Global leaders and 46 chief executives from the One Planet Sovereign Wealth Funds Network reaffirmed their commitment to the Paris Agreement on climate change at the fifth annual Opswf summit in Abu Dhabi on Thursday.
French President Emmanuel Macron, John Kerry, the US special presidential envoy for climate and Mary Schapiro, head of the Task Force on Climate-Related Financial Disclosures (TCFD) secretariat, met financial sector leaders at the gathering to advance the community's contribution to achieving the goals of the Paris Agreement.
The summit was co-hosted by the Abu Dhabi Investment Authority (Adia) and Mubadala Investment Company.
The escalating climate emergency combined with the current energy supply challenges calls for reinforced co-operation across the financial system, a communique from the summit said.
At the gathering, chief executives from the financial sector agreed that complementary solutions to both must be found at the same time to maintain momentum in the race to ensure the planet does not warm by more than 1.5°C and compound catastrophic climate outcomes.
The Opswf initiative championed by Mr Macron was launched at the One Planet Summit in December 2017 in Paris to accelerate the integration of climate change analysis into the management of large, long-term and diversified asset pools.
The goals of SWFs of long-term growth, the protection of intergenerational wealth and providing for a sustainable future coincide with the Paris Agreement objective, namely, the protection of the planet for generations to come, an Opswf statement said.
“The Opswf Network has demonstrated that increased co-operation among asset managers and private equity funds can contribute to the systems change we need to address climate change,” said Mr Macron.
To implement the Opswf framework, chief executives agreed on the importance of acquiring new climate-related capabilities and the need for close collaboration between asset owners and fund managers on related issues.
Mr Kerry said: “Redoubling our efforts to scale-up investments in climate action, including in some of the world’s fastest growing markets, will be critical to make these ambitions a reality."
The Opswf, under Mr Macron’s leadership, has the potential "to drive market transformation, leveraging the experience of sovereign wealth funds, asset managers and private equity funds to mobilise finance for low emission, resilient transitions around the world", he said.
Members also expressed their intention to formally establish Opswf as a permanent organisation in support of the collaborative efforts and stewardship of Opswf Network members to encourage the change necessary to achieve the goals of the Paris Accords.
“Private sector leaders are making bold commitments to tackle climate change, but their ability to deliver is limited by a lack of accurate data,” said Ms Schapiro.
“It’s a big problem at the heart of the climate battle and we look forward to engaging with the One Planet Sovereign Wealth Fund Network as we work on providing freely available, transparent, standardised data that will help investors make informed decisions and enable assessment of progress toward net zero.”
During the past 12 months, One Planet sovereign wealth funds, asset managers and private investment companies have engaged in peer exchanges on technical competency including carbon foot-printing and the implementation of the TCFD recommendations. In June, Growthfund, the national fund of Greece, hosted two days of expert meetings in Athens for Network members.
At the Abu Dhabi summit, Opswf Network members agreed to further accelerate the pace of acquiring these core competencies through the peer exchange programme.
Chief executives reviewed the progress made by Opswf Network members, which included a selection of more than 100 climate investment actions, with data points, as chronicled in the 2022 Opswf Framework Companion Document, the statement said.
The network members are aligning with the Opswf framework through a variety of measures, including investing in dedicated climate-related funds, adopting emission reduction investment strategies, institutionalising ESG (environmental, social and governance) policies, and forming a better understanding of the effects of climate change on their existing portfolios, the statement said.
Opswf members are advancing on the principle of ownership through active stewardship of their investments to mainstream TCFD reporting among their fund managers and investing in funds that support the transition of companies, large and small, it added.
Moreover, members are integrating climate solutions by deploying capital at a significant scale into renewables and clean energy tech domestically and globally.
The company chiefs at the Abu Dhabi summit reviewed the findings of three member-led workstreams focusing on climate data, clean hydrogen and renewables in emerging markets — all key in achieving the goals of the Paris Agreement.
- Harmonising climate data for private markets: A fundamental barrier exists in measuring, managing, and mitigating SWF portfolios’ climate impact due to the struggle to access reliable data to support informed decision-making. In 2020, Opswf Network members agreed to support the TCFD recommendations as a universal standard. In 2021, members galvanised around supporting the TCFD in the private markets, which have lagged the public markets. Today, the significant majority of the private markets are not disclosing climate-related data, preventing investors from incorporating climate considerations into decision-making.
- Accelerating investments in clean hydrogen: Clean hydrogen is a key lever to achieving the goals of the Paris Agreement. In line with the Opswf framework, investing in clean hydrogen can help solve the energy trilemma of sustainable, secure, and affordable energy in support of decarbonising global economies, including hard-to-abate industries. Investment in clean hydrogen can be significantly accelerated in the coming five years, provided the appropriate enablers are in place.
- Accelerating investments in renewables: Investing in renewable energy in the markets of emerging and developing economies constitutes a massive investment opportunity from the triple perspective of impact, risk and return. Reducing carbon emissions in these countries while meeting rising energy demand will require significantly scaling-up private sector engagement and is critical to align with the goals of the Paris Agreement.
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
KILLING OF QASSEM SULEIMANI
Wonka
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%C2%A0Paul%20King%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3ETimothee%20Chalamet%2C%20Olivia%20Colman%2C%20Hugh%20Grant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Racecard
6pm: Al Maktoum Challenge Round 2 Group 1 (PA) $55,000 (Dirt) 1,900m
6.35pm: Oud Metha Stakes Rated Conditions (TB) $60,000 (D) 1,200m
7.10pm: Jumeirah Classic Listed (TB) $150,000 (Turf) 1,600m
7.45pm: Firebreak Stakes Group 3 (TB) $150,000 (D) 1,600m
8.20pm: Al Maktoum Challenge Round 2 Group 2 (TB) $350,000 (D) 1,900m
8.55pm: Al Bastakiya Trial Conditions (TB) $60,000 (D) 1,900m
9.30pm: Balanchine Group 2 (TB) $180,000 (T) 1,800m
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
Basquiat in Abu Dhabi
One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi.
The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier.
It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.
“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi.
Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October
Killing of Qassem Suleimani
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Ovo's tips to find extra heat
- Open your curtains when it’s sunny
- Keep your oven open after cooking
- Have a cuddle with pets and loved ones to help stay cosy
- Eat ginger but avoid chilli as it makes you sweat
- Put on extra layers
- Do a few star jumps
- Avoid alcohol
