The Arab Oil Investments Company (APICORP) announced the allocation of one billion dollars to support green and renewable energy projects and companies, over the next two years, in the Middle East and North Africa.
This comes within the framework of APICORP’s adoption of a general framework for environmental, social and governance policies, as part of its efforts to support energy transformation and sustainability in the Arab region.
APICORP is a multilateral development financial institution focused on investing in the energy and oil industries. The company will cooperate with its partners in assessing all assets of its financing and investment portfolio in terms of its compliance with environmental, social and governance policies by the end of 2023.
APICORP intends to issue green bonds and sustainable development bonds during the coming period with the aim of accelerating the spread of sustainable energy and motivating stakeholders in the sector to adopt and adopt diversification of energy sources.
APICORP’s investments in green energy constitute more than 13% of the company’s total portfolio; The equivalent of about $550 million in loans and direct investments that have more than quadrupled in size over the past 5 years.
The new framework includes an integrated set of tools to ensure adherence to the approved standards and measure the environmental and social impact of its financing and investment decisions, with a focus on supporting the spread of renewable energy sources and low-carbon technologies, and strengthening strategic partnerships that have a positive impact on sustainability.
Facing environmental challenges
The Chairman of the Board of Directors of APICORP, Abed bin Abdullah Al-Saadoun, said: “Instilling the principles of sustainability and adopting them in all our work and reducing related risks comes from our awareness of the importance of our role and responsibility in facing environmental challenges and the climate change crisis, and continuing our efforts to reach a low carbon economy, especially In light of the rapid and unprecedented changes that the world is witnessing.”
APICORP member states affirmed their commitment to meeting the challenges by signing the Paris Climate Agreement and actively participating in the United Nations Climate Change Conference 2021 to be held in Glasgow later this year.
For his part, APICORP CEO, Ahmed Ali Atika, said: “APICORP’s role as a multilateral development financial institution specialized in financing the energy sector in the Arab world gives us the ability to accurately monitor the overall impact of these policies and support the transition towards more sustainable sources of energy in the region. generally”.
He added, “In parallel, we will focus on supporting the implementation of these policies in member states through research and exchange of experiences and knowledge, as well as activating our role as a trusted advisory body for these countries.”
The framework establishes specific mechanisms for how to measure, manage, monitor and monitor available risks and opportunities. It is based on 3 main pillars:
1-Responsible investments and financing.
2-Social inclusion and partnerships.
3-Financial flexibility and governance.
The framework also defines standards related to the company’s way of working in terms of the effectiveness of its organizational structure, work behavior system, diversity and employee empowerment, and in this context, the company will prepare annual public reports on a voluntary basis in line with the best international standards.