ADGM FSRA highlights ESG-focused investment vehicle guidance and sustainability-related initiatives at ADSFF 2024 

The Financial Services Regulatory Authority (FSRA) of ADGM showcased its sustainability-related initiatives, including the issuance of its guidance for ESG-focused investment vehicles, during the Abu Dhabi Sustainable Finance Forum (ADSFF) 2024, hosted as a flagship event of Abu Dhabi Finance Week (ADFW). The published guidance acts as a significant step in reinforcing ADGM's unwavering commitment to fostering sustainable finance and combating greenwashing practices in the financial sector.

Reflecting the FSRA’s dedication to aligning with global best practices, the latest guidance ensures transparency, accountability, and the integrity of ESG-focused investment products. It forms a key component of ADGM’s broader sustainable finance vision, aimed at supporting investors, issuers, and market participants in driving positive environmental, social, and governance outcomes.

Commenting on the issuance of the guidance, Emmanuel Givanakis, CEO of the FSRA of ADGM said, “The issuance of our guidance for ESG-focused investment vehicles marks an important step in ADGM’s journey to establishing leading sustainable finance practices within its ecosystem. Through initiatives like this, we aim to strengthen the trust that the financial services sector and investors have placed in our robust regulatory framework, while also empowering stakeholders to contribute meaningfully to the global sustainability agenda.”

Over the past few years, the FSRA has undertaken a number of initiatives to further ADGM’s leadership in sustainable finance. These include the implementation of a comprehensive Sustainable Finance regulatory framework and the release of the UAE Sustainable Finance Working Group’s Third Public Statement. Besides the aforementioned guidance to address risks of greenwashing, ADGM’s robust regulatory framework for sustainable finance includes the region’s most comprehensive ESG disclosure requirements for appropriate entities within ADGM, a markets framework that includes Environmental Instruments and designations for green and climate transition funds and portfolios, green and sustainability-linked bonds and sukuks.

By leveraging ADSFF’s premier platform, which facilitates dialogue by bringing together policymakers, industry leaders, and innovators to explore actionable strategies for addressing pressing environmental and social challenges, the FSRA has underlined ADGM’s collective efforts and proactive role in advancing the UAE’s sustainability agenda and supporting the global transition to a low-carbon economy.