Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Development
• Financial Inclusion
• Cybersecurity
• Business Ethics
• Corporate Governance
• Environmental Sustainability

Environmental Achievements

• Established Albilad Research chair for environment Sustainability & food security in partnership with King Faisal University
• Conducted a symposium on afforestation initiatives in Makkah
• Efficient Natural resources utilization
• Recycling
• Planting
• Environmental awareness

Social Achievements

• Contributed SAR 286 million to the Riyadh Autism Center of Excellence
• Launched ATMs for visually impaired citizens
• Sponsored Rowad Al-Amal marathon for people with disabilities
• Provided wheelchairs to senior citizens and differently disabled citizens
• Distributed 8,000 food baskets during Ramadan
• Launched a savings awareness initiative
• Disability access to the bank services
• Food baskets
• Training & employment of KSA nationals
• Development of Saudi youth
• Offering general volunteering opportunity to employees
• Employees volunteering in the bank social initiatives.
• Offering specialized volunteering opportunity in areas such as finance, accounting,... etc. to help Not-for-profit Organizations

Governance Achievements

• 1,475 incidents of breach of customer privacy detected (and prevented)
• 0% incidents of breach of cyber security
• 120 total training hours on anti-corruption
• 99% of spending on local suppliers
• Strong governance executed through an effective, well-established governance process supported by independent credit risk oversight and assurance

Climate Goals & Targets

Environmental Challenges

• Ensuring compliance with regulator requirements, shareholder rights, and the Board.
• Maintaining strong relationships with stakeholders.
• Managing asset quality and impairments.
• Managing costs and improving the cost-to-income ratio.
• Cyber threats

Mitigation Strategies

• Robust governance framework and a strong culture of ownership and accountability.
• Continuous enhancement of client service levels.
• Providing convenient banking options.
• Reducing delays, errors, and complexity.
• Continuous enhancement of defenses against cybercrime and fraud.
• Regular internal and external audits to evaluate the adequacy of security controls.
• Independent third-party testing to identify security gaps.

Supply Chain Management

Responsible Procurement

• Supplier Selection Procedures (ethics, anti-bribery, anti-corruption, human rights, environmental performance)

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Community Initiative Award - Deep Waterfront cleaning Initiative (Jeddah)
• Most Innovative Credit Card Tamkeen Credit Card Award
• Best Performance Bank in Real Estate Finance and mortgages
• Ministry of Housing (Residential Program) / Real Estate Development Fund
• Excellence in Digital Banking
• International Finance Awards

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Community Development
• Governance
• Financial Inclusion
• Business Ethics
• Cybersecurity

Environmental Achievements

• Inaugurated a solar energy system in the Head Office Building, reducing carbon dioxide emissions by 194 tons per annum, saving more than 80,000 liters of fuel per annum, and reducing nitrogen and sulfur oxides emissions by 1,872 kilograms per annum.
• Supports plastic and paper recycling program.

Social Achievements

• Contributed over 260 million Saudi riyals to the Health Endowment Fund and the Community Fund to mitigate the effects of the Corona pandemic.
• Contributed 286 million Saudi riyals to the establishment of the Autism Center of Excellence in Riyadh.
• Launched ATMs equipped with a voice user interface for customers with disabilities.
• Provided forms in Braille and awareness videos in sign language for persons with disabilities.
• Distributed 8,000 integrated food baskets during Ramadan.
• Launched the Savings Awareness Initiative (phase two).
• Established the Chair of Environmental Sustainability and Food Security in partnership with King Faisal University.

Governance Achievements

• 100% of incidents of breach of customer privacy detected and prevented.
• 95% of spending on local suppliers.
• 379,718 total training hours on anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Maintaining compliance with regulatory requirements.
• Cybersecurity threats.

Mitigation Strategies

• Robust framework supported by systems that prevent fraud and detect fraudulent behavior in real time.
• Regular monitoring and review of cyber threats.
• Internal and external audits to evaluate the adequacy of security controls.
• Independent third-party testing to identify security gaps.
• Continuous improvement of cyber defenses using advanced technology and staff training.

