Bank Albilad - Annual report

sustainability

Sustainability Strategy and Framework

Bank Albilad is currently in the process of further enhancing and formalizing its approach towards incorporating and promoting ESG.

Part of this process has included developing an ESG Policy and ESG Strategy. Our ESG policy, which will be publicly disclosed on Bank Albilad’s website in the near future, will define the Bank’s aspirations and commitments towards incorporating sustainable principles into our business activities.

Our ESG Strategy will seek to complement our new and sustainability-based 2022-2026 Strategy and will identify priority ESG actions for the Bank to focus on in the short-term.

Sustainability Governance

Operating responsibly is a part of the fabric of who we are, the prosperity of our stakeholders and our reputation. We are committed to ensuring that we operate responsibly and ethically.

We endeavour to contribute to sustainable development through both a qualitative and quantitative approach for both financial and non-financial management.

We also realize the importance of our role in entrenching the concept of sustainability within our overall strategy and all our activities.

Sustainability Framework

In order to define what sustainabilitymeans for Bank Albilad,. as well as guide and focus our ESG efforts,

we developed an ESG Framework (‘Framework’). The Framework has thematically grouped the material ESG issues we previously identified under one of six key sustainability pillars.

We also realize the importance

of our role in entrenching the

concept of sustainability

within our overall strategy

and all our activities.

Bank Al Bilad,The Trustworthy Partner to a Sustainable Future.

Materiality Assessments

The results of the materiality assessment are presented below, where we have identified and prioritized 19 material ESG issues.

Please note, for issues not categorized as ‘Most Important’, this does not mean they are unimportant or are not being addressed by Bank Albilad.

Business ethics and compliance

Customer experience

Risk management and business continuity

Digitization

Customer privacy and cybersecurity

Talent development,attraction and retention

Corporate governance

Financial performance

Anti-money laundering and corruption

Employee engagement and wellbeing

Community investment and impact

Sustainable financial products

Climate change management, risks and opportunities

Financial inclusion and education

Diversity and equality

Human rights

Managing environmental impacts

Supply chain management

Localization

This materiality assessment has been of great benefi t in enabling us to identify our strengths and our areas for development.

Going forward, the analysis will form the basis for our work related to our ESG policies, strategies, goals, targets and actions relating to ESG and sustainability management.

We will also continue to review our materiality analysis to ensure it remains up to date in a changing landscape.

Sustainable Development Goals

The Sustainable Development Goals (SDGs) are a set of 17 target-based goals designed to address the most urgent challenges across the world today.

Governments, businesses, and other organizations globally have pledged to support them to help bring about meaningful change, protect the planet, and achieve a more sustainable world.

As a leading financial institution in the region, Bank Albilad has an ethical, legal, and religious commitment to advance social responsibility within our community. Supporting the SDGs is an important way in which we can achieve this and throughout this report, we display the Goals we contribute most to.

Framework Pollar		Material Issues
Sustainble Banking Practices	A Thiving Economy Ambitious Nation	Sustainable Financial Products Financial inclusion and education Financial performance
Innovating for a Dynamic Business Structure	A Vibrant Society A Thriving Economy Ambitious Nation	Customer experience Digitization Customer privacy and cybersecurity
Empowering Our Employees	A Vibrant Society A Thriving Economy Ambitious Nation	Talent development, attraction and retention Employee engagement and wellbeing Diversity and equality Localization
Acting on the Environmental Footprint	A Vibrant Society A Thriving Economy Ambitious Nation	Climate change management, risks and opportunities Managing environmental impacts
Responsibility in the Supply Chain and Our Contribution to Communities	A Vibrant Society A Thriving Economy Ambitious Nation	Community Investment and Impact Human rights Supply chain management
Transparent, Effective,Responsible Governance	Ambitious Nation	Business ethics and compliance Corporate governance Risk management and business continuity Anti-money laundering and corruption