FRA Resolutions 107 & 108

This policy applies to business that meet the following criteria.

Region

Egypt

Industries

Financial Services (non-banking financial institutions)|||Listed Capital Markets Entities|||Technology and Telecommunications

Revenue

Tier 1 (ESG required): Issued capital or net equity ≥ EGP 100 million|||Tier 2 (ESG + TCFD): Issued capital or net equity ≥ EGP 500 million

Assets

N/A

Size

N/A

Status

Public|||Private

Required

Yes

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Overview of Egypt’s climate disclosures

Introduced: July 15, 2021 (FRA resolutions adopted)
Effective from: FY 2022 (first disclosures filed in 2023)
Region(s): Egypt (Financial Regulatory Authority, or FRA, -regulated issuers)

About the FRA Resolutions 107 & 108

Egypt’s FRA Resolutions 107 & 108 has made environmental, social, and governance (ESG) and climate-risk reporting mandatory for certain market participants. The regulation targets both capital market entities and non-bank financial institutions (NBFIs), with differentiated requirements based on financial thresholds.

The initiative aims to increase transparency, align Egypt’s financial markets with global sustainability standards such as TCFD, and make the country’s markets more attractive to sustainable investors. As ESG pressures grow globally, Egypt is positioning itself as a proactive emerging-market leader in climate-related disclosure.

Criteria for compliance

Entities under FRA jurisdiction are split into two main tiers:

Tier 1 (ESG required)

All companies listed on the Egyptian Exchange (EGX) and non-bank financial institutions (NBFIs) with issued capital or net worth ≥ EGP 100 million are required to submit annual ESG reports.

Tier 2 (ESG + TCFD required)

Listed companies and NBFIs with issued capital or net worth ≥ EGP 500 million must also submit climate-related financial disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Compliance timelines

FY 2022

First required disclosures submitted for the fiscal year ending 2022 and attached to annual financial statements filed in 2023

FY 2023 onward

Annual ESG and, where applicable, TCFD-aligned reports must be submitted every year within the entity’s statutory financial filing timeline.

Disclosure requirements

ESG reporting (all qualifying entities)

Environmental: Energy use, GHG emissions, water usage, and waste generation
Social: Workforce composition, labor practices, and community engagement
Governance: Corporate governance structure, board oversight, anti-corruption efforts

Climate disclosures (for large entities ≥ EGP 500M)

Aligned with TCFD, including:

Governance structures for climate oversight
Strategy and scenario analysis (including potential risks from climate change)
Risk management processes for climate-related issues
Metrics and targets, including:
- Mandatory disclosure of Scope 1 and Scope 2 GHG emissions
- Qualitative discussion of transition plans and long-term targets

All reports must be prepared using standardized templates issued by the FRA and submitted through designated regulatory channels.

Third-party auditing

Third-party assurance is not currently mandatory under FRA regulations. However, the authority encourages voluntary limited assurance, especially for climate-related disclosures. Future amendments may formalize assurance requirements as reporting expectations mature.