Qatar’s mandatory ESG reporting from 2026: IFRS S1 and S2 explained

Qatar’s approach to ESG (environmental, social and governance) standards is built around Qatar National Vision 2030 and is moving at an accelerating pace from a voluntary basis to a mandatory one, with particular emphasis on aligning disclosure standards with international best practice.

This development is driven by ambitious plans, foremost among them the strategy for carbon neutrality by 2050, which encompasses major investment in renewable energy such as the Al Kharsaah solar power plant, as well as in carbon capture technologies and energy efficiency.

The core regulatory pillars

Qatar’s new regulatory framework rests on three main pillars, all of which adopt the standards of the International Sustainability Standards Board (ISSB) as their primary reference:

• Corporate Sustainability Disclosure Rules (QFCRA) - issued by the Qatar Financial Centre Regulatory Authority and in force from 1 January 2026. Entities in scope: mandatory for all Category “A” firms (large institutions such as banks and insurance companies); the Authority may also designate other firms by written notice, on the basis of factors such as the firm’s size, its assets and its customer base. Content: annual sustainability reports prepared in accordance with IFRS S1 (general requirements for sustainability disclosure) and IFRS S2 (climate-related disclosures).
• Sustainability Disclosure Framework (QCB) - issued by the Qatar Central Bank and likewise in force from 1 January 2026. Entities in scope: all financial institutions supervised by the central bank. Content: disclosure in accordance with ISSB standards across four core pillars - governance, strategy, risk management, and metrics and targets - with phased implementation that includes a transitional period to ease compliance.
• Sovereign green bonds - in May 2024 the Ministry of Finance issued USD 2.5 billion of sovereign green bonds, the first issuance of its kind in the states of the Gulf Cooperation Council. Purpose: to channel investment towards renewable energy projects and green infrastructure, reflecting Qatar’s commitment to financing the environmental transition and to attracting international investors.

Challenges and opportunities

For all the substantial progress made, Qatar’s approach faces distinctive challenges and opportunities:

• From voluntary to mandatory - Sustainability disclosure on the Qatar Stock Exchange was voluntary until recently. Studies point to a significant opportunity for Qatar to draw on the experience of leading jurisdictions such as Singapore, where sustainability disclosure is a mandatory condition of listing. With the new rules applying in 2026, Qatar moves directly to the stage of mandatory disclosure against global standards.
• A hydrocarbon-based economy - The greatest challenge lies in striking a balance between Qatar’s position as one of the world’s largest producers of natural gas and its ambition to transition to a low-carbon economy. Its approach rests on treating gas as a “transition fuel”, with parallel investment in renewable energy and carbon capture technologies in order to achieve carbon neutrality by 2050. Research points to the importance of reinvesting the returns from non-renewable resources in human and natural capital in order to secure long-term prosperity.

Qatari ambitions

Qatar’s approach to ESG can be described as ambitious and fast-evolving. It rests on a clear national vision and is being translated into concrete regulatory measures that adopt the highest global standards (ISSB) in the shortest possible time, alongside continued investment in green infrastructure projects.

The greatest challenge remains that of achieving these ambitious sustainability goals while preserving Qatar’s standing as a major energy hub - a course that global markets are watching closely.