ESG investing makes business sense: Saudi PIF chief

ESG investing makes business sense: Saudi PIF chief

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