The Islamic Corporation for the Development of the Private Sector (ICD) is the private sector development arm of the IsDB Group.
Climate change poses real threats to the member countries of ICD, its investments, and the way it conducts its businesses. Nevertheless, this constitutes an opportunity for Islamic finance tools to help contribute to mitigating some of these climate-related risks and harness the numerous benefits for the private sector development in the member countries.
In this regard, as a leading private sector development arm of the IsDB Group, the ICD intends to ensure that it is equipped with the adequate tools and practices to channel its investments and other development offerings to its clients. ICD is currently developing its ESG related standards in its business activities and operations. This would enable ICD work with its clients and companies that are carbon-exposed on solutions and options for low carbon and climate resilient investing, while creating incentives for them with regard to supporting carbon-reduction and resilient efforts. As such, to respond to and support ICD MCs in addressing the challenges posed by climate change; the ICD is setting up all necessary systems (i.e., strategies. policies, safeguards and guidelines) which will enable it to offer products and services that pay special consideration to climate change parameters in line with leading and best practices among the development finance institutions.
Going forward, ICD will endeavor to incorporate climate change considerations into ICD investment policy and guidelines and work closely with other leading MDBs in syndicated climate-friendly projects and investments for private sector actors. ICD will also explore ways and means of sharing best practices and lessons regarding climate action towards member countries’ nationally determined contributions (NDCs), long-term climate strategies, net-zero plans, and helping private sector actors in MCs in identifying and developing low carbon and climate resilient related business opportunities.