Draft circular published on phased implementation of IFRS sustainability disclosure standards

Muscat: The Financial Services Authority (FSA) has published a draft circular outlining the phased implementation of the IFRS Sustainability Disclosure Standards within the non-banking financial services sector in the Sultanate of Oman, for the purpose of public consultation and feedback.

This initiative reinforces the Sultanate of Oman's strides in sustainability within the targets of Oman Vision 2040, alongside its commitment to achieving net-zero carbon emissions by 2050. The integration of internationally recognised sustainability disclosure standards into the financial ecosystem is expected to improve the quality, comparability, and reliability of sustainability-related financial information, thereby serving investors and various market participants.

The draft circular includes regulatory expectations regarding governance structures, internal controls, materiality assessments of sustainability-related financial information, data management, and readiness for assurance and review processes. It also provides a gradual transitional framework starting from the 2027 reporting cycle, granting regulated entities sufficient time to enhance reporting systems, climate-related disclosure capabilities, value chain engagement mechanisms, and assurance and review practices.