Alinma welcomes the growing focus on Environmental, Social, and Governance (ESG) factors in determining the valuation of banks. During the year 2022, the Bank improved its ESG ratings by making continued progress in its ESG agenda which is based on three ESG pillars, each driven by 4 key initiatives respectively.
The progress of the Bank’s ESG agenda is given below for the year under review:
| Key Initiatives |
Progress | |
 |
(1) Deployment of digital channels and digital signatures |
Established 108 new digital zones leading to reduced paper consumption |
(2) Installation of energy-efficient lighting in Alinma Bank branches |
All branches were installed with energy-efficient lighting with plans to install it in the Head Office | |
(3) Installation of air-conditioning timers |
Installed in 20 branches and achieved a 20% reduction in energy usage | |
(4) Piloting renewable (solar) energy sources |
Installed in 15 branches | |
(5) Greening of branches |
Contributed to the greening of its branches by adding hundreds of plants, with total number of 262 plants (Ficus Relegiosa, Acasia, Techoma) in 22 branches |
 |
(1) Employee training and employee townhalls |
Delivered over 88,870 hours of training and conducted 4 employee townhalls |
(2) Allocating 1% of annual profits for CSR activities |
Contributed 1% of the Bank’s profits for CSR activities | |
(3) Women empowerment and increasing number of women hires in the Bank |
First bank in the Kingdom of Saudi Arabia (KSA) to sign women empowerment principles (WEPS) and increase women hires by 36% in Q4 2022 | |
(4) Community focus with a focus on growing SME financing |
SME financing from Kafalah increased by over 46% YoY and PoS programs by over 108% YoY |
 |
(1) Shariah-compliance through regular internal audits and committee oversight |
(2) SAMA and CMA compliance in regulatory and financial disclosures and adoption of internal controls |
|
(3) Institutionalization of the investor relations function with enhanced transparency and investor communication |
|
(4) Monitoring cybersecurity and initiatives covering data governance and protection |
The bank aims, through these initiatives and achievements, to improve its position in the ratings of environmental, social, and corporate governance practices. The following data shows the bank's position at the end of the year 2022:
Governance and Sustainability Committee
In Q2 2022, the Board of Directors of Alinma formed a Governance and Sustainability Committee to oversee the ESG framework and
progress of the Bank. The four members of the Committee are responsible to provide oversight on all ESG matters including strategy, framework, risks & opportunities, stakeholder engagement, and programs and sustainability through active engagement with the management team. The management team is responsible for the implementation of the overall ESG strategy and integration into the Bank’s 2025 long-term strategy, and Alinma’s investor relations team is engaged in the ESG and sustainability framework, initiatives, and external reporting functions.
The members of the Governance and Sustainability Committee:
Mr. Saad Abdulaziz Alkroud
Chairman
Dr. Saud Mohammed Al-Nimir
Member
Mr. Ahmed Abdullah Alsheikh
Member
Ms. Dina Al Nahdy
Member
*Appointed in January 2023
To learn more about Alinma Bank's growing focus on environmental, social and governance efforts, download our latest Sustainability Report here.