Instructions for Disclosure and Reporting on Climate Risks No. (1) for the year 2026

CENTRAL BANK OF JORDAN

Number: 634/1/23
Date: 21 Rajab, 1447 AH
Corresponding to: January 11, 2026 AD

Instructions for Disclosure and Reporting on Climate Risks No. (1) for the year 2026

These instructions have been issued with the aim of establishing guidelines for effective disclosure and reporting of climate risks by banks operating in the Kingdom. These instructions are based on the International Financial Reporting Standard (IFRS S2) issued by the International Sustainability Standards Board (ISSB) on climate-related disclosures, and the Basel Committee on Banking Supervision (BCBS) framework for disclosure of climate-related financial risks.

Climate change may cause risks and opportunities that can materially affect the bank's operations, financial performance, and long-term sustainability. The Central Bank of Jordan's assessment of banks' exposure to climate-related financial risks has shown that the most important potential risks are physical risks resulting from water scarcity and rising temperatures, followed by acute risks resulting from floods and earthquakes, in addition to transition risks related to the transition to a low-carbon economy and their impact on high-carbon emission economic sectors.

Providing clear, comprehensive, and decision-useful information about the impact of climate change enables investors, customers, and regulators to better assess how climate-related risks affect banks. Effective disclosure of climate risks to supervisory authorities is also essential for effective regulatory oversight and risk assessment, and enables the Central Bank to assess banks' ability to cope with climate risks, monitor emerging vulnerabilities, and make informed decisions to protect the stability of the banking sector.

Governor
Dr. Adel Al-Sharkas

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Article (1): Attribution
These instructions shall be called (Instructions for Disclosure and Reporting on Climate Risks), and are issued pursuant to the provisions of Article (65/b) of the Central Bank of Jordan Law No. (23) of 1971 and its amendments, and Article (99/b) of the Banks Law No. (28) of 2000 and its amendments, and shall enter into force voluntarily for disclosure requirements starting from end-of-year 2026 data, and mandatorily starting from end-of-year 2027 data, taking into account the climate-related disclosure requirements issued by the Amman Stock Exchange for banks subject to these requirements. As for reporting requirements, they shall enter into force mandatorily starting from end-of-year 2026 data on an annual basis, with the exception of Form No. (3) of Appendix No. (2) related to green finance compliant with the Jordanian National Green Taxonomy, which must be reported starting from end of June/2026 data on a semi-annual basis.

Article (2): Definitions

• Financial Climate-Related Risks: As defined in Climate Risk Management Instructions No. (2) of 2025 dated 2025/2/18.
• Transition Risks: As defined in Climate Risk Management Instructions No. (2) of 2025 dated 2025/2/18.
• Physical Risks: As defined in Climate Risk Management Instructions No. (2) of 2025 dated 2025/2/18.
• Board: As defined in Corporate Governance Instructions No. (2023/2) dated 2023/2/14.
• Senior Executive Management: As defined in Corporate Governance Instructions No. (2023/2) dated 2023/2/14.
• Scenario Analysis: The process of identifying and assessing the impact of a potential set of future events under conditions of uncertainty.
• Scope 1 GHG Emissions (Direct Emissions): These are greenhouse gas emissions resulting from the direct combustion of fuel for any asset owned by the bank, provided they match the fuel expense item in the income statement.
• Scope 2 GHG Emissions (Indirect Energy Emissions): These are indirect emissions resulting from the generation of purchased electricity or heating or cooling (if electric) consumed by the bank.
• Scope 3 GHG Emissions (Other Indirect Emissions): These are all other indirect emissions not included in Scope (2) that occur in the bank's value chain, such as, but not limited to, carbon emissions from purchased goods or services not included in Scope (2), or carbon emissions resulting from the travel of bank employees.
• Financed Emissions: These are emissions associated with the lending and investment activities undertaken by the bank. These emissions are considered a type of Scope 3 emissions, representing indirect emissions from companies and assets in which the bank has invested or lent money. These emissions are calculated as the bank's share of the financed company's emissions responsibility, based on its share of the company's value.

Article (3): Scope of Application a. These instructions apply to all banks operating in the Kingdom, in proportion to the bank's size, the nature and complexity of its operations, and its risk structure. For branches of foreign banks operating in the Kingdom, they may disclose climate risks in accordance with the climate risk disclosure requirements and templates applicable in the parent bank, if any. If none exist, these branches must comply with the disclosure requirements contained in these instructions. b. Climate risk disclosures for Jordanian banks shall be published in their annual reports. As for climate risk disclosures for branches of foreign banks operating in the Kingdom, they shall be published on the websites of these branches.

