Exchange in Focus: Saudi Exchange publishes ESG Disclosure Guidelines
5 November 2021
The Saudi Exchange recently launched its new ESG Disclosure Guidelines as a useful resource to aid issuing companies understand the context, characteristics and market best practices in environmental, social and corporate governance (ESG) disclosures. The guidance has been made available to the general public and includes definitions, benefits of reporting ESG aspects, recommendations for preparing a sustainability report, standards, international methodologies and performance indicators. The intention is to ensure the guidelines remain relevant and can act as a catalyst supporting the sustainable and inclusive growth of the Saudi capital market, for the benefit of all market participants.
“Saudi Exchange is one of the most liquid stock exchanges in the world and ranks among the top 10 largest exchanges globally by market capitalization. The decisions and practices investors and businesses undertake on Saudi Exchange have a direct bearing on the Kingdom’s ability to meet the targets set out in the United Nations Sustainable Development Goals (SDGs).” said Mohammed Al-Rumaih, CEO of Saudi Exchange in a Foreword to the new ESG disclosure guidance. “Working with issuers to support their ESG journey’s is fundamental for the advancement of the Saudi capital market. Together, we can harness Saudi Arabia’s financial might and channel it to accelerate inclusive, sustainable growth and support the global effort to realize the SDGs.”
In 2018, Saudi Exchange (formerly the Saudi Stock Exchange ‘Tadawul’) became a partner exchange supporting the UN Sustainable Stock Exchanges Initiative to promote ESG awareness initiatives and encourage sustainable investment, in collaboration with market participants such as issuers and investors.
Since then, Saudi Exchange has engaged with listed companies, standards-setters, index providers, ratings providers, investors, and other stock exchanges, through a myriad of mediums to help advance ESG disclosure in the Saudi capital market. The Exchange feels a responsibility to support the advancement of ESG in Saudi Arabia, and the wider region, and so it remains focused on raising awareness and encouraging listed companies to disclose on ESG.
Incorporating ESG into the way the financial ecosystem operates helps create an economically efficient and sustainable financial system that contributes to long-term value creation. Saudi Exchange has shown its responsibility to adopt international best practices, foster transparency of the Saudi capital market and support the global effort to implement SDGs goals.
For more information visit: www.saudiexchange.sa
SSE ESG Guidance Database
There are now 61 stock exchanges around the world that provide ESG disclosure guidance to their issuers. The SSE ESG Guidance Database contains a comprehensive list of all stock exchange ESG guidance documents in the world so that other stock exchanges can learn from their peers.About the SSE
The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.
