Quick Summary

• Qatar Central Bank (QCB) has introduced mandatory ESG reporting requirements for banks and regulated financial institutions.
• The first reporting cycle will be based on 2025 data, with submissions starting in 2026.
• While non-banking businesses are not directly obligated, ESG expectations are increasing across sectors in Qatar.
• ESG developments align with Qatar National Vision 2030 and national climate commitments.
• The Qatar Financial Markets Authority (QFMA) has transitioned from voluntary ESG guidance to mandatory ESG disclosure obligations through its updated Governance Code. All listed companies on the Qatar Stock Exchange must now comply with sustainability- and climate‑related reporting requirements, aligning with Qatar National Vision 2030 and upcoming ISSB/IFRS S1‑S2 standards.
• Organisations that prepare early for ESG reporting and governance strengthening will be better positioned for lender, investor and stakeholder engagement.

Table of Contents

1. Definition of ESG and QCB’s ESG Framework
2. What the QCB ESG Requirements Mean for Banks
3. What This Means for Non-Banking Businesses
4. ESG Within Qatar’s National Priorities
5. Broader Trends Shaping ESG Expectations
6. How Organisations in Qatar Are Approaching ESG
7. How HLB AG Supports ESG Readiness in Qatar
8. Conclusion
9. Frequently Asked Questions (FAQ)

Definition of ESG

Environmental, Social and Governance (ESG) refers to a structured framework used to evaluate how organisations manage sustainability-related risks and opportunities alongside financial performance.

In practical terms:

• Environmental covers energy use, carbon emissions, climate risk exposure and resource management.
• Social includes workforce practices, stakeholder engagement and supply-chain responsibility.
• Governance relates to board oversight, internal controls, ethics, transparency and accountability.

In Qatar, ESG considerations have steadily gained importance across industries. A major development is the introduction of mandatory ESG reporting requirements by Qatar Central Bank (QCB) for banks and regulated financial institutions.

Although the framework currently applies directly to financial institutions, it reflects a broader regulatory and market shift toward structured sustainability reporting and governance expectations in Qatar.

Key Points / How It Works

1. What the QCB ESG Requirements Mean for Banks

QCB has introduced a structured ESG reporting framework requiring banks to submit sustainability data through a standardised reporting template.

The framework includes reporting on:

• Operational environmental indicators
• Physical and transition climate-risk exposure
• Sustainable finance activities
• Governance and disclosure practices

The first reporting cycle will be based on 2025 data, with submissions beginning in 2026.

This represents a transition from voluntary ESG initiatives to mandatory, regulator-led sustainability reporting within Qatar’s financial sector.

Key implications for banks include:

• Formal ESG data collection systems
• Structured climate risk assessments
• Enhanced governance documentation
• Increased regulatory oversight

This aligns Qatar’s financial sector with global trends toward more transparent and comparable sustainability disclosures.

2. What This Means for Non-Banking Businesses

At present, mandatory ESG reporting does not apply to most non-banking companies operating in Qatar.

However, ESG expectations are growing through:

• National sustainability policies
• Investor and lender requirements
• International trade and supply-chain standards
• Cross-border financing arrangements

As banks implement ESG reporting, they may request sustainability and governance data from:

• Corporate borrowers
• Business partners
• Project stakeholders

This does not create a new legal obligation for most businesses, but it increases the importance of:

• Reliable ESG information
• Documented governance structures
• Measurable environmental performance indicators

In effect, ESG readiness is becoming a strategic advantage in Qatar’s evolving business environment.

3. ESG Within Qatar’s National Priorities

ESG developments are closely aligned with Qatar National Vision 2030, where environmental development is one of four key pillars guiding sustainable growth.

National sustainability initiatives include:

• National Climate Change Action Plan 2030
• Qatar’s Nationally Determined Contributions under the Paris Agreement

Qatar has committed to reducing greenhouse gas emissions by approximately 25 percent by 2030 relative to a baseline scenario.

These commitments are supported by initiatives such as:

• Energy efficiency programmes
• Renewable energy expansion
• Climate-risk management frameworks
• Sustainable infrastructure development

Regulators and financial institutions are increasingly integrating sustainability considerations into governance and disclosure frameworks, reinforcing the direction of ESG integration across sectors.

4. Broader Trends Shaping ESG Expectations

Globally, sustainability reporting is shifting toward structured and comparable frameworks.

Many organisations align disclosures with recognised standards such as:

• International Sustainability Standards Board (ISSB-IFR S1 and S2)
• Global Reporting Initiative (GRI)
• Task Force on Climate-related Financial Disclosures (TCFD)

These frameworks aim to make sustainability data:

• Comparable
• Reliable
• Decision-useful
• Investor-focused

Multinational corporations, global investors and supply-chain partners increasingly expect structured ESG reporting alongside financial statements.

