Determining materiality

At the onset of the execution of the Bank of the Future (BOTF) Strategy in 2021, Al Rajhi Bank collaborated with one of the largest pure play sustainability consultancies in the world to conduct a local and global peer benchmark comparison to identify Environmental, Social and Governance (ESG) topics that are most important to its stakeholders as well as its business.
A concise list of 13 ESG-based material topics were finalised, and continue to be prioritised by the Bank each year, by conducting an annual materiality assessment.

Al Rajhi Bank discovered a number of immediate and long-term opportunities following the assessment, aligning the Bank with global best practices in its overall approach to materiality. This also enabled the Bank to create value and better navigate an evolving ESG landscape.

The materiality topics serve as the basis of the Bank’s ESG Report (pages 146 to 165), which references the Saudi Exchange ESG Disclosure Guidelines, and support the Bank’s ESG strategy, which was developed following the materiality assessment.

Al Rajhi Bank’s 13 ESG-based material topics

Materiality matrix

The 13 materiality topics were mapped onto the Materiality Matrix following Al Rajhi Bank’s annual materiality assessment during the reporting period. They were rated from significant to highly significant in importance, enabling the Bank to closely align its strategic direction with stakeholder expectations.

Management approach

Material topics are relevant to management, particularly where the Bank’s business strategy, resource allocation, and activities are concerned, and are assigned to the relevant heads of business or functional units through its strategic planning process. Resource allocation is based on the degree of materiality of any particular risk or opportunity. In line with the materiality determination process, the Bank continues to formulate and roll out policies and embed goals, targets and KPIs that are reviewed at regular intervals, to ensure its employees achieve all objectives with regard to material matters.