Olayan Financing Company (OFC) participated in a special carbon credit auction in the Voluntary Carbon Market (VCM), the first initiative of its kind to be held in the Middle East and North Africa region, and the biggest in the world to date.
A total of 15 leading national and regional entities participated in the auction, during which 1.4 million tons of carbon credit were traded. The VCM offers quality carbon credit certification that meets the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) standards in Verra’s Verified Carbon Standard (VCS) Program.
Along with Saudi Aramco and the Saudi Arabian Mining Company (Ma’aden), OFC bought some of the largest shares of the carbon credits available at the auction. The VCM offers support to businesses and entire sectors in the region to help them contribute to the international transformation towards net zero, as well as collateralizing their carbon credit purchases to minimize carbon emissions across value chains.
Commenting on the participation, Nabeel Al-Amudi, CEO of Olayan Financing Company, said: “As global warming grows increasingly severe, it is more critical than ever to seek out not only effective, but innovative ways to combat climate change. The Public Investment Fund’s Voluntary Carbon Market is a major step toward a more sustainable future, and we are proud to be supporting such an ambitious initiative by participating in this carbon credit auction.”
Al-Amudi added: “Our participation takes on a special meaning as it coincides with Olayan’s 75th anniversary. Environmental sustainability has been one of the group’s key pillars since the very beginning. This latest partnership further enhances our carbon emissions reduction efforts and will contribute to Saudi Arabia’s drive to achieve its net-zero goals by the year 2060.”
The auction participation aligns with OFC’s ongoing efforts to promote sustainability and commitment to contributing to the Saudi Green Initiative’s ambitious objectives. OFC’s support for the Voluntary Carbon Market stems from the company’s conviction that this initiative is an effective financing mechanism to stimulate projects with a positive impact on the environment.
Placing sustainability at the heart of its business, Olayan Financing Company embraces best practices to minimize its environmental footprint and ensure the well-being of its people, the communities it serves, and the planet. Accordingly, OFC’s portfolio companies strive to reduce their energy and water consumption, GHG emissions, and waste generation. The company has continuously evaluated its sustainability performance since the publication of its inaugural Sustainability Report in 2017, and strives to positively influence environmental and social factors throughout its operations to generate meaningful long-term impact across Saudi Arabia and beyond.