Sustainable investing gains traction in Mena region

Dubai: A growing number of investors within the Mena region and across the world are looking at the positive impact of companies and their sustainability practices before investing in them, BNP Paribas has said.

A top executive form the bank’s wealth management division said sustainable investing is a growing trend, with more and more people looking to make a positive contribution through their investments. Be it investing in clean and renewable energy companies or other businesses that are contributing to the United Nations’s sustainable goals, there is greater consciousness among investors about where their money is going.

Masroor Batin, chief executive officer of the wealth management division for the Middle East and Africa at BNP Paribas, said while the uptake of sustainable investing is higher in Europe than in the Middle East and Asia, there is growth in the number of regional clients, especially young entrepreneurs, actively looking into the matter.

Impact

Batin said BNP Paribas is working with the United Nations to develop an online tool to measure every client’s impact, and every investment fund’s impact.

The tool is based on the UN’s 17 sustainable goals, which include zero hunger, no poverty, gender equality, clean water, climate action, affordable and clean energy, and quality education, among others.

This will motivate clients to invest in companies with more sustainable practices, Batin said.

And it’s not just a morality issue.

BNP Paribas said companies that have sustainable practices generally have better valuations, and investing early in them can provide strong returns.