Improved ESG ratings for SAB a step in the right direction

Improved ESG ratings for SAB a step in the right direction
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Updated 30 January 2024
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Improved ESG ratings for SAB a step in the right direction

Improved ESG ratings for SAB a step in the right direction

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.

 


Making Saudi Arabia’s leaders of the future: MBSC launches undergraduate programs

Zeger Degraeve, dean of MBSC
Zeger Degraeve, dean of MBSC
Updated 16 December 2024
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Making Saudi Arabia’s leaders of the future: MBSC launches undergraduate programs

Zeger Degraeve, dean of MBSC

RIYADH: Prince Mohammed Bin Salman College of Business and Entrepreneurship is set to break new ground by introducing its first undergraduate programs within the next one to two years.

This step will allow Saudi students to access a world-class business education locally, eliminating the need to travel abroad for elite academic opportunities.

“For a long time, Saudis who wanted top-tier business training had no choice but to go to the US or Europe,” said Zeger Degraeve, dean of MBSC. “With this program, we’re ensuring they can stay in the Kingdom while receiving an education on par with the best institutions in the world.”

This initiative coincides with a pivotal shift in the global business landscape, as the Middle East cements itself as a key driver of growth and innovation.

Degraeve highlighted the region’s rising significance, saying: “The future of business is here. Europe is stagnating, the US remains dynamic, but the Middle East is where the greatest opportunities lie. This region needs a business school that not only meets global standards but is also deeply rooted in its context to develop leaders who will define its future.”

The undergraduate programs will adopt MBSC’s distinctive approach, blending rigorous academics with practical leadership development. “Our focus is on creating leaders who think critically, act decisively, and create tangible value,” Degraeve said. “It’s about combining knowledge with the interpersonal and decision-making skills required to succeed in complex, collaborative environments.”

Currently, MBSC offers a range of graduate programs, including an Executive MBA and master’s degrees in finance and management. These programs have already delivered significant outcomes for graduates, with many doubling their salaries within three years of completing their studies. Additionally, MBSC has cultivated a vibrant culture of entrepreneurship, with several startups launched by its alumni making their mark across the Kingdom.

Degraeve said that this expansion is aligned with Saudi Vision 2030, a blueprint for transforming the Kingdom into a hub for education, innovation, and leadership.

“With our undergraduate programs, we’re not just giving students an alternative to studying abroad,” he said. “We’re building the foundation for a generation of leaders who will shape the Middle East as the next frontier for global business.”

As MBSC broadens its offerings, it aims to solidify Saudi Arabia’s standing in the global academic and economic landscape. “This is about more than education,” Degraeve said. “It’s about preparing the Kingdom’s future leaders to drive change from within and for the region.”


UN conference in Riyadh charts path for global action on land and drought management

UN conference in Riyadh charts path for global action on land and drought management
Updated 16 December 2024
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UN conference in Riyadh charts path for global action on land and drought management

UN conference in Riyadh charts path for global action on land and drought management

After two weeks of intense negotiations on how to tackle land degradation, desertification and drought, the largest and most inclusive UN land conference wrapped up in Riyadh.

The nearly 200 countries convening at the 16th Conference of the Parties to the UN Convention to Combat Desertification committed to prioritizing land restoration and drought resilience in national policies and international cooperation as an essential strategy to address the increasing challenges posed by desertification, land degradation and drought and their devastating global impacts on our communities, economies, climate, and ecosystems toward achieving the 2030 Agenda for Sustainable Development. Nations also made significant progress in the negotiations of a future global drought regime, which they intend to complete at COP17 in Mongolia in 2026.

More than $12 billion were pledged to tackle desertification, land degradation and drought around the world, especially in the most vulnerable countries.

Among the main agreements reached at COP16 were the creation of a Caucus for Indigenous Peoples and a Caucus for Local Communities to ensure that their unique perspectives and challenges are adequately represented, a continuation of the convention’s Science-Policy Interface to strengthen science-based decision-making, and the mobilization of private sector engagement under the Business4Land initiative. 

COP16 was the largest and most inclusive UNCCD COP to date: it included not only a blue zone but also a green zone. It attracted more than 20,000 participants, around 3,500 of them from civil society, and featured more than 600 events as part of the first Action Agenda to involve non-state actors in the work of the convention, the Riyadh Action Agenda. 

Parties adopted the Riyadh Political Declaration, showcasing a commitment to enhanced efforts to conserve land and reduce its degradation, build capacities to combat drought, and contribute to the well-being of communities around the world.

