RIYADH: The Arab Petroleum Investments Corporation (APICORP), today 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 comes as part of its drive to support energy transition in its member countries and beyond.
Currently, green assets comprise more than 13 percent of the multilateral development bank’s overall portfolio amounting to around $550 million in loans and direct investments - this figure has more than quadrupled over the past five years.
APICORP will also measure the ESG impact when making financing and investment decisions through its new framework, and will focus on supporting the proliferation of renewable energy sources and low-carbon technologies as well as forging more strategic partnerships to promote the sustainability agenda.
The bank 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.
APICORP will also undertake voluntary public reporting on an annual basis drawn from the leading international standards, including the Task Force on Climate-related Financial Disclosures, The Principles for Responsible Investment, The Principles for Responsible Banking, and The Equator Principles.