Saudi Sovereign Fund Tops Global Governance, Sustainability Ranking
The achievement marks the third consecutive year that the fund has maintained its leading position in the Gulf and across the Middle East, underscoring its growing influence and adherence to global best practices in governance and sustainability.
The annual GSR report - widely regarded as a benchmark for evaluating sovereign wealth and public pension funds - assesses the performance of the 200 largest funds worldwide, which collectively manage over $29.4 trillion in assets. The rankings focus on governance frameworks, environmental and social responsibility, and resilience to economic and geopolitical shifts.
Strategic Transformation and Transparency
The report highlighted the PIF's strategic transformation since the launch of Saudi Vision 2030. No longer functioning solely as an investment vehicle, the fund has emerged as a key economic driver shaping the Kingdom's future and boosting its global competitiveness.
Key factors contributing to the PIF's top ranking include its commitment to achieving net-zero emissions by 2050, alignment with the United Nations Sustainable Development Goals through its green finance framework, and enhanced transparency in governance and sustainability disclosures.
In November 2023, the fund voluntarily adopted the Global Investment Performance Standards (GIPS) issued by the CFA Institute, signaling its continued adherence to global standards of governance, integrity, and disclosure.
Driving Renewable Energy and Financial Resilience
PIF is also central to Saudi Arabia's sustainability agenda. It is responsible for developing 70% of the Kingdom's renewable energy capacity, aiming to raise the share of renewables in the national energy mix to 50% by 2030. This aligns with Saudi Arabia's broader goal of reaching net-zero emissions by 2060, while the fund itself remains on track to hit its 2050 target.
The fund's adherence to international best practices has bolstered its credit profile, earning it an 'AA3' rating from Moody's and an 'A+' from Fitch. This has supported its diversified financing strategy, including a £650 million bond issuance, $2 billion in sukuk, and a $15 billion flexible credit facility. The PIF has also launched a global commercial paper program to further enhance liquidity and funding options.
Since 2017, the PIF has helped generate over 1.1 million direct and indirect jobs both domestically and internationally, reflecting its broader mission of economic diversification and growth.
About SWF Global
SWF Global is an independent research organization focused on connecting and analyzing sovereign investors. It operates a data platform and publishes monthly reports, in addition to offering advisory services and executive education through its Sovereign Fund Academy, targeting fund managers and policymakers.
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