الهيئة العامة للرقابة المالية

As part of its commitment to advancing sustainable finance and responsible investment, the Financial Regulatory Authority (FRA) has introduced requirements related to Environmental, Social, and Governance (ESG) disclosures, as well as climate-related financial disclosures based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

These disclosures provide investors with deeper insights into companies’ sustainability performance and their ability to manage environmental and social risks and opportunities that may not be fully captured in traditional financial reports.

ESG disclosure requirements apply to all companies listed on the Egyptian Exchange, as well as FRA-regulated companies operating in non-bank financial activities with paid-up capital or net equity of EGP 100 million or more.

Companies with paid-up capital or net equity of EGP 500 million or more are also required to prepare TCFD climate-related disclosures, in addition to ESG disclosures.

The FRA has developed a comprehensive reporting framework based on international best practices, drawing on expertise from leading global and regional institutions.

Implementation will take place in two phases

• Comply or Explain

Companies voluntarily respond to a preliminary reporting template consisting of key performance indicators related to ESG and TCFD standards. Companies indicate whether they comply with each indicator and provide explanations where compliance is not achieved. This phase will continue throughout the adjustment period expected to conclude in December 2022.

• Phase Two – Full Disclosure

Following the adjustment period, companies will provide detailed disclosures regarding their environmental, social, governance, and climate-related policies and practices.

During the transition period, the FRA will provide capacity-building programs, workshops, and sector-specific seminars to support companies in implementing these requirements.

For inquiries or suggestions, please contact:

sustainable.development@fra.gov.eg