KUWAIT CITY - The Capital Markets Authority (CMA) is exploring the implementation of a mandatory requirement for the disclosure of sustainability reports among listed companies, currently submitted voluntarily.

This initiative aims to enhance transparency and commitment to sustainable development practices across various sectors.

Sources revealed that under Law No. 7 of 2010 and its amendments, companies are permitted to submit sustainability reports voluntarily.

At present, twenty-one listed companies provide these reports, adhering to the Global Reporting Initiative standards, with only one exception.

These reports align with both the United Nations Sustainable Development Goals and the Kuwait Development Plan 2035. The CMA is considering a phased approach to make sustainability reporting compulsory, starting with companies listed on the first market, where reporting is already more frequent.

The proposed regulations are expected to improve compliance with CMA rules, boost company profitability and competitiveness, manage governance-related risks, and enhance stakeholder confidence.

Currently, companies disclose sustainability information in various formats: some include it in their annual reports, others issue standalone reports, and some provide integrated reports.

The CMA’s study will assess the feasibility of mandatory reporting and set timelines for its implementation.

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