Financial sector in the GCC likely to accelerate ESG practices

Financial sector in the GCC likely to accelerate ESG practices

Today, over 90 percent of global emissions are now covered by Net Zero commitments. In the GCC alone, the financial sector is the largest contributor to the list, indicating that insurance companies have potential to achieve high levels of ESG performance. Overall, GCC companies still have room to grow to meet top global performers with more mature ESG activity. Out of major insurers in the region, only half are disclosing ESG information, yet regional insurers are developing ESG practices and increasing maturity in ESG reporting, with key best practices emerging.

Other major regional public-private organizations are developing frameworks for involvement in ESG finance. Majid Al Futtaim, a leading retail conglomerate in the MENA region with 40+ shopping malls and other developments, is implementing a Green Finance Framework to support its ESG activity. Saudi Arabia’s Public Investment Fund (PIF), a $430bn sovereign wealth fund that has been actively involved in the transformation of KSA, partnered with BlackRock on ESG finance. Next, HSBC and Saudi National Bank have created a Sustainable Finance Framework making Saudi National Bank (SNB) the largest banking group in the Kingdom, creating the first sustainable finance framework. The Red Sea Development Company was recognized as a global ESG leader