In October last year, the Central Bank of Oman (CBO) issued a circular on “Promoting Sustainable and Green Financial Practices“. The circular clarifies the phases in which ESG should be implemented in banks, with the circular itself being part of “Phase 2: Regulatory Expectations 2024”. The next phase is going to be during the period 2025-2027, and is named “Phase 3: Implementation and Monitoring”.
In line with the phases, the circular states that banks should conduct a comprehensive assessment, and based on this they should develop a detailed ESG implementation plan approved by the bank’s board to be submitted to CBO by 30 June 2025.
The circular contains an annex, which sets out the requirements and recommendations that banks should adopt to promote sustainable and green financial practices. Examples of these requirements and recommendations are that the bank’s board and senior management should oversee climate-related and environmental risks and how this oversight should be implemented.
There are many ESG requirements and recommendations set out by CBO that banks in Oman should be aware of, you can read the ESG circular on the link below: