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 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.
Furthermore, APICORP aims to stimulate the adoption of sustainable business models within the energy sector and provide industry players with incentives to seek energy diversification and sustainability practices.
Dr. Aabed bin Abdulla Al-Saadoun, Chairman of the Board of Directors of APICORP, said: “As the world continues to experience unprecedented change, APICORP recognizes the importance of our role, our impact and our responsibility to tackle environmental and climate change challenge within our member countries, partners and wider stakeholders. We want to support a transition to a low-carbon, climate-resilient economy by mitigating risks across our operations, supply chain and client transactions by embedding sustainable principles in our business practices. We embark on this journey with the reassurance that all of our member countries are signatories to the 2015 Paris Agreement and participants at COP26 to be held in Glasgow later this year.”
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.