Oman’s approach to corporate sustainability reporting is becoming an important consideration for listed companies, investors and business leaders.
The Capital Market Authority (CMA), now known as the Financial Services Authority (FSA), and the Muscat Stock Exchange (MSX) have introduced disclosure requirements that place environmental, social and governance performance alongside traditional financial reporting. For companies listed on MSX, understanding these requirements is essential to meeting reporting obligations and communicating business performance transparently.
The Oman ESG disclosure requirements cover 30 metrics that examine a company’s environmental impact, workplace practices, corporate governance and contribution to society. Companies must prepare the required ESG disclosures and sustainability reports while ensuring that the information is accurate, balanced and supported by appropriate records.
ESG Disclosure Requirements in Oman
ESG stands for Environmental, Social and Governance. These three areas provide investors and stakeholders with information about how a company manages environmental responsibilities, treats employees and communities, and maintains effective governance practices.
Environmental reporting examines issues such as greenhouse gas emissions, energy consumption, water usage and climate-related investment. Social disclosures address workforce composition, employee safety, equal opportunity, human rights and labour practices. Governance metrics examine board structure, ethical policies, data privacy and sustainability oversight.
The MSX ESG Disclosure Guideline provides a framework for listed companies to report their performance through a defined set of metrics. The framework aligns with the Unified GCC ESG Disclosure Metrics for Listed Companies and the Global Reporting Initiative (GRI) Standards. Twenty-nine metrics are shared with other GCC exchanges, while the 30th metric focuses on corporate social responsibility and reflects MSX’s local reporting requirements.
Who Must Comply with ESG Reporting in Oman?
The MSX ESG disclosure framework applies to public joint stock companies listed on the Muscat Stock Exchange. The reporting requirements are established through the MSX ESG Disclosure Guideline and Administrative Decision No. 77/2025, which formalised the requirements for disclosing environmental, social and governance practices.
Companies covered by the framework must submit their ESG metrics through the MSX disclosure platform and publish sustainability reports. The reporting obligation is linked to listing status rather than a company’s revenue, workforce size or emissions level.
The first mandatory reporting cycle covered activities from the 2024 financial year, with reporting becoming mandatory from 2025 onwards. Companies must therefore maintain ESG information as part of their regular reporting processes instead of treating sustainability disclosure as a separate, occasional exercise.
The 30 ESG Disclosure Metrics in Oman
The MSX framework divides its disclosure metrics into environmental, social and governance categories. The following overview explains the information companies need to assess and report.
Environmental Metrics: Measuring Environmental Performance
Environmental metrics examine how business operations affect natural resources, emissions and climate-related sustainability.
- Greenhouse Gas Emissions
Companies disclose greenhouse gas emissions in carbon dioxide equivalent (CO₂e). The metric covers Scope 1, Scope 2 and Scope 3 emissions, where applicable. Scope 1 relates to direct emissions from sources controlled by the company, while Scope 2 covers emissions associated with purchased energy. Scope 3 includes other indirect emissions across the value chain.
The MSX framework identifies Scope 1 and Scope 2 reporting as mandatory, while Scope 3 is optional under the current metric guidance. Companies should use the GHG Protocol to support their calculations.
- Emissions Intensity
Emissions intensity measures greenhouse gas and non-greenhouse gas emissions against a relevant business output. Companies can use revenue, production volume, sales or another appropriate operational measure as the denominator.
This metric helps stakeholders compare environmental performance relative to business activity rather than looking only at total emissions.
- Energy Usage
Companies report the amount of energy consumed directly and indirectly. Direct energy relates to energy produced and consumed within company-owned or operated facilities, while indirect energy includes energy supplied by external utilities.
Energy consumption is generally measured in megawatt-hours (MWh) or gigajoules (GJ).
- Energy Intensity
Energy intensity measures direct energy consumption against a selected output or business activity. It helps organisations understand whether energy use is increasing or decreasing relative to operational performance.
- Energy Mix
This metric identifies the sources of energy used by a company and the percentage attributable to each generation type. Sources can include renewable energy, solar, hydroelectricity, oil, coal and natural gas.
Reporting the energy mix helps stakeholders assess the company’s dependence on different energy sources.
- Water Usage
Companies disclose their annual water consumption and the amount of water reclaimed. Information should be recorded in cubic metres and supported by operational data.
Water reporting is particularly relevant for manufacturing, construction, energy, hospitality and other water-intensive industries.
- Environmental Operations
This metric examines whether the company maintains a formal environmental policy, specific policies for waste, water, energy or recycling, and a recognised energy management system.
Companies can support their disclosures with environmental policies, internal procedures and relevant management-system documentation.
- Environmental Oversight by Management
Companies disclose whether their management team oversees sustainability matters. This includes identifying whether senior management discusses sustainability issues or has a dedicated committee responsible for environmental performance.
- Environmental Oversight by the Board
This metric assesses whether the board of directors oversees sustainability issues. Companies should identify how environmental matters are incorporated into board discussions or managed through a dedicated committee.
- Climate Risk Mitigation
Companies report annual investment in climate-related infrastructure, resilience and product development. Relevant expenditure can include research and development activities connected with climate risks and environmental resilience.
