ESG investing makes business sense: Saudi PIF chief

ESG investing makes business sense: Saudi PIF chief
Al-Rumayyan, who also chairs the FII Institute, said that ESG investing should grow in tandem with the sustainable development goals (SDGs). (AFP)
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Updated 15 April 2021

ESG investing makes business sense: Saudi PIF chief

ESG investing makes business sense: Saudi PIF chief
  • The PIF has already incorporated ESG principles into its $400 billion worth of global investments as the sector gains in prominence throughout the region

RIYADH: Saudi Arabia’s Public Investment Fund (PIF) Governor Yasir Al-Rumayyan said that environmental, social, and governance (ESG) programs made solid business sense in the Kingdom and worldwide.
“Such action not only helps in protecting climate but also helps economically,” he said during the Future Investment Initiative (FII) Institute’s ESG virtual event on Thursday.
The PIF has already incorporated ESG principles into its $400 billion worth of global investments as the sector gains in prominence throughout the region.
Al-Rumayyan, who also chairs the FII Institute, said that ESG investing should grow in tandem with the sustainable development goals (SDGs) which were adopted by UN member states in 2015 as a universal call to action to end poverty and protect the planet.
“We need to work together on mobilizing ESG for a sustainable future,” he told delegates.
Developing the renewable energy sector was crucial to reducing emissions, he said, highlighting the Fund’s work with ACWA Power, a leading global player in the renewables sector. The PIF in November increased its stake in the company to 50 percent, part of a move to support the wider renewables sector in the Kingdom.
ACWA Power is planning an initial public offering and heads a consortium that will build and operate renewable power-based utilities at the Kingdom’s flagship Red Sea tourism project.
Al-Rumayyan also referred to the Saudi Green Initiative and Middle East Green Initiative to reduce carbon and contribute to protecting the planet as an example of the Kingdom’s progress, which were announced by Crown Prince Mohammed bin Salman in late March.
The green initiatives aim to reduce carbon emissions by 60 percent in the region and deliver the world’s biggest afforestation project. The tree-planting project will be double the size of the Great Green Wall in the Sahel region, the second-biggest regional forestry initiative. The initiative will also work to increase the percentage of protected land to more than 30 percent, exceeding the global target of 17 percent per country.
It aims to reduce carbon emissions by more than four percent of global contributions through renewable energy projects that will provide 50 percent of the Kingdom’s electricity production by 2030.
The initiative is expected to eliminate more than 130 million tons of carbon emissions by using clean hydrocarbon technologies.
The PIF governor said such initiatives represented a clear and ambitious roadmap and would contribute to achieving global targets on combating climate change. He said the Kingdom will raise vegetation cover, reduce emissions, and preserve marine life as part of its efforts to deliver a more sustainable future.
Thought leaders in sustainable investment gathered virtually in Riyadh on Thursday to explore one of the hottest topics in the world of finance — the move to environmental, social and governance (ESG) benchmarks by big global investors.
The event, under the auspices of the Future Investment Initiative (FII) Institute, focuses attention on sustainable investment in the post-pandemic recovery, and the role of emerging markets like Saudi Arabia within the new investment philosophy.
ESG investing has recently taken off, attracting hundreds of billions of dollars into funds that pledge to weigh broader considerations when deciding where to put their money, rather than mere cash returns.
Richard Attias, chief executive of the FII Institute, said: “Although ESG has proven its worth, much remains to be done to ensure we use it to its full potential. The low level of inclusion and participation of emerging markets in the development of ESG frameworks is counterproductive to global sustainability.
“Perhaps the most challenging task, and one that we will address during this event, is how we push ourselves to think beyond ESG as a risk management tool and deploy it to create a truly sustainable future,” he added.

 


G7 should invest $10tr to stoke economic recovery

G7 should invest $10tr to stoke economic recovery
Updated 11 May 2021

G7 should invest $10tr to stoke economic recovery

G7 should invest $10tr to stoke economic recovery
  • Summit will be chaired by Britain’s Johnson in Cornwall, southern England, on June 11-13

LONDON: G7 countries should invest $10 trillion to stoke an investment-driven recovery that puts COVID-19 vaccines in arms and triggers a sweeping energy transformation to slow climate change, according to a report requested by Prime Minister Boris Johnson.

US President Joe Biden is expected to join other Group of Seven leaders at a G7 summit chaired by Britain’s Johnson in Cornwall, southern England, on June 11-13.

Founded in 1975 as a forum for the West’s richest nations to discuss crises such as the OPEC oil embargo, the G7 will discuss what it perceives as the biggest threats: China, Russia, climate change and the coronavirus pandemic.

Nicholas Stern, professor of economics at the London School of Economics, said in a report for Johnson that the G7 was a crucial opportunity for the West’s richest economies to make a real change to the global economy.

“The transition to a zero-emissions and climate-resilient world provides the greatest economic, business and commercial opportunity of our time,” Stern said in the report.

“At the heart of the proposed vision for the economic response to the pandemic is a coordinated global program of investment for recovery, reconstruction and transformation that can boost all forms of capital — physical, human, natural and social,” Stern said.

G7 countries, he said, should set a collective goal to raise annual investment by 2 percent of GDP above pre-pandemic levels for this decade and beyond and improve the quality of investment — equal to about $1 trillion per year in additional investment over the next decade.

The G7 leaders should ensure a timely global roll-out of vaccines by immediately closing the $20 billion funding cap of COVAX, a global program to provide vaccines mainly for poor countries.

After Johnson called for countries to do more than produce “hot air” rhetoric on climate, the report said the G7 should come up with credible ways to meet Biden’s climate goals.

The G7 should commit to eliminating all fossil-fuel subsidies no later than 2025, lead a sweeping energy transition, end overseas support for fossil-fuel investments and consider a minimum corporate profit tax of 21 percent.


