On the 31st of March 2025, for the first time, all publicly traded companies in Oman were required to submit a sustainability report to the Muscat Stock Exchange (MSX). This is a significant and progressive driving transparency, accountability, and sustainable business practices in Oman, in the Middle East and globally.
Like starting anything new, understanding the requirements, what steps to take and even where to begin, can be a huge challenge. And, this is particularly true for a significant and complex and evolving task like developing a mandatory sustainability report.
As MSX listed businesses are obligated to report on their Environmental, Social and Governance (ESG) performance annually from 2025 onwards, Three Pillars Consulting have decided to provide a helpful guide on the key things businesses need to know including:
● MSX Disclosure Guidelines: Understanding the MSX 30 ESG Metrics, national and regional alignment
● Top 4 Requirements: The global framework to use, publication date, stakeholder engagement, balanced reporting and website publication.
● Global Reporting Framework (GRI): What it is and why it is important?
● Penalties for Non-Compliance: Risks of failure to file a report or report metrics.
● How Three Pillars Consulting can help: Support from assessment to publication.
The MSX Disclosure Guidelines: 30 ESG Metrics
In 2023, the Muscat Stock Exchange (MSX) introduced the first official ESG disclosure guidelines for Oman’s publicly listed companies. Issued by the Capital Market Authority (CMA), the guidelines align with global sustainability reporting standards setting out 30 metrics across the three ESG pillars: (1) environmental, (2) social responsibility, and (3) corporate governance. Within those 3 pillars are a series of 30 metrics (sub-categories) that include topics ranging from things like the reporting company’s greenhouse gas (GHG) emissions and energy consumption to employee turnover, gender diversity, and data protection policies.
The guidelines provide a standardized template of the metrics to ensure comparable data is collected and reported in a way that should make it comparable and relevant across different companies. For now, not all reporting metrics outlined in the MSX Disclosure Guideline are mandatory, but the expectation is that all metrics will become mandatory in the coming years.
MSX Guidelines: Oman 2024 Vision and Regional Alignment
The MSX guidelines were developed to promote robustness in Oman’s ESG reporting through alignment with national, regional and global ESG standards including:
● Oman’s Vision 2040 objectives: Sets out Oman’s commitment to social and economic development including 5 year planning strategies
● Gulf Cooperation Council’s (GCC) 2022 ESG Disclosure Metrics for Listed Companies: A key tool for standardizing disclosure metrics across the region in line with recommendations from the UN Stock Exchange Initiative (SSE) and the World Federation of Exchanges.
Key MSX Reporting Requirements
- In accordance with GRI Standards: Annually, from 31 March 2025, all MSX listed companies are required to file a standalone ESG report (separate from financial reports) in accordance with the Global Reporting Initiative (GRI) Universal Standards.
- Stakeholder Engagement: Companies are to engage with stakeholders in developing their strategy and set out their processes for engagement in the report, such as during the process of conducting the Materiality Assessment.
- Balanced View: The report must highlight both opportunities and risks to ensure transparency and show a track record of improvements year on year.
- Website Publication: The report has to be published on the company’s website every year ensuring access for stakeholders and investors.
What are the Global Reporting Initiative (GRI) Universal Standards?
To help companies participate in sustainability assessments, there are several standardized global frameworks (‘standards’) that provide guidance, structure, consistency and reliability in sustainability reporting. The use of these frameworks and standards by companies on a global scale enables transparency, accountability, and comparability between reports from companies in the Middle East to companies in Europe, Asia and Africa.
The most common standard comes from the Global Reporting Initiative (GRI), which was designed to be universally applicable to organizations, regardless of their size, industry, or location, providing reporting standards on economic, environmental and social impacts. However, other (and often quite recent) standards and regulations for ESG / Sustainability Reporting are also available, such as the European Commission’s CSRD, SASB’s IFRS, and others.
How Three Pillars Consultancy can help
As is clear, sustainability reporting under the MSX ESG Disclosure Guidelines is now a business necessity. With 30 ESG metrics to track, alignment with GRI global standards, and key requirements such as stakeholder engagement and balanced reporting, companies must navigate a detailed and evolving regulatory framework. Noncompliance risks penalties, reputational damage, and lost investor confidence - yet for many businesses, getting it right can feel like a minefield.
At Three Pillars Consulting, we simplify this process. Whether you refining existing disclosures, developing your strategy or need help crafting the report, our expert team provides tailored support at every stage:
· Stakeholder Engagement & Materiality Assessments: Identifying key ESG issues relevant to your business and ensuring compliance with MSX engagement guidelines.
· ESG Reporting & Compliance: Ensuring reports meet your disclosure and regulatory requirements and align with global standards.
· Specialty Services: Greenhouse Gas (GHG Accounting), Decarbonization Road-mapping, Life-Cycle Assessments and all technical matters needed for your report.
· Long Term Value: Identifying both risks and opportunities to build you a sustainability strategy that drives business resilience, reputation, and value for the long haul.
· Make ESG Reporting Simple & Effective: With a dedicated team of experts and end-to-end support, we ensure your business is not only compliant but positioned for long-term success in sustainability and investment markets.
Contact Us Here to make your ESG reporting seamless.
