environmental initiatives

Reducing the bank’s environmental footprint

We remained focused on reducing the bank’s operational carbon footprint during the year in review. Tuder – the real estate, property, and facility management arm of the alrajhi group continued to promote energy and resource conservation across group properties during the reporting period.

In 2024, we further improved energy efficiency by continuing to implement multiple initiatives; these include air conditioning and temperature control upgrades, switching to power-down equipment, window film installation and the adoption of LED lighting, all contributing towards increased energy savings.

alrajhi bank tower – the bank’s head office and operations building (completed in 2018) – continued to become more power efficient by leveraging its Business Management System (BMS), monitoring and optimising energy consumption, lighting distribution, and fresh air distribution, while maintaining a secure and efficient work environment for its occupants. Furthermore, 64 alrajhi properties were equipped with solar power systems contribute towards greater cost savings. (Refer Tuder Real Estate Company on page 73 for more details)

These strategic measures have resulted in an overall decrease of the bank’s operational carbon footprint, with an estimated savings of approximately SAR 2.5 Mn. from the total annual energy bill each year, resulting in improved long-term performance.

Natural resource management

One of alrajhi bank’s key objectives is to optimise the utilisation of natural resources across all group operations. To this end, the bank has implemented multiple initiatives to conserve natural resources while managing the environmental impact of its operations.

Land use and biodiversity

In partnership with its property management arm, Tuder, alrajhi bank continued to mitigate adverse impacts of its operations on biodiversity by taking necessary measures in the use of land for new constructions or revamped bank branches.

Optimising water consumption

Given that water is a very scarce resource within the GCC, the bank has implemented several measures to optimise its water consumption. This includes the installations of ultrasonic water flow metres as part of the BMS to monitor and control water consumption. A Reverse Osmosis plant that was installed at alrajhi tower was further upgraded to utilise treated wastewater for irrigation purposes. Due to the success of these measures, the bank’s water consumption stood at 443.64 megalitres in 2024.

Promoting the use of digital

Being one of the largest banks in the region, alrajhi bank conducts more than 200,000 transactions in a day and thus runs a largely paperless operation in its efforts towards creating a digital future. Quite notably, 95% of all new current accounts opened during the year in review were digitally created, while approximately 60% of personal financing was also conducted through digital channels, evidencing the bank’s successful shift towards digital banking.

Abatement of pollutants and waste

alrajhi bank ensures it adheres to all applicable laws and regulations regarding waste management in the respective countries it operates in. This includes the reuse, recycling, storage and treatment of waste collected.
The branch network across KSA has engaged a third-party vendor, registered with the Riyadh Municipality, to manage its waste disposal and recycling operations in compliance with local regulatory standards. This partnership ensures the bank adheres to sustainable and efficient waste management practices. In addition to waste disposal, the bank also ensures that it regularly donates electronic devices it no longer uses such as laptops, printers and full PC setups. Plans are underway to activate an annual donation of electronic items.

Towards a sustainable future in the GCC Region

Countries in the GCC region continue to transition towards diversification of their economy by boosting non-oil sectors; the United Arab Emirates (UAE) initiated the UAE Energy Strategy 2050 and pledged to invest AED 150-200 billion by 2030; the Kingdom of Saudi Arabia aims to achieve net zero greenhouse gas emissions by 2060 and targets 50% renewable energy by 2030 under its Vision 2030. As a result, green investments are gaining momentum in the GCC region.

In 2024, Saudi Arabia’s NEOM appointed banks including the securities unit of alrajhi bank to advise on the sale of the first riyal-denominated bond sale of USD 1.5 Tn. worth of funding for the futuristic city.

alrajhi bank has ventured into green lending by raising a USD 1.92 Bn. sustainability-linked Islamic syndicated loan, considered to be the largest financing from a Middle Eastern bank in 2024. The bank recognises the crucial role that financial institutions play in transitioning towards a clean and low carbon economy in order to tackle climate change. With this in mind, the bank has identified and continued to integrate ESG risk into its overall credit approval process in order to finance projects in 2024.

The bank regularly engages with external consultants to assess projects from an environmental and social impact perspective. Although the bank is not a signatory, it strives to align with the Equator Principles and Green Loan Principles.

alrajhi bank’s commitment to sustainable finance has helped strengthen its reputation for green financing deals; particularly focussing on meeting the future energy needs of the Kingdom. The bank’s projects focus on achieving an optimal energy mix with the ultimate goal of reducing greenhouse gas emissions. These include clean energy projects such as green ammonia and hydrogen production assets currently being developed in the region. The bank views sustainable finance deals as a means to contribute to the Saudi Vision 2030 and the Saudi Green Initiative.

The bank identified and financed a number of large-scale, high-impact green energy projects across the Kingdom in the recent years, with the total renewable energy capacity of these projects amounting to 2,140 MW.