Regulatory Alerts2024-01-25
Circular 28/2023: General Framework for ESG Governance
The Central Bank of Libya issued Circular 28/2023 to establish a mandatory general framework for Environmental, Social, and Governance (ESG) governance across all Libyan banks. The directive requires financial institutions to integrate climate and sustainability risks into their strategic planning, risk management frameworks, and credit policies, while implementing phased reporting, carbon footprint measurement, and internal ESG performance evaluations. Banks must align with international standards, adopt green financing practices, and submit periodic disclosure reports to the regulator to ensure long-term financial stability and national sustainable development.
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