Summary
In 2019, the Abu Dhabi Securities Exchange (ADX) issued a guidance document titled "Environmental, Social and Governance (ESG) Disclosure Guidance for Listed Companies" to encourage and assist companies listed on the exchange to improve their ESG reporting practices. The guidance document recommends that companies disclose information on ESG factors, such as environmental impacts, labor practices, human rights, community involvement, corporate governance, and ethical conduct. It also provides guidance on reporting formats and performance indicators that can be used to measure and report on ESG issues. The guidance document suggests that companies adopt a principles-based approach to ESG reporting, and that they provide clear and concise information that is relevant and material to their business operations. It also recommends that companies seek input from stakeholders, such as investors, customers, employees, and local communities, to identify and address ESG issues that are important to them. The ADX ESG guidance document is intended to promote greater transparency and accountability in ESG reporting by listed companies, and to help investors make more informed investment decisions based on ESG factors.