BUSINESS SUSTAINABILITY: Regulator envisions voluntary ESG reporting initially, with mandatory reporting and even auditing to follow at a later stage
The Capital Market Authority (CMA) of the Sultanate of Oman says it is committed to introducing Environmental, Social and Governance (ESG) reporting guidelines for companies listed on the Muscat Stock Exchange (MSX), but initially for voluntary implementation only before it becomes mandatory sometime later.
CMA Executive President Shaikh Abdullah al Salmi said the globally accepted criteria for evaluating a company’s broad commitment to sustainability, will be eventually rolled out for implementation by MSX-listed businesses.
“We are (going to introduce) it gradually”, Al Salmi said. “Presently, in the Corporate Governance Code for listed companies, they are required to report on Corporate Social Responsibility (CSR) and Corporate Governance, which appears as a very small part of their annual reports. As for ESG, we are not yet ready to make it compulsory, but we are going to make it voluntary and see how it will go. Ultimately, there will be compulsory reporting and possibly even compulsory auditing as well for listed companies, on what they are doing with regard to ESG.”
The Executive President made the comments during a panel discussion focusing on the theme, ‘Funding the Future: Exploring Sustainable Finance and ESG Investing’. The event, held last week as part of Oman Sustainability Week 2022’, also featured as fellow panellists Tahir al Amri, Executive President – Central Bank of Oman; Rehab al Lawati, Chief Operating Officer – Rakiza Fund (Oman Investment Authority) and Spyros Kouvelis, Director – EPLO Institute for Sustainable Development (Greece). William R Crew, Founder & CEO – Inspired Solutions, was the moderator.
The issue of ESG reporting for listed companies in the Sultanate of Oman has been on the CMA’s radar for some time, according to the Executive President. To this end, the Muscat Stock Exchange recently set up a dedicated department to help drive ESG forward in the Omani capital market, he said.
“This department is communicating with listed companies, guiding them on how to deal with ESG, and so on. We are taking ESG seriously and will need to see some progress in this regard”, he added.