First: Disclosure Requirements
Article (4): Disclosure Requirements for Climate-Related Financial Information by Banks a. The bank must prepare and disclose climate-related financial information in accordance with the provisions contained in Appendix No. (1). b. Banks listed on the Amman Stock Exchange within the ASE20 index that comply with the climate-related disclosure requirements issued by the Amman Stock Exchange are implicitly compliant with the disclosure requirements contained in these instructions. However, additional disclosures specified in red in Appendix No. (1) that are not included in the disclosure requirements issued by the Amman Stock Exchange shall be applied voluntarily starting from end-of-year 2026 data and mandatorily starting from end-of-year 2027 data.
c. For banks not classified as Domestic Systemically Important Banks (D-SIB) and at the same time not listed on the Amman Stock Exchange within the ASE20 index, the requirements related to scenario analysis and disclosure of Scope 3 greenhouse gas emissions, including financed emissions, shall be applied voluntarily. Other disclosure requirements shall apply to them mandatorily.
d. For banks obligated to disclose financed emissions according to Scope (3), the principle of information availability and the principle of gradualism shall be observed in application. Initially, it may be sufficient to cover these banks' clients from public shareholding companies, insurance companies, and large companies, gradually expanding to cover all portfolios as information becomes available.

Article (5): Level of Application for Disclosure Requirements The bank shall prepare its climate-related disclosures on the basis of the same disclosure levels and using the same consolidation boundaries applied in its annual financial reports.

Article (6): Disclosure Period and Frequency The bank shall prepare and publish its climate-related disclosures annually, covering the same period as its annual financial reports and following the same reporting timeline used in preparing its annual financial reports.

Article (7): Disclosure Format
The bank may use the format contained in Appendix No. (1) of these instructions or any other format, provided that this format complies with the requirements contained in Appendix No. (1).

Article (8): Materiality and Fair Presentation a. The bank must present all material climate-related risks and opportunities that are reasonably expected to affect its future prospects, in a fair manner. b. Information is considered material if its omission, misrepresentation, or concealment is reasonably expected to influence the decisions of users of annual financial reports, which include financial statements and climate-related financial disclosures.
c. To ensure fair and accurate representation, the bank is committed to providing a complete, neutral, and accurate description of those climate-related risks and opportunities.

Article (9): Interconnected Information
The bank must present information in a way that enables users of annual financial reports to understand the interconnections between various material climate-related risks and opportunities and the annual financial statements.

Article (10): Transitional Exemptions Related to Disclosure Requirements When preparing the first annual financial statements report in which the bank applies IFRS S2, the bank is not required to provide comparative climate-related information for the previous period.

Second: Reporting Requirements
Article (11): Banks' Requirements for Collecting and Reporting Climate-Related Financial Information a. All banks operating in the Kingdom must collect information related to sectoral exposure to climate transition risks, geographical exposure to physical risks, and green finance compliant with the Jordanian National Green Taxonomy, and send it to the Central Bank of Jordan, as per Appendix No. (2) of these instructions. b. For banks not classified as Domestic Systemically Important Banks (D-SIB), the requirements related to reporting financed emissions shall be applied voluntarily.

Article (12): Scope and Periodicity of Reporting The bank must provide the Central Bank of Jordan with climate-related financial information based on the data of the bank's branches in Jordan on an annual basis starting from end-of-year 2026 data, within a maximum period of three months from the date of the data, with the exception of Form No. (3) related to finance according to the Jordanian National Green Taxonomy, which must be provided to the Central Bank of Jordan on a semi-annual basis starting from end of June 2026 data and within a maximum period of two months from the date of the data.

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Appendix No. (1): Template for Climate-Related Financial Disclosures

1. Governance

1.1 Board Oversight

Disclosure Requirements	References
Disclose how responsibilities related to climate-related risks and opportunities are reflected in the terms of reference, objectives, role descriptions, and other relevant policies in place at the Board.	IFRS S2 6(a)(i) ; BCBS Framework 1(a)
Disclose the extent to which the Board possesses or develops the necessary skills and competencies for oversight.	IFRS S2 6(a)(ii) ; CBJ 23/1/3551 (4)(a)
Disclose how and how often the Board is informed about climate-related issues.	IFRS S2 6(a)(iii)
Disclose how the Board considers climate-related risks and opportunities when overseeing strategy, major transactions, and risk management, and how it adopts policies and procedures within the bank's risk management strategy to identify, assess, and manage climate-related risks, and how these policies are reviewed and updated annually or as needed in response to emerging risks and regulatory requirements.	IFRS S2 6(a)(iv) ; CBJ 23/1/3551 (4)(b)
Disclose how the Board oversees the setting of targets and monitoring of progress, including how performance metrics are incorporated into the bank's remuneration policies.	IFRS S2 6(a)(v)
Indicate whether a specialized unit, department, or task force has been established within the bank's risk management department to manage climate risks (mandatory for banks classified as Domestic Systemically Important Banks) and describe its responsibilities and integration within its governance framework.	CBJ 23/1/3551 (4)(c)

