The ADGM Financial Services Regulatory Authority (FSRA) published an update on its 2025 sustainable finance work, highlighting a consultation on proportionate requirements for Authorised Persons to consider and manage climate-related financial risks that may be material to their businesses, alongside continued work on climate transition planning. Consultation Paper No. 13 of 2025 proposes enhancements that include integrating climate-related financial risks into capital adequacy assessments and public disclosure, with expectations calibrated to risk materiality and the nature, size and complexity of the relevant business, and incorporates specific guidance for Recognised Bodies. The FSRA also referenced earlier elements of its sustainable finance framework, including ESG disclosure requirements, voluntary designations for green and climate transition funds and portfolios, a framework for regulating environmental instruments such as carbon offsets, and regulatory expectations aimed at mitigating “greenwashing” risks. In parallel, the update notes the FSRA’s support for the UAE Sustainable Finance Working Group’s forthcoming Principles for Climate Transition Planning, covering governance, integration into business strategy, data and metrics, stakeholder engagement, and reporting and disclosure. The consultation period for the climate-related financial risks proposals runs until 30 January 2026, and the transition planning principles are described as soon to be published.

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