Publication - FOI/EIR release

Global Ethical Finance Initiative, Ethical Finance Ltd and Islamic Finance Council UK payments: FOI release

Published: 15 August 2024
Directorate: International Trade and Investment Directorate
Topic: Economy, International, Public sector
FOI reference: FOI/202300385923
Date received: 20 November 2023
Date responded: 19 December 2023

Information request and response under the Freedom of Information (Scotland) Act 2002.

Information requested

You asked for details of specific payments which you would like a further breakdown of and more information about:

Global Ethical Finance Initiative

120,000.00 07-Apr-21 COP26 Event Programme Directorate for International Trade & Investment
133,330.00 06-Sep-21 Entrepreneurship & Innovation Directorate for International Trade & Investment
63,072.00 27-Oct-21 Entrepreneurship & Innovation Directorate for International Trade & Investment
79,401.00 16-Feb-22 Entrepreneurship & Innovation Directorate for Scottish National Investment Bank
65,781.00 09-Sep-22 Grant payment (Q1) for Global Ethical Finance Initiative (GEFI) Directorate for Scottish National Investment Bank
73,844.81 19-Oct-22 Entrepreneurship & Innovation Directorate for International Trade & Investment
88,092.86 16-Jan-23 Entrepreneurship & Innovation Directorate for International Trade & Investment
65,179.65 26-Apr-23 Entrepreneurship & Innovation Directorate for International Trade & Investment

Ethical Finance Ltd

60,000.00 17-Oct-18 Grant funding for support of ethical finance hub operational costs. Directorate for Economic Development
30,000.00 22-Jan-19 Grant support to Ethical Finance Hub Directorate for Economic Development
221,000.00 27-Feb-19 Ethical Finance Hub Grant Directorate for Economic Development 30,000.00 30-Jul-19 Grant agreed for Ethical Finance Hub Directorate for Economic Development
45,000.00 24-Feb-20 Professional Fees Directorate for Scottish National Investment Bank 53,984.00 15-Sep-20 Grant payment to Ethical Finance Hub Ltd. Project - The Global Ethical Finance Initiative (GEFI) Directorate for Economic Development

Islamic Finance Council UK

350,000.00 25-Mar-19 Grant payment. Development of Global Ethical Finance Initiative Directorate for Economic Development
82,137.00 15-Sep-20 Grant payment to UK Islamic Finance Council Ltd. Project - The Global Ethical Finance Initiative (GEFI) Directorate for Economic Development

1. What the specific purpose of the payments were.

2. All correspondences relating to the payments.

3. When were they applied for and who agreed them?

4. What follow up action has been taken to see how they were used?

Response

Questions 1 and 3

For the answer to questions 1 and 3, please see table below:

what the specific purpose of the payments were
when were they applied for and who agreed them

Year	Name	Payment	Date	Specific Purpose of payment	Date applied for	Who agreed them
2021	Global Ethical Finance Initiative	120,000.00	07-Apr-21	Path to COP26 Programme of events	Discussions started late 2020	Approved by (then) Investment Finance Deputy Director Kat Feldinger and included in First Minister ministerial update
2021	Global Ethical Finance Initiative	133,330.00	06-Sep 21	Fulfilment of the Programme for Government Commitment to Establish and convene the Scottish Taskforce for Green and Sustainable Financial Services	Discussions started late 2020
2021	Global Ethical Finance Initiative	63,072.00	27-Oct-21
2022	Global Ethical Finance Initiative	79,401.00	16-Feb 22
2022	Global Ethical Finance Initiative	65,781.00	09-Sep 22
2022	Global Ethical Finance Initiative	73,844.81	19-Oct-22
2023	Global Ethical Finance Initiative	88,092.86	16-Jan-23
2018	Ethical Finance Hub Limited	60,000.00	17-Oct-18	Development of Ethical Finance Hub.	Feb 2018	Derek Mackay MSP, (then) Cabinet Secretary for Finance, Economy and Fair Work
2019	Ethical Finance Hub Limited	30,000.00	22-Jan-19
2019	Ethical Finance Hub Limited	30,000.00	30-Jul-19
2019	Ethical Finance Hub Limited	221,000.00	27-Feb 19	programme of work in collaboration with the United Nations Development Programme (UNDP) to support development of new funding models in support of sustainable development,	Oct 2018	Derek Mackay MSP, (then) Cabinet Secretary for Finance, Economy and Fair Work
2020	Ethical Finance Hub Limited	53,984.00	15-Sep20		Oct 2018
2020	Ethical Finance Hub Limited	45,000.00	24-Feb20	Provision of Advice on Ethical Statement to Scottish national Investment bank project team	Sept 2019	s.17 applies
2019	Islamic Finance Council UK	350,000.00	25-Mar 19	establishment and development of the Global Ethical Finance Initiative	Oct 2018	Derek Mackay MSP, (then) Cabinet Secretary for Finance, Economy and FairWork
2020	Islamic Finance Council UK	82,137.00	15-Sep20		Oct 2018

