Sustainable Fintech Alliance Launched in MENA to Positively Impact ESG Challenges

The importance of ESG and environmental care is highlighted in COP26 In November 2021. In light of this, the Sustainable FinTech Alliance launched by MENA Fintech Association (MFTA) with a mission to help its members create positive impacts for both the environment and the communities of the area.

The world is at a critical juncture and the Middle East and North Africa region is set to take center stage in the quest to solve the most important issue of our time, climate change. After the recent conclusion of COP26 in Glasgow, the torch was in fact relayed to Egypt and the UAE as hosts for the COP27 And COP28 Respectively.

Sustainability is broader than climate change. It is about enabling a society in which future generations can thrive, and everyone needs to contribute their fair share.

By joining the Alliance, members commit to progressive implementation of reliable and transparent sustainability strategies within their organisations, which contribute to United nationsSustainable Development Goals (SDGs), as well as Net Zero pledges made by many countries across the region.

Companies have different levels of maturity when it comes to embedding sustainability within their organizations, and fintech companies are no different. This is why education and outreach will be essential to achieving the Alliance’s mission. Therefore, the Sustainable FinTech Alliance adheres to a phased three-step approach:

Step 1 → Education

As a critical first step in this journey, the MFTA is working with institutional and academic partners to design a robust education program that will provide Fintechs with the knowledge base they need to develop robust sustainability strategies that are right for them. This will be based on international best practices and will be delivered with the support of leading experts, as well as a platform for knowledge sharing among members.

Step 2 → Implementation

After gaining the right knowledge and exposure to leading global standards, FinTech companies will be able to set credible sustainability and climate goals that align with company values ​​and customer expectations, while making a positive contribution towards achieving sustainable development goals. At this point, members can publicly disclose their strategy and commitments.

Step 3 → Perception

Transparency is critical to gaining people’s trust. So once the strategy and commitments are communicated, they need to be constantly monitored and measured. At this point, members will feel confident in tracking progress, and through the alliance, they will have continuous access to all the help and support they need.

The MFTA passionately believes that the Fintech community has a critical role in finding solutions to the most pressing issues we face as a community. That is why, in addition to helping members embrace sustainability within their organizations, the alliance will also enable collaboration between the fintech community and policy makers within and outside the financial sector, with the goal of putting technology at the service of meaningful change.

launch the initiative, Nameer KhanThe Chairman and Founding Board Member of the MFTA said: “We are very excited to launch a sustainable Fintech Alliance as part of the MFTA’s core initiatives. We see momentum in the region, and as an association bringing together stakeholders from across the region, with excellent relationships with central banks and regulators, the MFTA plays a key role in supporting the transition towards a more sustainable society. We want to help Fintechs embrace sustainability as part of their organization’s culture and values, and ensure that they have access to quality knowledge and resources. Problem solving is built into the DNA of fintech companies, and we also believe that they are uniquely positioned to think creatively and collaboratively to make sustainability front and center in consumers’ lives. I personally invest in harnessing technology and innovation to reimagine financial services from a sustainability perspective, and am committed to making this a primary priority for the MFTA’s engagement with Fintechs and regulators in the future. “

Christian Kons, Head of Group Strategy and Innovation at Dubai International Financial Center body, the head Dubai Sustainable Finance Working Group He said: “We are proud to be a member of this founding group and part of the Sustainable FinTech Alliance, aiming to make a positive impact with the help of different partners, starting with education. In line with the strategic initiative recently announced by the UAE to achieve net zero emissions by 2050 We recognize the importance of sustainability and are committed to being at the forefront of important issues like this in the region.Today, the market value of ESG-inspired sukuks and bonds is growing at a high rate in the DIFC, now making up more than 11.7 percent of the total bond outstanding , which exceeds $12.15 billion.At the Dubai International Financial Centre, we continue our efforts to cement our position as the UAE’s leading innovation ecosystem, unleashing future growth through the future of finance and the economics of the future.

Mercedes Villa Monserrat Head of Sustainable Finance at ADGM: “ADGM is committed to operating in line with the UAE vision to achieve the Net Zero strategic initiative by 2050. The Sustainable FinTech Alliance acts as an important contributor to the advancement of innovative sustainable solutions to unlock and catalyze multiple sources of finance in line with FinTech. and sustainable financing initiatives in the Abu Dhabi Global Market. ADGM proudly credits the Sustainable FinTech Alliance as a founding member and we look forward to supporting the collective effort toward a sustainable future for tomorrow’s generation.”

Commenting on the initiative, Karim Rifai, General Director, London Institute of Banking and Finance in the Middle East and North Africa He said, “At LIBF, we are a lifelong partner in financial education, and as such, designing and developing a program centered around sustainability in finance and financial technology is at the core of LIBF. Through our research centers in both areas, our faculty and our expert practitioners, we are pleased To be a part of this initiative in partnership with stakeholders.The launch of the Sustainable FinTech Alliance and the LIBF Accredited Financial Education Program, will be a catalytic change in the MENA region.

  • Frances Bennell

    Francis is a junior journalist with a BA in Classical Civilization, with a special interest in North and South America.

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