The significance of ESG and taking care of the surroundings was highlighted at COP26 in November 2021. In gentle of this, the Sustainable Fintech Alliance has been launched by the MENA Fintech Affiliation (MFTA) with the mission of serving to its members create optimistic impacts for each the surroundings and the area’s communities.
The world is at a essential juncture and the MENA area is ready to take the centre stage within the quest for resolving essentially the most defining situation of our time, local weather change. After the current conclusion of COP26 in Glasgow, the torch is the truth is being handed to Egypt and the UAE as hosts of COP27 and COP28 respectively.
Sustainability is broader than local weather change. It’s about enabling a society the place future generations can thrive, and everybody must contribute their justifiable share.
By becoming a member of the Alliance, members decide to steadily implementing credible and clear sustainability methods inside their organisations, which contribute in direction of the United Nations’ Sustainable Growth Targets (SDGs), and in addition the Web Zero pledges made by a number of nations throughout the area.
Corporations are at completely different ranges of maturity with regards to embedding sustainability inside their organisations, and fintechs are not any completely different. That is why schooling and consciousness might be central to reaching the Alliance’s mission. The Sustainable Fintech Alliance is due to this fact committing to a phased, three steps method:
Step 1 → Schooling
As a primary, essential step on this journey, MFTA is working with institutional and educational companions to design a strong academic programme that can equip Fintechs with the data base they should develop stable sustainability methods which are proper for them. This might be primarily based on worldwide greatest observe and might be delivered with assist from main specialists, in addition to a data alternate platform between members.
Step 2 → Implementation
Having obtained the correct data and learnt about main world requirements, fintechs will have the ability to set credible sustainability and climate-related targets that align to their firm’s values and prospects’ expectations, whereas making a optimistic contribution in direction of the achievement of the SDGs. At this stage, members can publicly disclose their technique and commitments.
Step 3 → Realisation
Transparency is essential to be able to acquire individuals’s belief. So as soon as the technique and commitments have been communicated, these will should be constantly adopted up and measured. At this stage, members will really feel assured to trace the progress made and, via the Alliance, they’ll have steady entry to all the assistance and assist they want.
MFTA passionately believes that the Fintech neighborhood has a essential position to play to find options for essentially the most pressing points we face as a society. That is why, along with serving to members embrace sustainability inside their organisations, the Alliance may even allow collaboration between the fintech neighborhood and policymakers inside the monetary sector and past, with the intention of placing know-how on the service of purposeful change.
Launching the initiative, Nameer Khan, Chairman and Founding Board Member of MFTA stated: “We’re extraordinarily excited to be launching the Sustainable Fintech Alliance as a part of MFTA’s core initiatives. We see momentum selecting up within the area and, as an Affiliation that brings collectively stakeholders from throughout the area, with glorious relationships with central banks and regulators, MFTA has a key position in supporting the transition in direction of a extra sustainable society. We wish to assist Fintechs embrace sustainability as a part of their organisations’ tradition and values, and guarantee they’ve entry to high-quality data and sources. Drawback-solving is constructed into the DNA of fintechs, and we consider they’re additionally uniquely positioned to assume creatively and collaboratively to convey sustainability entrance and centre in customers’ lives. I’m personally invested in harnessing know-how and innovation to reimagine monetary providers from the lens of sustainability, and I’m dedicated to creating this a core precedence of MFTA’s engagement with Fintechs and regulators going ahead.”
Christian Kunz, Head of Group Technique and Innovation at DIFC Authority, and Chair of the Dubai Sustainable Finance Working Group stated: “We’re proud to be a member of this founding group and part of the Sustainable Fintech Alliance, aiming to create a optimistic impression with the assistance of the completely different companions, starting with schooling. In keeping with the UAE’s not too long ago introduced strategic initiative to realize internet zero-emission manufacturing by 2050, we recognise the significance of sustainability and are dedicated to being on the forefront of essential points similar to this within the area. Right now, the market capitalisation of ESG-inspired Sukuk and bonds is rising at a excessive tempo in DIFC, now making up over 11.7 per cent of the entire excellent bonds, in extra of $12.15billion. At DIFC, we’re persevering with our efforts to cement our place because the main innovation ecosystem within the UAE, unlocking future development via the Way forward for Finance and Future Economies.”
Mercedes Vela Monserrate Head of Sustainable Finance at ADGM: “ADGM is dedicated to working in keeping with the UAE’s imaginative and prescient to reaching its Web Zero by 2050 strategic Initiative. The Sustainable Fintech Alliance serves as a big contributor to the development of modern sustainable options to unlock and catalyse a number of sources of financing in alignment with ADGM’s FinTech and Sustainable Finance Initiatives. It’s with satisfaction that ADGM ascribes to the Sustainable Fintech Alliance as a founding member and we stay up for supporting the collective effort in direction of a sustainable future for tomorrow’s technology.”
Commenting on the initiative, Kareem Refaay, Managing Director, The London Institute of Banking and Finance MENA stated, “At LIBF, we’re the lifelong associate in monetary schooling, and as such, designing and creating a programme centred round sustainability in finance and fintech is on the core of LIBF. With our analysis centres in each niches, our skilled school and trade practitioners, it’s our pleasure to be a part of such an initiative in partnership with stakeholders. The launch of the sustainable fintech alliance and monetary schooling programme accredited by LIBF, might be a driving change within the MENA area.”