Under the patronage of H.E. the Minister of Investment, Eng. Mothana Gharaibeh, the Amman Stock Exchange (ASE) has announced the launch of the Climate Disclosure Regulatory Framework in collaboration with the International Finance Corporation (IFC), a member of the World Bank Group, in partnership with the Kingdom of the Netherlands. This initiative aims to enhance the disclosure of climate-related information by listed companies, as part of ASE’s efforts to implement the latest sustainability standards across its three pillars: environmental, social responsibility, and governance (ESG). The initiative comes in response to the increasing demand from investors and investment funds for such disclosures in line with the latest international standards and best practices. This achievement is the first of its kind in the Middle East and aligns with Jordan’s Economic Modernization Vision, enhancing transparency, sustainability, and disclosure. It also enhances investor’s confidence in the national economy and capital market while increasing its competitiveness.
As part of this initiative, ASE, in collaboration with IFC, has developed a guidance manual for companies on how to disclose climate-related issues and a policy outlining the rationale and requirements for climate disclosure. This guidance aligns with global best practices, particularly the sustainability disclosure standards issued by the International Sustainability Standards Board (ISSB), specifically the International Financial Reporting Standard (IFRS) S2, and the relevant climate-related requirements under IFRS S1.
The guidance includes a set of standards and principles designed to assist companies listed on the ASE in preparing climate-related financial and non-financial disclosures, including climate-related risks, opportunities, and their impact on operational activities, in line with IFRS standards. The guidance aims to enhance investors’ confidence by ensuring the comparability of climate disclosures and enhancing companies' ability to address environmental challenges.
Minister of Investment, Engineer Muthanna Gharaibeh, affirmed that the launch of the regulatory framework for disclosure of climate-related information aligns with the commitment to enhancing transparency and accountability in companies listed on the Amman Stock Exchange (ASE), in line with the latest international sustainability standards. He emphasized that this achievement represents a pivotal step in strengthening the investment environment in the Kingdom, reflecting a commitment to applying best practices in governance, environmental, and social standards. It also enhances confidence in the national economy and Jordan’s capital market, thereby contributing to attracting sustainable investments and helping companies adapt to climate change challenges, ultimately boosting their competitiveness both locally and internationally.
Minister Gharaibeh also praised the support of the Dutch government and the International Finance Corporation (IFC) for the Amman Stock Exchange, emphasizing that this support reinforces the implementation of the regulatory framework aimed at integrating sustainability principles into listed companies. He reiterated the Jordanian government’s commitment to removing any obstacles that may hinder businesses, stressing that investment can only grow and thrive in the presence of a strong and efficient financial market.
The CEO of the ASE, Mazen Wathaifi, emphasized that the launch of the Climate Disclosure Regulatory Framework comes with the ASE's efforts to further enhance regulatory and technical framework at the capital market and its competitiveness, also represents a significant step toward achieving sustainable development goals and supporting companies in improving their environmental performance. Transparent, science-based disclosure contributes to enhancing companies’ competitiveness and strengthening investors’ confidence in the capital market and the national economy.
Wathaifi added that this milestone reflects ASE’s commitment to promoting sustainability practices among listed companies and aims to provide a comprehensive framework that enhances resilience to climate challenges facing both the national and global economies. This initiative is part of the Exchange’s ongoing efforts to drive innovation in the financial sector and strengthen ESG practices in the capital market to build a more sustainable future. These efforts began with the ASE joining the United Nations Sustainable Stock Exchanges (UNSSE) initiative, fostering awareness, knowledge, and expertise in this field among listed companies in collaboration with various global institutions. Subsequently, the 20 largest companies were required to publish sustainability reports starting in 2022, as a step toward expanding this requirement to all listed companies. He emphasized that applying sustainability principles and standards, along with disclosing related information, has increasingly become a key requirement for investors and investment funds worldwide.
Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan and Afghanistan says “We are proud to have joined forces with the Amman Stock Exchange to develop the region’s first Climate Disclosure Framework. This pioneering initiative can be a gamechanger for enhancing the sustainability of Jordan’s private sector, helping listed companies become more competitive and attractive to investors, both within and outside the country, by abiding by international ESG principles and standards. It can also be critical for addressing Jordan’s climate-related challenges and for setting an example for other countries in the region to follow suit.”
Mr. Pier de Vries, Deputy Ambassador of the Embassy of the Kingdom of the Netherlands says “For the Netherlands, supporting Jordan in achieving sustainable and inclusive economic growth is a key priority, in line with Jordan’s Economic Modernization Vision. We are excited that the Netherlands’ financial support and our partnership with IFC have resulted in today’s launch of the Amman Stock Exchange’s Climate Disclosure Regulatory Framework. This is a significant milestone. Companies that embrace climate disclosure will enhance their resilience and competitiveness, drive innovation, and underpin sustainable future growth for Jordan and beyond.”
It is worth noting that climate-related disclosures will be optional for companies listed in the ASE20 index in 2026 as of 2025 to facilitate their adaptation to the new requirements. However, these disclosures will become mandatory for these companies starting in 2027 as of 2026.
ASE has already begun building the capacity of ASE20-listed companies regarding the regulatory framework and its requirements. This initiative aims to ensure a comprehensive understanding of how to identify climate-related opportunities, effectively mitigate climate risks, and disclose them accurately.
ASE invites all companies, investors, and stakeholders to review the Climate Disclosure Regulatory Framework, Guidance, and Policy, to leverage the available information to enhance their climate-related reports and strategies. Interested parties can access the guidance, framework, and policy through the following link:
https://www.ase.com.jo/en/Sustainability-and-Climate