1.2 Senior Executive Management

Disclosure Requirements	References
Disclose the role of senior executive management in governance processes, and the controls and procedures used to monitor, manage, and oversee climate-related risks and opportunities, including whether responsibility is assigned to a specific position or committee, and how oversight of this role is exercised.	IFRS S2 6(b)(i) ; CBJ 23/1/3551 5(b)
Disclose how controls and procedures related to the oversight of these risks and opportunities are integrated with other internal functions of the bank (e.g., risk, compliance, credit).	IFRS S2 6(b)(ii) ; CBJ 23/1/3551 8(a)(b)

1.3 Capacity Building

Disclosure Requirements	References
Describe how the bank builds capacity and provides appropriate training to Board members, senior executive management, bank committees (especially the Risk Committee), and employees at all levels on climate-related topics if necessary, through internal workshops or external cooperation with specialized organizations.	CBJ 23/1/3551 (6)(a)(b)

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2. Strategies

2.1 Impact of Climate-Related Risks and Opportunities on the Bank's Business Models, Supply Chains, Financial Position, Performance, and Cash Flows

The bank must disclose the following for each of the climate-related risks and opportunities relevant to the bank:

Disclosure Requirements	References
Disclose how these risks and opportunities could reasonably affect the bank's future prospects.	IFRS S2 10(a)
Identify the time horizons "short, medium, and long-term" in which these risks and opportunities are expected to occur; clarifying the definitions of these time horizons and how they relate to the planning horizons used by the bank for strategic decision-making.	IFRS S2 10(c) (d)
Disclose the current and anticipated effects of these risks and opportunities on the bank's business model, supply chain, and risks.	IFRS S2 13(a) 10(d)
Disclose where these risks and opportunities are concentrated in the bank's business model and supply chain (e.g., geographical areas and asset types).	IFRS S2 13(b) ; BCBS Framework 2(b)
Disclose the current and anticipated effects on the bank's financial position, financial performance, and cash flows for the reporting period, in the short, medium, and long term, and how these factors are considered in the bank's financial planning.	IFRS S2 15(a)(b) S2 16(a)
Disclose whether there is a significant risk of a material adjustment during the subsequent annual financial reporting period to the amounts and obligations stated in the relevant current financial statements;	IFRS S2 16(b)

2.1.1 Physical Opportunities and Risks
Risk / Opportunity 1
Risk / Opportunity 2
Risk / Opportunity x

2.1.2 Transition Opportunities and Risks
Risk / Opportunity 1
Risk / Opportunity 2
Risk / Opportunity x

2.2 Strategies and Decision-Making

Disclosure Requirements	References
Disclose how the bank responds or plans to respond to climate-related risks and opportunities in its strategy and decision-making, including how the bank plans to achieve any climate-related targets set and any targets it is required to achieve by law or instructions.	IFRS S2 14(a)
Disclose changes in the bank's business model and resource allocation to address climate-related risks and opportunities (e.g., plans to manage or discontinue carbon-intensive or energy/water-intensive operations; resource allocations resulting from changes in demand or supply chain; resource allocations arising from business development through capital expenditures or additional expenditures on research and development; acquisitions or divestitures).	IFRS S2 14(a)(i)
Disclose current and anticipated direct and indirect mitigation and adaptation efforts.	IFRS S2 14(a)(ii) & (iii)
Disclose any climate-related transition plan the bank has, including information about the key assumptions used in developing this transition plan, and the matters on which the bank's plan will depend;	IFRS S2 14(a)(iv)
Disclose how the bank plans to achieve any climate targets, including any targets related to reducing greenhouse gas emissions.	IFRS S2 14(a)(v)
Disclose how the bank provides resources and its plans to provide the resources described in this section (Strategies and Decision-Making).	IFRS S2 14(b)
Disclose the progress made in implementing the strategy and plans disclosed in previous reporting periods.	IFRS S2 14(c)
Disclose the bank's expectation of any change in its financial position, performance, and cash flows in the short, medium, and long term, taking into account its climate strategy (e.g., increased revenues from low-carbon products/services, asset damage costs from climate events, or adaptation/mitigation expenses), and investment and divestment plans (e.g., capital expenditure plans, major acquisitions and divestitures, joint ventures, business transformations, innovation, new business areas, and asset retirement), including plans to which the bank is not contractually committed, and planned funding sources for implementing its strategy.	IFRS S2 16(c) & (d)

