DUBAI: As part of its leading role amongst regional exchanges as well as its status as ‘The World Class Regional Market place, the Dubai Financial Market (DFM) has launched its Sustainability Strategic Plan 2025 aimed at underpinning its continuous efforts to promote Environmental, Social and Governance (ESG) best practices amongst listed companies and other stakeholders.
This strategy aims to create long-term shared value for DFM stakeholders and ultimately lead to position the exchange as the region’s leading sustainable financial market by 2025. The four pillars of the DFM Sustainability Strategy are; Sustainability Reporting & Disclosures, Sustainable Investment Education, Green Products & Listings, and Gender Balance & Empowering People
In order to streamline the implementation of the Sustainability Strategy, the Dubai Financial Market (DFM) has formed a Sustainability Committee that will focus on creating awareness amongst local and regional investors and other stakeholders to further solidify Dubai’s position as a regional investment hub and contribute to Dubai’s and the UAE’s sustainable development agenda, in line with the global Sustainable Development Goals (SDGs).
The committee is going to play a crucial role in embedding DFM’s sustainability policy and practices across DFM business operations to ensure long-term corporate survival including material risk mapping, environmental and social development initiatives.
The committee will also launch a series of initiatives to increase awareness on the importance of ESG investing and encourage listed companies to adopt ESG reporting practices, which reinforces their ability to attract investments, access finance and enter new markets through good governance practices.
His Excellency Essa Kazim, Chairman of DFM said: “Since 2016, the DFM has been actively promoting best practices of sustainability amongst market participants and we are looking to become the region’s leading sustainable financial market by 2025 through the creation of long-term shared value for our various stakeholders. The Plan is a stepping-stone for DFM’s extensive efforts to drive change and development in the capital markets sector in the UAE and the region. It also underscores our commitment to align our efforts with Dubai’s Sustainability and green economy drive as well as its status as the capital of Islamic economy globally, especially given that responsible investing, sustainability and environment protection are some of the key objectives of Islamic sharia’a.
For this purpose, the DFM is prioritizing sustainability in every aspect of its corporate strategy and organizational operations. We are actively promoting sustainability amongst our issuers, encouraging them to expand in ESG reporting considering its growing significance amongst factors affecting investment decisions as well as educating investors on the principles of responsible investment.
It is noteworthy that the DFM is cooperating with international and local entities to promote ESG best practices by organizing workshops for brokers, investors, analysts and listed companies about the evolving trends of ESG reporting and investing. The DFM is an active contributor in the United Nation’s Sustainable Stock Exchanges (SSE) initiative advisory groups on sustainability and responsible investing matters.
Edited by Nayyar Iqbal