New carbon footprint reduction offering enables corporations to seamlessly offset their carbon footprint as part of their daily cash management activities.
Dubai, UAE/ London UK – January 22, 2024: Mashreq, one of the leading financial institutions in the MENA region, has signed a Memorandum of Understanding (MoU) with the UAE-based fintech firm, Fils, to develop a corporate carbon footprint mitigation offering that helps corporate and institutional clients to integrate carbon offsetting directly from their Mashreq corporate accounts.
Fils is a groundbreaking, enterprise-grade, digital platform that provides the underlying infrastructure for financial institutions, banks and other organisations across industries to launch standalone, sustainable focused products such as carbon offsetting. This approach to the future of fintech facilitates the transition to an Environmental, Social, and Corporate Governance (ESG) compliant corporate landscape, enabling companies of all sizes to effortlessly embed sustainable and climate action into their business models and customer journeys, across industries.
In a bid to eliminate the deceptive practice of misrepresenting environmental responsibility through greenwashing, Fils infrastructure uses blockchain technology to track all carbon credits used to avoid double counting and provide transparency.
The MoU was signed at Mashreq’s Global HQ by Nameer Khan, founder of Fils; and Mashreq’s Head of Corporate and Investment Banking Group, Joel D Van Dusen, with the support of the UAE’s Chief Trade Negotiator and Assistant Undersecretary for International Trade Affairs at the Ministry of Economy, H.E. Juma Al Kait.
The agreement represents the first step in Mashreq’s development of specialised carbonoffsetting financial products, which will launch in collaboration with selected UAE-based Mashreq corporate clients. With the initial solution expected in the first half of 2024, the announcement represents a critical milestone for the region’s financial sector, underlining a significant shift towards incorporating environmental responsibility within the region’s financial practices.
Within the UAE, carbon credits are an increasingly important part of the net zero strategy. The partnership between Mashreq and Fils will create an account solution that solves a number of historic challenges, including the fact that trading markets are not typically accessible directly by corporates. The account will also solve the problem of minimum purchase amounts that typically apply, whereas FILS will provide fractionalized credits. This removes the complexity and accessibility of dealing directly with the carbon credit markets and simplifies the purchasing, audibility, and reporting of KPIs through Mashreq.
Commenting on the MoU, Joel D Van Dusen, Head of the Corporate and Investment Banking Group at Mashreq, said: “This initiative will have a broad impact on Mashreq’s,corporate clients, offering a solution designed to contribute towards environmental sustainability. It also reinforces the UAE’s position as a pioneer in integrating sustainability into its economic and financial sectors, aligning with the nation’s role in hosting COP28 and its ambition to lead global sustainability efforts. Furthermore, the pioneering initiative signifies Mashreq’s dedication to sustainable practices.”
The MoU with Fils is the newest addition to Mashreq’s series of sustainable finance initiatives, forming part of the bank’s wider global Environmental, Social, and Governance (ESG) platform, Climb2Change. The international initiative integrates the Bank’s wide ranging ESG milestones with its contribution to shaping a sustainable future and the financial solutions required to combat climate change and achieve an inclusive net zero future.
The new carbon mitigation corporate offering from Mashreq is a unique product that reflects the growing use of carbon credits. 41% of global companies plan to use carbon credits to meet their net-zero emissions targets, and the carbon credit market is expected to grow at a 30% CAGR over the coming years.
Nameer Khan, Founder of Fils, said, “Fils’ partnership with Mashreq in the development of a ground-breaking carbon offsetting product is a powerful catalyst for the evolution of ESG enforcement across the region’s financial markets. Created with transparent KPIs, the accounts spell the end of greenwashing and clear a path towards greater accountability and implementation of actionable outcomes that can improve the sustainability of the world we live in.”
Founded by MENA Fintech Association (MFTA) chairman Nameer Khan, Fils aims to enable companies to integrate ESG values at the heart of their operations.
The uniqueness of the product in the UAE market, combined with its strategic alignment with the UAE’s hosting of COP28, renders the initiative particularly noteworthy and showcases a forwardthinking approach in the banking sector towards environmental responsibility.
Mashreq’s announcement follows the UAE’s pledge to achieve net-zero emissions within its borders by 2050. The goal aligns with the rapid growth of the global voluntary carbon market, indicating a commitment to both domestic and international environmental sustainability efforts.
Mashreq is more than half century old bank, yet proudly thinks like a challenger, startup, and innovator. Mashreq pioneered key innovations and developments in banking, starting with entrylevel digital-first customers, all the way to powering some of the region’s most prominent corporations and wealth accounts.
The bank’s mandate is to help customers find their way to Rise Every Day, partnering through the highs and lows to help them reach fulfilment, achieve financial goals, and unlock their vision of success.
Reassuringly present in major financial centres of the world, Mashreq’s home and global HQ remains in the Middle East, offering services whenever and wherever opportunity takes its customers.
Find your way to Rise Every Day at: www.Mashreq.com/RiseEveryDay
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Fils is an enterprise-grade digital infrastructure that enables businesses of all sizes to embed sustainable and climate action into their business models and customer journeys, across industries. Leveraging the latest, groundbreaking fintech innovation, Fils fintech aims to transform the business landscape and bring about a better world for all, with every transaction to every action contributing to a thriving planet. With major partnerships with some of the leading names in the financial services industry, soon to be announced, Fils is growing rapidly, thanks to its ability to offer a powerful API that seamlessly embeds sustainability into the digital payment infrastructure. making it easy for any institution to play its part in creating a better future for all. For more information, please visit the website.