“UAE guiding principles on sustainable finance credit positive for banks” – Saudi Gazette – January 26, 2020

On January 26, 2020 Saudi Gazette reported that the “United Arab Emirates (UAE, Aa2 stable) published its first set of guiding principles on sustainable finance during the second edition of the Abu Dhabi Sustainable Finance Forum on Sunday. The guiding principles will contribute to UAE banks’ understanding and management of environmental, social and governance (ESG) risks that affect their credit profiles.

The three guiding principles are the integration of ESG factors into governance, strategy and risk management, the adoption of a minimum eligibility requirement to help identify sustainable financial products and the promotion of appropriate ESG-related reporting and disclosures. The guiding principles aim to facilitate the UAE’s transition to a more sustainable and diversified economy, mitigate the risks of reduced global demand for oil and adapt to the physical risks of climate change.

Although the guiding principles are voluntary, as part of an effort to ensure a gradual and consultative transition, regulatory authorities aim to implement appropriate measures for ESG integration once the principles have been endorsed. Measures may include guidelines and policies to encourage UAE-based financial firms to develop strategies incorporating ESG considerations in their business activities, decision-making, risk frameworks and investment opportunities.”

You may read the article on the Saudi Gazette internet site.