Improved ESG ratings for SAB a step in the right direction

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Saudi Awwal Bank has announced that it has received significantly improved environmental, social and governance ratings from three leading sustainability rating providers: MSCI ESG Research LLC, Sustainalytics and ESG Invest. These improvements complement the bank’s strategy for ESG and support its ambition to be a leader in responsible banking within Saudi Arabia.

MSCI ESG awarded SAB a BBB rating. This is a reflection of the bank’s effective integration of ESG factors in its business strategy.

Sustainalytics assigned SAB with a Medium ESG Risk rating, giving a score of 27.7. This is an indication of the bank’s proactive approach to managing ESG risks and opportunities. They also improved SAB’s Low Carbon Transition Alignment to 1.9 degrees celsius.

ESG Invest awarded SAB a strong ESG Investment Rating, acknowledging its commitment to responsible and sustainable investing. This rating provides valuable insights for investors seeking to align their investments with ESG principles. 

The ratings are a testament to SAB’s internal policies and practices while adhering to a high degree of transparency in its public disclosures. The bank has made a consistent effort to integrate ESG considerations into its core business strategy with improved practices in HR, governance, risk management and disclosures. 

Tony Cripps, managing director and CEO at SAB, said: “We are pleased to receive these ratings from MSCI, Sustainalytics and ESG Invest, recognizing our commitment to sustainable practices, ESG risk mitigation and incorporation of ESG factors in our business decisions. This achievement reflects our dedication to enhancing practices in HR, governance, risk management and disclosures. While we have made significant progress, we remain steadfast in our efforts to further strengthen our position as a responsible leader in the banking industry.”

He added: “This achievement reflects our long-term standing and committed dedication toward our customers, stakeholders, and the environment.”

The ratings are a widely recognized measure of a company’s resilience to long-term industry specific material ESG risks.

ESG is a core component of the bank’s strategy, as SAB continues to focus on high-impact material matters for the bank, while supporting the development of ESG matters across the industry.