Future Investment Initiative Institute commits to a more inclusive world

Global Insights
11 August 2022 London
  • Institute's ESG framework supports investment in the emerging markets
  • Scoring methodology set to unlock more than $20 trillion, says CEO Richard Attias
  • The Public Investment Fund is the founding partner of the Riyadh-based FII Institute

An “Inclusive ESG Framework and Scoring Methodology," launched in May by the Riyadh-based Future Investment Initiative (FII) Institute, aims to create a more inclusive world by taking into account the needs of emerging markets, with a particular focus on youth.

Richard Attias, chief executive of non-profit foundation, believes existing frameworks penalize high-performing companies operating in countries where governance is not considered to be totally ESG-compatible.

“The environmental, social, and governance (ESG) principles were mainly built for the developed world. This is where the money is going – mainly to Europe and America. But what about Africa? What about the Middle East?" said Attias. “We're not reinventing; we are just adding more parameters and challenging current parameters to be more inclusive."

According to Bloomberg estimates, global ESG assets under management are projected to exceed $50 trillion by 2025. However, only 10% of global ESG investment currently goes to emerging markets. Embracing 100 criteria, the FII Institute's “Inclusive ESG Framework and Scoring Methodology" is a call-to-action for a more inclusive world that benefits everyone, particularly emerging markets where youth represent a large majority of the population.

“We estimate that if we adopt this new scoring methodology, the FII Institute framework can probably unlock $20-plus trillion," Attias said. “This scoring will have an immediate impact on job creation, which will make people happy. And it will have an immediate, positive impact on the GDP of these [growing] countries."

The “Inclusive ESG Framework and Scoring Methodology" was unveiled in May at the FII Regional Summit, which brought together public- and private-sector leaders from around the world, and included a keynote panel featuring His Excellency Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF) and Chairman of the FII Institute, and Larry Fink, CEO of BlackRock.

The FII Institute was launched in 2019 with PIF as its founding partner, and contributes to the goals of Vision 2030, the transformative economic and social reform blueprint.