Regulatory Alerts2024-09-15
Central Bank of Iraq ESG Standards Guide for Banks 2024
The Central Bank of Iraq issued a mandatory 2024 ESG Standards Guide requiring all supervised banks to establish an ESG and Sustainability Committee, integrate environmental, social, and governance risks into their strategies, and report compliance annually through qualified teams. The framework mandates specific board composition—including independent members with climate and technology expertise—and enforces strict suitability, conflict-of-interest, and transparency rules for directors and executive management. By aligning with international standards like IFC, OECD, and BCBS, the guide ensures systemically important domestic banks meet stricter requirements while protecting depositors, shareholders, and stakeholders through enhanced governance and sustainable financing practices.