Environmental progress and economic growth going hand in hand
President Emmanuel Macron highlighted the need for a structural shift in global markets, driving investments aligning with climate goals and economic resilience at the recent OPSWF Summit.
Photo credit: Annie Spratt
7TH ANNUAL OPSWF CEO SUMMIT JOINT COMMUNIQUÉ – DECEMBER 3, 2024, RIYADH Following the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29), sovereign wealth funds (SWFs), asset managers, and private equity funds convened to discuss the importance of accelerating portfolio alignment with the Paris Agreement.
• Meeting in Riyadh with President Emmanuel Macron, H.E. Yasir Al-Rumayyan, and global financial leaders to advance climate-aligned investments.
• Utilizing the One Planet Climate Disclosure Guidance (CDG) to support transparency and implement credible, climate performance monitoring across private markets.
• Strengthening SWF strategies in transition finance, sustainable real estate, and enabling technologies to support impactful, green investments.
Following COP29, President Emmanuel Macron, H.E. Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF), and global financial leaders convened with over 140 CEOs and OPSWF Network members in Riyadh for the 7th Annual OPSWF CEO Summit, hosted by the Public Investment Fund of Saudi Arabia.
The Summit was held in conjunction with COP16, the Saudi Green Initiative, and the One Water Summit, all of which are held in Riyadh in December.Building on a midterm meeting this June hosted by the Ireland Strategic Investment Fund (ISIF) in Dublin and further discussions during New York Climate Week, the Summit underscored the vital role of sovereign wealth funds (SWFs) as universal asset owners.
SWFs operate across all sectors and asset classes, both domestically and globally, cooperating on extensive investment portfolios of funds and companies to reflect respective climate risks, opportunities and pathways; to address greenhouse gas (GHG) emissions; to increase abilities to adapt to the adverse impacts of climate change; and to increase value by investing in opportunities to finance today’s and tomorrow’s climate solutions within the real economy and in the broader context of sustainable development.
These efforts, while meeting investment mandates to generate risk-adjusted returns, position SWFs to address the complexities of lowering emissions and support by accommodating diverse transitions that collectively serve future generations across the globe.Since the 6th Annual OPSWF CEO Summit in Paris, OPSWF Network members have engaged in peer exchanges and held side events alongside international meetings—including COP28, the IMF/World Bank Spring Meetings, an investors conference on energy transition in Europe, and UNGA Climate Week in New York—to strengthen mutual engagement and share best practices.
The 2024 Companion Document published at the summit, catalogues over 150 climate investment actions by OPSWF Network members and reflects their dedication to sustainable, intergenerational impact.A recent OPSWF Network survey highlights that the majority of members are not only maintaining momentum in climate integration but are accelerating their efforts.
Over the past two years, many members have refined due diligence processes, incorporated GHG data into investment frameworks, and set measurable climate solution targets. The future plans of many members demonstrate a clear shift toward increased ambition: scaling investments in renewable energy, supporting green finance in hard-to-abate sectors, and advancing emissions reduction strategies across investment chains leveraging AI. These plans also include launching platforms to mobilize private capital and advancing green building standards in real estate portfolios, underscoring their commitment to impactful and scalable climate solutions.
ADVANCING KEY WORKSTREAMS
These member-led workstreams target actionable deliverables to enhance climate-informed investment decision-making, supporting greater efficiency and impact within the global financial system.
1. Climate Data for Private Markets
High-quality climate data is essential for investment decisions to support effective climate solutions. In accordance with the One Planet CDG, SWF members are working to improve climate-related disclosures, aiming to enhance transparency.
2. AI & Enabling Technologies
Emerging technologies, particularly AI and climate data platforms, are important to the OPSWF Network’s climate-aligned strategies. An event hosted by CDP Equity in Rome highlighted AI’s potential to improve efficiency and support real-time emissions tracking, suggesting that such tools could be relevant for facilitating climate-aligned investments.
3. Transition Finance
OPSWF Network members are supportive of practical, deployable solutions tailored to national priorities to achieve critical climate goals. The focus is on direct investments in high-impact areas, including energy efficiency measures, grid optimization, and renewable deployment.
OPSWF Network members are also analyzing options to advance green finance for the hard-to-abate sectors through the support of transition bond guidelines, and engagement with the investment banking sector.
4. Clean Hydrogen
Clean hydrogen plays a key role in the global energy transition. OPSWF Network members emphasize the importance of policy incentives to support effective deployment. Collaborating with organizations like the Hydrogen Council and International Standards Organization, OPSWF Network members share proposals for regulatory frameworks to guide policymakers in building scalable, cross-border hydrogen supply chains. By advancing standards, certification, and investments across the value chain for clean hydrogen and its derivatives, OPSWF Network members help establish hydrogen as a cornerstone of the future global energy mix.
5. Greening Real Estate
OPSWF Network members are advancing emissions reductions in real estate by developing a dedicated set of guidelines for sustainable building practices. These guidelines will provide principles for energy efficiency, emissions management, and green certifications, supporting both economic resilience and alignment with global transition goals while allowing a clear set of implementation guidelines for Real Estate owners, asset managers and tenants.
6. Renewables in Emerging Markets and Developing Economies (EMDEs)
The OPSWF Network launched a research and design initiative to accelerate renewable energy investments, with an initial focus on Africa. The project aims to size the clean energy market on the continent, map financial and non-financial de-risking mechanisms, and explore the formation of a sovereign wealth fund-led investment platform.
7. Nature-Based Solutions
OPSWF Network members are seeking to accelerate investments in nature-based solutions that provide attractive long-term returns, carbon sequestration, biodiversity improvements, and community benefits. By supporting scalable investments in sustainable forestry, sustainable agriculture, sustainable marine resources, and ecosystem restoration and preservation, OPSWF Network members see an opportunity to enhance portfolio diversification and resilience while contributing to global climate and biodiversity goals.
President Emmanuel Macron: “OPSWF Network members have the power to lead a structural shift in global markets, driving investments that align with climate goals and economic resilience. By integrating high-quality climate data and promoting transparency, you are setting standards that redefine how markets value sustainability. Initiatives like biodiversity credits exemplify the innovative tools needed to accelerate this transformation. This leadership underscores why the OPSWF Network is critical to building a future where environmental progress and economic growth go hand in hand.”
H.E. Yasir Al-Rumayyan: “PIF is pleased to be hosting the 7th Annual OPSWF CEO Summit in Riyadh, reflecting our commitment to integrating climate considerations into investment decisions. PIF is committed to net zero by 2050, contributing to Saudi Arabia’s aim of net zero by 2060. Renewables is one of PIF’s strategic sectors, and PIF is working toward the localization of renewable energy and hydrogen production, to achieve its target to develop 70% of the nation’s renewable energy capacity. PIF has been a pioneer with its Green Finance Framework, as well as the first ever sovereign wealth fund to issue a green bond and the first ever to issue a 100-year green bond. PIF and OPSWF Network members are building a sustainable and inclusive investment approach to ensure inclusivity for all in the transition to net zero.”
OPSWF NetworkAs a CEO-led initiative, OPSWF comprises 18 sovereign wealth funds, 18 asset managers, and 13 private equity funds, collectively managing $46 trillion in assets. Through shared expertise, OPSWF Network members foster climate-focused risk management and investment innovation. The initiative was established at the inaugural One Planet Summit in December 2017 in Paris.