STRATEGIC FRAMEWORK 2030 PROGRESS UPDATE
Following the successful completion of the first phase of the Strategic Framework 2030, the OPEC Fund launched the next phase in 2022 which aims at delivering “transformational growth”.
Phase 1 of the plan was dedicated to “enhancing operational and financial capacity”, following a review of the OPEC Fund’s organizational structure, governance and effectiveness. Detailed recommendations were implemented. Operational improvements included the substantial enhancement of risk management, focusing on governance, policies, methodologies, processes and staff capacity. The successful implementation was testified by the rating agencies Fitch and Standard & Poor’s when they confirmed the OPEC Fund’s inaugural AA rating despite a challenging global economic environment. The efforts of the first phase culminated in the successful issuance of an inaugural bond which raised US$50 million via a private place-
ment. The borrowing program was developed as part of the Strategic Framework 2030 and is in line with a Sustainable Development Goals (SDG) Bond Framework, developed in accordance with the Sustainabili- ty Bond Guidelines 2021, the Green Bond Principles 2021 and the Social Bond Principles 2021 published by the International Capital Market Association and supported by the research firm Sustainalytics. The bond proceeds will be allocated according to the specific criteria defined in the SDG Bond Framework focusing on food security, healthcare, infrastructure, education, employment and renewable energy. A major step in improving the OPEC Fund’s governance was the intro- duction of a compliance framework to ensure the institution manages its
related obligations in line with industry best practices. The framework applies to the OPEC Fund and its business operations and aims at enabling sustainable operations, safeguard- ing the OPEC Fund’s reputation and delivering client-centric services. Following a request by the Governing Board, in 2022 the OPEC Fund management also initiated the necessary steps for the establishment of an Administrative Tribunal as the supreme committee for dispute resolution. The Administrative Tribunal, comprised of five outstanding international persons qualified for high judicial office, or international lawyers or arbitrators in relevant fields, is fully independent and its judgements will be final.
In order to achieve the goals set out in the Strategic Framework 2030,
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