Palestine Monetary Authority Circular No. 151: Outputs of the Second Meeting of the Sustainable Finance Working Group

PALESTINE MONETARY AUTHORITY Circular No. (2025/30) Date: 2025/10/19 Reference: Circular No. (2025/87)

Subject: Outputs of the Second Meeting of the Sustainable Finance Working Group

To: All Licensed Financial Institutions

Pursuant to the provisions of the Central Bank Law and the Monetary Authority's regulatory powers, and following the second meeting of the Sustainable Finance Working Group held on 12 July 2025, the following outputs and directives are hereby communicated:

1. Adoption of International Sustainability Disclosure Standards The Monetary Authority has decided that licensed financial institutions shall adopt the International Sustainability Standards Board (ISSB) standards, specifically IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures). These standards shall serve as the baseline for sustainability reporting within the Palestinian financial sector.

2. Implementation of Global Industry Classification Standard (GICS) In alignment with global taxonomy efforts, institutions are required to utilize the Global Industry Classification Standard (GICS) for classifying economic activities related to sustainable finance. This classification will facilitate consistent data collection and reporting across the sector.

3. Timeline for Compliance Licensed institutions are required to begin integrating these standards into their internal reporting frameworks and external disclosures in accordance with the phased implementation schedule to be issued separately by the Monetary Authority.

4. Reporting and Supervision The Monetary Authority will monitor compliance with these standards through periodic reporting and supervisory reviews. Institutions are expected to ensure the accuracy and reliability of their sustainability-related financial information.

This circular takes effect immediately upon issuance.

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