WEC 2019: ADGM drives sustainable finance and responsible investments, Says, T. Hirschi

Thomas Hirschi is Senior Executive Director and Head of Banking & Insurance, Abu Dhabi Global Market (ADGM), one of the prominent exhibitors in WEC24. ADGM is an international financial center (IFC) located in the capital city of the United Arab Emirates, opened for business on 21 October 2015. Established by a UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global hub for business and finance and serves as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world. In run up to the WEC24, Devdiscourse catches up with Thomas Hirschi. Read the full interview. .

ADGM's Thomas Hirschi is very much excited and hopeful about new partners in WEC24. "Investors coming to ADGM will know that we take a practical, business-friendly approach and that we are serious in developing and supporting the sustainable finance hub and ecosystem," said Hirschi with full confidence. According to Hirschi, ADGM's vision and mandate are clear and focused on supporting the UAE to achieve the SDG goals in 2030, that is via responsible and sustainable financing. In an interview with Devdiscourse, Hirschi shares his company's performance and future strategies. The Edited Excerpts: 

Q. 1. How are you preparing to attend the World Energy Congress 2019 in Abu Dhabi?

Hirschi: We are very glad that the World Energy Congress is held in Abu Dhabi and it gives the participants and speakers the opportunity to understand what are the latest business and financial services opportunities available in Abu Dhabi and wider UAE. 

As an International Financial Centre in Abu Dhabi, ADGM has invested significant resources and effort to provide holistic support to the overall success of the World Energy Congress.  In addition to a physical space at the event hall, ADGM will be speaking at several sessions, networking with the market participants and raising awareness of our latest initiative that supports the development and growth of investments/financing for the energy sector.   ADGM launched a nation-wide agenda and effort, in January 2019, driving “Sustainable Finance” practice and adoption across key industries and sectors.  

Q.2. How do you think your company’s vision could make a change in the global energy scenario in line to the SDGs 2030 set up by the United Nations?

Hirschi: ADGM’s vision and mandate are clear and focused on supporting the UAE to achieve the SDG goals in 2030, that is via responsible and sustainable financing. To begin, we have an inclusive, flexible and progressive regulatory jurisdiction to support that.  We have an internationally aligned framework, we are actively raising awareness and knowledge and ensuring that there is an eco-system for project sponsors, project structures, project financiers and project suppliers to meet, discuss, debate, design, structure, finance and deliver projects needing sustainable finance. 

Q.3. What has been technical and practical feasibility of your company's innovative concept?

Hirschi: ADGM is an award-winning IFC and jurisdiction which is uniquely placed to play a lead role in the area of sustainable finance for the following reasons:

• We support innovation in all that we do and will apply this same approach to developing the Sustainable Finance sector.
• We have a legal framework based on English Common Law, which ensures the highest degree of legal certainty for all commercial activities, including financial transactions and investment.
• Our jurisdiction is internationally recognised and our legal and regulatory framework reflects best practice, which provides comfort to international participants.
• We already have some of the largest internationally active institutions, including BNP Paribas, Unicredit, State Street, Citigroup, Aberdeen and Macquarie, and an eco-system for investment and business that spans financial services firms active in Banking, Asset Management, Insurance and professional services firms.
• We have a broad range of corporate vehicles to support the structuring of finance deals available in ADGM, including SPVs, Open or Closed-Ended Investment Companies, Limited Partnerships, Investment Trusts, Protected and Incorporated Cell Companies.
• We support innovation in all that we do and will apply this same approach to developing the Sustainable Finance sector. 

Q.4. What have been your company’s achievements, so far?

Hirschi: ADGM designed and launched the Abu Dhabi Sustainable Finance Declaration to promote collaboration between government, regulators, financial institutions and other stakeholders.  The Declaration aims at creating a thriving sustainable finance industry, increase the quality and depth of green financial products and support the UAE in meeting the SDGs and the climate change objectives of the Paris Agreement.  

ADGM plans to expand industry participation and more details will be available at the Abu Dhabi Sustainable Finance Forum in January 2020, at the Abu Dhabi National Exhibitions Centre (ADNEC). 

In addition, we have joined international associations with a focus on sustainable finance:

• The International Network of Financial Centres for Sustainability;
• The World Alliance of International Financial Centres;
• The IOSCO Sustainable Finance Network; and
• The Network for Greening the Financial System. 

At the UAE level, ADGM has formed a core working group with the UAE Central Bank and Securities  & Commodities Authority and the UAE exchanges: ADX and DFM, and the Ministry of Climate Change and Environment to consider the regulatory approach to sustainable finance including taxonomy, disclosure and governance.  We have also signed the following MOUs with;

• The Ministry of Climate Change and Environment;
• The Securities and Commodities Authority; and
• The Federal Competitiveness and Statistics Authority. 

We will continue to foster national cooperation to enhance cooperation and alignment of policy initiatives to the fullest extent possible. 

Q.5. What is your business strategy for further expansion?

Hirschi: We are taking a holistic approach. We recognize that not everything can be delivered all at once and to an extent, things are iterative. We intend to not just focus on green issues but are keen to develop a sustainable finance sector that can support broad range sectors and sustainability goals. We will look at the issues through the Regulatory lens; encourage innovation; seek to collaborate; and align what we do to meet international standards and best practice. We want to give certainty and create the environment where investors can be confident in making investments and projects can be supported, not just through finance but also through building a wider supporting ecosystem to help develop projects and provide support services. Investors coming to ADGM will know that we take a practical, business-friendly approach and that we are serious in developing and supporting the sustainable finance hub and ecosystem. 

Q.6. What are your expectations from the 24th World Energy Congress 2019?

Hirschi: We are looking forward to engaging with firms who are project sponsors, project structures, project consultants, project financiers, funds with an ESG/SDG focus and firms. We provide a strategic platform for firms who are looking to explore business growth in Abu Dhabi, expand their presence and operate efficiently in an internationally-recognised financial free zone and seeking sustainable finance opportunities to support their businesses.

Thank you. 

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