Supply Chain Management

Responsible Procurement

• Supplier Selection Procedures which sets out expectations on ethics, anti-bribery and anti-corruption, human rights and environmental performance.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Food Security
• Social Responsibility
• Financial Inclusion
• Community Investment
• Disability Inclusion
• Digital Transformation

Environmental Achievements

• Reduced CO2 emissions by 194 tonnes per year through solar energy in Albilad Tower.
• Implemented policies to reduce paper use and encourage recycling.

Social Achievements

• Launched the second phase of the Savings Awareness Initiative.
• Completed 73+ CSR programs and initiatives under #Albilad_Mubadara.
• Made donations through the Ihsan platform.
• Installed universal access facilities in branches for people with disabilities.
• Partnered with the waqf Foundation for the rehabilitation and employment of persons with disabilities.
• Partnered with Rheumatology Association to support joint replacement operations.
• Supported plastic and paper recycling program, recycling 3,006 kg.
• Participated in Al-Khobar Corniche Afforestation Initiative, planting 4,000 seedlings.
• Donated one million riyals through the Ihsan platform.

Governance Achievements

• Updated Audit Committee Regulations.
• Updated policy of rules and controls for nomination and appointment in the Board of Directors and its committees.
• Updated replacement policy for the members of the Board of Directors and its committees.
• Established the Information Technology Committee.
• Implemented a robust Business Continuity Plan (BCP), conducting comprehensive tests.

Climate Goals & Targets

Environmental Challenges

• Navigating a challenging macroeconomic environment with high inflation and sharp rate rises.
• Maintaining a balance between economic growth and positive environmental and social outcomes.
• Attracting and retaining skilled staff in a competitive labor market.

Mitigation Strategies

• Exemplary management of liquidity and investments.
• Investing in staff training and development, revising rewards strategy.
• Developing new products and services, focusing on digital delivery.
• Developing strong partnerships with key strategic areas of government and businesses.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Environmental Metrics

ESG Focus Areas

• Transparent, Effective & Responsible Governance
• Sustainable Banking Practices
• Innovating for a Dynamic Business
• Contributing to Communities
• Acting on the Environmental Footprint
• Empowering our Employees

Environmental Achievements

• Reduced carbon emissions by 194 tons per year through a large-scale solar energy system at the Albilad Tower Head Office.
• Implemented a new prototype for green building design in new standalone branches, featuring solar panel systems, infrared water taps, LED lighting, motion sensors, and recycling containers.
• Recycled approximately 4,550 kg of plastic and 12,000 kg of paper.

Social Achievements

• Launched Albilad Verse, a branch dedicated to providing financial education to children.
• Sponsored the Mowaamah app, designed to ease the lives of people with disabilities.
• Donated SAR 10,000,000 to support the provision of houses for 5,250 vulnerable families through the Jood Housing Platform.
• Increased total training hours delivered to employees by 29% compared to 2021.
• Over 5,400 employee volunteering hours.

Governance Achievements

• Established an Anti-Fraud committee at the executive management level.
• Implemented an automated compliance system.
• Zero security breaches over the past 3 years.
• 50% of the Board of Directors were independent members.

Climate Goals & Targets

Environmental Challenges

• Resolving issues with landlords maintaining expired and/or incomplete documentation for land lease agreements.
• Need to expedite the supplier registration process.

Mitigation Strategies

• Creating advance payment schemes.
• Streamlining the supplier registration process.
• Implementing a digital signature mechanism.

Supply Chain Management

Supplier Audits: All suppliers assessed against sourcing code of conduct

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Investing in renewable energy projects

Reporting Standards

Frameworks Used: GRI Standards, National Standards of Sustainability (NSS), Saudi Exchange ESG Disclosure Guidelines, SASB Guidance

Certifications: ISO 10002, ISO 10004, ISO 22301, PCI-DSS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with UN Sustainable Development Goals but doesn't specify which goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Islamic Capital Markets Deal of the Year (Albilad Capital)
• Sukuk Deal of the Year (Albilad Capital)