Israel's banks have been instructed by the Bank of Israel's Supervisor of Banks to disclose aspects of their Environmental, Social and Governance (ESG) activities with full transparency to the public.
Supervisor of Banks Yair Avidan said, "The amendments to the directives that we published today improve the banking system’s disclosure to the public on Environmental, Social and Governance aspects, in accordance with the best practices implemented by leading banks worldwide, and integrate well with our steps to strengthen the banking system’s contribution to the environment and to society, and to improve the sustainability of the banking system and the economy over the long term. In view of the considerable importance we attribute to the issue, and against the background of the notable developments that have taken place in the world in recent years, we intend to continue acting to improve the management of the environmental and social aspects in the banking system."
The Bank of Israel added that these amendments are part of the steps being taken by the Banking Supervision Department to strengthen the banking system’s contribution to the environment and to society, thus strengthening the sustainability of the banking system and the economy over the long term, and in view of the experience accrued in Israel’s banking system and at banks worldwide in the disclosure of these issues.
As part of the amendments to the reporting to the public directives, banking corporations are required to note, in the annual report to the public, the material ESG aspects integrated into their targets and to note concisely the main principles established by the banking corporation for promoting these issues. The Israeli banks are required to expand their disclosure to the public regarding their exposure to environmental risks, including climate risk and to publish a separate ESG report once a year, instead of the corporate responsibility report, which to date has been required to be published once every two years.
Published by Globes, Israel business news - en.globes.co.il - on December 5, 2021.
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