“Future of Investment” draws a global roadmap for sustainability

“Future of Investment” draws a global roadmap for sustainability

A management summit in emerging markets was held in London

Saturday – 20 Shawwal 1443 AH – 21 May 2022 AD Issue No. [

Richard Attias, Executive Director of the Future Investment Initiative (SPA)

Cairo: Lamia Nabil – London: «Asharq Al-Awsat»

In the middle of the British capital, London, the most important financial and business capital in the world, and in the ultra-luxurious Rosewood Hotel, a few minutes walk from the financial center (The City), the Saudi Future Investment Initiative held its world summit yesterday ( Friday), entitled “Environmental, Social and Corporate Governance in Emerging Markets”, with the participation of more than 40 international leaders and experts, investors, thinkers, policy makers and global CEOs.
In his opening speech for the summit, which was virtually attended by Asharq Al-Awsat, Richard Attias, Executive Director of the Future Investment Initiative, said the planet is suffering from major climate problems due to the destruction of nature, peace and safety, and emphasizes that environmental, social and corporate governance are important tools to guide Capital to address various issues and challenges.
Atias added that it is estimated that efforts to address climate change and achieve the United Nations’ goals for sustainable development by 2030 are underfunded with a value of 5 to 7 billion dollars annually, and that given this funding gap, it is unlikely that governments alone will address. the urgent priorities of the planet The Earth is represented by the Sustainable Development Goals, which means that the use of the power of capital will be indispensable.
He added that estimates also indicate that investor demand in environmental, social and institutional sustainability criteria will grow rapidly from total assets currently $ 41 trillion to $ 53 trillion by 2025 (i.e. about a third of global assets under management by that time) … “While the use of ESG standards to make investment decisions in a global prosperity, the lack of a framework for the effective implementation of ESG in emerging economies is an obstacle for investors. Through the Future Investment Initiative Institute’s own measurement framework, developed in collaboration with investors, international companies and strategic partners, we will ultimately have the necessary tools to develop sustainable investment strategies in these markets. ”
During the events, the Future Investment Initiative unveiled a new comprehensive ESG framework and scoring methodology, developed to accelerate ESG investments in emerging economies.
The event, which reaches a pillar of the Foundation, is in line with its focus area of ​​sustainability, as the Foundation works to influence humanity across four focus areas: Artificial Intelligence and Robotics, Education, Healthcare and Sustainability. This event is part of a series of events hosted by the Foundation, which will culminate next October in the sixth edition of the annual Future Investment Forum in Riyadh, Saudi Arabia.
Among the most prominent participants in the summit was Yasser Al-Rumayyan, governor of the Saudi Public Investment Fund, chairman of the board of the future investment initiative and chairman of the board of directors of Saudi Aramco. Rania Nashar, head of the general department for compliance and management at the Public Investment Fund, as well as dr. Yasmine Fouad, Minister of Environment in Egypt, Larry Fink, CEO of BlackRock, former Prime Minister of Italy, Matteo Renzi, and Noel Quinn, Global CEO of the «Group» HSBC, and Lord Vincent Kevini, Mayor of London.
Multiple consultation sessions throughout the day included a session on “Money and Energy: The Race to Zero Emissions by 2050”, where participants discussed the promises made by the parties at the United Nations Climate Change Conference in Glasgow related to the acceleration of decarbonization, which emphasized the importance. Measures to delay global warming and work towards the goal of the Paris Agreement to limit temperature rise to more than 1.5 degrees Celsius above pre-industrial levels.
The summit also discussed the importance of financing and the role of the private financial sector in stimulating the transition to a greener world, with the importance of expanding the scope of cooperation between governments, multilateral bodies and capital markets with a view to to evaluate and fund projects. based on their environmental impacts and risks.
During the sessions, David Schwimmer, CEO of the London Stock Exchange Group, said that the transition to a carbon-neutral economy requires large-scale funding, and that “trillions of funds are needed to transition from a carbon-neutral economy to a carbon-neutral economy. “economy, and here is our role to lead this transformation. We play the role of intermediaries … so we spend a lot of time with the issuers of securities that have to adapt to the changes.” He continued, “We are working to help them realize that their aspirations to achieve sustainability have a significant impact on the cost of financing.”
In turn, HSBC CEO Noel Quinn indicated that the bank aims to be a leader in financing the development of the industrial base to become low-carbon and more environmentally sustainable. He said: “Today we are financing the industrial base, we have provided financing to the manufacturing base in Asia, we have also financed the oil and gas sector in the Middle East, and today we intend to help the manufacturing base move to the next revolution, “adding:” We want to be at the forefront in terms of financing. Developing the industrial base to become low carbon and more environmentally sustainable. ” The Future Investment Initiative Foundation – affiliated with the Saudi Public Investment Fund and established in 2019 – seeks to develop a new methodology based on the assessment of environmental and social governance and the building of a fair and comprehensive framework that basis for the initiative will be.
The initiative brings together leaders of countries, companies, policymakers, investors and innovators from around the world in a global forum to explore groundbreaking solutions that address society’s challenges, and work to achieve those solutions.

United Kingdom

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International Economics

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