The Muscat Stock Exchange (MSX) has introduced comprehensive environmental, social, and governance (ESG) guidelines. These new guidelines aim to support public joint stock companies in Oman in effectively reporting their ESG performance, reflecting the growing importance of these factors in assessing a company's non-financial performance and providing crucial insights for investors.
The MSX ESG disclosure guidelines are designed to enhance transparency and reliability in ESG reporting. Outlined within the guidelines are 30 specific metrics to measure a company's impact on environmental sustainability, social responsibility, and governance. These include key areas such as carbon emissions, labor practices, and Board diversity. Aligning with the Gulf Cooperation Council’s 2022 ESG Disclosure Metrics for Listed Companies, the guidelines also introduce regional initiatives to reduce single-use plastics, minimize paper waste, and promote recycling and clean energy use.
The guidelines support Oman’s "Vision 2040," which highlights the nation's commitment to inclusive and sustainable economic development. From 2025, public companies will be required to publish standalone ESG reports according to the Global Reporting Initiative (GRI) Universal Standards. These reports must document various performance metrics, including energy management, sustainability oversight by senior management, gender equality measures, and diversity at different organizational levels.
While companies are encouraged to begin voluntary reporting in 2024 (covering activities from 2023), ESG reporting will become mandatory for public companies from 2025 (covering activities from 2024), with the initial mandatory reports due by 31 March 2025. As these guidelines come into effect, we anticipate seeing significant progress in Oman’s corporate sector toward greater sustainability and social responsibility.
For more information on ESG disclosure guidelines, check out the link below:
https://www.msx.om/MSMDOCS/downloads/ESG-MSX-E.pdf
For more information on ESG, check out the link below:
https://www.msx.om/page.aspx?b1=SUSTAINABLE-INVESTMENTS&b2=ESG&pg=ESG&t=Pages&ti=ESG