The ability to achieve climate transition and the SDG’s depends on the ability to finance the changes needed.
How to reorient capital towards sustainable finance ?
Our MENA region faces significant climate and sustainability challenges. MENA region is the world’s most water-scarce region, is at risk from compromised food security and productive and arable land sustainability due to climate change, given the high dependency on climate-sensitive agriculture . it also sits on 1/3 of world’s oil and gas producers who must find the right balance between moving their economies away from fossil fuels and continuing to supply the world’s energy all while continuing to grow their economies.
Like all countries, the biggest challenge for MENA, like all other countries is being able to finance the transition.
It is estimated that the Arab region requires a minimum of USD 230 billion annually to support the achievement of the SDGs. The financing gap in Arab countries with deficit has been estimated at over USD 100 billion annually, comprising a cumulative total of over USD 1.5 trillion through 2030.
No matter what funding source it is, in order to be able to channel funds towards a low-carbon and sustainable economy, there are many structural issues that are needed. From governments issuing regulations, taxonomies and guidance; markets and exchanges facilitating frameworks and regulations; companies designing climate and sustainability strategies and transition plans to understand their finance needs, banks assessing their climate risks and creating strategies and products to manage them .. … and the list of requirements goes on. Indeed, a full ecosystem may be needed for the efficient reorientation of capital towards financing climate and sustainable projects.
Our role at Ajyal Sustainability Consulting is to service the creation of a sustainable finance ecosystem that enables the growth and support of a climate resilient and sustainable MENA. We work with regulators, exchanges, financial institutions and corporates in multiple sectors on the various needs to build the needed ecosystem.
Serving The Sustainable Finance Ecosystem
Sustainability & ESG Strategy
We help companies, banks and financial institutions, funds and asset managers integrate sustainability and ESG into their decision making process to create long term value for shareholders and stakeholders.
Assisting companies to quantify their GHG emissions- Scopes 1, 2 and 3 (GHG Protocol and PCAF for financed emissions) to understand their footprint and start their climate strategy.
Carbon accounting
Sustainability & ESG Reporting
We guide companies on all aspects of sustainability and ESG non-financial reporting. This includes disclosure reports in accordance with national requirements and/or internationally-recognized ESG frameworks such as the GRI Standards, ISSB (SASB) and Integrated Reporting (IR).
ISSB (IFRS) Disclosures
We assist companies get ready to embrace the new IFRS Sustainability Standards S1 and S2.
We are also a member of the IFRS Sustainability Consultants Programme aiming to ensure that we and our clients remain Uptodate on all developments relating to these standards.
Climate Strategy
Assisting companies and financial institutions design their climate commitments including calculate their emissions; understand the sources of their emissions, prepare transition plans and climate commitments and engage with stakeholders.
Sustainable finance Products
We assist organizations (borrowers, lenders, investors and issuers) on aspects of sustainable finance products such as green bonds and loans, plus Islamic sustainable financing (green sukuk).
Regulatory Work
We advise regulators in respect of sustainability regulations and policies including regulations related to disclosures and capital markets instruments as well as assisting in the development and education of sustainability capital market in the region.
Training & capacity building
We assist corporates on capacity building and training on various aspects of the sustainability journey. This includes how to integrate sustainability into a business, sustainability and ESG reporting, materiality analysis and stakeholder consultation.
Join the conversation
As COP28 winds down in Dubai, our CEO Luma Saqqaf recorded a three-part video series with Vanessa Havard-Williams from Linkaters to discuss some of the key topics surrounding the Gulf Region’s sustainability journey:
Energy transition in MENA and the Gulf Region
Regulatory Landscape in the Gulf Region
Sustainable Finance in the Gulf Region
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