The ADGM Financial Services Regulatory Authority (FSRA) set out its latest sustainable finance work, centred on a new consultation on proportionate requirements for Authorised Persons to identify, assess and manage climate-related financial risks that may be material to their businesses, alongside support for forthcoming UAE principles on climate transition planning. Consultation Paper No. 13 of 2025 proposes enhancements that calibrate expectations to risk materiality and to the nature, size and complexity of the business. The proposals include integrating climate-related financial risks into capital adequacy assessments and public disclosure, and adding specific guidance for Recognised Bodies. The update also noted that the FSRA contributed to the UAE Sustainable Finance Working Group’s soon-to-be-published Principles for Climate Transition Planning, which set foundational guidance on governance, integration into business strategy, data and metrics, stakeholder engagement, and reporting and disclosure. The consultation on climate-related financial risk requirements is open until 30 January 2026.
ADGM Financial Services Regulatory Authority 2025-12-11
ADGM Financial Services Regulatory Authority consults on proportionate climate-related financial risk requirements and advances UAE climate transition planning principles
The ADGM Financial Services Regulatory Authority has launched a consultation on climate-related financial risk requirements for Authorised Persons, focusing on risk materiality and business complexity. Proposed enhancements include integrating these risks into capital adequacy assessments and public disclosures, with specific guidance for Recognised Bodies. The FSRA also contributed to the UAE Sustainable Finance Working Group's upcoming Principles for Climate Transition Planning.