Ms. Alya Al Omran, Head of Research and Investor Protection at the Capital Markets Supervision Directorate of the Central Bank of Bahrain, emphasized the bank’s commitment to encouraging financial companies and banks to proactively enhance their environmental and social performance.
Ms. Al Omran highlighted the importance of adhering to the highest standards of environmental, social, and governance (ESG) practices and addressing related risks. This initiative aligns with Bahrain’s Economic Vision 2030 and the United Nations Sustainable Development Goals.
Speaking at a seminar organized by the Bahrain Investment Professionals Society (CFA Society Bahrain), Ms. Al Omran discussed CBB’s recent initiative on environmental, social, and governance (ESG) practices. This initiative mandates ESG disclosure requirements for listed companies, banks, finance companies, insurance companies, and Tier 1 and 2 investment firms. The bank’s commitment to achieving national and international climate goals and promoting transparency in disclosure processes underscores its dedication to developing robust corporate governance standards.
During the seminar titled “Roadmap to Implementing CBB’s ESG Module,” Ms. Alya Al Omran provided an in-depth review of the applied concepts of environmental and social governance within the financial sector, and covered critical topics such as the identification and management of various environmental risks, the essential components of sustainability reporting, and effective monitoring and evaluation tools.
Ms. Al Omran also delved into the evolution of environmental governance concepts and terminology, highlighting their alignment with international agreements and their integration with social responsibility in financial institutions, and presented a comprehensive array of models, examples, and case studies to illustrate the initial stages of ESG implementation and proposed mechanisms for effective adoption.
Mrs. Lamees Al-Baharna, Chairperson of the ESG Practices Committee at CFA Society Bahrain, emphasized that this seminar is crucial for raising awareness about the integration of environmental, social, and governance (ESG) standards in the banking sector, and highlighted that these efforts are essential for supporting sustainable development, enabling the financial sector in the Kingdom of Bahrain to maintain its leading role as a significant financial hub in the region.
This initiative aims to bolster Bahrain’s reputation as an incubator for financial sustainability practices, enhancing the sector’s resilience and its ability to respond to challenges, thereby advancing the sustainable finance landscape gaining momentum across the region.
Mrs. Al-Baharna also stressed the CFA Society Bahrain’s commitment to enhancing the capabilities of the Bahraini banking sector in ESG standards due to their numerous benefits. These include improved access to global financing sources, expanded opportunities for attracting international investment, and significant gains in identifying financing opportunities while mitigating social and environmental risks. Furthermore, Mrs. Al-Baharna reaffirmed the Society’s dedication to leading the transition to a more sustainable banking environment and contributing to building a future that supports growth, in alignment with Bahrain’s sustainable development goals.