In a statement, UN Deputy Secretary-General Amina J. Mohammed said: “Our work does not end with the closing of COP16. We must continue to tackle the climate crisis — it is a call to action for all of us to embrace inclusivity, innovation, and resilience. Youth and indigenous peoples must be at the heart of these conversations. Their wisdom, their voices, and their creativity are indispensable as we craft a sustainable future with renewed hope for generations to come.”

In his closing remarks, COP16 President and Saudi Minister of Environment, Water and Agriculture Abdulrahman Al-Fadley said the meeting marked a turning point in raising international awareness of the pressing need to accelerate land restoration and drought resilience. 

“This crucial UN conference has succeeded in increasing broad awareness, raising global ambition, and prioritizing action. As the COP16 Presidency, we will continue to enhance our collaboration with a range of key stakeholders, from the private sector to rural farmers and indigenous peoples, all to deliver lasting change. UNCCD COP16 will be remembered as a turning point for our relation with land.”

Addressing COP16 closing plenary, Under-Secretary-General and UNCCD Executive Secretary Ibrahim Thiaw said: “As we have discussed and witnessed, the solutions are within our grasp. The actions we took today will shape not only the future of our planet but also the lives, livelihoods, and opportunities of those who depend on it.” 

He further emphasized a significant shift in the global approach to land and drought issues, highlighting the interconnected challenges with broader global issues such as climate change, biodiversity loss, food security, migration, and global stability.

Financial needs and pledges

New pledges for large-scale land restoration and drought preparedness were announced, such as the Riyadh Global Drought Resilience Partnership, which attracted $12.15 billion to support 80 of the world’s most vulnerable countries in building their resilience to drought, including a $10 billion pledge from the Arab Coordination Group.

The Great Green Wall, an African-led initiative to restore 100 million hectares of degraded land, also mobilized 11 million euros ($11.5 million) from the Italian government for landscape restoration in the Sahel and 3.6 million euros from the Austrian government to strengthen the coordination and implementation of the initiative across 22 African countries. The drive is part of the GGW Accelerator, a UNCCD-supported effort to achieve a greener, more prosperous Sahel. 

Additionally, the US and several partner countries and organizations announced total investments of nearly $70 million to advance the Vision for Adapted Crops and Soils. The initiative looks to build resilient food systems grounded in diverse, nutritious and climate-adapted crops grown in healthy soils.

The first-ever UNCCD COP in the Middle East and North Africa provided an opportunity to shine a light on the specific challenges facing the region and bring to the fore innovative solutions to land degradation and drought. 

Saudi Arabia announced five new projects to ramp up climate and environmental efforts as part of the Saudi Green Initiative. The COP16 Presidency also announced the launch of an international sand and dust storm monitoring initiative - the International Drought Resilience Observatory - the first global AI-driven platform to help countries assess and enhance their capacity to cope with harsher droughts. This innovative tool is an initiative of the International Drought Resilience Alliance, of which Saudi Arabia recently became a member.

Greater voice for indigenous peoples and other non-state actors

In a landmark decision, parties requested the creation of a Caucus for Indigenous Peoples and a Caucus for Local Communities. The objective is to ensure that their unique perspectives and priorities are adequately represented in the work of the convention. The declaration underscored the role of indigenous peoples in sustainable resource management and called for greater involvement in global land and drought governance. 

COP16 also saw the biggest youth participation to date, giving youth a more prominent role in land and drought negotiations and action, and providing technical and financial support for youth-led initiatives. 

Recognizing the private sector’s vital role, currently contributing just 6 percent to land restoration and drought resilience, the parties tasked the UNCCD Secretariat and Global Mechanism with mobilizing private sector engagement under the Business4Land initiative. This decision highlights the importance of private sector advocacy, ESG strategies, and sustainable finance in tackling challenges. It comes after the Business4Land Forum, which saw over 400 private sector participants — the largest ever at a UNCCD COP — from industries like finance, fashion, agri-food, and pharmaceuticals.

From Riyadh to Mongolia

For the first time, the UNCCD parties made a decision encouraging the sustainable management, restoration and conservation of rangelands — vast ecosystems used for grazing — ahead of COP17, to be hosted by Mongolia in 2026 during the International Year of Rangelands and Pastoralists. These ecosystems cover half of the Earth’s terrestrial surface and are the dominant land use in the world’s drylands, but have long been overlooked and are disappearing faster than rainforests. 

The degradation of rangelands threatens one-sixth of global food supplies, potentially depleting one-third of the Earth’s carbon reserves. Some 2 billion people who live in pastoral areas are among the world’s most vulnerable in the face of desertification, land degradation and drought. 


