The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has announced its latest sustainability initiatives, including new guidelines for ESG-focused investment vehicles, during the Abu Dhabi Sustainable Finance Forum (ADSFF) 2024. The forum, a flagship event of Abu Dhabi Finance Week (ADFW), highlighted ADGM’s commitment to advancing sustainable finance and tackling greenwashing within the financial sector.
The new guidance represents a key milestone in ADGM’s efforts to align with global best practices. It aims to ensure transparency, accountability, and integrity in ESG-focused investment products, supporting investors, issuers, and market participants in achieving meaningful environmental, social, and governance outcomes. Emmanuel Givanakis, CEO of the FSRA, described the initiative as a crucial step in establishing ADGM as a leader in sustainable finance. “This guidance strengthens the trust placed in our regulatory framework and empowers stakeholders to contribute to the global sustainability agenda,” he said.
ADGM has been at the forefront of sustainable finance initiatives in the region, implementing a comprehensive regulatory framework that includes the region’s most extensive ESG disclosure requirements, green and climate transition fund designations, and mechanisms for issuing green and sustainability-linked bonds and sukuks. Additionally, the FSRA has addressed the risks of greenwashing and collaborated on the UAE Sustainable Finance Working Group’s Third Public Statement.
By leveraging the ADSFF platform, which convenes policymakers, industry leaders, and innovators to explore actionable strategies for tackling environmental and social challenges, the FSRA has further demonstrated its proactive role in advancing the UAE’s sustainability goals. These efforts also contribute to the broader global transition to a low-carbon economy, reinforcing ADGM’s position as a hub for sustainable financial practices.
