Kuwait Investment Authority wants to make its entire portfolio compliant with environmental, social and governance standards, its managing director said, as Gulf nations reliant on crude move toward life after oil.
Kuwait has built up its riches thanks to vast crude exports -- something which puts the engine of its economy at odds with ESG principles. Unlike regional neighbors the United Arab Emirates and Saudi Arabia, Kuwait hasn’t set a net-zero carbon emissions goal despite recording some of the planet’s hottest temperatures.
Yet the KIA, which manages $700 billion according to the Sovereign Wealth Fund Institute and has its own governance structure, says ESG has become central to its outlook. The world’s oldest sovereign fund, and its third-largest, has long sought to guard itself from the nation’s tumultuous politics with a mandate to prepare the OPEC member state for a post-oil future.
“The process is ongoing with the KIA currently transitioning toward 100% ESG compliance for the entire portfolio while currently focusing on the E part of ESG,” Ghanem Al-Ghunaiman told Bloomberg News in an emailed reply to questions, offering a rare glimpse inside the fund.
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