The Bahrain Association of Banks (BAB) plans to initiate specialised training and awareness initiatives focused on the implementation of environmental, social and corporate governance (ESG) within banks and companies. 

 

This initiative aligns with the recently issued directive by the Central Bank of Bahrain, mandating the incorporation of ESG requirements in the annual reports of listed and licensed companies, encompassing all financial and banking sector institutions.

 

These training programmes are designed for companies listed on the Bahrain Bourse, as well as banks, finance companies, insurance companies, and investment firms licensed by the Central Bank of Bahrain. 

 

Collaborative effort

The implementation of these programmes will be a collaborative effort between BAB, represented by the Sustainability Committee and the Human Resources Committee, and the Bahrain Institute of Banking and Finance (BIBF). Additionally, financial auditing firms will play a crucial role in educating employees across the financial sector on the principles of environmental, social, and corporate governance. The goal is to equip them with the requisite knowledge and skills, enabling them to effectively address environmental, social, and institutional requirements.

 

Dr Waheed Al Qassim, the Chief Executive Officer of BAB, emphasised the strategic significance of the Central Bank of Bahrain's decision to enforce ESG requirements within banks and companies. 

 

According to Dr Al Qassim, this decision underscores Bahrain's remarkable achievement in aligning economic and social development goals while ensuring financial stability in line with the United Nations Sustainable Development Goals, particularly in fostering sustainability within the banking sector.

 

Due diligence

Dr Al Qassim said the training programmes are designed enhance the skills of professionals within the financial sector related to sustainability. The aim is to empower them with the knowledge to conduct thorough due diligence, proficiently interpret, comprehend, and compile ESG reports. 

 

He underscored the pivotal role of these programmes as a transformative stride toward establishing a sustainable financial market. He said they will contribute to improving transparency in the disclosure processes related to the sustainability performance of financial institutions and advance corporate governance standards within the financial and banking sector.--TradeArabia News Service