2 days ago
DFSA Launches Climate Transition Planning Principles for Financial Institutions
The Dubai Financial Services Authority (DFSA) and members of the UAE Sustainable Finance Working Group (SFWG) have launched a public consultation on new draft 'Principles for Climate Transition Planning,' aiming to strengthen the UAE's sustainable finance framework.
The proposed principles are designed to guide financial institutions in building robust, transparent, and forward-looking climate transition strategies. These strategies align an organisation's goals, governance, risk management, and operations with its climate commitments.
The framework outlines eight core areas: setting transition objectives, governance, integration into strategy and risk management, metrics and targets, data and customer engagement, reporting and transparency, implementation, and regular review.
The DFSA stated that the principles are intended to be applied proportionately across a broad range of financial entities, offering flexibility to adapt to evolving international standards.
By incorporating climate-related risks and opportunities into core business decisions, the initiative is expected to support more resilient financial planning, promote sustainable product development, and contribute to national and global climate goals.
The consultation represents another step in the SFWG's efforts to align the UAE's finance sector with its broader sustainability ambitions.
News Source: Emirates News Agency
