Global environmental, social, and governance assets are expected to hit $41 trillion by the end of this year, and $50 trillion by 2025, Yasir Al-Rumayyan, governor of the Saudi sovereign fund said.
The growth in assets is due to the fact that Public Investment Fund continues to enhance ESG integration across its portfolio, Al-Rumayyan noted.
He said the PIF is developing its ESG strategy due to its broader long term strategy aimed at achieving net zero emissions in the country by 2060.
He was speaking at the Future Investment Initiative Institute regional summit in London on Friday.
Hydrocarbon products: The building blocks of energy transition
The PIF Governor predicted that hydrocarbons will be the building blocks of energy transition in the future, aimed at reducing carbon emissions.
He also made it clear that it is practically impossible to switch directly from fossil fuels to renewable energy sources, as it is a complex process that needs time.
Al-Rumayyan added that PIF is investing in renewable energy sources like solar power plants.
Talking about blue hydrogen, he said, “We have invested in carbon capture, this will lead us to blue hydrogen. We will be major when it comes to blue hydrogen.”
He added, “We will get rid of all liquid and focus on gas and renewable energy.”
The PIF governor revealed that Saudi Arabia has launched seven solar and wind projects that could power 600,000 households.
PIF elevating the living quality in Saudi Arabia
Talking about Saudi Arabia, Al-Rumayyan revealed that a drastic transformation and progress is happening in the Kingdom, as the house ownership rate in the country went up from 47 percent to 60 percent in 2020.
He revealed that the aim is to increase the home ownership rate to 70 percent, along with creating 1.8 million jobs under PIF by 2050.
Al-Rumayyan added that PIF is aiming to generate 70 percent of the Kingdom’s energy requirements from renewable sources by 2030.
He noted that PIF is taking various steps to ensure green energy generation.