Bahrain Bourse Promotes Integration of Environmental, Social, and Governance Best Practices

Saturday, January 18, 2020

Bahrain Bourse signed a Memorandum of Understanding on January 16, 2020 with the advisory firm Sustainability Excellence which aims to formalize the deployment of a series of strategic sustainability initiatives aimed at further enhancing transparency and disclosure of sustainability/ESG information among Bahrain Bourse listed companies.

The MoU is aimed at deploying Environment, Social and Governance (ESG) -related initiatives that would enable Bahrain Bourse to promote ESG and sustainability values and practices among its listed companies and investors as well as internally. The scope includes deployment of a series of engagement sessions with the listed companies, conducting workshops to encourage dialogue between investors and listed companies on key ESG issues, and developing a collaborative research report on the status of sustainability in Bahrain’s capital market based on key ESG information.

Commenting on the signing of the MoU, Sh. Khalifa bin Ebrahim Al-Khalifa Chief Executive Officer of Bahrain Bourse stated, “Through Bahrain Bourse’s voluntary commitment in the United Nations Sustainable Stock Exchanges (SSE) initiative, we remain strongly committed towards driving sustainability within the capital markets, both as an internal capacity building as well as increasing transparency within sustainability & ESG information across listed companies. We have set a comprehensive sustainability action plan to engage with listed companies and support their new sustainability journey.”

“Our focus on sustainability and ESG information stems from growing demands of international investors and rating agencies for listed companies to address ESG information within their core reporting. The initiative aims to encourage listed companies to embrace ESG development practices which will ultimately enhance market competitiveness.” added Sh. Khalifa.

Darin Rovere – Founder and CEO of Sustainability Excellence said: “Environmental, social and governance (ESG) issues should be a priority for corporate management and boards. Investors, credit rating agencies, sovereign wealth funds, banks, stock exchanges, and regulators are assessing and monitoring the companies’ ESG reporting and performance because of the evidence-based view that ESG is critical to the long-term competitive success of companies and financial performance. We are pleased to support Bahrain Bourse efforts in promoting ESG disclosure among the listed companies and financial markets.”

In 2019, Bahrain Bourse announced it officially joined the United Nations Sustainable Stock Exchanges (SSE) initiative to demonstrate its voluntary commitment to promoting sustainable and transparent capital markets. The SSE initiative focuses on sustainable disclosure of environmental, social and governance (ESG) factors. Bahrain Bourse has also conducted an awareness workshop for its listed companies to highlight the importance of ESG disclosure in meeting growing investors’ demands during September 2019.