The Arab Petroleum Investments Corporation (Apricorp), a multilateral financial firm, has become the first Mena financial institution to receive a solicited sustainability rating from VE, part of Moody’s ESG Solutions.

In its report, Moody’s ESG Solutions noted that the ‘A2’ assigned to Apricorp is based on its capacity and willingness to integrate ESG factors into its strategy, operations, and risk management, which were formalised in its ESG policy framework.

Commenting on the rating, Dr Ahmed Ali Attiga, CEO of Apricorp, said: “I am proud that Apricorp’s extensive work in mainstreaming sustainability across its operations has been recognised 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.”

Continued future growth

Notably, Moody’s reported that Apricorp’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, Apricorp 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.

Sustainable and inclusive development

“The rating reflects Apricorp’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 Apricorp’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 Apricorp’s formalised corporate governance framework covers all recommended features in different Board-related charters, HR policy, and risk management charter. 

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