Jordan Securities Commission Launches ESG Code of Practice to Enhance Investment Attractiveness and Strengthen Capital Market Stability

Hashemite Kingdom of Jordan – Amman, Wednesday, 9 September 2026

As part of its efforts to strengthen the strategic position of Jordan’s capital market within the global financial landscape, the Jordan Securities Commission (JSC) today launched the Environmental, Social and Governance (ESG) Code of Practice (ESG Code). The Code will become mandatory for the 20 companies comprising the Amman Stock Exchange ASE20 Index, effective from the 2027 financial year, under an “apply and explain” approach. The JSC intends to expand the scope of application to other listed companies in subsequent phases.
The announcement was made during an official launch event held this morning at the JSC’s headquarters under the patronage of JSC Chairman Mr. Emad Abu Haltam. The event was attended by a representative of the Embassy of the Kingdom of the Netherlands in Amman, senior representatives of the JSC’s regulatory partners, officials from the International Finance Corporation (IFC), a representative of the International Sustainability Standards Board (ISSB), representatives of public shareholding companies and entities regulated by the JSC, as well as members of the JSC Board of Commissioners and representatives of the Amman Stock Exchange and Securities Depository Center.
The ESG Code was developed under the MENA Private Sector Development Program, funded by the Kingdom of the Netherlands, in cooperation with the IFC, Jordan’s capital market institutions and other relevant stakeholders.
The initiative is aligned with Jordan’s national priorities for sustainable development and the growth of green finance. It aims to establish a comprehensive framework that strengthens corporate governance and risk management while enhancing transparency and the disclosure of sustainability-related risks and opportunities by Jordanian companies.
Highlighting the significance of this transition, JSC Chairman Mr. Emad Abu Haltam said:
“Sustainability is no longer an option or a luxury; it has become a fundamental driver of competitiveness, trust and sustainable long-term growth.”

He added:
“This Code sets a new benchmark for Jordan’s capital market in line with international sustainability standards. It will strengthen the confidence of local and international investors and contribute to attracting high-quality, sustainable investment that supports the stability of the national economy.”
The JSC called on the boards and executive management of listed companies to embrace and invest in this strategic transition and to integrate sustainability principles into their core decision-making processes. The Commission reaffirmed its commitment to providing the necessary support and fostering an enabling regulatory environment to ensure effective implementation.
Mr. Marcel Rached, IFC Country Head for Jordan, said:
“ Attracting investment, reducing risk, and unlocking new growth opportunities are at the heart of every company's growth trajectory. This code aims to do precisely that. By deepening companies' commitment to sustainability, it enhances their value, accelerates expansion, and drives job creation, all of which remain central to the World Bank Group’s mission.” 
The Code aims to align with the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), specifically IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 – Climate-related Disclosures. This will enhance the reliability of sustainability reporting by Jordanian companies and improve the international comparability of their disclosures.
The Code is structured around four key areas: board and senior management governance, specialized board committees, standalone sustainability reporting, and investor protection.
With respect to board and senior management governance, the Code establishes requirements for board composition, including female representation and independent directors comprising at least one-third of the board, as well as access to specialized expertise in sustainability and climate-related risks.
Regarding specialized committees, the Code provides for the establishment of five key board committees covering governance, sustainability, audit, risk, and nominations and remuneration.
In relation to sustainability reporting, the Code requires companies to issue an annual standalone sustainability report, reinforcing transparency and helping to address the risk of “greenwashing.”
The Code also includes provisions on the management of conflicts of interest, codes of conduct and professional ethics, internal control frameworks, internal and external audit, compliance, transparency and disclosure requirements, as well as a comprehensive sustainability framework.