Title: Press Release: Amendments on the Executive Bylaws Regarding the Sustainable Finance Controls

Kuwait, August 27, 2022 –The world is witnessing an unprecedented attention in the sustainable development such as sustainable finance and the environmental, social, and governance (ESG) topics and factors related to it in response to its urgent need as a result of the impact of the economic development on the environment. Sustainable finance also contributes in directing the capitals to the sustainable projects through issuing and managing sustainable and green financial instruments to finance projects within the programs and agendas of the sustainable development. And within this context, the Capital Markets Authority (CMA) took the necessary steps to study the possibility of applying the sustainable finance controls in the fields subject to its supervision for the purpose of including the sustainability factors (environmental, social, and governance) in the financial sector in order to be in line with the international direction of achieving the sustainable development objectives and transferring the capital markets to more sustainable markets.
Moreover, several projects included in the development plan are related to sustainable development in a direct manner. The initiation of these efforts and initiatives is in line with Kuwait Vision 2035 of long-term objectives of the sustainable development, and focusses on five topics and desired results and seven pillars that comply with the Sustainable Development Goals of the United Nations (SDGs) which are as follows:
1. Distinguished international status.
2. Developed infrastructure.
3. Creative Human Capital. 
4. Active government management.
5. High quality healthcare.
6. Diverse sustainable economy.
7. Sustainable living environment.
Furthermore, in achievement of one of CMA’s most important strategic objectives, which is to develop the legislative and regulatory infrastructure of the financial markets, and to complement its initiatives in this field in accordance with best international practice and the recommendations issued by the International Organization of Securities Commissions (IOSCO) while taking into consideration the visions of the stakeholders, the CMA Board of Commissioners decided in its meeting held on 24/8/2022 to introduce a package of legislative additions and amendments to the Modules of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating securities Activities and their amendments related to the controls of sustainable finance as follows:
• Addition of the definitions of “Sustainability” and “Sustainable Fund” to Module One (Glossary) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their related amendments.
• Addition of optional sustainability factors in the risk management systems of the licensed person in Module Six (Policies and Procedures of Licensed Persons) of the Executive Bylaws of the Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their related amendments.
• Addition of articles that determine the sustainability report regulations for listed companies in Module Twelve (Listing Rules) of the Executive Bylaws of the Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their related amendments.
• Addition of the “Sustainable Fund” and setting the investment controls of this type of fund in Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of the Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their related amendments.
• Inclusion of the sustainability issues in the role of the Board of Directors and the company’s comprehensive strategy in Module Fifteen (Corporate Governance) of the Executive Bylaws of the Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their related amendments.
The aforementioned amendments are in line with the recommendations of the International Organization of Securities Commissions (IOSCO) issued by the Growth and Emerging Markets Committee (GEMC) and contained in the report of (Sustainable Finance in Emerging Markets and the Role of Securities Regulators), international standards, and best practices applied by regional and international regulators in the fields of sustainable finance.

Ends –
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw