Jordan is among the first countries to have a profile on the International Financial Reporting Standards (IFRS) Foundation’s platform.
The Amman Stock Exchange (ASE), in collaboration with the International Finance Corporation (IFC) and in partnership with the Kingdom of the Netherlands, has developed guidance, a regulatory framework and policy on climate-related disclosures. This initiative aims to enhance climate-related reporting by listed companies as part of ASE’s ongoing efforts to implement the latest international standards in sustainability across its three pillars: environmental, social and governance (ESG).
This milestone represents the first of its kind in the Middle East and aligns with Jordan’s Economic Modernisation Vision, promoting greater transparency, disclosure and sustainability – thereby strengthening investor confidence in the national economy and capital market, and enhancing its competitiveness.
The implementation of climate-related disclosure requirements in Jordan is driven by multiple factors, aligning with both global trends and local priorities. Climate change presents substantial risks and opportunities for businesses and the wider economy. Consequently, investors, regulators and other stakeholders are increasingly seeking transparent, reliable and comparable climate-related information to support informed decision-making.
Understanding the Standards Behind Climate-Related Disclosure
As for climate-related disclosures, the standards governing them and the importance of the guidance, it encompasses a set of principles and criteria designed to assist companies listed on the Amman Stock Exchange in developing climate-related financial and non-financial disclosures in line with the International Financial Reporting Standards (IFRS). This contributes to strengthening investor confidence and enhancing companies’ ability to address environmental challenges. The guidance is aligned with global best practice, particularly the sustainability disclosure standards issued by the International Sustainability Standards Board (ISSB), such as IFRS S1 and IFRS S2.
The launch of the Climate-Related Disclosure Guidance marks an important step in aligning the Exchange’s efforts with global best practice and in supporting listed companies on their journey towards more sustainable and resilient operations. It is worth noting that the Amman Stock Exchange is among the first exchanges in the region to have a profile on the International Financial Reporting Standards (IFRS) Foundation’s platform.
Implementation Timeline and Capacity Building
Climate-related disclosure will be voluntary for companies listed on the ASE20 Index in 2026 for the year 2025, allowing them time to adapt to the new requirements. These disclosures will become mandatory starting in 2027 for the year 2026.
The Amman Stock Exchange has worked on building the capacities of ASE20-listed companies regarding the regulatory framework and its requirements, ensuring a comprehensive understanding of how to identify climate-related opportunities, effectively mitigate climate risks and disclose them accurately.
The ASE organised a series of training sessions and workshops specifically tailored to the needs of companies listed on the ASE20 Index. These sessions covered the detailed requirements of the International Sustainability Standards Board (ISSB) Standards – namely IFRS S1 and IFRS S2.
“As the leader of the working committee that developed ASE’s Climate Disclosure Guidance, I believe the integration of sustainability and climate-related disclosures is more than a compliance exercise – it is a strategic step towards strengthening the long-term resilience and competitiveness of our listed companies. By aligning with the ISSB standards, we are enabling companies to better identify and manage environmental and financial risks, enhance transparency for investors, and position themselves for sustainable growth in both regional and global markets.”