materiality

alrajhi bank has conducted a comprehensive materiality assessment to identify the key ESG risks and opportunities most relevant to its stakeholders, operations, and long-term strategic priorities. Materiality topics are reviewed annually to ensure continued alignment with evolving stakeholder expectations, regulatory developments, and global sustainability trends. At present, the bank has identified 13 ESG-related material topics, which serve as the foundation of its ESG Framework and are relevant to its ‘harmonize the group’ strategy. The material issues most significant to external stakeholders are presented in the table below:

alrajhi bank’s materiality matrix

The materiality matrix showcases how alrajhi bank has prioritised its material topics, which form the basis of the bank’s Sustainability Strategy as well as its CSR initiatives. The outcomes for external stakeholders are reflected through the bank’s Value Creation Model, as well as the UN SDG Mapping Table (page 129), which capture performance, key initiatives, and impacts under each material topic. By embedding materiality into its governance, strategy, and operations, alrajhi bank continues to enhance stakeholder value, strengthen its sustainability performance, and align with the Kingdom’s Vision 2030 objectives. Moreover, these material topics form the foundation of the bank’s ESG disclosures in line with the Saudi Exchange ESG Disclosure Guidelines, reinforcing transparency and strategic alignment. Through this ongoing process, alrajhi bank upholds its position as a leader in sustainable Islamic banking, driving positive environmental and social change across the financial ecosystem.