Last reviewed: November 2026. This brief summarises the sustainability, ESG disclosure and corporate governance landscape in Iraq for boards, sustainability teams and investor-relations professionals. It is an orientation guide, not legal advice.
Rules, thresholds and deadlines change frequently, and several frameworks described here were being revised at the time of writing. Always confirm the current position with the official source (regulator, exchange or ministry) before relying on any requirement.
Overview
Iraq's economy is dominated by oil revenues and the public sector, and its equity market is small, with a listed universe weighted towards banks, industry, hotels and services. Formal ESG disclosure requirements for listed companies are still at an early stage. The most developed sustainability rules are in the banking sector, where the Central Bank of Iraq (CBI) has issued governance and ESG requirements with support from the International Finance Corporation (IFC).
For companies operating in Iraq – and for foreign investors, lenders and buyers sourcing from Iraq – the most material sustainability themes are gas flaring and methane, water stress, power supply, climate adaptation, labour standards and anti-corruption controls.
Regulators and stock exchange
- Iraq Securities Commission (ISC) – the capital market regulator, responsible for licensing, disclosure and market supervision. It publishes investor-education material, including on ESG concepts.
- Iraq Stock Exchange (ISX) – the main securities exchange, based in Baghdad.
- Central Bank of Iraq (CBI) – regulates and supervises banks and payment providers and leads sustainable finance initiatives.
The Kurdistan Region has its own regional institutions for some matters; check whether federal or regional rules apply to a specific company.
ESG / sustainability disclosure requirements
No general mandatory sustainability reporting standard for listed companies was identified for this brief. Listed companies publish annual financial statements and board reports under ISC and ISX disclosure rules, and a small number of larger groups publish voluntary sustainability information, usually referencing GRI.
In banking, the CBI and IFC launched a multi-year Sustainable Finance Roadmap and an ESG Code for banks in 2024, applying to banks under CBI supervision. Banks are expected to build environmental and social risk management systems and report progress to the CBI. Companies borrowing from Iraqi banks or from development finance institutions should expect E&S questionnaires and action plans as part of lending terms.
Corporate governance code
The Corporate Governance Guide for Banks issued by the CBI in 2018, developed with IFC input, sets requirements for bank boards, committees (including a corporate governance committee), risk management, internal audit, disclosure and stakeholder treatment. For non-bank listed companies, governance obligations derive mainly from the Companies Law and ISC disclosure and listing instructions. A comprehensive comply-or-explain code for all listed companies was not identified for this brief; check the ISC website for any new instruments.
Climate commitments
- Paris Agreement: Iraq ratified in 2021; it entered into force for Iraq on 1 December 2021.
- NDC (2021): an unconditional reduction of 1–2% and a conditional reduction of up to 15% below business-as-usual by 2030, the latter dependent on international support.
- NDC 3.0 (November 2025): a combined mitigation ambition of around 22% by 2035 with international support, and stated plans to use Article 6 carbon market mechanisms. Sources summarise the split between unconditional and conditional parts differently, so read the submitted document.
- Net zero: no formal national net-zero target year has been announced.
Sustainable finance
Sustainable finance is at an early stage. The main building blocks are the CBI's ESG Code and Sustainable Finance Roadmap for banks, development finance from multilateral lenders (often with IFC or World Bank environmental and social standards attached), and climate finance linked to the NDC. Green bond or sukuk issuance by Iraqi issuers has been very limited. Article 6 carbon crediting could become a new channel for projects such as flare-gas capture and renewables.
Investor relations practice
Investor relations in Iraq is nascent. Most communication with shareholders takes place through statutory disclosures on the ISX, annual general meetings and Arabic-language annual reports. Foreign participation is limited, and many listed companies have concentrated ownership. Issuers seeking international or development finance investors benefit from publishing English summaries, clear dividend policies, audited IFRS-based statements and basic ESG data (energy, water, workforce, governance policies).
What to watch
- ISC moves towards governance or ESG disclosure guidance for listed companies.
- Implementation of the CBI ESG Code and any extension of sustainable finance rules.
- Implementation of NDC 3.0, gas-flaring reduction programmes and Article 6 arrangements.
- Lender and buyer due diligence requirements linked to EU and international supply-chain rules.
Official sources
Last reviewed: November 2026. Corprise Knowledge Hub briefs are updated periodically; if you notice a change in the rules, check the official source first.
