Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Main buildings & warehouses electricity consumption reduced by 30% in 2021 saving 20% in costs
• 5,045 KG of plastic and paper waste recycled, which resulted in saving 20.18 tons of CO2, 11.6 cubic meters of landfill, 35,315 gallons of water, 20,180 KW of energy and 85.7 trees
• 57% of paper waste recycled in 2021

Social Achievements

• SAR 17 million donated to the Health Endowment Fund in 2020
• SAR 10.73 million supporting the Ministry of Human Resources and Social Development and the General Authority for Awqaf in 2020
• 247,050ml of blood donated by Riyad Bank employees in 2021
• 100,000 meals and 10,000 food boxes distributed around the Kingdom during Ramadan in 2021
• School supplies for 2,000 orphans through Back to School Campaign
• SAR 42 million to support the Center for Autism Research
• 811 volunteering hours by 395 employee volunteers in 2021
• 123,255 people benefitted from financial literacy program
• SAR 15,646,855.29 donated through Riyad Bank’s charity accounts and different channels
• Riyad Bank collaborated with Ertiqa Organization to recycle PC -hardware items with a total of 226 Computer PCs, 225 LCD Screens, 22 printers, and 5 scanners
• In 2021, Riyad Bank financed 41% of the total number of firms on the Kalafah Program (supporting MSMEs)

Governance Achievements

• Established a CSR Committee headed by the Chairman, including the CEO and CXO, to oversee sustainability strategy and implementation.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ICMA Green Bond Principles (GBPs) 2021, Social Bond Principles (SBPs) 2021, Sustainability Bond Guidelines (SBGs) 2021, Loan Market Association (LMA) Green Loan Principles (GLPs) 2021, Social Loan Principles (SLPs) 2021, UN Global Compact Ten Principles, UN Convention on the Rights of Persons with Disabilities

Certifications: Null

Third-party Assurance: S&P Global Ratings (Second Party Opinion)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green and Renewable Banking offering (9 programs)

Awards & Recognition

• Best Bank for SMEs in the Middle East 2021 (Euromoney and AsiaMoney)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainability
• Supporting SMEs
• Employee wellbeing
• Community support
• Governance
• Ethics
• Compliance

Environmental Achievements

• Signed an MOU with Environmental Green Horizons Society to plant 4,000,000 trees in 10 years
• Received a Guinness World Record for establishing the longest line of solar-powered streetlights
• Recycled 98 tons of paper and plastic

Social Achievements

• Launched employee wellbeing program
• Maintained its position as the largest financing bank for small, medium and micro enterprises, with a market share of 22%
• Distributed 20,000 food baskets and 200,000 meals in 5 cities to 162 charitable organizations during Ramadan
• Increased customer satisfaction rate to 84%

Governance Achievements

• Issued first ESG Tier I Sukuk Globally
• Issued first standalone ESG report
• Implemented 182 processes managed fully by robotics, with RPA productivity having increased by 70% in 2022 to reach 3.4 million transactions

Climate Goals & Targets

Environmental Challenges

• Global economic challenges and rapidly rising international inflation
• Impacts of the Russian-Ukraine war
• Impacts of the COVID-19 pandemic on SMEs

Mitigation Strategies

• Enhanced productivity and developed capabilities to maintain strategic progress
• Provided easy financing solutions to SMEs
• Implemented onsite vaccination areas and maintained safety measures
• Launched a comprehensive digital platform to fully digitize the lending process for SMEs

Supply Chain Management

Responsible Procurement

• Enhanced procurement of local content (49% from all Bank logistics purchasing demand)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Convention on the Rights of Persons with Disabilities, Vision 2030, UN SDGs

UN Sustainable Development Goals

• 14 UN SDGs

Sustainable Products & Innovation

• First ESG Tier I Sukuk Globally
• USD 750 Mn. Sustainability Sukuk

Awards & Recognition

• Bonds, Loans and Sukuk Middle East Award for Financial Institutions Deals
• Ranked Number 8 in Most Valuable Brands 2023
• Named Best Bank for SMEs in the Middle East
• Best Development Bank for Real Estate Finance
• Best Marketing Promotion for Real Estate Finance
• Winner of the Outstanding Private Bank for Growth Strategy
• Runner up for Outstanding RM Training and Development Program
• Outstanding Private Bank for Growth Strategy for 2022
• Saudi Arabia’s Best Trade Finance Bank of the Decade
• Outstanding Contribution to SMEs
• Best Bank for Digital Solutions in Saudi Arabia
• Best Bank for SMEs – Digital Solutions in Saudi Arabia
• Best Customer Experience and Operational Excellence
• Best Voice of the Customer Transformation
• Best Customer Experience Leadership
• Data Practice Excellence

Environmental Metrics

ESG Focus Areas

• Sustainable Investing and Financing
• Protecting the Environment
• Supporting Society
• Prioritizing People
• Governance

Environmental Achievements

• Recycled 64,000 electronic parts through the “Reduce With Us” initiative.
• Recycled 7.7 tons of plastic and paper waste at headquarters.
• Implemented gray water systems in facilities.
• Achieved a 15% reduction in electricity consumption and carbon footprint by transitioning to renewable energy sources.
• Launched the Goal initiative, planting 100 trees for every Al-Hilal goal scored.

Social Achievements

• Increased female representation to 29% of the workforce, with 33% of new hires being female.
• Hired 22 persons with disabilities (PWDs) through the Iqdam program.
• Launched the IMPACTHON Social Investment Challenge.
• Distributed 25,000 food baskets during Ramadan.
• Distributed 700,000 meals during Ramadan through collaboration with Ekram Society.

Governance Achievements

• Full alignment of 2025 Strategy with Saudi Vision 2030 objectives.
• Achieved ISO 26000 certification in social responsibility.
• Maintained a 96% Saudization rate.
• Board of Directors maintained 100% attendance rate at meetings.
• Implemented robust AML & CTF policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Global economic challenges, including crises impacting the world economy.
• Challenges of integration into the digital economy.
• Increased demand for online banking services raising cybersecurity risks.
• High interest rates leading to higher cost of funds.
• Further slowdown in credit growth.

Mitigation Strategies

• Effective risk management practices, such as hedging against market fluctuations and increasing cash reserves.
• Continuous investment in technology and digital capabilities.
• Implementation of new controls and restrictions to counter fraudulent activities.
• Strategic changes to improve execution and risk controls.
• Development of bespoke financial solutions for clients.

Supply Chain Management

Responsible Procurement

• Procurement of local content (49% from all Bank logistics purchasing demand).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Saudi Vision 2030, UN Sustainable Development Goals (SDGs)

Certifications: ISO 26000

UN Sustainable Development Goals

• Not disclosed

Riyad Bank strategically prioritized 14 of the 17 SDGs.

Awards & Recognition

• MEA Finance Banking Technology Summit and Awards 2023: The Most Digitally Innovative Bank
• Public Investment Fund and Informatica: Best Data Implementation
• GTR Saudi Arabia 2023: Sustainability in Trade Award
• Big Data Prize from the Public Investment Fund