Dubai: The Dubai Financial Services Authority (DFSA), in collaboration with other members of the UAE Sustainable Finance Working Group (SFWG), has initiated a public consultation on the draft ‘Principles for Climate Transition Planning’ (the Principles). This initiative represents a significant step in the SFWG’s ongoing mission to bolster the sustainable finance ecosystem within the UAE.
According to Emirates News Agency, the draft Principles aim to assist financial institutions in crafting credible, transparent, and effective climate transition plans. These plans are strategic frameworks designed to align an organisation’s goals, governance, risk management, and operations with its climate objectives.
The draft Principles address eight critical areas: setting transition objectives; governance; integration into strategy and risk management; metrics and targets; data and customer engagement; reporting and transparency; implementation; and periodic review and updates.
The proposed Principles are set to be applicable across a broad spectrum of financial institutions. They are crafted to be adaptable and forward-looking to accommodate the evolving nature of global standards. By integrating climate risks and opportunities into financial decision-making, transition planning aims to enhance firms’ risk management, inform strategic and product development, and support broader climate policy goals.
