The UAE Securities and Commodities Authority published an update on the UAE Sustainable Finance Working Group’s (WFWG) fourth statement, released during Abu Dhabi Financial Week 2025, summarising progress across four workstreams and introducing Climate Transition Planning Principles for the UAE market. The statement covers sustainability-driven corporate governance through the Principles of Effective Climate-Related Financial Risk Management Framework (released in November 2023), and sustainability disclosures via the 2024 Sustainability Disclosure Principles for Reporters, aimed at consistent entity- and product-level reporting aligned with global standards including the International Sustainability Standards Board (ISSB). It also outlines work to design a UAE sustainable finance classification and rating system with international interoperability, building on 2023 general principles that include a traffic-light approach and minimum social safeguards. The newly released Climate Transition Planning Principles, developed from a 2025 consultation paper, set out a framework for financial institutions and companies to prepare, govern and disclose transition plans, integrating governance, scenario analysis, risk management, and data and indicators. The WFWG, coordinated by the Financial Services Regulatory Authority at Abu Dhabi Global Market and comprising financial regulators, ministries and financial markets, indicated it will focus on implementation and practical application of its principles across UAE markets, with future work guided by proportionality, international harmonisation and ongoing stakeholder consultation, and may develop sector-specific regulatory requirements.

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