The UAE Sustainable Finance Working Group, which includes the UAE Securities & Commodities Authority, published its fourth statement outlining progress across four workstreams and released new Climate Transition Planning Principles to guide financial institutions and companies in preparing, governing and disclosing credible transition strategies. The update covers sustainability-oriented corporate governance through the November 2023 Principles for the Effective Management of Climate-related Financial Risks, and sustainability-related disclosures via the 2024 Sustainability-related Disclosure Principles for Reporting Entities, which aim to improve consistency and transparency and align local practices with global standards including the International Sustainability Standards Board (ISSB). On the UAE sustainable finance taxonomy, the group is continuing to assess a market-aligned, internationally interoperable design, building on its 2023 high-level principles that included a traffic-light classification approach and minimum social safeguards. The newly issued transition planning principles, developed following a 2025 consultation, emphasise board and senior management accountability, integration into governance, scenario analysis and risk management, and the use of data and metrics; the group also notes it may develop sector-specific regulatory requirements while retaining flexibility as international standards evolve. Looking ahead, the working group will focus on supporting implementation and practical application of the principles across UAE markets, using proportionality, international alignment and ongoing stakeholder consultation as guiding approaches.

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