The Ministry of Investment of the Kingdom of Saudi Arabia has signed a Memorandum of Understanding (“MoU”) with the HSBC Group to identify and promote sustainable investment opportunities for the Kingdom.
The MoU, signed at the Future Investment Initiative conference in Riyadh, covers identification and promotion of sustainable investments in the Kingdom for domestic and international investors; identification of sustainable investments overseas for leading Saudi Arabian companies; and supporting public and private sector entities in climate transition and the broad Environmental, Social and Governance (ESG) agenda.
The Minister of Investment, His Excellency Khalid Al-Falih, said: “I welcome today’s agreement, which is further proof that the Kingdom’s ambitions to become a global sustainable investment destination is on track. This agreement is leveraging on the long-standing historical relationship between the Kingdom and HSBC and will help us unlock the tremendous Green investment opportunities in Saudi Arabia. Through the vast network of a global player like HSBC we want to attract global private sector capital into the Kingdom, and realize the ambitions of Vision 2030, as they have been recently underpinned in the National Investment Strategy and the Saudi Green Initiative”.
HSBC Group CEO, Noel Quinn said: “HSBC is committed to helping lead the transition to net zero and this Memorandum of Understanding is another important step in meeting that goal. This collaboration will see us promote sustainable investment opportunities and investment initiatives in the Kingdom to our clients, and support leading Saudi Arabian companies to access opportunities with global strategic and financial investors, especially Asian investors.”
The MoU, which is effective immediately, envisages the creation of an eco-system of partners in the areas of sustainability and ESG that would exchange information and ideas on sustainable and ESG investment issues and, subject to relevant regulatory requirements, potential investment opportunities in the Kingdom.
HSBC globally is prioritising financing and investment that supports the transition to a net zero global economy. The bank has committed to align its financed emissions – the carbon emissions of its portfolio of customers – to the Paris Agreement goal to achieve net zero by 2050 or sooner. To support customers in their transition to lower carbon emissions, HSBC aims to provide up to US$1 trillion of financing and investment globally by 2030. The bank also aims to be net zero in its operations and supply chain by 2030.
In 2020 and 2021, HSBC was named the World’s Best Bank for Sustainable Finance by Euromoney and the Middle East’s Best Bank for Sustainable Finance, reflecting the strategic importance of sustainability to the bank and its customers.