ESG future-proofing

The ESG reporting landscape can appear a daunting one to navigate, full of unfamiliar terminology and conflicting information. And with local and international standards continually evolving as we move towards a more sustainable financial market, it is crucial not to get left behind.

Nowadays, ESG has become integral to the way organisations conduct their business. Done well, it is an effective tool for stakeholders to better examine a company’s efficiency, sustainability, and risk exposure – and it is increasingly shown to have positive impacts on long term performance, through:

• Investor attraction: for many investors, ESG is built into their decision-making processes. A company conveying consistent and comparable ESG performance gains a competitive edge and can attract more investment.
• Risk management: ESG performance is intrinsically linked to a company’s future viability. ESG reporting can flag and address potential risks, as well as identify new opportunities.
• Reputation enhancement: companies that report on ESG can improve their public image, building trust and loyalty among stakeholders.

With the announcement of the Central Bank of Bahrain’s Environmental, Social and Governance Requirements Module (“Module ESG”), reflecting the nation’s commitment to the UN Sustainable Development Goals, now is the perfect time to get ahead of the curve with your ESG obligations.

Under the upcoming regulations, which come into effect in 2024 (with reporting commencing 1 Jan 2025) all listed companies and financial institutions licenced by the CBB must submit an annual ESG report, using a standardised set of ESG metrics with clear definitions and guidance.

However, we know that beginning your ESG journey is not always straightforward – you may not know where to start when it comes to identifying which metrics are most relevant for your business, or how to go about the arduous task of data collection and analysis.

Partnering with an experienced service provider as you set out on your ESG journey enables you to make sense of the complexity, laying the groundwork for smooth, streamlined reporting going forwards. They can help you develop a data collection plan that outlines the indicators to be tracked, taking into account both quantitative and qualitative data sources, internal and external data – providing you with a robust annual report that demonstrates to regulators, investors, and the market your ESG credentials.

How can Yasira help?
Yasira is an independent, end-to-end provider of professional administration solutions to fund managers, family offices, sovereign wealth funds and banks. Our agile operational and administrative framework allows our clients to adapt to whatever challenge may arise, as we guide you through regulatory and reporting complexity to reach maximum efficiency. We have a comprehensive understanding of both local and international frameworks and reporting requirements, allowing you to conduct your business safe in the knowledge that your regulatory obligations are being met.