Thursday 04 November 2021
Books – Mustafa Eid:
Dr. Mohamed Omran, Chairman of the Financial Supervisory Authority, called on all financial market regulators in developing countries to quickly finalize the issuance of standards for companies’ preparation of sustainability and climate change disclosure reports within their markets in order to become more attractive to many international investment institutions, according to a statement from the Financial Supervisory today, Thursday.
This demand came from Omran in his capacity as Chairman of the Growth and Emerging Markets Committee of the International Organization of Financial Market Supervisory Authorities (IOSCO), during his participation in the 26th session of the United Nations Conference of the Parties to Climate Change “COP26” in Glasgow, Scotland.
During his speech at the meeting organized by the Green Finance Institute in cooperation with the City of London Foundation entitled “Green Horizon Summit” today, Omran said that international investment institutions have reformulated their strategies to meet the challenges of climate change and adopted the principles of sustainability and the shift towards supporting a green economy and environmentally friendly projects.
He also stressed that these reports will reflect the extent of professional commitment on the part of financial market observers, and reveal the ability of companies to apply the principles of sustainable development, thus generating confidence among green economy investors and enabling them to make informed investment decisions by identifying risks and opportunities that may not be monitored by traditional financial reports. .
Omran added that this is in line with the world’s growing interest in implementing the principles and goals of sustainable development since they were announced in 2015.
Omran called on the supervisory and regulatory authorities on the financial markets in emerging markets to be part of the solution by providing incentives for financial instruments related to sustainability (such as green bonds and sukuk) to reduce the consideration for their services for examination and study, as well as the establishment of multiple market parties from stock exchanges, asset managers and brokerage practitioners in Securities, settlement and central depository shall reduce the fees for their services upon completion of registration and trading.
The meeting, organized by the Green Finance Institute in cooperation with the City of London Corporation, provides a platform to engage in a practical dialogue to accelerate investment flows for green and environmentally friendly projects, and to mobilize funding from governments and the private sector to meet global commitments towards climate change, with the participation of a number of representatives of international financial institutions.
Omran welcomed the announcement by the International Financial Reporting Standards Foundation (IFRS) of the establishment of the International Sustainability Standards Board (ISSB), which will develop a comprehensive global basis for sustainability disclosure standards to meet the needs of investors.
He pointed out that financial markets need to assess the risks and opportunities facing companies that arise from environmental, social and governance (ESG) issues, because of their effects on the value of the institution.