KPMG in Qatar recently hosted a session on Environmental, Social and Governance (ESG) in the banking sector titled 'Banking on ESG: fad or the future'.
As environmental, social and governance issues, risks and opportunities are becoming increasingly relevant for financial institutions, and other entities for that matter, KPMG organised this event to discuss some of the Qatar, and wider GCC, banking-specific issues, challenges and opportunities as they relate to ESG adoption for banks.
The session was led by a panel of experts including Omar Mahmood, head (Financial Services) KPMG in the Middle East & South Asia; Dr Kay Swinburne, vice chair (Financial Services – KPMG in the UK) and former member of European Parliament; Mohsin Mujtaba, director & head (Product & Market Development) at Qatar Stock Exchange; and Akber Khan, senior director, Al Rayan Investment.
While discussing the status of ESG at Qatari banks, Mahmood stated: “While significant progress has been made in the ESG space by banks in Qatar, through green bond issuances, sustainability reporting and greater diversity amongst other initiatives, there is still considerable work to be done by banks, regulators, advisers, auditors, and all market participants to really embed ESG into the DNA of the financial markets.”
Khan said, “Capital flows have already started, and will continue, to flow to entities with more mature ESG adoption. Although progress has been made in recent years on the G aspect of ESG by banks in Qatar through recent regulation, greater focus will be needed on the Environmental and Social elements of ESG going forward.”
Mujtaba, shared his insights on the future of ESG reporting for entities, where he said: “Access to capital will ultimately be driven by ESG performance, and to facilitate this the Qatar Stock Exchange will be introducing mandatory ESG reporting for listed entities, including banks, from January 2022 as well as an ESG index later in the year.”
Swinburne also shared her insights from a broader point of view where she mentioned: “ESG reporting is high on the agenda for policy and law makers across the globe. While many countries are looking to introduce mandatory reporting, the key will be the introduction of some form of common reporting standards that entities can follow to help ensure comparability and consistency.”
The session was led by a panel of experts including Omar Mahmood, head (Financial Services) KPMG in the Middle East & South Asia; Dr Kay Swinburne, vice chair (Financial Services – KPMG in the UK) and former member of European Parliament; Mohsin Mujtaba, director & head (Product & Market Development) at Qatar Stock Exchange; and Akber Khan, senior director, Al Rayan Investment.
While discussing the status of ESG at Qatari banks, Mahmood stated: “While significant progress has been made in the ESG space by banks in Qatar, through green bond issuances, sustainability reporting and greater diversity amongst other initiatives, there is still considerable work to be done by banks, regulators, advisers, auditors, and all market participants to really embed ESG into the DNA of the financial markets.”
Khan said, “Capital flows have already started, and will continue, to flow to entities with more mature ESG adoption. Although progress has been made in recent years on the G aspect of ESG by banks in Qatar through recent regulation, greater focus will be needed on the Environmental and Social elements of ESG going forward.”
Mujtaba, shared his insights on the future of ESG reporting for entities, where he said: “Access to capital will ultimately be driven by ESG performance, and to facilitate this the Qatar Stock Exchange will be introducing mandatory ESG reporting for listed entities, including banks, from January 2022 as well as an ESG index later in the year.”
Swinburne also shared her insights from a broader point of view where she mentioned: “ESG reporting is high on the agenda for policy and law makers across the globe. While many countries are looking to introduce mandatory reporting, the key will be the introduction of some form of common reporting standards that entities can follow to help ensure comparability and consistency.”