Copper hits record high on higher demand hopes

Copper hits record high on higher demand hopes
Updated 11 May 2021

Copper hits record high on higher demand hopes

Copper hits record high on higher demand hopes
  • Bullish investors bet that demand for copper will increase further as the world economy recovers from COVID-19 slumps and as investments into green energy sectors ramp up

HANOI: Copper prices touched record highs in both London and Shanghai markets on Monday on hopes for improved demand amid tightening supply.

Three-month copper on the London Metal Exchange rose to an all-time high of $10,747.50 a ton earlier in the session before easing to $10,694 a ton, still up 2.7 percent.

The most-traded June copper contract on the Shanghai Futures Exchange closed up 4.8 percent to 77,720 yuan ($12,094.62) a ton, after scaling a peak of 78,270 yuan earlier. Sentiment has been boosted following record high LME prices since 2011 hit on Friday.

Bullish investors bet that demand for copper will increase further as the world economy recovers from COVID-19 slumps and as investments into green energy sectors ramp up, while prices were also supported by tight supply in the concentrate market.

“Prices continue to rise as the world is talking about the global recovery and the need for metals,” said Malcolm Freeman, a director at UK broker Kingdom Futures, adding that the LME contract “looks set to attempt $11,000 on a technical basis.”

However, he noted that industrial players are not buying at this price level.

ShFE aluminum surpassed 20,000 yuan a ton, rising as much as 3.8 percent to 20,445 yuan a ton, its highest since January 2010, while ShFE zinc hit its highest since March 2008 of 23,065 yuan a ton. LME aluminum rose 2 percent to $2,590.50 a ton and zinc advanced 1 percent to $3,045 a ton.

A group of 15 key copper smelters in China have agreed to cut their purchases of raw material copper concentrate in 2021 by 8.8 percent year-on-year, state-backed research house Antaike said.


Egypt in talks with international firms to invest in data centers, says minister

Egypt is in talks with international companies to boost investment in data centers and information technology. (Shutterstock/Illustrative)
Egypt is in talks with international companies to boost investment in data centers and information technology. (Shutterstock/Illustrative)
Updated 10 May 2021

Egypt in talks with international firms to invest in data centers, says minister

Egypt is in talks with international companies to boost investment in data centers and information technology. (Shutterstock/Illustrative)
  • The aim is to take advantage of the geographical location of Egypt and the passage of a large number of international data cables between Asia and Europe

RIYADH: Egypt is in talks with international companies to boost investment in data centers and information technology, the country's communications minister revealed.

The aim is to take advantage of the geographical location of Egypt and the passage of a large number of international data cables between Asia and Europe, reaching North America, said Minister of Communications and Information Technology,Amr Talaat.

It is part of a wider push to build an integrated digital society, Al Arabiya reported.

That is why the budget for the information technology sector and the ministry’s budget has been growing over the last two years and will continue to grow over the next three years, he added.

“We have started building the Egypt digital platform that provides more than 70 digitized government services at the present time, and we look forward to increasing it to 170 services by the end of this year, and then increasing to include all government services within two years until 2023,” said the minister.


Egyptian prime minister discusses industry localization with US firm Bechtel

According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation. (AFP/File Photo)
According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation. (AFP/File Photo)
Updated 10 May 2021

Egyptian prime minister discusses industry localization with US firm Bechtel

According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation. (AFP/File Photo)
  • Mostafa Madbouly said the country was currently localizing industrial production with the aim of rendering it more sustainable

CAIRO: Egyptian Prime Minister Mostafa Madbouly held discussions with US construction firm Bechtel on ways to increase the use of local products and components in the development of projects in Egypt.

According to a statement issued by the Egyptian government, Madbouly said that the Bechtel delegation’s visit to Egypt was part of a strategy to enhance Egyptian-American cooperation across a number of sectors.

The prime minister said there were several projects in Egypt being developed in cooperation with American companies, like the petrochemical complex in the Ain Sokhna area. He added that he is following up on these megaprojects.

Madbouly also said that he welcomed the cooperation proposed by Bechtel in constructing a sixth metro line and in managing new cities.

Bechtel’s Infrastructure Global Business Unit President Shaun Kenny expressed his enthusiasm to work with the Egyptian government on megaprojects currently being implemented, especially the metro line.

The Egyptian prime minister stated that the country is currently localizing its industrial production with the aim of rendering it more sustainable.


Egypt’s Cleopatra Hospitals bid to buy Alameda Healthcare halted

Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted. (Cleopatra Hospitals Group)
Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted. (Cleopatra Hospitals Group)
Updated 10 May 2021

Egypt’s Cleopatra Hospitals bid to buy Alameda Healthcare halted

Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted. (Cleopatra Hospitals Group)
  • The proposed deal was originally announced by Cleopatra in late December 2020

RIYADH: Egypt’s Cleopatra Hospitals Group said its bid to acquire Alameda Healthcare through a sale and purchase agreement of shares has been halted.

It made the disclosure in a filing to the Egyptian Stock Exchange on Monday.

The proposed deal was originally announced by Cleopatra in late December 2020, with an estimated value of about $500 million.

But it was quickly followed by an announcement from the Egyptian Competition Authority saying that it did not agree in principle to the acquisition.

It highlighted the potential consolidation of Cleopatra’s dominance over hospitals around Cairo and Giza.

Alameda Healthcare’s network includes four tertiary care hospitals in Cairo, two of which are currently being constructed. Once the facilities are fully commissioned Alameda Healthcare will have a capacity of 890 beds, according to its website. The network also includes facilities in Kuwait and London, outpatient clinics, diagnostic centers, specialist centers, pharmacies, and a rehabilitation center.