The Arab Petroleum Investments Corporation (Apicorp) announced its plans to allocate $1 billion towards green energy projects and sustainable energy companies over the next two years, particularly 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.
The energy-focused multilateral development bank said in a statement that this new ESG policy framework is part of its drive to support the energy transition in its member countries and beyond.
Currently, green assets comprise more than 13 percent of the bank’s overall portfolio – equal to around $550 million in loans and direct investments, a figure which has more than quadrupled over the past five years.
Additionally, Apicorp will look to introduce green and sustainability bonds in the coming period to accelerate the adoption of sustainable business models within the energy sector and provide industry players with incentives to pursue energy diversification and sustainability practices.
Chairman of the Board of Directors of Apicorp, Dr. Aabed bin Abdulla Al-Saadoun said: “Apicorp recognizes the importance of our role, our impact, and our responsibility to tackle environmental and climate change challenges 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.”
Chief Executive Officer of Apicorp, Dr. Ahmed Ali Attiga stated: “Encouraging other partners in our ecosystem to be more mindful of their environmental, governance and societal footprint is therefore integral to our strategy moving forward.
“As a multilateral development bank with exposure to myriad industries within the energy space, we have the added advantage of being able to measure the overall impact more accurately across the regions in which we operate.”
He added: “Equally important, we will continue to drive the ESG agenda in our member countries through our research and knowledge sharing activities, as well as our unique position in advising key policymakers within government and regulatory circles.”
Apicorp will go about identifying, measuring, managing, monitoring, and reporting ESG risks and opportunities, as well as outlining criteria related to its infrastructure, ethics and values, diversity and inclusion, and employee empowerment.
