Palestine Monetary Authority Circular No. 30 of 2025: First Meeting of the Sustainable Finance Working Group

PALESTINE MONETARY AUTHORITY Circular No. (30) of 2025 Date: 17 July 2025

To: The Chairman of the Board of Directors of the Licensed Financial Institutions Subject: Outcomes of the First Meeting of the Sustainable Finance Working Group

Reference: Circular No. (2025/30)

In accordance with the provisions of the Central Bank Law No. (4) of 2024, and in implementation of the PMA's strategy to promote sustainable finance and integrate Environmental, Social, and Governance (ESG) principles into the financial sector, the following is communicated:

1. The PMA held the first meeting of the Sustainable Finance Working Group on 14 July 2025, attended by representatives from licensed financial institutions and relevant stakeholders. The meeting discussed the importance of integrating ESG factors into financial decision-making, risk management, and reporting processes.

2. The meeting emphasized the need for financial institutions to develop internal policies and frameworks that support sustainable finance, including the assessment of environmental and social risks associated with financing activities. It was also agreed that institutions should align their strategies with international best practices and local regulatory requirements.

3. The PMA requests all licensed financial institutions to submit their action plans for implementing ESG principles within their operations by the end of the third quarter of 2025. These plans should include specific measures for risk assessment, capacity building, and reporting mechanisms.

4. The PMA will continue to monitor the progress of financial institutions in adopting sustainable finance practices and may issue further guidelines or circulars as needed.

5. For any inquiries or clarifications, please contact the Sustainable Finance Department at the PMA via email at GF-CCR@pma.ps.

Palestine Monetary Authority Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Tel: +970 2 2415251 | Fax: +970 2 2415310 info@pma.ps Postal Code: P6160675