ESG Reporting in Bahrain: From Voluntary Disclosure to Mandatory
Bahrain is making a decisive move toward sustainability by shifting from voluntary ESG disclosure to binding standards that align with global best practices.
Early Momentum in Capital Markets
In 2020, Bahrain Bourse (BHB) introduced voluntary ESG guidelines for listed companies, featuring 32 core metrics aligned with the GRI and UN SDGs. This laid the groundwork for structured sustainability reporting.
Central Bank Raises the Bar
On 5 November 2023, the Central Bank of Bahrain (CBB) issued a mandatory ESG reporting framework for listed companies, banks, insurers, financing houses, and major investment firms. The first reports—covering 2024 data—will be due in 2025.
Global Standards, Local Vision
The new framework incorporates Scope 1, 2, and 3 emissions, double materiality, and robust environmental, social, and governance metrics. It supports Bahrain’s Economic Vision 2030, the UN SDGs, and its membership in the Sustainable Stock Exchanges Initiative.
Why It Matters
Mandatory ESG reporting will:
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Provide consistent, credible data for investors
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Strengthen corporate resilience and risk management
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Open doors for green bonds and climate-aligned finance
Looking Ahead
The priority now is implementation—ensuring strong governance, reliable data systems, and meaningful ESG integration across sectors. Bahrain’s regulatory leadership positions it to compete globally while advancing a sustainable financial future.
