Mashreq, one of the leading financial institutions in the MENA region, signed a Memorandum of Understanding (MoU) with the UAE-based fintech firm, Fils to develop corporate carbon offsetting offerings.
The alliance will help corporate and institutional clients to integrate carbon offsetting directly from their Mashreq corporate accounts.
Fils’ digital platform provides the underlying infrastructure for financial institutions, banks and other organisations across industries to launch standalone, sustainable-focused products such as carbon offsetting, enabling them to transition to an Environmental, Social, and Corporate Governance (ESG) compliant corporate landscape.
The agreement represents the first step in Mashreq’s development of specialised carbon-offsetting financial products, which are to be launched in collaboration with selected UAE-based Mashreq corporate clients.
With the initial solution expected in the first half of 2024, the announcement represents a critical milestone for the region’s financial sector, underlining a significant shift towards incorporating environmental responsibility within the region’s financial practices.
Joel D Van Dusen, Head of the Corporate and Investment Banking Group at Mashreq, said the initiative will have a broad impact on the institution’s corporate clients, offering a solution designed to contribute towards environmental sustainability.
“It also reinforces the UAE’s position as a pioneer in integrating sustainability into its economic and financial sectors, aligning with the nation’s role in hosting COP28 and its ambition to lead global sustainability efforts,” he added.
Nameer Khan, Founder of Fils, said the platform’s partnership with Mashreq in the development of a ground-breaking carbon offsetting product is a powerful catalyst for the evolution of ESG enforcement across the region’s financial markets.
“Created with transparent KPIs, the accounts spell the end of green-washing and clear a path towards greater accountability and implementation of actionable outcomes that can improve the sustainability of the world we live in,” Khan said.
The MoU with Fils is the newest addition to Mashreq’s series of sustainable finance initiatives, forming part of the bank’s wider global Environmental, Social, and Governance (ESG) platform, Climb2Change.
The international initiative integrates the bank’s wide-ranging ESG milestones with its contribution to shaping a sustainable future and the financial solutions required to combat climate change and achieve an inclusive net zero future.
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