energy efficiency initiatives and performance highlights

Energy efficiency initiatives in 2025

The bank conducted a detailed review of building systems across its headquarters and key facilities to identify opportunities for operational efficiency without compromising occupant comfort or system reliability. Throughout 2025, alrajhi bank advanced a broad programme of operational efficiency initiatives aimed at reducing energy consumption and improving building performance. These measures were implemented across the Head Office, Operations Building, and multiple branches, delivering tangible improvements in resource use. This assessment revealed that HVAC operations and continuous lighting were the primary contributors to elevated energy consumption. In response, the Bank implemented a targeted optimisation strategy focusing on these systems, and delivering measurable improvements in overall resource efficiency.

In line with GRI 302 (Energy), alrajhi bank tracks energy consumption across fuel, grid electricity, and renewable sources to monitor efficiency and support informed decision-making. In 2025, total energy consumption amounted to 868,871 GJ, of which 567 GJ was attributed to petrol and diesel use, 844,169 GJ to non-renewable electricity purchased from the grid, and 24,136 GJ to renewable energy sources. Based on workforce levels, the Bank’s energy intensity stood at 34.6 GJ per employee, providing a consistent baseline against which future energy-efficiency improvements and reductions in operational energy use can be measured.

* The energy consumption data for the year ending 31 December 2024, have been restated due to an improvement in data availability and methodology. The CY24 energy intensity number has been revised accordingly.

# For calculating energy consumption from petrol and diesel, Net Calorific Value (NCV) of 45 GJ/ton and 43 GJ/ton have been considered, respectively.

Advancing GCC climate ambitions in line with national visions

The GCC continues to accelerate its transition toward diversified, low-carbon economies. The United Arab Emirates is advancing its Energy Strategy 2050, with planned investments of AED 150–200 Bn. in clean energy by 2030. Similarly, Saudi Arabia has set ambitious targets under Vision 2030, aiming for net-zero emissions by 2060, and for half of its power mix to come from renewable sources by 2030. These bold national commitments are driving a surge in green investment throughout the region. Qatar has also pledged to reduce greenhouse gas emissions by 25% by 2030 relative to a business-as-usual scenario.

Recognising how crucial financial institutions are to the low-carbon transition, alrajhi bank has continued to integrate ESG risk considerations into its credit approval processes. The bank works with external consultants to assess the environmental and social impacts of eligible projects and, while the bank is not a formal signatory, it aligns its practices with international standards such as the Equator Principles and Green Loan Principles.

Through this approach, alrajhi bank has reinforced its position as a leading financier of sustainable and energy-transition projects in Saudi Arabia. Its portfolio supports the Kingdom’s future energy mix by financing high-impact clean-energy developments, including green hydrogen and green ammonia facilities, designed to reduce greenhouse gas emissions and contribute to national climate targets under Vision 2030 and the Saudi Green Initiative. alrajhi bank has financed multiple large-scale renewable energy projects across Saudi Arabia, including participation in the Red Sea Utilities project, which supports the Red Sea Development through renewable-powered utilities infrastructure such as a 340 MW photovoltaic solar power facility with co-located battery energy storage, a biodiesel-fuelled power plant, desalination and wastewater treatment facilities, and district cooling systems, all designed to operate on renewable energy and reduce the environmental footprint of large-scale tourism development.