Aligning Sustainability with Saudi Vision 2030 and Alinma Bank
In order to set clear priorities for our management and strategic efforts, we conducted a thorough review of various frameworks, including the United Nations Sustainable Development Goals, Saudi Vision 2030, and relevant sustainability standards. This analysis aimed to ensure that Alinma Bank's sustainability initiatives are aligned with both global goals and national objectives.
We specifically examined the alignment between our bank's strategy and government programs, with a focus on the financial sector development program outlined in Saudi Vision 2030. Additionally, we adhered to globally recognized sustainability standards, including sector-specific guidelines, to ensure comprehensive and relevant assessment.
Key standards considered in our review included:
1.Global Reporting Initiative.
2.Principles for Responsible Banking.
3.Sustainability Accounting Standards Board World Federation of Exchanges.
4.World Federation of Exchanges.
Through this rigorous assessment, we identified areas of overlap and divergence in ESG practices, enabling us to refine our approach to sustainability and prioritize impactful initiatives.
Sustainability governance structure
- Sustainability governance is arranged in Alinma at three levels:
Governance and Sustainability Board Committee: In 2Q 2022 Alinma’s Board of Directors formed a Governance and Sustainability committee to oversee the Sustainability framework and progress. The committee members oversee the Sustainability strategy of the bank, including framework, risks and opportunities, stakeholder engagement, programs, and sustainability initiatives. Sustainability at Alinma Bank is overseen and led by the Governance and Sustainability Committee of the Board of Directors. The Committee is the highest authority on Sustainability performance that monitors and reports on progress by engaging with leadership and business lines across the organization. It is headed by the Vice Chairman of the Board and includes four members.
- Sustainability Executive Committee: The sustainability committee is headed by Ainma deputy CEO and contains senior members. It ensures that all mechanisms necessary to implement decisions made by the members of the Governance and Sustainability Committee have been put in place.
- Sustainability Department: Alinma has established a sustainability department C7:C8C7:C8under the strategy and sustainability division to be responsible for the implementation and progress of the approved sustainable activities and whatever is needed to achieve the Sustainability strategy objectives and targets.
Materiality assessment.
To embark on our dedicated path towards sustainability, Alinma Bank meticulously conducted a thorough analysis of paramount concerns for both the institution and its stakeholders. This encompassed scrutinizing peer performance, global benchmarks, rating agency criteria, and sustainability protocols, culminating in the development of a comprehensive list of pivotal issues. Additionally, we scrutinized the United Nations Sustainable Development Goals, Saudi Vision 2030 objectives, and pertinent sustainability frameworks, including those tailored for the banking sector.
Sustainability Governance
The sustainability governance at Alinma Bank is organized across three levels:
- The Governance and Sustainability Committee under the Board of Directors: In the second quarter of 2022, Alinma Bank's Board of Directors established the Governance and Sustainability Committee to oversee the sustainability framework and its progress. Committee members supervise the bank's sustainability strategy, including framework, risks, opportunities, stakeholder engagement, as well as sustainability programs and initiatives. The committee serves as the highest authority monitoring sustainability performance, chaired by the Vice Chairman of the Board of Directors.
- The Sustainability Committee: This committee is chaired by the Executive Vice President for Sustainability at Alinma Bank and includes sector heads and executive directors to ensure the implementation of decisions made by the Governance and Sustainability Committee according to appropriate mechanisms.
- Sustainability Department: Alinma Bank has established a Sustainability Management department within the Strategy and Sustainability sector to execute all necessary actions to achieve the approved sustainability strategic objectives.