Inspiring Cultures
Creating Impact
Sustainability Report 2024
alinma.com
Contents
At alinma, sustainability is more than a commitment- it's a culture we nurture and a legacy we aim to build.
Our journey is driven by purpose, shaped by values, and focused on creating lasting impact for generations to come.
Introduction
04 About the Report
06 Chairman's Message
08 CEO's Message
10 About alinma
12 Year in Review
14 Shariah Compliance and Governance
16 Financial and Economic Performance
Sustainability at alinma
20 Chief Strategy and Sustainability Officer Message
22 Sustainability Roadmap
24 Sustainability Governance and Oversight
26 AMAD
28 Sustainability Strategy Framework
30 ESG Targets and Goals
32 Materiality Assessment
36 Aligning with National and International Standards
38 Stakeholder Engagement
Building a Thriving Workplace
88 Talent Attraction, Retention and Development
96 Diversity, Equity and Inclusion
Nationalization
Protecting our Employees' Human Rights
Strengthening our Communities and Contributing to Greater Financial Inclusion
106 Financial Inclusion and Community Investment
110 Community Engagement and Empowerment
112 Responsible Procurement and Localization
Accelerating Sustainable Finance
45 alinma Sustainable Finance
48 Sustainable Finance across our Departments
Driving Robust Governance and Responsible Operations
120 Governance, Accountability, Transparency and Ethics
128 Systemic Risk Management
130 Data Privacy and Cybersecurity
Fostering Environmental Stewardship and Enable a Circular Carbon Economy
56 Environmental Impact Management
58 Climate Change and Circular Carbon Economy
Water Management
Waste Management
Empowering our Customers
70 Responsible Customer Relations and Satisfaction
74 Digitalization and Innovation
78 Empowering SME Growth
Appendix
134 Appendix A: Scope and Boundaries
136 Appendix B: UNSDG Alignment
138 Appendix C: ESG Dashboard
144 Appendix D: GRI and SASB Content Indexes
158 Appendix E: Acronyms Table
160 Appendix F: Reasonable Assurance Report
01
Introduction
04 About the Report
06 Chairman's Message
08 CEO's Message
10 About alinma
12 Year in Review
14 Shariah Compliance and Governance
16 Financial and Economic Performance
"Rooted in our values and guided by purpose, we continue to empower people, support communities, and protect the environment for a more sustainable future."
alinma Sustainability Report 2024
About the Report
Showcasing Our Sustainability Progress
alinma is a Saudi joint stock company and one of the leading Shariah-compliant financial institutions in the Kingdom of Saudi Arabia. In this Sustainability Report, we outline our commitments, sustainability strategy and performance against key targets.
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Introduction
View alinma's material topics: Page 35
View alinma's sustainability strategy:
Page 28
In preparing this report, alinma reviewed and refined its existing material topics to ensure continued relevance and alignment with the interests of the Bank and its stakeholders. Based on these priorities and the pillars of alinma's sustainability framework, this report provides a comprehensive overview of our approach to environmental, social and governance (ESG) topics. This is in line with our commitment, stated in alinma's Sustainability Policy, to be transparent in terms of our sustainability progress and issues.
Report Scope and Boundary
The report includes disclosures for alinma's operations, which are solely based in the Kingdom of Saudi Arabia, as the Bank has no operations outside the country. It also excludes disclosures related to the subsidiaries. The reporting period covers the 2024 calendar year from 1 January to 31 December.
International Reporting Standards and Frameworks
This report is compiled in accordance with the Sustainability Reporting Standards developed by the Global Reporting Initiative (GRI), as well as the Sustainability Accounting Standards Board (SASB) standards. In addition, we appropriately considered the United Nations Global Compact (UNGC) Principles, the UN Sustainable Development Goals (UNSDG) and the UN Environment Programme Finance Initiative (UNEP FI) Principles of Responsible Banking (PRB).
Please view our UNPRB report online.
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External Assurance
KPMG Professional Services Company carried out reasonable assurance for the selective quantitative indicators as mentioned in reasonable assurance report.
The reasonable assurance engagement includes the absolute metrics:
Scope 1 emissions
Scope 2 emissions
Water consumption
Percentage of female employment
Number of employee mental health awareness sessions
Net Promoter Score (NPS)
Corporate Social Responsibility (CSR) spend
Number of Saudi Central Bank regulatory violations
Number of Suppliers responded to the ESG assessment
These metrics are noted in the KPMG assurance report and marked by ''*" throughout the report.
