and building a strong economy.'
The MSX ESG Disclosure Guideline underscores the growing significance of ESG considerations not only in Oman but also regionally and globally. Its primary aim is to support the country's sustainable development objectives by providing clear guidelines for ESG reporting. Through this initiative, MSX seeks to raise awareness about ESG considerations and encourage companies to prioritise sustainability and responsible business practices.
On January 9, 2023, the GCC Exchanges Committee, led by the Saudi Exchange, published a cohesive set of ESG Disclosure Metrics. This standardised framework consists of 29 standards aligned with the World Federation of Exchanges and Sustainable Stock Exchanges Initiative. It encompasses a wide range of categories, including GHG emissions, energy consumption, water usage, gender pay equity, employee turnover, gender diversity, data privacy, ethics, and more.
The introduction of these GCC ESG Disclosure Metrics represents a significant stride towards standardising ESG reporting practices throughout the GCC region. This harmonisation is especially important given the variations in reporting standards across the region. It's worth noting that these metrics are voluntary, serving as a valuable guideline for companies looking to embark on their ESG disclosure journey.
At the regional level, MSX actively participates as a member of the GCC Stock Exchanges ESG Committee, contributing significantly to the creation of standardised ESG Disclosure Metrics for Listed Companies within the GCC. This marks a crucial milestone in advancing ESG considerations in the region and bringing GCC markets in line with global best practices.
In December 2022, MSX unveiled its commitment to the UN SSE Initiative as part of its broader 'Sustainable ESG Initiative.' Collaborating with key entities such as the Ministry of Social Development, Ministry of Commerce, Industry & Investment Promotion, and the Environment Authority, MSX is dedicated to fostering an environment of ethical business practices. This includes the establishment of a dedicated sustainable investment team focused on monitoring ESG practices at MSX and assisting listed companies in disclosing their own ESG efforts. To facilitate this, MSX has introduced a comprehensive governance framework encompassing supplementary reports, guidelines, and projects to prepare companies for the global transition to mandatory ESG reporting.
Haitham al Salmi, CEO of MSX said in a statement: “In keeping with global sustainability trends, the Muscat Stock Exchange recently joined the United Nations Sustainable Stock Exchanges initiative as a partner exchange. Our aim is to build a sustainable and inclusive financial culture by adopting the best environmental, social, and governance practices, corresponding to Oman Vision 2040 for achieving a diverse and sustainable economy.
These guidelines are intended to meet the current and future needs of investors, while also achieving sustainable development, which is a crucial part of our world’s future. Companies play a vital role in achieving this noble goal.
While profitability and financial success are important aspects of our businesses, sustainability cannot be measured solely by financial indicators. It also encompasses social responsibility, environmental protection, and strong governance. Therefore, the Exchange is committed to enhancing transparency in these areas as a matter of responsibility. Good governance is an essential pillar for achieving sustainable development and building a strong economy.'
The MSX ESG Disclosure Guideline underscores the growing significance of ESG considerations not only in Oman but also regionally and globally. Its primary aim is to support the country's sustainable development objectives by providing clear guidelines for ESG reporting. Through this initiative, MSX seeks to raise awareness about ESG considerations and encourage companies to prioritise sustainability and responsible business practices.
On January 9, 2023, the GCC Exchanges Committee, led by the Saudi Exchange, published a cohesive set of ESG Disclosure Metrics. This standardised framework consists of 29 standards aligned with the World Federation of Exchanges and Sustainable Stock Exchanges Initiative. It encompasses a wide range of categories, including GHG emissions, energy consumption, water usage, gender pay equity, employee turnover, gender diversity, data privacy, ethics, and more.
The introduction of these GCC ESG Disclosure Metrics represents a significant stride towards standardising ESG reporting practices throughout the GCC region. This harmonisation is especially important given the variations in reporting standards across the region. It's worth noting that these metrics are voluntary, serving as a valuable guideline for companies looking to embark on their ESG disclosure journey.