The Muscat Stock Exchange (MSX) has become the first regulator in Oman to issue environmental, social and governance (ESG) guidelines.

The aim of the MSX ESG disclosure guidelines (Guidelines) is to assist SAOG/public joint stock companies in Oman with reporting on their ESG performance. ESG factors are increasingly important in order to report on a company’s non-financial performance and as a tool for investors.

The Guidelines are intended to promote transparency and robustness of ESG reporting by encouraging voluntary reporting in 2024 (for activities conducted in 2023). Reporting will be mandatory for public companies from 2025 onwards, with the first mandatory reports to be filed by 31 March 2025.

The Guidelines set out 30 metrics to measure a public company’s impact on environmental sustainability, societal responsibility and governance matters. The metrics include carbon emissions, labour practices and board diversity.

The Guidelines align with the Gulf Cooperation Council’s 2022 ESG Disclosure Metrics for Listed Companies and introduce regional-level environmental responsibility initiatives, such as reducing single-use plastics and paper waste while promoting recycling and clean energy use.

The Guidelines also align with Oman’s “Vision 2040” objectives. Vision 2040 underlines Oman’s commitment to inclusive and sustainable economic development.

From 2025, public companies will be required to publish standalone ESG reports according to Global Reporting Initiative (GRI) Universal Standards. These reports must document changes in various performance metrics such as energy management sustainability oversight by senior management, ratio gender equality measures and diversity at various organisational levels.

We look forward to seeing how the Guidelines are implemented in Oman over the next few years.