- The sustainability rating reflects APICORP’s successful integration of ESG factors into its strategy, operations, and risk management
- The rating also recognizes APICORP’s comprehensive anti-corruption, anti-money laundering, non-discrimination, and gender diversity protocols
Saudi Arabia - The Arab Petroleum Investments Corporation (APICORP), a multilateral financial institution, today announced that it has become the first MENA financial institution to receive a solicited sustainability rating from V.E., part of Moody’s ESG Solutions.
In its report, Moody’s ESG Solutions noted that the ‘A2’ assigned to APICORP is based on its capacity and willingness to integrate ESG factors into its strategy, operations, and risk management, which were formalized in its ESG policy framework.
Commenting on the rating, Dr. Ahmed Ali Attiga, CEO of APICORP, said: “I am proud that APICORP’s extensive work in mainstreaming sustainability across its operations has been recognized with this ‘A2’ Sustainability Rating. Having such a reputed, independent, third-party assessment of our progress positions us as an exemplar for best practices in ESG integration and a prime enabler of green financing to achieve a balanced, responsible energy transition across the MENA region.”
Notably, Moody’s reported that APICORP’s share of project financing in renewables and other areas of climate finance has increased over the last three years by 10 percentage points to reach 13%, indicating continued future growth. The near-term progress is buoyed by its successful debut green bonds in 2021, which aligns with its strategic dedication is to combat climate change through its lending and financing practices.
With good governance and its energy transition agenda, APICORP developed new protocols to oversee its green financing work, including establishing a cross-functional green bond committee to ensure that projects funded through its green issuances are properly aligned.
“The rating reflects APICORP’s commitment to sustainable and inclusive development. Our green bond issuance, for example, enables us to provide new avenues for investment in projects that further the accessibility of safe, affordable, and renewable energy sources for communities. Furthermore, these projects will be governed by globally benchmarked ESG standards in terms of climate change mitigation, sustainable use of water resources, the transition to a circular economy, pollution prevention and biodiversity preservation,” Dr. Attiga added.
Moody’s’ assessment also points towards an ‘advanced performance in the company’s non-discrimination and diversity practices’, borne out in a sustained rise of women in management positions, which has increased by 20 percentage points from 2018 to 2020 to reach 24%.
The report also comments on APICORP’s performance in corruption prevention, which is noted as ‘advanced’, with comprehensive commitments and internal controls to prevent fraud and business ethics risks. The report stated that APICORP’s formalized corporate governance framework covers all recommended features in different Board-related charters, HR policy, and risk management charter.
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ABOUT APICORP
The Arab Petroleum Investments Corporation (APICORP) is an energy-focused multilateral financial institution established in 1975 by the ten Arab oil exporting countries. APCIORP’s mission is to support the sustainable development of the region’s energy sector and related industries through a range of financing and direct equity solutions, as well as energy research and advisory services. APICORP applies best-practice ESG principles across all operations, with environmental and socially-linked projects comprising 13% of its nearly US $4 bn loan portfolio which encompasses leading public and private sector partners in 25 countries. APICORP is also the only energy-focused financial institution in the MENA region rated ‘Aa2’ by Moody’s, ‘AA’ by Fitch and ‘AA-‘ by S&P.
View APICORP’s ESG Policy Framework here
For more information about APICORP, please visit: www.apicorp.org
For more information, please contact:
| Raeda Al-Sarayreh | Hassan Al-Jundi |
| Zeeshan Masud | Daniel Chinoy |
