In 2023, the UAE’s Sustainable Finance Working Group (SFWG) published the Principles for the Effective Management of Climate-related Financial Risk, which sets seven principles that financial regulators in the UAE are expected to abide by to effectively manage climate-related financial risks.
Principle 5 requires financial firms to implement monitoring and reporting systems that are “capable of producing relevant, accurate and timely information”. Information generated from these systems, including any reporting gaps, must then be reported to the board, senior management or other stakeholders. These principles were adopted by four regulators in the UAE, including the Securities and Commodities Authority (SCA), Dubai Financial Services Authority (DFSA) and Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) and the Central Bank of the UAE.