For organisations in Qatar, ESG expectations often arise through:

• International partnerships
• Cross-border investors
• Project financing
• Government-linked initiatives

The trend is both regulatory and market-driven.

5. How Organisations in Qatar Are Approaching ESG

Organisations across Qatar are taking a structured approach to ESG implementation by focusing on:

1. Environmental Footprint Assessment
• Measuring energy usage and emissions
• Identifying climate-related risks
2. Strategic Alignment
• Integrating ESG into corporate strategy
• Aligning with national sustainability goals
3. Governance Enhancement
• Formalising ESG policies
• Assigning board-level oversight
• Strengthening documentation and internal controls
4. Data Reliability and Reporting Systems
• Establishing ESG data collection frameworks
• Improving transparency and audit readiness

This measured approach supports:

• Long-term resilience
• Operational efficiency
• Improved lender and investor confidence
• Reduced regulatory and reputational risk

6. How HLB AG Supports ESG Readiness in Qatar

HLB AG supports organisations across:

• Mainland-MOCI
• Qatar Financial Centre (QFC)
• Qatar Free Zones

Our ESG and sustainability advisory services include:

• ESG readiness assessments
• ESG strategy and policy development
• Sustainability reporting and disclosure support
• QCB ESG reporting preparation for financial institutions
• Independent review and assurance of ESG data

We combine international ESG standards with strong local regulatory insight to deliver:

• Practical implementation frameworks
• Audit-ready documentation
• Governance strengthening
• Risk-aligned sustainability reporting

Our objective is to help organisations build ESG systems that are sustainable, compliant and aligned with business strategy.

Conclusion

The introduction of mandatory ESG reporting by Qatar Central Bank and QFMA for listed entities marks a significant regulatory milestone.

Although these requirements currently apply only to banks and regulated financial institutions, they signal the broader integration of sustainability governance into Qatar’s economic framework.

Organisations that proactively assess their ESG position, improve governance structures and ensure reliable sustainability data will be better prepared to meet evolving expectations from lenders, investors and stakeholders.

Early ESG readiness is not only about compliance; it is about strategic positioning in Qatar’s future-focused economy.

For organisations seeking structured ESG advisory and sustainability reporting support in Qatar, HLB AG provides practical, audit-ready solutions tailored to local regulatory frameworks.

Frequently Asked Questions (FAQ)

1. What are the new QCB ESG reporting requirements?

Qatar Central Bank now requires banks and regulated financial institutions to submit structured ESG reports covering environmental indicators, climate-risk exposure, sustainable finance activities and governance disclosures.

2. What are the new QFMA ESG reporting requirements?

• ESG reporting is now mandatory for all Qatar‑listed companies under the updated 2025 Governance Code. 
• Companies must disclose sustainability, CSR, and climate‑related information in their periodic reports and financial statements.
• Reporting must align with ISSB/IFRS S1 (general sustainability) and IFRS S2 (climate‑related) standards, including climate risks, emissions, targets, and scenario analysis. 
• Firms must establish robust ESG governance, internal controls, and data‑collection processes to ensure reliable disclosure. 
• Qatar is transitioning to full mandatory ISSB‑aligned ESG reporting by 2026–2027 for all QSE‑listed companies.

3. When does QCB ESG reporting start?

The first reporting cycle is based on 2025 data, with submissions beginning in 2026.

4. Are ESG requirements mandatory for all companies in Qatar?

Currently, mandatory ESG reporting applies to banks and regulated financial institutions. However, ESG expectations are increasing across other sectors due to investor, lender and supply-chain requirements.

5. Why is ESG important for businesses in Qatar?

ESG strengthens governance, improves risk management, enhances lender confidence and aligns businesses with Qatar National Vision 2030 and global sustainability standards.

6. How can companies prepare for evolving ESG regulations?

Companies can prepare by:

• Assessing environmental impact
• Formalising governance policies
• Implementing ESG data collection systems
• Aligning strategy with national sustainability initiatives
• Seeking professional ESG readiness assessments

 

©2026 Antonio Ghaleb and Partner CPA and HLB AG-Members of HLB. All rights reserved. These highlights have been prepared for general guidance on matters of interest only and do not constitute professional advice. You should obtain professional advice before taking action on the information contained in these highlights. Antonio Ghaleb and Partner CPA and its employees do not give any representation or warranty (express or implied) regarding the accuracy or completeness of the information contained in these highlights. Antonio Ghaleb and Partner CPA and its employees do not assume any responsibility, liability, duty of care for any negative consequences that may result in reliance to these highlights and for any decision based on them.