SEDCO Holding’s sustainability governance framework provides a multi-tier platform for integrating ESG principles within programs, reporting, and external rating. As a shariah-compliant investor, our corporate decision-making, oversight, and implementation comply with a large proportion of sustainability standards present in the market. In addition, we are currently working on a sustainability policy to complement our sustainability strategy and framework.
The Corporate Governance report, pages 62 to 70, details roles and responsibilities of Board and Board-mandated committees in their oversight of sustainability performance.
As an active financial investor, sustainability thinking and value creation are integrated into investment strategies and decisions; as outlined in the Corporate Investment Report (page 34), and the Real Estate Investment Report (page 40).
Shareholders
- Shareholder forums, workshops, visits, and other events
- Face-to-face meetings
- Monthly e-newsletters (SEDCO Scope)
- Quarterly performance reports
- Annual General Meeting
- Annual Review
- Integrated Report
- SEDCO Family Council
- Ongoing engagement with Incubator Support Team
- Surveys
Employees
- Induction process
- Annual performance reviews
- Yearly town halls
- Offsite team-building events
- Events for national, cultural, or religious celebrations
- Internal quarterly outlooks with the Executive Team
- Training and development programs
- Suggestion boxes
- Grievance procedures
Business partners
- Regular business communications
- Face-to-face meetings
- Investment forums and award programs
- Monthly e-newsletters (SEDCO Scope)
- Annual Review
- Integrated Report
Investment portfolio companies
- Quarterly Board meetings
- Yearly town halls
- Strategy review sessions with portfolio company directors and senior management teams
- Day-to-day interaction/support from SEDCO divisions
- Monthly e-newsletters (SEDCO Scope)
Government (including regulators)
- Government initiatives, programs, and campaigns
- Regulators’ forums and other key industry events
- Face-to-face meetings
- Special events and initiatives
Local communities
- Active engagement through social organisations via the Salem Bin Mahfouz Foundation
- Presentations, podcasts, and other channels via Riyali Foundation
- Rowad’s e-learning platform, events, forums, and other initiatives
- Badir employee volunteering program initiatives
Stakeholder Engagement and Materiality
The Company carried out a formalized materiality assessment to identify and prioritize key ESG topics relevant to the business and stakeholders. The materiality assessment process reviewed local, regional, and global peers to establish a baseline for materiality and sustainability. Thereafter, stakeholder interviews, knowledge workshops, and surveys were conducted across three management levels: Board members, heads of business unit, and employees.
The outcome informed a list of significant (material) topics, which was categorized in our ESG pillars, reviewed and approved by the leadership team, and formally presented to the Board of Directors.
In addition to stakeholder engagement in the materiality process, the Company maintains a number of ongoing and regularized channels of communication with its various stakeholders.
Operationalization
Sustainability at SEDCO is formalised through tracked ESG Key Performance Indicators (KPIs) for all business units. KPIs are derived from, and directly linked to our strategy; ensuring performance is tracked and aligned with corporate objectives.
Post-activation surveys, for employees, beneficiaries, and partners, are designed to evaluate project effectiveness and assess impact. These standardized measures help the Company monitor and measure the success of activities. They also function as a channel of engagement to identify areas for improvement and new initiatives to explore.
An annual sustainability action-plan functions as an operational calendar for the sustainability function, setting out a structured implementation framework that spans the company’s key departments. Additionally, a dedicated Badir volunteer management system helps manage volunteering activities and track employee participation.
Reporting
The Company employs a formal sustainability reporting framework that includes SEDCO’s Integrated Report, aligned with GRI Standards. In addition, an internal annual review of sustainability projects provides a detailed breakdown of sustainability initiatives and participation rates. Initiatives are also actively documented and published across a number of media channels.
Driving transparency and alignment with the Kingdom’s priorities, SEDCO reports and maintains progress updates on the National CSR Platform, while registering and reporting employee volunteering activities on the National Volunteering platform.
To validate internal governance, we also work to assess and renew the Company’s sustainability rating via the MSCI ESG Rating Index.