The ASE Climate-Related Disclosures Regulatory Framework makes IFRS S2 mandatory for ASE20 companies from FY2026. What Jordan's listed banks must disclose.
Introduction
Jordan’s listed banks are about to disclose climate risk to investors for the first time, on a mandatory basis. The trigger is the Amman Stock Exchange Climate-Related Disclosures Regulatory Framework, launched on 31 December 2024 and the first of its kind in the Middle East. It brings IFRS S2 into Jordan’s listing rules, and for banks in the ASE20 index, disclosure becomes mandatory from FY2026. This article explains what those banks must disclose, and the timeline.
The framework and its scope
The ASE framework requires reporting under IFRS S2 and the climate-relevant portions of IFRS S1. It is a listing-side instrument, so it binds companies as a condition of being listed, and it is scoped to the ASE20 index, the exchange’s twenty largest constituents. For all other listed companies, IFRS S1 and S2 reporting is permitted and encouraged, but voluntary.
This scoping matters. The obligation is index-based, not sector-based. A listed bank does not inherit the mandate because it is a bank, but because it is an ASE20 constituent. The regulatory map explains how this ASE obligation sits alongside the CBJ and JSC layers.
The timeline
The framework phases in over three steps.
| Phase | Timing | What applies |
|---|---|---|
| Permitted | From 2025 | Any ASE-listed company may apply IFRS S1 and S2 |
| Voluntary | FY2025, published 2026 | ASE20 companies may apply the standards voluntarily, with notice to ASE |
| Mandatory | Periods beginning on or after 1 Jan 2026, published from 2027 | IFRS S2 and climate-relevant IFRS S1 become mandatory for all ASE20 companies |
The practical message for an ASE20 bank is that FY2026 is the first mandatory year, with the disclosure published in 2027, and the voluntary FY2025 window is the chance to practise first.
What must be disclosed
The framework follows the four IFRS S2 pillars: governance, strategy, risk management, and metrics and targets. For a bank, the metrics pillar is the demanding part. It requires Scope 1, 2 and material Scope 3 greenhouse gas emissions, and for banking activities that means financed emissions under Category 15. It also requires scenario analysis using at least two scenarios, transition and physical risk exposure, and climate-related remuneration information. The governance and strategy work builds directly on what the CBJ regulation already requires banks to have in place.
The practical mechanics
Three operational points are easy to miss. The disclosure must sit within the annual report, at the same time as the financial statements, with a first-year timing relief allowing a separate climate report within six months. No external assurance is required at this stage. And reporting must be digital, using a locally developed taxonomy, with an explicit and unreserved statement of compliance with the ISSB climate requirements. Non-compliance is handled through an escalating process of alert, then warning, then a fine.
For an ASE20 bank, FY2026 is not a distant deadline. The data systems that produce a credible financed-emissions number take longer to build than the reporting year that discloses it.
How ESGweise helps
ESGweise helps banks build IFRS S2 readiness as a calculation and reporting partner. We construct the greenhouse gas and financed-emissions model, design the scenario-analysis approach, structure the four-pillar disclosure, and use the first-year reliefs deliberately so the first mandatory report rests on real data. This builds on our work on IFRS S2 for banks and TCFD foundations. See our reporting, assurance readiness and carbon accounting services.
Conclusion
IFRS S2 has arrived in Jordan through the ASE Climate-Related Disclosures Regulatory Framework, and for ASE20 banks, climate disclosure is mandatory from FY2026, published in 2027. The four-pillar structure is demanding, particularly financed emissions, but the first-year reliefs give banks room to prepare. The banks that treat the voluntary FY2025 window as a rehearsal, and build the data foundation early, will meet the mandate with confidence rather than scramble.
Frequently asked questions
What is the ASE Climate-Related Disclosures Regulatory Framework?
It is the instrument through which the Amman Stock Exchange requires listed companies to make climate-related financial disclosures. Launched on 31 December 2024, it was the first climate-disclosure framework of its kind in the Middle East. It requires reporting under IFRS S2 and the climate-relevant portions of IFRS S1, and it applies as a condition of listing, initially to companies in the ASE20 index.
When does IFRS S2 disclosure become mandatory for ASE20 banks?
The framework permits early application from 2025 and provides a voluntary window for FY2025 disclosures published in 2026. It becomes mandatory for annual reporting periods beginning on or after 1 January 2026, with the first mandatory disclosures published from 2027, for all ASE20-index companies. A listed bank that is an ASE20 constituent falls within this mandate.
What is Jordan's climate-first approach to the ISSB standards?
Jordan adopted a climate-first modification. Rather than requiring the full IFRS S1 sustainability disclosures across all topics, the framework mandates only the climate requirements, meaning IFRS S2 plus the climate-relevant parts of IFRS S1. Full IFRS S1 and S2 reporting remains permitted and encouraged, and counts as compliant, but the binding requirement is climate.
Do ASE20 banks need assurance on their climate disclosures?
No. The ASE framework does not require external assurance of the climate disclosures at this stage. It does require digital reporting using a local taxonomy, placement within the annual report at the same time as the financial statements, and an explicit statement of compliance with the ISSB climate requirements. Non-compliance is handled through an escalating process of alert, warning and fine.