Questions 2 and 4

In response to questions 2 and 4, I enclose a copy of some of the information you requested.

Please see attached:

1. Document 1 provides some of the information you requested relating to the payments noted above for Islamic Finance Council UK and Ethical Finance Hub Ltd except for the payment of £45,000

2. Document 2 provides some of the information you requested relating to the payment of £45,000 made under Ethical Finance Hub Ltd

3. Document 3 provides some of the information you requested relating to the payments noted above for Global Ethical Finance Initiative.

4. Document 4 provides some of the information you requested relating to the payments noted above for Path to COP26 programme.

While our aim is to provide information whenever possible, in this instance we are unable to provide some of the information you have requested because an exemption(s) under the following section(s) apply

s.17 Notice that information is not held;
s.25(1) of FOISA applies to information which is already reasonably accessible to you
s.30(b)(i) Free and frank provision of advice; s30(b)(ii) Free and frank of exchange of views;
s.33(1)(b) Commercial interests;
s.38(1)(b) Personal information of FOISA applies to that information.

The reasons why these exemptions apply are explained in the annex A below.

Additionally in relation to question 4, due to the interconnected nature of the 3 companies, please note Global Ethical Finance Initiative (GEFI) arose from UK Islamic Finance Council and Ethical Finance Hub is a subsidiary of GEFI. Therefore some of the payment information requested under one company may relate to work carried out within another company.

Therefore the payments made under:

the Islamic Finance Council UK were in relation to establishing and developing the Global Ethical Finance Initiative which the Scottish Government still supports and is currently partnering and collaborating with on the work of the Scottish Taskforce for Green and Sustainable Financial Services.
The programme of work with the UNDP established a collaboration and partnering between the Scottish Government and the UNDP to support the Sustainable Development Goals (SDGs)
The Ethical Finance Hub was established to showcase and promote Scotland as a centre of ethical finance and is now a subsidiary of GEFI.
The Path to COP26 programme was part of a programme of work which included launching the Scottish National Investment Bank and shifting the focus of financial services work towards establishing Scotland as a centre for green finance. Taking part in an already established programme of events by GEFI, with proven global audience, was regarded as a rapid way to establish this as the new focus for the work and introduce Scottish Government to key financial institutional players we would need to enter discussions with to achieve it. The funding to GEFI helped to ensure Scottish Government was one of the branded partners of the Pathway to COP programme and ensured access and participation in a series of events, which Scottish Government took part in. This included events alongside the Director General of UNEP, at Glasgow University and virtually across a period of about 6 months.
The establishment of the Scottish Taskforce for Green and Sustainable Financial Services (Taskforce) was also part of this programme of work to help pivot our financial services to more green, ethical and sustainable finance. GEFI was seen and recognised by industry as beneficial stakeholder within the Scottish financial services ecosystem who had constructive engagement with wider global audience in green and ethical finance (building on their work from the Islamic Finance Council and Ethical Finance Hub). GEFI were tasked to establish and convene the Taskforce over a period of 3 years with a final report of recommendations presented to Scottish Ministers at the First Minister co-chaired Financial Services Growth and Development Board in Spring 2024. The remit of the Taskforce and the deliverables, as noted in the grant letter, the Terms of Reference are included in the released documents.

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