Finance - October 26, 2022
Aramco Launches $1.5 Billion Sustainability Fund
Aramco announced the creation of a $1.5 billion Sustainability Fund to invest in technology that can support a stable and inclusive energy transition.
Managed by Aramco Ventures, the venture capital arm of Aramco, the oil company, the fund is an extension of the company’s efforts to meet the world’s growing energy demand, with lower GHG emissions.
The fund plans to invest in technologies that support the Company’s announced net-zero 2050 ambition in its wholly-owned operational assets, as well as the development of new lower-carbon fuels. Initial focus areas will include carbon capture and storage, GHG emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels. The fund will target investments globally.
In addition, Aramco’s wholly-owned subsidiary Aramco Trading Company has participated in the first voluntary carbon credits auction organized by the Public Investment Fund (PIF). It follows the signing of a Memorandum of Understanding between Aramco and PIF earlier this year, to participate in a regional voluntary carbon market to be launched in Saudi Arabia in 2023.
“Climate change is a critical issue, which is why sustainability is well-integrated in Aramco’s strategy and investment decisions,” said Aramco Chairman, H.E. Yasir O. Al-Rumayyan in a statement. “The Company is harnessing innovation and collaboration as it seeks long-term solutions to global energy challenges. By driving large-scale investments and building key domestic, regional and international partnerships, Aramco aims to enable a stable and inclusive energy transition that meets the world’s need for energy with lower emissions.”
Aramco’s ambition is to achieve net-zero Scope 1 and Scope 2 GHG emissions across its wholly-owned operated assets by 2050.