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Sustainability Reporting, a catalyst to
demonstrate ESG Action
he expectation for ESG issues to be The COP27 UN Climate Change
embedded in business operations, Conference which was held in Egypt in
Talongside regulatory developments November 2022 underlined the actions
which are making some sustainability required to meet environmental targets.
reporting (such as greenhouse gas (GHG) As part of the Central Bank of Bahrain’s
emissions in the supply chain being (“CBB”) objective to maintain disclosure
made mandatory for all businesses). The transparency and high corporate
International Sustainability Standards governance standards, CBB is currently
Board (ISSB), part of the International developing Environmental, Social,
Financial Reporting Standards (IFRS) and Governance (“ESG”) disclosure
Foundation, the ISSB is in the process of guidelines to assist companies with
defining a global set of baseline corporate ESG integration and reporting against
sustainability disclosure standards. a broad range of environmental, social,
and corporate governance factors. The
Multiple stakeholders are pressing for
CBB anticipates the issuance of the ESG
a more ESG-centric business model,
disclosure guidelines in the first half of
including shareholders, clients, and
2023 that will be addressed to listed
staff. Investors and creditors are making
companies and relevant CBB licensees.
investing and lending decisions influenced
by corporate ESG practices. Accordingly, The journey to net-zero means having
having an ESG position can change the the goals and the strategy in place, then
cost of capital. Customers also want to being able to back it up with reports to
have more sustainable products. show the business is making progress.
Adoption of ESG Framework represents
Businesses that embed climate-change
an opportunity for businesses to deliver
awareness and mitigation throughout
value by meeting ESG targets. To achieve
the organisation, from the shop floor
a net-zero future, organizations need
to the board, will generate the greatest
to look at reducing their emissions,
business advantages from the transition.
how they’re going to drive the green
The need to report is forcing companies
technology revolution, and how to access
to become more sustainable in their
climate finance to scale up adaptation.
behaviour, which in turn is making them
more appealing to investors, customers, Audit, Tax and Advisory firms are well-
lenders, and other stakeholders. placed to help businesses respond to the
26 Bahrain Banks Directory 2023