Pioneering graphene-enriched carbon fiber production in Saudi Arabia: OCH and GIM drive Vision 2030 forward

Pioneering graphene-enriched carbon fiber production in Saudi Arabia: OCH and GIM drive Vision 2030 forward
Updated 16 December 2024
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Pioneering graphene-enriched carbon fiber production in Saudi Arabia: OCH and GIM drive Vision 2030 forward

Pioneering graphene-enriched carbon fiber production in Saudi Arabia: OCH and GIM drive Vision 2030 forward
In a historic development for Saudi Arabia’s advanced materials landscape, Organized Chaos Holding, in partnership with Graphene Innovations Manchester, has officially launched GIM GrapheneFibre (Graphene Fiber Company Ltd) in the Kingdom. This new venture marks the world’s first commercial production of graphene-enriched carbon fiber, putting the Kingdom at the forefront of innovation, sustainability, and global industry leadership — crucial pillars of Vision 2030. Graphene-enriched carbon fiber is a game-changer: it combines extraordinary strength, lightness, and conductivity to enable breakthroughs in aerospace, automotive, renewable energy, space, defense, and construction. From local raw material sourcing to an emphasis on cutting-edge technologies, GIM GrapheneFibre stands as a beacon of Saudi excellence, accelerating the Kingdom’s global influence in advanced manufacturing. “Our mission is to revolutionize the advanced materials sector universally by bringing graphene-enriched carbon fiber to commercial scale,” said Dr. Vivek Koncherry, chairman and CEO of GIM GrapheneFibre. “By integrating graphene’s remarkable properties into carbon fiber, we are pushing the boundaries of what’s possible. We are delighted that this innovation was developed in close partnership with OCH, enhancing the Kingdom’s role as a global technology leader.” Ahead of his visit to Saudi Arabia, the UK Prime Minister Kier Starmer’s office heralded the deal between GIM and OCH as a prime initiative of the Saudi-UK partnership. “We are committed to leveraging Saudi Arabia’s abundant resources and homegrown talent,” said Abdulrahman Assaker, chairman of OCH. “This investment supports Vision 2030 by building local expertise, unlocking more sustainable applications for oil resources and creating more opportunities in high-tech industries, firmly positioning the Kingdom as a leader in advanced materials. This project will contribute by adding over 4,500 new skilled jobs to Saudi Arabia’s economy by 2030, generating revenues exceeding SR6 billion.” “Our strong partnership with GIM and shared vision ensure that we bring the best of international know-how to Saudi Arabia,” added Abdulghani Alhindi, CEO of OCH. “By prioritizing and harnessing innovation, we are developing an ecosystem that nurtures entrepreneurs, empowers the workforce, and strengthens the economic fabric of our nation. This project produces raw materials that will attract state-of-the-art industries to localize advanced manufacturing in Saudi Arabia.” The launch of GIM GrapheneFibre’s commercial production is underpinned by a forward-looking operational strategy that emphasizes speed, adaptability, and intelligent resource allocation. “We are deploying the ‘CHON Concept’ — a framework integrating artificial intelligence, open innovation, rapid prototyping and investment, and lean startup principles — to accelerate product development and continuously improve performance,” said Abdul Rahman Khalidi, COO of OCH. “This holistic approach ensures that our operations remain agile, efficient, and resilient.” “Our mission at OCH is to transform innovative, unconventional ideas in Saudi Arabia into viable business opportunities,” said Areej Alturki, chief strategy officer of OCH. “By investing in advanced tools, encouraging talent, and engaging with diverse partners, we are working to shape a future-ready environment that supports sustained growth and perpetual advancement of science and technology. We invite industry leaders and innovators to collaborate with us on this exciting journey at och.sa/collab” Backed by OCH’s robust investment framework and GIM’s technological acumen, the impact will echo far beyond factory floors — reinforcing Saudi Arabia’s global standing, empowering local communities, and unlocking the transformative potential of advanced materials. This milestone symbolizes not only a new era of industrial capability, but also a brighter, more dynamic future in line with the Kingdom’s enduring vision.

Almarai offers health insurance to retired employees

Almarai offers health insurance to retired employees
Updated 15 December 2024
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Almarai offers health insurance to retired employees

Almarai offers health insurance to retired employees

Reaffirming its commitment to ensuring sustainable healthcare for its employees, Almarai, a leading food and beverage manufacturer and distributor in the Middle East, has announced a cooperation agreement with the General Organization for Social Insurance to launch the “Health Insurance Extension” service. This initiative will enable Almarai employees to continue enjoying health insurance benefits even after retirement.

