Alinma Sustainability Performance

Alinma Sustainability Performance

Sustainability Performance

In 2023, Alinma Bank demonstrated a strong commitment to sustainability principles, marking significant progress in this vital area. Our achievements in sustainability underscore our dedication and strategic approach to sustainability, social responsibility, and robust governance practices across our operations and scope of work.

Environmental Achievements and Highlights:
In 2023, Alinma Bank accomplished significant environmental milestones, reaffirming our commitment to sustainability and responsible banking. One of our key achievements was integrating sustainability standards into decision-making processes related to financing and investment. We financed numerous projects under sustainable financing categories, with a focus on green initiatives such as renewable energy, energy efficiency, and green buildings, in addition to social projects aimed at improving access to essential services like infrastructure and healthcare facilities. This led to commitments worth SAR 36.55 billion and eligible commitments worth SAR 14.80 billion.

We also made significant efforts to reduce our environmental footprint, including completing digitalization across all 108 branches, leading to substantial paper consumption reduction. We replaced old air conditioning units with environmentally friendly alternatives in 24 branches, achieving a 10% energy consumption reduction. Additionally, we recycled 12,310 kilograms of used paper, installed energy-efficient lighting in all branches, with plans to expand to the headquarters. Our commitment to renewable energy is evident through the installation of solar energy sources in 58 branches, covering all our branches, and implementing smart building systems in 76 branches.

In line with the Kingdom's vision to achieve net-zero carbon emissions, we developed a methodology for calculating greenhouse gas emissions (GHG) for scopes 1, 2, and 3. This initiative reflects our efforts to contribute to national and global environmental goals. Furthermore, we contributed to increasing greenery in our branches by planting hundreds of plants, totaling 576 plants (Ficus Religiosa, Acacia, Tecoma) in 48 branches, completing our green initiative across all branches. This initiative enhances the aesthetic appeal of our branches while supporting biodiversity and creating a more vibrant environment for our customers and employees.

Finally, in our continuous efforts to improve our environmental management practices, we initiated the development of an Environmental Management System for Alinma Bank and obtained ISO 14001 certification. This certification serves as evidence of our commitment to environmental excellence and sustainable practices in our operations, reflecting Alinma Bank's commitment to environmental stewardship and our role in promoting sustainable practices in the banking sector.

Social Achievements and Highlights:
In 2023, Alinma Bank achieved significant social accomplishments, reaffirming our dedication to employee development, women empowerment, community engagement, and customer satisfaction. We made significant progress in developing career paths for our employees. To fulfill our commitment, we provided over 93,600 hours of training, which played a crucial role in enhancing the skills and capabilities of our workforce. Women empowerment was another key area, where we increased the percentage of female employees from 19.27% in 2022 to 22% by the end of 2023. Additionally, the percentage of women in leadership positions within the bank reached 8%, demonstrating our commitment to enhancing diversity and inclusivity in the workplace.

Our volunteer initiatives witnessed significant participation, with 492 employees participating in 56 volunteer activities, contributing a total of 2,412 hours. These efforts positively impacted around 7,000 individuals, demonstrating our commitment to serving the community and our responsibility towards it. In the realm of corporate social responsibility activities, we provided a microfinance fund to support over 280 families, totaling SAR 5 million, to support home-based businesses. Furthermore, we empowered 20 individuals who were unable to access the education system by providing comprehensive scholarships worth SAR 5 million.

Supporting local suppliers was another area where we excelled, supporting the national economy while aligning with our commitment to sustainable and responsible business practices. In 2023, our overall interaction percentage with local suppliers reached 77.38%, with the percentage of purchase orders signed with these local entities at 95.92%.

In terms of customer satisfaction, we achieved significant success by securing the second position in the Net Promoter Score (NPS) index among banks in the Kingdom of Saudi Arabia. This achievement reflects our dedication to providing exceptional customer service and improving customer satisfaction.

Finally, in the digital transformation field, we made significant progress by completing 85% of our digital projects using Agile methodologies. This approach significantly contributed to our ability to respond quickly and meet the needs of our customers, reaffirming our commitment to innovation and providing advanced digital services.

These social achievements in 2023 highlight Alinma Bank's commitment to social responsibility, employee development, community engagement, and customer satisfaction, reinforcing our position as a socially responsible financial institution.

Governance Achievements and Key Milestones:
In 2023, Alinma Bank made significant progress in governance, emphasizing our commitment to sustainability, data security, and compliance with national data management regulations.

One of the key achievements was our efforts to promote sustainability governance practices. We developed a comprehensive sustainability strategy, providing a strong framework for integrating sustainable practices into our operations. Additionally, we developed a strategy for social and environmental responsibility, reflecting our commitment to social and environmental responsibilities.

Cybersecurity was of utmost importance, particularly concerning data governance and protection. Therefore, we initiated a comprehensive project for data governance and privacy. This project included reviewing our current policies and procedures, creating new policies and procedures, and enhancing awareness and training for relevant employees. These initiatives are critical in protecting our customers' data against emerging cyber threats.

Furthermore, we conducted a gap assessment according to the National Data Management Office and Personal Data Protection Law. This involved a comprehensive review and update of our current gap assessment according to the latest standards and requirements to ensure full compliance with national regulations, reflecting our commitment to legal and ethical business practices.