LIFESTYLE with the private sector expected to supply 40 % of an initial US $ 500bn. The Saudi Gazette reported him arguing that a clear vision, robust strategies and a large domestic market position the country to“ lead the next phase of sustainable financing and investment”, and that it is already generating half its electricity from renewables in line with its Paris commitments.“ Al-Falih emphasised that the Kingdom possesses a clear vision, robust strategies, and a large domestic market, positioning it to play a pivotal global role in the future of investments, infrastructure, and sustainable development,” the report stated.
ESG as a global driver of growth Elsewhere, nations are trying to match the Middle East’ s pace, chasing what PwC’ s Strategy & consulting unit sizes as a US $ 2tn ESG opportunity for the region. In Europe, French bank BNP Paribas recognises the importance of sustainable finance with its partners and clients as the business world moves toward, as it describes,“ a more responsible future”. In addition to its net zero initiatives and financial support for sustainability projects, the bank says fulfilling social responsibilities remains a core tenet within its ESG strategy. Delphine Queniart, Head of Sustainable Finance and Solutions at BNP Paribas Global Markets, says sustainable finance is one of the most practical levers the bank has for advancing gender equality. She adds:“ Diversity is recognised as giving companies and societies an edge. As sustainable finance combines financing with positive impact and considers ESG criteria in investment decisions, it is an area that can offer practical ways to support gender equality.” Across the pond, asset management firm Brookfield Asset Management( BAM) says sustainability is embedded into the firm’ s investment management operations across its entire asset base; a US $ 1tn portfolio that covers infrastructure, energy, private equity, credit and real estate. Connor Teskey, CEO of Brookfield Asset Management, put a number on the gap when he ran Brookfield’ s renewables arm, telling Bloomberg’ s Sustainable Business Summit in December 2021 that as much as US $ 150tn needs to be invested in the net zero transition.“ Private markets can absolutely support that,” he said.“ I expect the money to show up in spades.” Should the heat from climate politicisation die down – and should regions like the Middle East continue to show promise – ESG policies may be seen once more as both a public good and a genuine driver of growth. If more governments and companies commit, developing economies stand to gain more than returns, they gain the means to price risk and meet global challenges on their own terms. More money, theoretically, fewer problems. businesschief. com 73