Materiality

In order to prioritise the issues pertaining to the Bank we address issues that are materially important to our stakeholder; those that substantively address the ability of the Bank to create value in the short, medium and long term. In determining materiality both the magnitude of the impact of the issue as well as the probability of occurrence are taken into account. Events that may have a high impact if they occur but have a very small probability of occurrence are not considered material. The basis on which a materiality analysis is carried out is the Bank’s stakeholder engagement process, which has been detailed elsewhere in this Report.

The engagement process has been covered in detail on pages 50 to 54 of this Report.

Materiality can be viewed from two different perspectives; that of the Bank and its stakeholders. A mapping was carried out for identified issues from the above two perspectives. The material issues identified are depicted in a two dimensional materiality matrix. Only issues that have at least a moderate importance to both the Bank and the stakeholders are included. The issues which have a high degree of importance to both the Bank and the stakeholders are assigned a high level of materiality; these issues are important for both organisational success and stakeholder satisfaction. The issues which it would be advisable for the Organisation to manage well are assigned a medium level of materiality. The issues which currently have a low level of strategic importance for the Organisation and the stakeholders, and so will not be subjects for immediate action are given a low level of materiality. Our Management approach towards all material issues is contained in this report under the appropriate sections.

Material issues are not static but evolve and change with time. We review the materiality analysis periodically to keep pace with the changes. The table and matrix below illustrate the issues that are material to us and the importance placed on each issue:

No.	SAIB material issues	GRI Standards: Topic-specific Standards		Most concerned stakeholders

	Customer Trust and Protection	418	Customer Privacy	Customers, Regulators
	Quality of Services and Customer Satisfaction	102-43	General Disclosures: Stakeholder Engagement	Customers, Regulators
	Compliance with Regulations	307	Environmental Compliance	Shareholders and Investors, Regulators
		419	Socio-economic Compliance
	Accurate and Transparent Disclosure of Performance	102-45 through
		102-56	General Disclosures: Reporting Practice	Shareholders and Investors, Regulators
	Data Security	418	Customer Privacy	Customers, Regulators
	Financial Performance	201	Economic Performance	Shareholders and Investors, Customers, Regulators, Employees
	Governance and Accountability	102-18 through 102-39	General Disclosures: Governance	Employees, Shareholders and Investors, Regulators, Community
	Financial System Stability	203	Economic Performance	Customers, Employees, Regulators
	Business Ethics and Prevention of Financial Crime	205	Anti-Corruption	Shareholders and Investors, Regulators, Community, Employees, Suppliers
	Human and Labour Rights	408	Child Labour	Regulators, Employees, Community
		409	Forced or Compulsory Labour
	Workforce Training and Education	404	Training and Education	Employees, Regulators
	Community Investment and Engagement	413	Local Communities	Community, Customers, Employees, Regulators
	Risk Management	103	Management Approach: all material topics	Shareholders and Investors, Regulators
	Saudization	202	Market Presence	Employees, Shareholders and Investors, Regulators
	ESG Risks in Lending and Investment	201	Economic Performance	Customers, Shareholders and Investors, Community
	Equal Opportunity and Anti-Discrimination	405	Diversity and Equal Opportunity	Employees, Community
	Employee Satisfaction and Engagement	401	Employment	Employees
		403	Occupational Health and Safety
	Sustainable Procurement	204	Procurement Practices	Suppliers, Community
	Infrastructure and Accessibility	203	Indirect Economic Impacts	Customers, Regulators, Employees
	Adherence to Islamic Banking Principles	–	–	Customers, Community, Regulators
	Reduction of Environmental Impact of Operations	302	Energy	Community, Employees
		303	Water
		305	Emissions
		306	Effluents and Waste
	Operational Efficiency	–	–	Customers, Regulators
	Innovation and Product Development	–	–	Customers
	Engaging with Customers	–	–	Customers
	Strengthening Relationships with Business Partners	–	–	Suppliers
	Employee Retention	401	Employment	Employees
	Soft Skills Development of Employees	404	Training and Education	Employees