Social Metrics: Employees, Workplace Practices, and Human Rights
Social disclosure focuses on workforce conditions, employee protection, equal opportunity and responsible business practices.
- CEO Pay Ratio
Companies compare the total compensation of the chief executive officer with the median full-time-equivalent employee compensation. The metric also asks whether the company reports this information in regulatory filings.
Total compensation should include salary, bonuses and applicable incentives.
- Gender Pay Ratio
This metric compares median male compensation with median female compensation. Companies should calculate the ratio using comparable full-time-equivalent compensation figures and include relevant bonuses and incentives.
- Employee Turnover
Companies report year-over-year employee turnover for full-time employees, part-time employees and contractors or consultants.
Turnover figures help stakeholders assess workforce stability and changes in employment. Reporting should account for relevant departures, including resignations, dismissals, retirement and other employment changes.
- Gender Diversity
Gender diversity reporting examines the proportion of men and women across the organisation. The metric covers total workforce composition, entry- and mid-level positions, and senior or executive-level roles.
This information helps stakeholders evaluate representation and equal opportunity across different organisational levels.
- Temporary Worker Ratio
Companies disclose the percentage of their workforce made up of part-time employees and contractors or consultants.
The metric provides insight into workforce structure and the use of non-permanent employment arrangements.
- Non-Discrimination
Companies disclose whether they maintain a formal non-discrimination policy. Supporting information can include policy documents, employee guidelines and procedures addressing workplace discrimination.
- Injury Rate
The injury rate measures workplace injuries and fatalities relative to workforce time or employee exposure. Companies should maintain occupational health and safety records to support accurate reporting.
The metric helps stakeholders assess workplace safety performance and identify areas requiring corrective action.
- Global Health and Safety
Companies disclose whether they maintain an occupational health and safety or broader health and safety policy.
Relevant evidence includes documented safety procedures, employee training, workplace safety policies and management commitments.
- Child and Forced Labour
This metric examines whether the company maintains policies addressing child labour and forced labour. It also considers whether these policies extend to suppliers and vendors.
Companies should assess their supply chains and retain documentation demonstrating their labour standards and supplier expectations.
- Human Rights
Companies disclose whether they maintain a human rights policy and whether the policy covers suppliers and vendors.
Human rights reporting should reflect the company’s approach to responsible employment, fair treatment and relevant supply-chain practices.
Governance Metrics: Accountability and Corporate Conduct
Governance metrics assess how companies manage leadership responsibilities, ethical conduct, transparency and sustainability oversight.
- Board Diversity
Companies disclose the proportion of board seats held by men and women. The metric also examines gender representation among committee chairs.
Board diversity reporting provides stakeholders with information about representation in leadership and decision-making.
- Board Independence
Companies disclose whether the chief executive officer is prohibited from serving as board chair and report the percentage of board seats occupied by independent directors.
The metric supports transparency around board structure and oversight responsibilities.
- Incentivised Pay
Companies report whether executives receive formal incentives linked to sustainability performance.
Where applicable, disclosures should explain how executive compensation or performance assessments connect with sustainability objectives.
- Supplier Code of Conduct
This metric examines whether suppliers and vendors are required to follow a formal code of conduct. Companies also disclose the percentage of suppliers that have formally certified compliance with the code.
Supplier policies help establish expectations for responsible business practices throughout the supply chain.
- Ethics and Prevention of Corruption
Companies disclose whether they maintain an ethics or anti-corruption policy. They also report the percentage of employees who have formally certified compliance with the policy, where applicable.
Supporting documents can include ethics policies, anti-bribery procedures and employee acknowledgements.
- Data Privacy
Companies report whether they maintain a data privacy policy and whether they have taken steps to comply with GDPR requirements.
Businesses should also consider applicable Omani data protection legislation when preparing their privacy policies and compliance documentation.
- Sustainability Reporting
This metric asks whether the company publishes a sustainability report. Companies can provide sustainability information through a standalone report or integrate relevant information into their reporting arrangements where permitted by the applicable guidance.
- Disclosure Practices
Companies disclose whether they provide sustainability data to reporting frameworks, focus on specific United Nations Sustainable Development Goals (SDGs), and set targets and report progress against those goals.
The metric connects corporate sustainability reporting with broader development objectives.
- External Assurance
Companies disclose whether their sustainability information has been assured or verified by a third-party audit firm. Where verification has taken place, they should identify the key performance indicators covered.
Under the MSX metric framework, external assurance is a disclosure about the company’s assurance practices. It should not automatically be interpreted as a requirement for every ESG metric to undergo third-party assurance.
- Corporate Social Responsibility
The 30th metric is specific to MSX and focuses on corporate social responsibility (CSR). It reflects the company’s contribution to society and community development through relevant social responsibility activities and investment.
Companies should maintain records of CSR initiatives, community programmes and associated expenditure or contributions. The precise information should follow the applicable MSX disclosure form.
ESG Reporting Deadlines and Submission Requirements
Under MSX Administrative Decision No. 77/2025, listed companies must disclose ESG practices through the MSX disclosure platform and on their own websites.
