Sustainability Approach
in Saudi Tadawul Group
The Group aims to accelerate the achievement of its ambition to be among the world’s top exchange groups through:
- Improving priority internal procedures in the field of sustainability practices in line with the highest international standards.
- Working with the issuers to adopt sustainability management and disclosures and continuously improve performance, and encouraging the market investors to incorporate sustainability into their investment decision-making.
- Accelerating the market shift towards sustainability through an expanding range of sustainability related product offerings.
Sustainability
Framework
Material Topics
- Regional priorities such as the Saudi’s ambitious Vision 2030, the Saudi Green Initiative, the net zero by 2060 target the Kingdom has set itself and PIF’s 2050 net zero commitment, but more particularly, the Financial Sector Development Program.
- International sustainability-related frameworks and standards, such as the United Nations Sustainable Development Goals (UNSDG), the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD).
- Industry initiatives such as the World Federation of Exchanges (WFE) and the United Nations Sustainable Stock Exchanges initiative (SSE), of which the Group is a member.
- Direct views of the key Stakeholders, including, but not limited to, national and international issuers and potential issuers, national and international investors and potential investors, employees, suppliers and business partners, and the public.
- ESG focus of the global exchange group peers and their ESG performance levels.
- The Group’s ESG ratings to understand where its biggest gaps are and what it needs to focus on from an investor perspective.
Based on the above, the Group carried out a materiality assessment to prioritize the sustainability issues most significant to its business as well as its Stakeholders. As a result of the assessment, it identified 15 sustainability-related issues that are considered most relevant to the Group, as shown in the matrix. These are linked to the Group’s sustainability framework and strategy, the latter of which is currently being developed. The Group will review and update its materiality matrix on a regular basis to keep it relevant and up to date with market developments and Stakeholder expectations.
Sustainability Pillars
The Group’s core contribution to the Saudi’s ambitious Vision 2030 is the transformation of Saudi Arabia’s Capital Markets in line with the government’s Financial Sector Development Program (FSDP). It will continue to invest in and develop the infrastructure required for world-class market sophistication as outlined in the FSDP.
Integrity and trust in markets are fundamental. The Group will continue to govern its operations and processes with the utmost integrity, setting a high performance bar for the market. It will diligently fulfil its market regulatory oversight and authorization responsibilities, in support of the market’s overall integrity.
As Saudi Arabia aims to become a relevant debt capital hub, the Group recognizes that debt finance should increasingly incorporate sustainability – including climate – considerations.
Given the Group’s belief that strong ESG performance contributes to improved corporate performance, the Group will accelerate its efforts to encourage widespread adoption of sustainability management and ESG disclosures by Saudi listed companies.
Achieving a net zero, circular carbon economy in line with the world’s climate targets is a global priority. The Group intends to play a key role in creating the market infrastructure, and building the markets, for a net zero circular carbon economy.
The transformation currently in progress in Saudi Arabia can be maintained and accelerated only through the caliber of the Group’s national talent. The Group is already heavily investing in the training of its people. It has an ambitious program underway to further improve the gender balance.
Focus on
Employees
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Total number of
employees
Number of female
employees
Number of Saudi
employees
Turnover ratio
Training days per
participant
Saudization
