The Islamic Financial Services Board has published for consultation an exposure draft guidance note for regulatory and supervisory authorities on sustainability-related issues and climate-related financial risks in ṣukūk. The draft is intended to address issues that arise from ṣukūk structures and that can affect how sustainability-related claims are interpreted and assessed, while also complementing existing international standards and guidance. The draft covers two main areas. On sustainability-related issues, it addresses the basis and scope of sustainability-related claims, their continuing assessment over the life of an issuance, and the role of external reviews and sustainability-related assessments. On climate-related financial risks, it addresses risks linked to underlying assets, changes in risk profiles caused by asset substitution or replenishment, and methodologies for assessing climate-risk exposures across different ṣukūk structures. Comments are invited until 4 September 2026. The Islamic Financial Services Board will also hold a public hearing webinar on 17 August 2026 to present the draft and take questions from stakeholders.
Islamic Financial Services Board2026-07-21
Islamic Financial Services Board launches consultation on guidance for sustainability claims and climate-related risks in ṣukūk
The Islamic Financial Services Board has opened a consultation on draft guidance for regulatory and supervisory authorities covering sustainability-related issues and climate-related financial risks in ṣukūk. The draft focuses on how ṣukūk structures affect sustainability claims, ongoing assessments, external reviews, and climate-risk analysis of underlying assets and structural changes. Comments are due by 4 September 2026.