Ayman Algeer, chief human resources officer at Almarai, said that the agreement reflects Almarai’s commitment to fostering partnerships in line with its vision to enhance employee services through innovative and sustainable solutions at every stage of their professional and personal lives. He highlighted that Almarai is the first company in the Kingdom to launch such an initiative, which delivers significant long-term benefits for its employees and their families.

“The health insurance extension service allows Almarai employees to benefit from sustainable health coverage at affordable costs during the post-retirement phase. It ensures that employees continue to be covered within the Almarai insurance policy at an appropriate cost, along with the convenience of flexible payment of the insurance policy amount in installments spread over 12 months,” Algeer said.

“This eases the financial burden of treatment and medical care costs for employees after retirement. The service will be delivered taking into consideration the interest of all parties, as it requires Almarai to confirm the continued inclusion of the subscriber (retiree) in its health insurance policy and ensure that social insurance deducts the value of the policy on a monthly basis from the retirement benefits,” he added.

The partnership with GOSI reflects Almarai’s ongoing commitment to supporting social responsibility programs and initiatives across Saudi Arabia and the wider region. Almarai views investment in its employees as a vital aspect of community investment, which serves as a cornerstone of its operations. This collaboration exemplifies the company’s dedication to its societal role in creating a positive impact within the communities it serves. By partnering with national institutions and various organizations both within and beyond the Kingdom, Almarai contributes to enhancing the quality of life for its employees.


SAB and Goumbook launch 2nd MENAT Regenerative Agriculture Venture Program

SAB and Goumbook launch 2nd MENAT Regenerative Agriculture Venture Program
Updated 15 December 2024
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SAB and Goumbook launch 2nd MENAT Regenerative Agriculture Venture Program

SAB and Goumbook launch 2nd MENAT Regenerative Agriculture Venture Program

Saudi Awwal Bank, one of the leading banks in the Kingdom, and Goumbook, a not-for-profit social enterprise pioneering sustainability-related initiatives in the MENA and GCC regions, have announced the launch of the second edition of the MENAT Regenerative Agriculture Venture Program for the 2024/2025 cohort. 

Building on the success of the inaugural edition, the program reaffirms SAB’s commitment to advancing sustainable innovation across the MENAT. It will empower and upskill researchers, students, and innovators with regenerative and entrepreneurial expertise to tackle critical challenges in food systems, biodiversity loss, climate change, and water management across the region. 

The program seeks to bridge the gap between academia, research, and the business sector by transforming research, science, and nature-based solutions and sustainable impact solutions into accessible, scalable, and sustainable long-term outcomes tailored to the needs of small to medium-sized farm holders. 

Innovators, researchers, and students focusing on regenerative agriculture are encouraged to apply on the program website by Jan. 6, 2025. Applicants will be able to present their ideas and receive support to develop their regenerative solutions addressing pressing issues such as food security, water management, and ecosystem restoration.

Faten Abalkhail, chief governance and corporate affairs officer at SAB, said: “Our support for RAVP is deeply rooted in the belief that regenerative agriculture can lead to substantial environmental and economic benefits. By fostering a culture of innovation and resilience, we aim to support impactful solutions for Saudi Arabia and the broader region’s unique challenges in soil health, water scarcity, and sustainable food production. Our commitment reflects a profound investment in the present and a sustainable, thriving legacy for our communities and the environment that supports us all.”

Samantha Kayruz, Goumbook’s strategy and sustainability impact director, said: “The continued support for the MENAT Regenerative Agriculture Venture Program reflects our commitment to empowering researchers and innovators to deliver solutions for the region’s unique challenges. Through this initiative, we aim to build on last year’s success and provide a platform for impactful projects addressing food, water, and climate issues while improving livelihoods across the region.”

Aligned with SAB’s environmental, social, and governance vision, the bank recognizes that ESG considerations are integral to the continued prosperity of both the Kingdom and the global economy. SAB is dedicated to mobilizing finance to enable an inclusive, diverse, and equitable transition toward a more sustainable future by embedding ESG principles into its operations. 

Regenerative agriculture, through its fundamental principles and adoption of resilient crop varieties that require less water, fewer pesticides, and reduced chemical inputs, is an approach that translates as a vital component in addressing the region-specific agriculture and climate challenges of the MENAT region. Regenerative agriculture also holds the potential to sequester carbon dioxide, making it a climate change mitigation and adaptation solution.