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Saudi FII Draws Global Roadmap for Sustainability

Richard Attias, CEO of the FII Institute, speaks at the event. (SPA)
Richard Attias, CEO of the FII Institute, speaks at the event. (SPA)
    Cairo, London – Lamia Nabil and Asharq Al-Awsat
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Saudi FII Draws Global Roadmap for Sustainability

Richard Attias, CEO of the FII Institute, speaks at the event. (SPA)
Richard Attias, CEO of the FII Institute, speaks at the event. (SPA)

Saudi Arabia’s Future Investment Initiative (FII) hosted on Friday a global summit in London about Environmental, Social and Governance in emerging markets, involving over 40 world leaders, global CEOs, international investors, thought leaders and heads of sustainability.

In his opening speech, Richard Attias, CEO of the FII Institute, reminded the audience that the planet is suffering from major climate problems due to the destruction of nature, peace and security, stressing that environmental, social and corporate governance are important tools to guide capital to meet various problems and challenges.

Attias added that it is estimated that efforts to address climate change and achieve the United Nations Sustainable Development Goals by 2030 are underfunded with a value of 5 to 7 trillion dollars annually.

Given this funding gap, it is unlikely that governments alone will address the urgent priorities of the planet.

According to Attias, it is also estimated that investor demand in environmental, social, and institutional sustainability criteria will continue to grow rapidly from total assets of $41 trillion to $53 trillion by 2025.

“Central to our work at FII Institute is to increase awareness about the weaknesses in current ESG standards and their impact on global sustainability prospects, and to advocate for an inclusive and equitable application of ESG through driving real action by key players globally,” said Attias.

“ESG has been one of the fastest-growing investment strategies over the past few years, accounting for one-third of all assets under management. But this growth is not even. Working with our partners at EY, we identified and removed the barriers to ESG investment in emerging markets, which are often overlooked,” he added.

“By launching the Inclusive ESG Framework and Scoring Methodology, investing in a global sustainable solutions company, and publishing our recent ESG white paper — we are making tangible actions to create a better future for humanity. And we are confident that our partners around the world will help us drive those actions further.”

The FII event in London also unveiled a new inclusive ESG framework and scoring methodology to inform and accelerate investments in emerging economies.

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Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
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Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)

After South Korea's president and his replacement were both deposed over a failed bid to impose martial law, deepening political turmoil is threatening the country's currency and shaking confidence in its economy.

The won, which plunged Friday to its lowest level against the dollar since 2009, has been in near-constant decline since President Yoon Suk Yeol's attempt to scrap civilian rule in early December.

Business and consumer confidence in Asia's fourth-largest economy have also taken their biggest hit since the start of the Covid-19 pandemic, according to figures released by the Bank of Korea.

Lawmakers impeached Yoon in mid-December on charges of insurrection, and on Friday they impeached his successor, acting president and prime minister Han Duck-soo, arguing that he refused demands to complete Yoon's removal from office and bring him to justice.

That thrust Finance Minister Choi Sang-mok into the additional roles of acting president and prime minister.

Choi has pledged to do all he can to end "this period of turmoil" and resolve the political crisis gripping the country.

- Constitutional question -

At the heart of the stalemate is the Constitutional Court, which will decide whether to uphold parliament's decision to impeach Yoon.

It must do so by a two-thirds majority, however. And because three of the court's nine seats are currently vacant, a unanimous vote is required to confirm the suspended president's removal.

Otherwise, Yoon will be automatically returned to office.

Lawmakers on Thursday nominated three judges to fill the vacant seats, but acting president Han refused to approve them, precipitating his own impeachment.

After an acrimonious day in which lawmakers from Yoon's party erupted in protest, the country's newest acting president sought to project calm.

"Although we are facing unexpected challenges once again, we are confident that our robust and resilient economic system will ensure rapid stabilization," Choi said Friday.

The 61-year-old career civil servant has inherited a 2025 budget -- adopted by the opposition alone -- which is 4.1 trillion won ($2.8 billion) less than the government had hoped for.

"There are already signs the crisis is having an impact on the economy," Gareth Leather of Capital Economics wrote in a note to clients, citing the dip in consumer and business confidence.

"The crisis is unfolding against a backdrop of a struggling economy," he added, with GDP growth expected to be just two percent this year, weighed down by a global slowdown in demand for semiconductors.

"Longer term, political polarization and resulting uncertainty could hold back investment in Korea," Leather wrote, citing the example of Thailand, another ultra-polarized country whose economy has stagnated since a coup in 2014.

- Democratic resilience? -

But other economists noted that the South Korean economy has so far weathered the chaos well.

As early as December 4, the day after Yoon declared martial law following a budget tussle with the opposition, the central bank promised to inject sufficient liquidity to stabilize the markets, and the Kospi Index has lost less than four percent since the start of the crisis.

"Like everyone, I was surprised when Yoon took those crazy measures," Park Sang-in, a professor of economics at Seoul National University, told AFP. "But there was a resilience of democracy."

"We come from being an underdeveloped country to one of the world's most dynamic economies in very few years, and Yoon Suk Yeol is a side effect of the growth," he added.

"Korean society was mature enough to counter his crazy actions."