ESG Reporting in Jordan: Building Sustainable Finance and Corporate Resilience
An evolving journey toward transparency, growth, and impact
Jordan is steadily advancing its ESG agenda, with growing regulatory guidance, pioneering corporate action, and clear alignment with national sustainability goals. The focus is shifting from voluntary initiatives to more structured frameworks that drive both financial performance and social impact.
The Regulatory Foundation
The Amman Stock Exchange introduced Sustainability Reporting Guidance in 2018 to help listed companies align with international ESG standards. In 2023, the Central Bank of Jordan released its Green Finance Strategy, signaling its intention to integrate ESG principles into financial regulation.
Corporate Pioneers in ESG
Jordan Ahli Bank became the first bank in the country to publish GRI-certified sustainability reports and establish a board-level Sustainability Committee. Bank ABC Jordan released its first Sustainability Report in 2023 and followed with a second in 2024, including measurable ESG KPIs and alignment with national climate goals.
ESG Journey by Jordan Kuwait Bank
Jordan Kuwait Bank published its fifth annual ESG Report in 2024, built on GRI standards, ASE guidance, and the UN SDGs. A double materiality assessment guided its strategy, structured around environment, society, governance, and innovation. The bank’s strong profit growth reflects the success of its ESG integration.
ESG Outperforms: Evidence from Jordanian Banks
A study of 15 listed banks between 2009 and 2023 found a positive correlation between ESG performance and financial metrics. Each one-point increase in Bloomberg ESG scores was associated with measurable gains in both profitability and market value.
Challenges and National Strategy Alignment
ESG adoption in Jordan remains uneven due to gaps in data infrastructure, reporting standardization, and capacity. Vision 2025 calls for improved ESG training, stronger disclosure requirements, regulatory development, and incentives for green financing.
Strategic Priorities for Jordan
Key steps include mandating ESG reporting for state-owned and listed entities, finalizing a national ESG taxonomy, promoting sustainability-linked finance, and using digital platforms to enhance disclosure and transparency.
Why It Matters for Jordan
Robust ESG reporting builds investor trust, strengthens operational resilience, and supports long-term financial growth. It also positions Jordan as a potential ESG leader in the region, balancing climate action with economic ambition.
