To: All Licensed Banks

Operating in the Sultanate of Oman

Subject: Promoting Sustainable and Green Financial Practices

After compliments,

Introduction:

The Central Bank of Oman (CBO) recognizes the critical role of sustainability in securing economic development and societal wellbeing, in line with the goals and objectives of Oman Vision 2040 and National Strategy for an Orderly Transition to Net Zero as per the international sound principles. It is decided to issue this regulation to set up the regulatory requirements related to climate risk management, covering governance, strategy, risk management and disclosures. In addition, instructions are provided for ensuring the integrity of environmental claims and communications.

CBO encourages banks to voluntarily embrace broader sustainability principles into their operations and strategies, addressing other environmental, social, and governance (ESG) dimensions. Banks are also encouraged to adopt additional sustainability disclosures in line with the standards issued by the International Sustainability Standards Board (ISSB), based on their plan to adopt broader sustainability strategy.

1. Understanding the Landscape: CBO's 2022 Survey and the Subsequent Follow Up.