The UAE Sustainable Finance Working Group, coordinated by the ADGM Financial Services Regulatory Authority, issued its fourth statement summarising progress across four workstreams covering sustainability-driven corporate governance, sustainability-related disclosures, the UAE Sustainable Finance Taxonomy and climate transition planning. The update also introduces newly issued Climate Transition Planning Principles intended to provide a structured framework for UAE financial institutions and corporates to prepare, govern and disclose credible information on climate transition strategies. Across the workstreams, the statement references the Principles for Effective Management of Climate-Related Financial Risks issued in November 2023, the Sustainability Disclosure Principles for Reporting Entities launched in 2024 (including alignment with International Sustainability Standards Board standards), and ongoing work on a UAE Sustainable Finance Taxonomy, building on the 2023 Summary of General Principles that includes a traffic light classification approach and minimum social safeguards. The Climate Transition Planning Principles, based on a consultation paper published in 2025, emphasise board and senior management accountability, integration of transition planning into governance, scenario analysis and risk management, and the use of data and indicators to demonstrate alignment between transition plans and climate goals, with scope for potential sector-specific regulatory requirements. The Working Group indicated it will focus next on supporting implementation of the principles across UAE markets, guided by proportionality, international alignment and ongoing stakeholder consultation.

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