The decision establishes a reporting deadline in the first quarter, within 30 days of the end of the financial year and following board approval. Companies with subsidiaries are allowed 45 days and must present consolidated and parent-company information separately.
Companies must follow the prescribed reporting form and maintain accuracy, clarity and consistency. MSX also expects companies to disclose negative information at the same level as positive information. The Exchange can request additional clarification after submission.
Failure to comply can result in a warning from the Exchange or referral to the Financial Services Authority for further action.
How to Prepare for ESG Compliance in Oman
Meeting ESG reporting requirements involves more than completing a disclosure form. Companies need reliable information, clear responsibility for data collection and a reporting process that supports accurate submissions.
Establish an ESG Reporting Team
Assign responsibility for ESG reporting across finance, HR, operations, procurement, compliance and senior management. Each department should understand the metrics relevant to its activities and provide information within agreed reporting timelines.
Collect and Verify ESG Data
Create a central record of emissions, energy consumption, water usage, employee information, safety incidents, policies and governance practices. Review the data for accuracy and consistency before submission.
Review Policies and Supporting Documentation
Identify missing or outdated policies covering environmental management, employee safety, non-discrimination, human rights, supplier conduct, ethics and data privacy.
Maintain evidence such as policy approvals, training records, utility information, supplier certifications and board meeting documentation.
Prepare the Sustainability Report
Use the MSX disclosure form and relevant reporting guidance to structure the report. Companies should establish reporting boundaries, assess material sustainability matters and explain performance using clear, balanced information.
Review Reporting Quality Before Submission
Conduct an internal review to identify incomplete metrics, inconsistent figures and unsupported statements. Confirm that the information submitted through MSX matches the company’s published sustainability report and supporting records.
IFRS S1 and IFRS S2: Upcoming Sustainability Reporting Developments
Oman’s ESG reporting framework is also developing through the Financial Services Authority’s adoption of IFRS S1 and IFRS S2.
FSA Decision No. E/7/2026 adopts these international sustainability disclosure standards for the preparation and assurance of financial reports or sustainability reports of listed public joint stock companies and financial institutions.
The decision establishes a phased application timeline:
- IFRS S1: Full application from 1 January 2029.
- IFRS S2: Full application from 1 January 2029, except Scope 3 greenhouse gas emissions disclosures.
- Scope 3 under IFRS S2: Application from 1 January 2030.
These standards introduce broader sustainability-related financial disclosure expectations. Companies covered by the decision should begin reviewing their data systems, reporting responsibilities and documentation before the implementation dates.
The MSX 30-metric framework and IFRS S1/S2 should not be treated as identical requirements. Businesses need to assess which obligations apply to their listing status, sector and reporting responsibilities.
How MFN Auditing Supports ESG Compliance in Oman
Preparing ESG disclosures requires coordination between financial records, operational information, sustainability policies and corporate governance documentation. Businesses that approach reporting without a structured process can face data gaps, inconsistent disclosures and avoidable delays.
MFN Auditing supports businesses in understanding their reporting responsibilities and organising the information needed for ESG disclosure. Professional assistance can help companies review reporting requirements, identify documentation gaps, improve internal processes and prepare more reliable sustainability information.
A structured approach also helps management understand sustainability performance beyond regulatory reporting. Accurate ESG information supports stakeholder communication, investor discussions and internal decision-making.
Frequently Asked Questions
What are Oman ESG disclosure requirements?
Oman ESG disclosure requirements are reporting obligations established by the Muscat Stock Exchange for listed public joint stock companies. They cover environmental, social and governance performance through 30 metrics and sustainability reporting.
How many ESG disclosure metrics does MSX require?
MSX requires disclosure of 30 ESG metrics. Twenty-nine are aligned with the Unified GCC ESG Disclosure Metrics, while the 30th focuses on corporate social responsibility and is specific to MSX.
Who must submit ESG reports in Oman?
The MSX framework applies to public joint stock companies listed on the Muscat Stock Exchange. Companies should confirm their reporting obligations against the applicable MSX requirements and regulatory decisions.
What is the ESG reporting deadline in Oman?
Under Administrative Decision No. 77/2025, disclosure is due in the first quarter within 30 days of the financial year-end and following board approval. Companies with subsidiaries have 45 days and must report consolidated and parent-company information separately.
Is external ESG assurance mandatory in Oman?
The MSX framework includes an external assurance metric asking companies whether their ESG disclosures have been verified or assured by a third party. This metric does not, by itself, make external assurance mandatory for every ESG disclosure. Companies should review applicable FSA decisions and future implementation guidance.
When will IFRS S1 and IFRS S2 apply in Oman?
FSA Decision No. E/7/2026 establishes full application of IFRS S1 and IFRS S2 from 1 January 2029. Scope 3 greenhouse gas emissions disclosures under IFRS S2 apply from 1 January 2030.
How can companies improve ESG compliance in Oman?
Companies can improve ESG compliance by assigning reporting responsibilities, collecting accurate data, reviewing relevant policies, maintaining supporting documentation and conducting internal checks before submission. Professional auditing and reporting support can help identify gaps and improve disclosure quality.