Key Takeaways
- 1SEBI expanded BRSR Core to top 250 listed companies
- 2UAE and Saudi Arabia introduced mandatory ESG disclosures
- 3$45B allocated by GCC sovereign wealth funds to ESG mandates
- 4Framework-agnostic data collection approach recommended
Regulatory Momentum in South Asia
India's SEBI has expanded the BRSR Core framework to the top 250 listed companies by market capitalization, effective FY 2026-27. This follows the successful implementation for the top 150 companies, with third-party assurance now mandatory for key ESG metrics including greenhouse gas emissions, water consumption, and waste generation.
Bangladesh and Sri Lanka have introduced voluntary ESG disclosure guidelines modelled on BRSR, signalling regional convergence toward standardised sustainability reporting.
Middle East & North Africa Developments
The UAE Securities and Commodities Authority (SCA) has mandated ESG disclosures for all listed entities on ADX and DFM, effective January 2026. Saudi Arabia's Capital Market Authority (CMA) has introduced a phased ESG reporting framework aligned with ISSB standards, covering Tadawul-listed companies with market capitalization above SAR 2 billion.
Qatar, Bahrain, and Oman are developing national ESG taxonomies informed by the EU Green Taxonomy but adapted for regional economic structures.
“$18 trillion in institutional AUM now incorporates ESG disclosure quality into proxy voting guidelines.”
Investor Response & Capital Allocation
Institutional investors managing over $18 trillion in combined AUM have updated their proxy voting guidelines to incorporate ESG disclosure quality as a factor in director re-election votes. Sovereign wealth funds in the GCC region have collectively allocated $45 billion toward ESG-aligned investment mandates in 2025, a 62% increase from the prior year.
The convergence of regulatory push and investor pull is creating a self-reinforcing cycle of improved disclosure quality.
Implications for Corporates
Companies operating across multiple emerging markets face a complex and evolving compliance landscape. MindEarth recommends a framework-agnostic data collection approach that can serve BRSR, ISSB, GRI, and regional requirements simultaneously.
Early movers who invest in robust ESG data infrastructure will benefit from lower compliance costs, improved access to ESG-linked financing, and stronger positioning with institutional investors conducting ESG due diligence.
