.Iraq launches for the first time the Environmental, Social, and Governance (ESG) guide for companies listed on the Iraq Stock Exchange

On April 15, 2025, Iraqi Securities Commission (ISC) officially launched the Environmental, Social, and Governance (ESG) Standards Guide for companies.

This guide was developed over the course of nearly a year in close collaboration and continuous engagement with the International Finance Corporation (IFC), a member of the World Bank Group. It was prepared in accordance with international standards while also taking into account the unique challenges of the Iraqi business environment and the constraints of the local legislative framework.

Environmental, Social, and Governance (ESG) standards are a set of environmental, social, and corporate governance factors that are considered essential for companies when evaluating the long-term sustainability of their operations. These pillars form the foundation of ESG frameworks and represent the three key thematic areas that companies are expected to consider in their decision-making processes and to report on. The aim of ESG is to capture all non-financial risks and opportunities inherent in a company’s daily operations. ESG practices are crucial for investors when making investment decisions.

This is the first comprehensive and mandatory guide issued by Iraqi Securities Commission (ISC) for Iraqi companies to implement Corporate Governance (CG), sustainability governance, and ESG issues, including aspects related to climate change.

Through this guide, the ISC aims to institutionalize best practices for ESG standards within Iraqi business culture by mandating implementation for all companies listed on Iraq Stock Exchange (ISX).

Banks listed on the ISX will be subject to the ESG guide issued by the Central Bank of Iraq.

The Commission believes that the adoption of ESG practices by companies listed on Iraq Stock Exchange will lead to:

• Increased market confidence

• Enhanced reputation

• Capital market development

• Greater corporate transparency and accountability

• Increased inflow of foreign direct investment

• A more informed market

• Improved market liquidity

The Commission will issue instructions on how to implement the guide and will organize workshops as part of a structured plan for this purpose.

Faisal Al-Haimus

Chairman of Iraqi Securities Commission