2.3 Scenario Analysis and Climate Resilience

Disclosure Requirements	References
The bank's disclosure of the method and date of conducting climate-related scenarios.	IFRS S2 22(b)
Disclose the key inputs used in the climate-related scenario analysis used by the bank and the sources of those scenarios, and whether the analysis includes a variety of climate-related scenarios, linked to transition risks or physical risks; and whether the bank has used scenarios consistent with the latest international agreements on climate change; and whether the bank's decision to select scenarios is relevant to assessing its ability to cope with climate-related changes, developments, or uncertainties; it also includes the time horizons and scope of operations used by the bank in the analysis (e.g., the bank's location and operations used in the analysis).	IFRS S2 22(b)(i)
Disclose the key assumptions used in the analysis, including assumptions about national climate policies; macroeconomic trends; national or regional variables (e.g., local weather patterns, demographics, land use, infrastructure, availability of natural resources); energy use; and technological developments.	IFRS S2 22(b)(ii) ; Industry-based Guidance on Implementing IFRS S2 Volume 16 (7)
Disclose the reporting period in which the scenario analysis was conducted.	IFRS S2 22(c)
The bank's disclosure of its assessment of its resilience to climate change as of the reporting date, based on climate-related scenario analysis.	IFRS S2 14(a)
The bank's disclosure of the implications for its assessment of its strategy and business model, including how it responds to the impacts identified in the climate-related scenario analysis.	IFRS S2 22(a)(i)
Disclose material uncertainties considered in the bank's assessment of its resilience to climate challenges.	IFRS S2 22(a)(ii)
Disclose the bank's ability to identify or adapt its strategy and operations to climate change in the short, medium, and long term, including the availability and flexibility of the bank's financial resources to respond to the impacts identified in climate-related scenario analysis of climate-related risks and to capitalize on climate-related opportunities, and the ability to reallocate, reuse, upgrade, or decommission existing assets; and the impact of the bank's current and planned investments in climate change mitigation and adaptation.	IFRS S2 22(a)(iii) ; CBJ 23/1/3551 7(a)

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3. Risk Management

Disclosure Requirements	References
Disclose the relevant processes and policies used by the bank to identify, assess, and monitor climate-related risks.	IFRS S2 25(a) ; CBJ 23/1/3551 9(a)
Disclose the inputs and standard indicators used (e.g., data sources, data sources, scope of operations coverage).	IFRS S2 25(a)(i)
Disclose whether and how the bank uses scenario analysis to identify climate-related risks.	IFRS S2 25(a)(ii)
Disclose how the bank assesses the nature, occurrence, and magnitude of the impacts of those risks.	IFRS S2 25(a)(iii)
Disclose whether and how the bank prioritizes climate-related risks compared to other risks.	IFRS S2 25(a)(iv)
Disclose how the bank monitors climate-related risks.	IFRS S2 25(a)(v)
Disclose how the bank integrates climate factors into its credit analysis, and the policies used to integrate these factors.	Industry-based Guidance Vol. 16 (1)(2)(3)
The bank must disclose the following regarding concentration risks: ; • Disclose significant concentrations of credit exposure to climate factors, which may include carbon-related assets and water-stressed areas. ; • Disclose the potential impacts of exposures to counterparties associated with transition risks or physical risks on the bank's overall risk and financial performance. ; • Disclose the processes used to identify vulnerable concentrated exposures and assess the likelihood of these risks and associated impacts (e.g., qualitative factors and other quantitative indicators used). ; • Disclose the impact of observed material transition risks on the bank's strategy and decision-making, including how the bank responds to and mitigates climate-related concentration risks.	Industry-based Guidance Vol. 16 (9) ; BCBS Framework 3(a)
Disclose how climate factors are integrated into the assessment and impact of the bank's views on traditional macroeconomic factors (e.g., economic conditions, central bank monetary policy, industry trends, and geopolitical risks affecting borrowers' creditworthiness), and on traditional microeconomic factors (e.g., supply and demand for products or services affecting borrowers' financial conditions and operating results), which may affect borrowers' solvency, loan maturity or duration, expected loss, including probability of default, exposure at default, and loss given default, and the value of collateral provided.	Industry-based Guidance on Implementing IFRS S2 Volume 16 (10)
Disclose any additional metrics related to the bank's methodology for integrating climate factors or environmental, social, and governance factors into credit analysis, such as the number of commercial loans and project finance screened according to the Equator Principles (EP III) or equivalent principles, by EP category, and the number of loans for which an environmental or social risk review has been conducted, for example by an Environmental and Social Risk Management (ESRM) group.	Industry-based Guidance on Implementing IFRS S2 Volume 16 (11)
Disclose the processes used by the bank to identify, assess, prioritize, and monitor climate-related opportunities, and the extent to which climate-related scenario analysis is used to identify these opportunities and how it is done.	IFRS S2 25(b)
Disclose whether and how the bank has changed the processes it uses compared to the previous reporting period.	IFRS S2 25(a)(vi)
Disclose the extent and how the processes for identifying, assessing, prioritizing, and monitoring climate-related risks and opportunities are integrated into and influence the bank's overall risk management process.	IFRS S2 25(c)

