Our Approach
For alinma, our corporate responsibility to people and the planet is non-negotiable. Our uncompromising ethics, high standards of governance, and how we weave sustainability into every facet of our business and operations inspire a culture of positive social and environmental impact within alinma, within the banking sector and across the Kingdom.
In 2024, we continued to advance alinma’s sustainability. Guided by the six pillars of our sustainability strategy, we nurtured our natural environment, supported our employees, served our customers and community and strengthened our governance. While alinma pursues sustainability because it is the right thing to do, we are also proud of the external recognition we have received in awards and improved ESG ratings.
Our Sustainability Governance
Sustainability is not a siloed function for alinma. It is driven from Board and management level and implemented across the organization.
Our Board Governance and Sustainability Committee is the highest sustainability authority at alinma and represents sustainability to the Board. The Committee is headed by the Vice Chairman of the Board, supported by three other Board members. The Committee provides clear direction and monitors the Bank’s positive and negative impacts.
At the executive management level, alinma’s Sustainability Committee guides the practical implementation of alinma’s sustainability strategy, ensuring a unified and effective approach to positive social and environmental impact. The Sustainability Committee is headed up by the Deputy CEO, supported by five executives.
The Sustainability Committee is supported by Sustainability Champions and the Sustainability Department at management level, who implement the Sustainability Strategy with sustainability awareness programs and other initiatives. The Sustainability Department reports to the Chief Strategy and Sustainability Officer while Champions are appointed from departments across the Bank.
Our Sustainability Strategy
Our sustainability strategy, launched in 2023, is a simple yet clear and comprehensive response to alinma’s complex operating environment and commitment to sustainable growth. The sustainability strategy interlinks with our overarching corporate strategy while also supporting the achievement of Saudi Vision 2030 and the United Nations Sustainable Development Goals (UNSDGs). The strategy is built on six main pillars that group altogether 15 goals with allocated sustainability KPIs built into management performance reviews.
The 6 pillars of alinma's sustainability strategy are:
1
Accelerate sustainable finance
2
Foster environmental stewardship and enable a circular carbon economy
3
Empower our customers
4
Build a thriving workplace
5
Strengthen our communities and contribute to greater financial inclusion
6
Drive robust governance and responsible operations
Materiality Assessment
To determine which ESG matters are most material to our stakeholders, alinma conducted a comprehensive materiality assessment that considered all of the local and international frameworks mentioned above. We review our material matters annually to ensure that they remain relevant to alinma. Our material matters are shown below, along with the shifts from prior years.
In 2024, we were very pleased that our Chief Executive Officer was recognized by Forbes Middle East as one of the top sustainability leaders in the region – a nod to the strength of alinma’s sustainability strategy.
Most important
- 1 Responsible customer relations and satisfaction
- 2 Talent attraction, retention, and development
- 3 Data privacy and cybersecurity
- 4 Digitalization and innovation
- 5 Governance, accountability, transparency, and ethics
-
6 Systemic risk management
- 7 Climate change and circular carbon economy
Highly important
- 8 Diversity, equity and inclusion
- 9Employee engagement and well-being
- 10 Financial inclusion and community investment
- 11Financial and economic performance
- 12 Sustainable financing and investment
Important
- 13 Environmental impact and natural resource protection
- 14 Responsible procurement and localization
- 15 Community engagement and empowerment
- 16 Nationalization
International ESG and Sustainability Ratings
In crafting our sustainability strategy, alinma considered all pertinent local and international frameworks and standards. These include Vision 2030, the Saudi Exchange ESG Disclosure Guidelines, the Principles for Responsible Banking (PRB) and the World Federation of Exchanges. Global Reporting Initiative (GRI), IFRS International Sustainability Standards Board ISSB, and Carbon Disclosure Project (CDP) also proved useful in determining key metrics to report on.
alinma keeps a close eye on our local and international ESG ratings as one measure of our performance and the perceived value of our ESG initiatives. Below are some of our latest rankings.
| Rating | 2022 Baseline | 2023 Review* | 2024 Review | 2025 Target |
|---|---|---|---|---|
| MSCI | BB | BBB | BBB | A |
| ESG Invest | 25 | 46 | 70 | 73** |
| Sustainalytics | 30.9 | 27.9 | 27.5 | 20 |
| S&P Global | 17 | 20 | 30 | 58 |
* Represents 2022 performance
** This target was extended from an initial 64, since alinma already achieved and exceeded it.
In 2024, alinma was awarded an overall improvement in its scores by the various ratings agencies. We were particularly humbled by the major improvement in our overall ESG score by the London Stock Exchange Group (LSEG), from 28 (out of 100) in 2023 to 68 in 2024. Our global ranking also leaped from 855th to 179th out of 1,130 banks tracked by the LSEG. It is a remarkable testimony of our enhanced focus on sustainability.
Investor Relations Department
P.O. Box 66674, Riyadh 11586
Al Anoud Tower, King Fahad Road, Riyadh
Kingdom of Saudi Arabia
E-mail: IR@alinma.com
Phone: +966-11-218-5555