IFRS S1 & IFRS S2: new Sustainability Disclosure Standards

UAE is a recognised ESG pioneer in the MENA region. COP28, numerous environmental projects, and the UAE 2050 Net Zero Pathway initiative all attest to the UAE’s commitment to sustainable development.

Challenges related to monitoring and analysing results form part of any strategy implementation. Therefore it is essential to have a correct system of reporting in place. Companies based in the UAE are required to disclose ESG information in their annual reports, in accordance with globally recognised standards (GRI, TCFD, etc.) according to the guidance issued by UAE’s Securities and Commodities Authority in 2020.

In accordance with these standards, entities are required to disclose relevant and comparable sustainability information that reflects the ability of entities to ensure cash flows, access to finance, and the cost of capital over the short, medium, and long term for the purposes of assisting investors in their decision making.

The new standards could represent a turning point in the global and UAE reporting environment. Below we look in detail at what they mean for business.