APICORP , the Arab Petroleum Investments Corporation, an energy-focused multilateral development bank, recently revealed its new ESG policy framework . This is part of APICORP’s drive to support energy transition in its member countries and beyond. APICORP’s plans are to assign US$1 bn towards sustainable and green energy companies.
APICORP’s plans are to assign US$1 bn towards sustainable and green energy companies and projects over the next two years, specifically in the MENA region, with a view to concomitantly measure the ESG footprint of all its assets by end of 2023 through active engagement with its stakeholders. At present, green assets make up over 13% of APICORP’s overall portfolio – equal to around US $550 million in loans and direct investments.
The new framework has a meticulous toolkit to measure the ESG impact when making financing and investment decisions, with a focus on supporting the growth of renewable energy sources and low-carbon technologies, and also making more strategic partnerships that support the sustainability agenda.
The framework, which is based on three key pillars – Responsible Banking and Investing, Social Inclusion and Partnerships, and Financial Resilience and Governance – is a crucial element of APICORP’s strategy to formalize and institutionalize its commitment to environmental protection, social responsibility, and governance. It also provides guidance as to how APICORP will go about identifying, measuring, managing, monitoring, and reporting ESG risks and opportunities, as well as outlining criteria related to its own infrastructure, ethics and values, diversity and inclusion, and employee empowerment.APICORP was formed by the Organisation of Arab Petroleum Exporting Countries (OAPEC) in 1975 as a commercially-focused finance company that can assist developing nations in obtaining nuanced and efficient financing alternatives for their oil industries. APICORP has worked to increase capital accessibility and improve financial stability and performance in the Arab energy sector since its inception
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In addition to its original mission of promoting oil development, APICORP has also been working on stimulating the economies of member nations through investment into non-energy resources and industries.
APICORP has a special focus on financing energy production and distribution, as well as power generation projects. Such projects include solar panels and wind farms, typically in partnership with private companies. APICORP was the first organization to provide financing for renewable energy projects, starting in 1989 when they lent US$2 million to a Turkish company that installed solar panels on rooftops.
APICORP also provides financial support to countries outside of OAPEC through loans and direct investments. This support enables the company to connect member nations with international companies, promoting global trade and capital flow.
APICORP has subsidiaries in Germany, Spain, the UK and US that work towards the same ends of promoting development in OAPEC countries by facilitating capital flow. The organization’s headquarters is located in Abu Dhabi.
ESG: The New Way of Doing Business in Abu Dhabi
Business and organizational sustainability is a complex issue in Abu Dhabi, with many stakeholders and perspectives. It’s also an area where the stakes are high – if we don’t get it right, there will be dire consequences for our communities and the planet.
The good news is that more investors are taking notice of ESG issues when they invest in Abu Dhabi companies and organizations. In fact, over the past decade institutional investors have been increasingly incorporating Environmental, Social and Governance factors into their investment decisions. And soon it will be impossible to win any RFP’s without it.
We want everyone (not just big institutions in Abu Dhabi) to be able to incorporate ESG-related risk into their actions because Companies that don’t adapt to these changes will not survive. This change has many companies in Abu Dhabi scrambling to figure out how they can stay competitive and be profitable while also contributing to a better future.
ESG The Report is one solution that helps businesses in Abu Dhabi find their niche in this new landscape by providing information on risks and opportunities related to environmental, social and governance factors affecting them today. Our report offers insights into what investors are looking for from companies in Abu Dhabi and around the globe.
ESG Frameworks provide investors with insight into how companies are performing in terms of corporate governance, social issues, labour standards and environmental impact. Ask about our ESG Frameworks package to help you get started on making your company, department or organization diverse, equitable and inclusive for all stakeholders.