100% compliance for companies in submitting 2023 annual sustainability report — ASE

AMMAN — Mazen Wathaifi Chief Executive Officer of Amman Stock Exchange (ASE) said that 100 per cent of the listed companies which are obligated to submit their annual sustainability report for the year 2023, totalling 22 companies, have provided the Exchange with the report within the specified period mentioned in the rules issued by the ASE, through the e-disclosure System XBRL. 

This high percentage reflects the compliance of these companies with the laws and regulations, as well as their concern for environmental, social and governance issues, the ASE announced on its website. 

Wathaifi clarified that in accordance with the sustainability reporting rules, the companies included in the ASE20 index sample, as well as any company that was part of the mentioned index sample, are required to provide its sustainability report in accordance with the GRI standards, within six months from the end of its fiscal year if it is a stand-alone report, or within three months of the end date of its fiscal year if the company incorporated the sustainability report with its annual report, the statement added.

Wathaifi added that the ASE posts the sustainability reports on the ASE website www.exchange.jo under the Circulars and Disclosures/sustainability reports window. 

He also noted that obligating the listed companies in the ASE20 index sample since 2022 to issue a sustainability report enhanced the attractiveness of listed companies and increased transparency and disclosure in the national capital market, especially regarding compliance with sustainability standards, whereas sustainability report helps increase knowledge on companies’ performance and achievements at all levels and it indicates the company’s commitment and interest in environmental, social responsibility and governance issues.

 It also facilitates access to this information for all parties and allows them to evaluate the company’s performance and form a comprehensive view which will enable them to make their investment decisions objectively and clearly, in light of the increasing interest in this information by local and foreign investors due to its importance in making investment decisions.

It also noted that the ASE efforts began with spreading awareness and defining the importance of sustainability disclosing information related to it and applying sustainability standards (environment, social responsibility and governance) when it joined the Sustainable Stock Exchanges Initiative (SSE initiative) in 2016. Since then it has prepared several introductory brochures on sustainability, in addition to the guidance on sustainability reporting, to encourage companies to adopt sustainability practices and to disclose them periodically. 

The ASE also consistently organises workshops for companies to introduce the importance of issuing sustainability reports and how to prepare them according to the latest standards. 

In addition, the ASE signed in September 2022 an agreement with the International Finance Corporation, to raise awareness and train companies included in the ASE20 index sample about disclosures related to climate change and to issue a guide for this purpose, to enable these companies to include their disclosures related to climate change in their sustainability reports. Thus, the ASE is the first in the region and the fifth worldwide to launch such an initiative.