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4. Metrics and Targets

4.1 Climate-Related Metrics

Disclosure Requirements	References
Disclose the total greenhouse gas (GHG) emissions generated by the bank during the reporting period, expressed in metric tons of carbon dioxide equivalent, classified as Scope 1, 2, and 3 GHG emissions, in accordance with the GHG Protocol: Corporate Accounting and Reporting Standard (2004) or similar methodologies.	IFRS S2 29(a)(i)
Disclose the measurement methodology, inputs, and assumptions used to calculate the bank's GHG emissions, explain the reasons for their selection, and clarify any changes made during the reporting period with justifications for those changes.	IFRS S2 29(a)(iii)(1) ; IFRS S2 29(a)(iii)(2) ; IFRS S2 29(a)(iii)(3)
For Scope 2 emissions, the bank must disclose based on location (i.e., reflecting the average emissions intensity of the grids where energy is consumed), and must provide information about any contractual instruments (e.g., renewable energy certificates) that are necessary to understand the bank's Scope 2 GHG emissions.	IFRS S2 29(a)(v)
For Scope 3 emissions, the bank must describe the categories included in the bank's calculation, in accordance with the Scope 3 categories outlined in the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011).	IFRS S2 29(a)(vi)(1)
Disclose any additional information about Category 15 GHG emissions classified by the bank or those related to its investments (financed emissions), if the bank's activities include asset management, commercial banking, or insurance.	IFRS S2 29(a)(vi)(2)
Disclose the total absolute financed emissions by the bank, disaggregated by GHG emissions Scope 1, 2, and 3 for each industry, using the Global Industry Classification Standard (GICS), by asset class, including loans, project finance, bonds, and equity investments.	IFRS S2 B62(a)
Disclose the bank's total exposure to each sector by asset class, expressed in the currency used in the bank's financial statements, and the percentage of exposure to the bank's total exposures included in the financed emissions calculation. If the percentage of the bank's total exposures included in the financed emissions calculation is less than 100%, the bank must clarify the information explaining the exclusions, including the type of excluded assets.	IFRS S2 B62(b) (c)
The bank's disclosure of the methodology used to calculate financed emissions, including the allocation method used by the bank for its share of emissions relative to its total exposure.	IFRS S2 B62(d)

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For climate-related transition risks, the size and percentage of assets exposed to climate-related transition risks of banks must be disclosed. As a minimum, disclosure of their exposure to the 18 sectors identified by the Task Force on Climate-related Financial Disclosures (TCFD) is required. The bank must also disclose more detailed information if necessary, after assessing its materiality.

Transition Risk Sensitive Sectors	Amount of Bank Assets Exposed to Climate Risks (Thousands of Dinars)	Percentage of Total Bank Assets
Oil and Gas
Coal
Electric Utilities
Air Freight
Passenger Air Transport
Marine Transport
Rail Transport
Trucking Services
Automobiles & Components
Metals & Mining
Chemicals
Construction Materials
Capital Goods (e.g., machinery, equipment, buildings)
Real Estate Management & Development
Beverages
Agriculture
Packaged Foods & Meats
Paper & Forest Products
Total

For climate-related physical risks, the size and percentage of assets exposed to climate-related physical risks must be disclosed using the tables below. The bank must also disclose more detailed information if necessary, after assessing its materiality.

| Portfolios | Type of Risk (e.g., but not limited to: floods, drought, earthquakes, etc.) | Amount of Bank Assets Exposed to Climate Risks (Thousands of Dinars)

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