In the UAE, where the oil sector, in particular, has always dominated the capital flows, there has been a stark transition towards economic diversification and sustainability integration. And the UAE’s Net Zero 2050 commitment and the UAE Green Agenda 2030 are testimony to this. ESG reporting is not merely a compliance requirement but a strategic force behind this transition. With the help of SCA, and together with key market platforms such as the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM), the UAE has pursued localizing this global transition by designing a reporting framework that is not only contextual but also globally aligned. The framework created by the SCA has taken inspiration from the globally recognized ESG reporting standards such as the Sustainability Accounting Standards Boards (SASB), Global Reporting Initiative (GRI), and Task Force on Climate-related Financial Disclosures (TCFD). Meanwhile, it integrates region-specific considerations relevant to the UAE’s environmental footprint, social context, and governance priorities. This momentum is further backed up with Federal Decree-Law No. 11 of 2024 on climate change, which mandates large emitters to report greenhouse gas (GHG) emissions, as well as Cabinet Resolution No. 67 of 2024, which establishes a national Measurement, Reporting, and Verification (MRV) framework and carbon registry. These regulatory changes set up a robust operational and legal foundation for ESG data disclosure in accordance with the UAE’s climate strategy.
SCA, or Securities and Commodities Authority, is the UAE’s federal regulator for capital markets, which released its ESG Reporting Guide back in the year 2020 and started implementing the policy in phases, emphasizing more on the listed companies for extensive ESG disclosure.
Since then, the Guide has been backed by evolving disclosure tools from ADX and DFM, including the June 2025 ESG Disclosure Guide issued by ADX, therefore reflecting the latest global best practices in the sustainability ecosystem.
The ESG Reporting Guide is currently applicable to all entities listed on UAE capital markets, including those who are listed on ADX and DFM. The framework focuses on materiality, comparability, and transparency in ESG disclosures, impelling issuers to transition from moderate sustainability reporting to data-oriented and performance-driven sustainability reporting.
Due to the increased acidity of the ocean, the ocean chemistry experiences massive changes that adversely affect not just aquatic beings but also the human population.
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Due to the increased acidity of the ocean, the ocean chemistry experiences massive changes that adversely affect not just aquatic beings but also the human population.
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Due to the increased acidity of the ocean, the ocean chemistry experiences massive changes that adversely affect not just aquatic beings but also the human population.
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It is time the evolution of ESG reporting in the UAE shifted from disclosure to accountability. The next frontier lies in sectoral target-setting, performance benchmarking, and market-based incentives such as ESG index inclusion or preferential lending rates for high ESG performers.
What’s more, the introduction of mandatory GHG emissions disclosures under Federal Decree-Law 11/2024, together with the supposed rollout of the GCC-wide ESG KPIs, will expedite the transition from voluntary commitments to regulatory compliance and market differentiation.
The SCA is presumed to improve the framework further by introducing sector-specific ESG guidance, mandating climate-related financial disclosures under ISSB and TCFD, and developing a national ESG data repository for investors and regulators.
Sustainability consultants at Cognitud play a strategic, technical, and compliance-oriented role in helping businesses align with the UAE’s ESG Reporting Framework under the SCA. Their support goes beyond just reporting; it’s about building ESG maturity, credibility, and market competitiveness. Here’s how Cognitud, a growing ESG reporting services firm, typically helps:
Custom ESG Strategy Design: Our experts develop tailored ESG strategies aligned with the UAE’s Net Zero goals, integrating ESG into core business functions and risk frameworks. Sector-specific KPIs and science-based targets are defined to drive measurable impact.
Reporting & Disclosure Alignment: Cognitud structures ESG reports to meet SCA, ADX, and global ESG reporting frameworks and standards like ISSB and TCFD. Our advisors help clients report key metrics such as GHG emissions and social indicators using clear, data-driven disclosures.
Third-Party Assurance & Validation: To enhance credibility, Cognitud’s professionals assist with ESG data assurance by building audit-ready systems, advising on frameworks, and coordinating with external verifiers for independent validation.
Regional & Global Alignment: Cognitud ensures alignment with emerging regulations like the GCC ESG Metrics, UAE’s climate laws, and global frameworks such as TNFD and SDGs to maintain investor and regulatory relevance.
To summarize, Cognitud delivers comprehensive support that empowers businesses to meet the UAE’s ESG reporting requirements with strategic clarity, technical rigor, and forward-looking ambition. Our ESG services in the UAE and around the world are not just about compliance but about helping organizations turn ESG into a core driver of resilience, reputation, and responsible growth.
Abhigyan Gupta
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ESG reporting is the disclosure of a company’s environmental, social, and governance performance, enabling investors and stakeholders to assess risks, opportunities, and sustainability practices.
ESG reporting frameworks are standardized guidelines, such as GRI, SASB, and TCFD, that help companies disclose comparable, transparent, and material ESG information.
The UAE’s ESG framework, issued by the Securities and Commodities Authority (SCA), mandates listed companies to disclose material ESG data in line with global standards, aligning capital markets with national sustainability goals.
Companies conduct ESG reporting by identifying material issues, setting sector-specific KPIs, and disclosing metrics like GHG emissions and social indicators in line with SCA, ADX, and global frameworks such as ISSB and TCFD.
Yes. ESG reporting is mandatory for entities listed on UAE capital markets under SCA’s ESG Reporting Guide, with requirements increasingly tied to climate laws and GCC-wide disclosure standards.
