RIYADH: Saudi Basic Industries Corp., also known as SABIC, has grabbed the top rank in environmental, social and governance reporting among listed firms in the Kingdom, according to a new report.
The analysis by Islamabad-based Bridge ESG compared various sustainability attributes among the 13 out of 217 companies listed on Tadawul which are submitting reports in this area.
According to the findings, SABIC scored 76 percent in the ESG ratings to grab the top spot, followed by Saudi Arabian Oil Co. with 69 percent and Petro Rabigh with 54 percent.
SABIC’s rankings come after it established a partnership in 2022 with chemical and industrial gas giants BASF and Linde to develop electrically powered steam cracker technology with the aim to reduce greenhouse gas emissions by 90 percent.
Bridge ESG compiled its ESG report based on various criteria which include annual reports published by the companies on Tadawul and disclosure assessment by these firms against the requirements of the exchange’s ESG guidelines.
It was in 2021 that Tadawul issued guidelines on ESG reporting, which set various attributes against which entities are required to report.
The Bridge ESG report further noted that only five out of 13 firms are giving complete disclosures around toxic emissions and wastes, while just nine companies provided full details around greenhouse gas emissions.
“Companies in the energy sector are doing more effective reporting as compared to others in environmental attributes,” said Bridge ESG in the report.
The report added that nine companies are giving complete disclosures involving human capital development, while four firms provided full details involving the access to healthcare attribute.
In March, a PwC survey revealed that asset managers and investors in Saudi Arabia want a more nuanced approach that balances ESG demand with today’s challenging economic reality.
“Despite the difference in approach and emphasis about the future of ESG investments, Saudi Arabia is committed to bringing people together to find solutions to the challenges we must confront,” the report said.