Mashreq has signed a Memorandum of Understanding (MoU) with Fils, a UAE-based fintech firm, it has been announced.
Through this MoU, the two will develop a corporate carbon offsetting offering for corporate and institutional clients to integrate carbon offsetting directly from their Mashreq corporate accounts.
Fils is an 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.
Fils infrastructure uses blockchain technology to track all carbon credits used to avoid double counting and provide transparency.
The agreement represents the first step in Mashreq’s development of specialised carbon-offsetting financial products, which will launch in collaboration with selected UAE-based Mashreq corporate clients.
The initial solution is expected in the first half of 2024.
The partnership between Mashreq and Fils will create a solution that aims to solve a number of historic challenges, including the fact that trading markets are not typically accessible directly by corporates.
Further, the account solves the problem of minimum purchase amounts that typically apply, with FILS providing fractionalised credits, which tackles the complexity and accessibility of dealing directly with the carbon credit markets and simplifies the purchasing, auditing, and reporting through Mashreq.
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.
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.”
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.”