GCC moves towards standardising ESG disclosure

The Gulf Co-operation Council (GCC) is fast moving towards standardising ESG (environment, social and governance) disclosure across the region.
In this regard, the GCC Exchanges Committee, chaired by the Saudi Exchange, Monday published a unified set of ESG disclosure metrics.
The metrics comprise several standards that are aligned with the UN Sustainable Development Goals and include categories across GHG (Greenhouse gas) emissions, energy usage, water usage, gender pay, employee turnover, gender diversity, data privacy, ethics and more.
The GCC ESG disclosure metrics are an important step towards standardising ESG disclosure across the GCC region, accounting for regional sensitivities, according to the Qatar Stock Exchange (QSE).
The metrics are optional and serve as a guide for companies wishing to disclose ESG-related performance. The metrics do not replace existing ESG disclosure guidelines for GCC stock exchanges.
"In the Gulf, the QSE has been a pioneer in promoting practices that underpin sustainable investment metrics," QSE acting chief executive officer Abdulaziz al-Emadi said, highlighting that in 2018, the bourse launched the first sustainability platform in the region to encourage listed companies to disclose their reports on sustainable development.
Sustainable investments represent an opportunity for the GCC countries to diversify their economies and promote long-term inclusive growth, according to him.
"With issuing the unified ESG metrics for GCC-listed companies, the GCC exchanges succeeded to create a framework that stimulates their partnerships and develop their investment attractiveness," he said.
The GCC Exchanges Committee - comprising Bahrain Bourse, Boursa Kuwait, QSE, Muscat Stock Exchange, Saudi Exchange, Abu Dhabi Securities Exchange and Dubai Financial Market - aims to support the development of regional capital markets, create an advanced capital market ecosystem in the GCC region, and elevate their position on the global stage.