Sustainability reporting is becoming mandatory for many large companies globally, driven by regulations like the EU’s CSRD, according to the London Institute of Banking & Finance (LIBF) whitepaper titled “Sustainability reporting for banks: the climb starts here”.
Though not mandatory yet in the MENA region, the whitepaper encourages banks to adopt a proactive approach considering the global trends.The whitepaper offers practical recommendations for banks on implementing effective sustainability reporting.
“We are thrilled to release this comprehensive whitepaper, which underscores our commitment to providing valuable insights and fostering knowledge within the financial community in the MENA region,” said Ehsan Razavizadeh, Managing Director MENA and Asia at LIBF. “Sustainability reporting is becoming increasingly crucial for financial institutions, and our whitepaper aims to equip them with the necessary tools and understanding to navigate this complex landscape successfully”, he added.
The whitepaper highlights the significance of ESG reporting since the establishment of the Financial Stability Board’s (FSB) Task-Force on Climate-Related Financial Disclosures (TCFD) in 2017. Despite TCFD guidelines being mostly voluntary, the paper stresses that institutions should not become complacent. The evolution of ESG regulation in Europe, particularly through the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), sets a global precedent, making ESG reporting mandatory for many large companies.
The paper also examines how these European standards impact global practices and encourages financial institutions to adopt these benchmarks. Additionally, they discuss the regulatory focus on sustainability in the MENA region, including the introduction of ESG strategies by banks and the Unified ESG Metrics for GCC Listed Companies.
