Unlocking the potential of a value creating ESG strategy for a Middle Eastern sovereign wealth fund

As the nations of the Middle East look to diversify their economies and investments, sustainability-focused investing is increasingly attractive for driving value creation across their portfolio companies – and meeting regulatory requirements.

The client, a Middle Eastern sovereign wealth fund, asked Xynteo to design their ESG strategy and framework – underpinned by materiality assessments at both holding and portfolio company levels – and to advise on how their ESG strategy can be aligned to their national mandates, the needs of their 10 portfolio companies, and commercial and regulatory risks.

10

Portfolio companies engaged to build buy-in and co-ownership of the strategy​

5

Flagship initiatives identified and designed for value-creation and impact

$300m

In circular economy value-creation opportunities identified

The initiative

The key objectives for the engagement:

  • Define what ‘good looks like’ for the fund when it comes to ESG portfolio health
  • Develop buy-in from the holding and portfolio companies for ESG commercial opportunities
  • Create flagship initiatives that leverage the client’s position and demonstrate value potential

Xynteo’s role

Research and assessment:

  • Conducted detailed benchmarking against global peers using over 200 ESG factors

Stakeholders and framework development:

  • Led internal and portfolio company discussions to prioritise focus areas based on impact, risk, and commercial opportunity
  • Tailored an investment principles framework aligned to the UN Principles for Responsible Investment, and UN Global Compact

Flagship project development:

  • Designed flagship initiatives to unlock ESG and commercial opportunities across the portfolio
About the Author
Kelsie Zerf

Kelsie Zerf

Marketing Associate

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