Saudi Arabia’s Ministry of Investment has signed a Memorandum of Understanding (MoU) with the HSBC Group to explore and promote sustainable investment opportunities in the kingdom.
The MoU, signed at the Future Investment Initiative (FII) conference, covers the identification and promotion of sustainable investments in the Kingdom for domestic and international investors, identification of sustainable investments overseas for leading native companies.
The signing also supports public and private sector entities in climate transition and the broad Environmental, Social and Governance (ESG) agenda.
The MoU, which takes effect immediately, envisions the creation of an eco-system of partners in the areas of sustainability and ESG that will share information and ideas on sustainable and ESG investment issues, as well as potential investment opportunities in the Kingdom, subject to relevant regulatory requirements.
HSBC globally is prioritizing financing and investment that supports the transition to a net-zero global economy. The bank has committed to aligning its financed emissions, the carbon emissions of its portfolio of customers, to the Paris Agreement goal to achieve net-zero by 2050 or sooner.
“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.”
Mr. Noel Quinn, HSBC Group CEO said, “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.”
HSBC aims to offer up to $1 trillion in funding and investment globally by 2030 to help customers adapt to lower carbon emissions. By 2030, the bank seeks to achieve net-zero in its operations and supply chain.
Recently, Saudi British Bank made a green deposit with HSBC, making it the first Saudi Arabian financial institution to invest in green initiatives.