The Arab Petroleum Investment Corporation, also known as APICORP, which provides energy and development finance, has received Moody’s ‘A2’ sustainability rating, becoming the first financial institution in the MENA region to achieve this, the company said in a statement.
In a report, Moody’s ESG Solutions noted that the ‘A2’ rating has been assigned to APICORP based on its capacity and willingness to integrate ESG factors into its strategy, operations, and risk management.
“I am proud that APICORP’s extensive work in mainstreaming sustainability across its operations has been recognized with this ‘A2’ sustainability rating,” said Ahmed Ali Attiga, its CEO, said
Attiga added, “The rating reflects our 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.”
Moody’s added that APICORP’s share of project financing in renewables and other areas of climate finance has increased in the last three years by 10 percentage points to reach 13 percent, which indicates continued growth in the future.
However, granting and ESG rating to an organisation that mainly finances oil and gas projects leaves the process behind ESG status and verfication open to question, critics and environmental campaigners argue.