Please see the Reasonable Assurance Report on Appendix F.
Forward-Looking Statements
This report may include references to alinma's future outlook, strategic plans and performance targets. These forward-looking statements are based on the information available at the time of publication and are inherently subject to risks and uncertainties. As part of our continuous improvement journey, we are constantly optimizing our data collection and calculation processes, targeting for more accurate and consistent reporting of our sustainability performance. External factors beyond alinma's control could significantly influence the Bank's actual performance. Therefore, readers are advised to exercise caution and avoid undue reliance on these forward-looking statements.
Contact us
We welcome your feedback and questions on the content of this report, or on our sustainability journey.
Email sustainability@alinma.com to share your thoughts.
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alinma Sustainability Report 2024
Chairman's Message
Integrating Sustainability into our Values
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Introduction
Sustainability at alinma is an embedded function. We prioritize it across the Bank, starting with our Board of Directors, and cascading it down to individual employees. We analyze gaps and opportunities, positioning us as a forward-thinking bank that addresses today's needs while securing a better future for all.
AMAD
was launched in 2024 as an implementation mechanism of our sustainability and CSR strategy.
"alinma has continued to strengthen sustainability governance and integration across the Bank, embedding sustainability in the hearts and minds of our people as a core part of our corporate values."
Dr. Abdulmalik Abdullah Al-Hogail
Chairman
alinma became a signatory to the Carbon Disclosure Project and the United Nations' Principles for Responsible Banking.
In response to global awareness of corruption, terrorism financing and other financial malfeasance, alinma published its first ESG Position Statement.
We remain committed to advancing sustainability by aligning our initiatives with Saudi Vision 2030 and the United Nations Sustainable Development Goals (SDG). Through responsible banking practices, strategic investments and innovative financial solutions, we actively support the Kingdom's economic diversification, social development and environmental sustainability objectives.
To ensure careful oversight of sustainability activities at the Bank, the Board's Governance and Sustainability Committee monitors and evaluates performance and provides guidance. In 2024, as part of integrating sustainability into our financing activities, we established a temporary taskforce focused on identification and development of sustainable products and ESG risk. This facilitates the actualization of our Sustainability Strategy, which is backed by Sustainability Champions and Sustainability Focal Points in every department, overseeing the achievement of our goals and driving
results-oriented accountability.
In the year under review, alinma became a signatory to the Carbon Disclosure Project (CDP) and the United Nations' Principles for Responsible Banking (PRB), signaling our alignment with international best practices. As sustainability standards and frameworks evolve, we remain committed to leading our industry in ESG compliance and implementation.
Our stakeholders, both nationally and internationally, have responded positively to alinma's deepening approach to ESG. In 2024, we successfully implemented over 52 sustainability initiatives, leading to a remarkable enhancement in our ESG performance across multiple indexes. On the London Stock Exchange Group (LSEG) sustainability index, our ranking significantly improved from 855th out of 1,126 banks, to 179th place. In the ESG Invest index, alinma climbed from 30th to 3rd among
Saudi-listed companies, securing the top
position among Saudi banks. Additionally, alinma achieved the highest ESG score in the S&P ESG index within the Saudi banking sector. These milestones reflect our ongoing commitment to integrating sustainability into our operations and enhancing ESG performance.
All sustainability initiatives are underpinned by a culture of integrity, honesty and fairness. In response to global awareness of corruption, terrorism financing and other financial malfeasance, alinma's first ESG Position Statement outlines a zero-tolerance stance for unethical conduct. In 2024, we also published alinma's Human Rights Commitment declaration. Additionally, ongoing awareness campaigns and training, focused on the ESG Position Statement and whistleblowing policies, help to ensure each staff member understands and aligns with the Bank's sustainability principles.
In the year ahead, we will reinforce stakeholder engagement and feedback mechanisms, expanding our sustainability-centered culture and strategy beyond the Bank. This will include ESG supplier assessments to reduce risks, ensure compliance and support long-term sustainability. Enabling a culture of sustainability and ethical conduct throughout the Bank will also continue.
As we look to the future, we recognize the vital ongoing roles of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Crown Prince, HRH Mohammed bin Salman bin Abdulaziz Al Saud, who continue to provide world-class leadership in sustainability towards economic prosperity. I would also like to recognize the efforts of my fellow Board members and the executive team for their support and guidance.
On behalf of alinma, I invite you to join us on this journey towards a brighter future and inclusive culture.
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