INTEGRATED ANNUAL REPORT 2025

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    Decorative path

    sustainable financing at alrajhi bank

    alrajhi bank’s sustainable finance portfolio

    As of 31 December 2025, alrajhi bank’s current allocation of proceeds emphasises the social dimension, with 94.49% directed toward affordable housing projects. The remaining 5.5% is allocated to environmental initiatives, including renewable energy, energy efficiency, sustainable water management, and clean transportation.

    Allocated eligible social
    asset portfolio by category     		Eligible amount
    (USD Mn.)     		% of Allocated
    eligible portfolio
    Affordable Housing 8,408 94.57
    Total 8,408 94.57

    Allocated eligible environmental
    asset portfolio by category     		Eligible amount
    (USD Mn.)     		% of Allocated
    eligible portfolio
    Renewable Energy 234 2.6
    Energy Efficiency 23.6 0.3
    Sustainable Water and Wastewater Management 110.2 1.2
    Clean Transportation 114.6 1.3
    Total 482.4 5.4

    A glimpse of our sustainable financing projects
    4
    Solar PV
    projects     195,940 CO2e Attributed avoidable emissions
    1
    Battery EV storage
    project     4,844 CO2e Attributed avoidable emissions
    2
    District cooling
    projects     344 CO2e Attributed avoidable emissions
    1
    Biodiesel powered
    plant     196 CO2e Attributed avoidable emissions
    2
    Sewage treatment
    plants     14,334,439m3 Attributed wastewater treated
    2
    Desalination plant
    projects     15,813 CO2e Attributed avoidable emissions
    1
    Affordable Housing
    Projects     105,100 Beneficiaries

    Evaluating environmental and social impact

    As a part of its reporting commitments under the Sustainable Finance Framework, alrajhi bank conducts an annual environmental and social impact assessment where it reports the expected or actual impact of the Eligible Sustainable Projects it finances or co-finances with reference to the ICMA Harmonised Framework for Impact Reporting (2023). The reporting includes social and environmental impacts, such as number of housing units constructed, emissions reduced or avoided. The reporting is based on the net benefit resulting from the asset in a given period of operation, rather than the gross emissions change before or after the life of the asset or project.

    Key highlights for 2025

    105,902 CO2e

    Operational attributable avoided emissions

    13

    Assessed projects

    111,235 CO2e

    Under construction estimated avoided emissions

    42,040

    Housing units constructed

    Case Study
    Advancing sustainable financing through a Tier 2 Social Sukuk Issuance
    alrajhi bank successfully issued a USD 1 Bn. Tier 2 Social Sukuk during Q3 2025, marking its first Tier 2 issuance in international debt markets, a significant milestone in the bank’s sustainable finance journey. Issued under the bank’s Sustainable Finance Framework, the shariah-compliant sukuk was structured to support capital adequacy, while advancing social objectives aligned with Saudi Vision 2030.
    The 10.5-year sukuk, callable after 5.5 years, attracted strong demand from a diverse base of global institutional
    investors, reflecting confidence in the bank’s credit profile. Listed on the London Stock Exchange’s International Securities Market, the transaction enhanced the bank’s access to international capital markets while reinforcing its commitment to socially responsible financing.
    Through this issuance, alrajhi bank reinforced its capital base while advancing its sustainable financing agenda, demonstrating how shariah-compliant capital instruments can support both financial resilience and positive social outcomes.

    ESG pillars UN Sustainable Development Goals The bank’s contributions
    Environment Environment Icon
    • SDG 7 – Affordable and
      clean energy
    • SDG 12 – Responsible Consumption and Production
    • The bank has financed 4 solar PV projects, 3 of which
      are fully operational and 1 that is under construction.
      The total RE capacity of these projects is 2,457 MW, with
      an attributed annual RE generation of 331,144 MWh.
    • The bank has contributed to the financing of 1 biodiesel-fuelled plant project, which is fully operational. The total capacity generated from this biodiesel fuelled powerplant is 109 MW, with 4,300 MWh attributed annual renewable energy generated.
    • The bank currently finances 2 district cooling projects,
      both fully operational, with total refrigerant production
      of 54,750,000 tr, attributed annual energy savings of
      1,889 MWh
    Social
    • SDG 1 – No poverty
    • SDG 2 – Zero hunger
    • SDG 5 – Gender equality
    • SDG 8 – Decent work and
      economic growth
    • SDG 9 – Industry, innovation
      and infrastructure
    • SDG 10 – Reduced inequalities
    • SDG 11 – Sustainable cities
      and communities
    • The bank has worked closely with the Real Estate Development Fund and Ministry of Housing to finance or re-finance government-supported or government-subsidised mortgages, as well as development and construction of homes, that are covered under housing support programmes. The bank’s Sustainable Financing Instruments have financed the construction of 42,040 housing units, benefitting 105,100 individuals.
    • The bank currently finances 2 fully operational wastewater treatment projects, with attributed annual wastewater collected of 15,092,138 m3 and attributed annual wastewater treated of 14,334,439 m3.

    An in-depth report of the 2025 Impact Assessment may be found here.

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