23 January 2020

To our stakeholders:

I am pleased to confirm that The Saudi Investment Bank reaffirms its ongoing support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely


Faisal Al Omran
CEO

SAIB strives to conduct its business ethically and in accordance with relevant rules, legislation and regulations within the Kingdom of Saudi Arabia. This reflects a commitment to the Bank’s core values of Integrity, Build and Empower and provides a framework to guide Director’s conduct in a way that upholds the integrity and reputation of the Bank. We adhere to the Labour Laws of the Kingdom of Saudi Arabia . The Banks Code of Conduct for employees states that employees should comply with the Bank’s policies and procedures and with laws, rules and regulations issued by the Saudi Arabian Monetary Authority, Capital Markets Authority and all other related regulatory authorities.
SAIB commits itself and its employees to make every effort to look after the Bank’s interests as supreme, maintain its assets, funds, properties and integrity of Bank records in the best possible manner. The Board of Directors of SAIB (‘the Board’) has a Directors Code of Conduct (‘the Code’). The purpose of the Code is to establish the rules governing the business and ethical conduct for members of the Board of Directors (Director) of the Saudi Investment Bank (SAIB).

We adhere to the Labour Laws of the Kingdom of Saudi Arabia.

Each year the Bank sets performance metrics to achieve the strategic goal of the organisation. Each staff member is set Key Performance Indicators to achieve. Staff are evaluated annually by their Managers via a formal process.

The Bank adheres to the Labour Laws of the Kingdom of Saudi Arabia.

The Bank publishes annually its Code of Conduct and HR Policy. The Bank provides staff a confidential grievance mechanism which a clear policy and procedure on how the grievance will be managed. Employees and others who wish to contact the Board or any member of the Audit Committee to report any complaint or concern with respect to fraud, financial matters and restitution, non compliance with laws and any other matters, may do so anonymously via the online submission form found via the Banks website : https://www.saib.com.sa/en/content/communication-board

Any communications directed to the Board of Directors from employees or others that allege or report fiscal improprieties or complaints about internal accounting controls or other accounting or auditing matters are immediately forwarded to the Chief Internal Auditor, General Manager Compliance, and the General Manager – Corporate Governance. If these officers believe that the communications are significant or possibly material to the Company, then the communication is reported to the Chairman of the Audit Committee, and after consultation with the Chairman of the Audit Committee, may be sent to the other members of the Audit Committee.

•All other communications directed to the Board of Directors are initially reviewed by the Board Secretary. Communications that raise legal, ethical or compliance concerns about Company policies or practices are immediately forwarded to the Chief Internal Auditor, General Manager Compliance, and the General Manager – Corporate Governance. The Chairman of the Board of Directors is advised promptly of any such communication that alleges misconduct on the part of Company management or raises legal, ethical or compliance concerns about Company policies or practices and is substantiated by the Chief Internal Auditor, General Manager Compliance, and the General Manager – Corporate Governance. In addition, the Chief Internal Auditor, General Manager Compliance, and the General Manager – Corporate Governance each has the authority to communicate directly to the Audit Committee, promptly, about any actual or alleged violations of Company policies or practices, including any matters involving criminal or potential criminal conduct.

Health and Safety
The utmost importance is given to safeguarding the health and safety of our employees. While this is necessitated by our commitment to human rights, it will also bring results in the form of employee loyalty, productivity and retention. Our security and safety policies include the risks of violence and criminal activity. Our policies are reinforced by branch inspections, safety sessions and awareness programs. Very significantly, we monitoR fatalities or injuries and no absenteeism due to any work related health issues each year.

Engaging with staff
It is a cornerstone of our HR policies that to achieve employee motivation, satisfaction and retention two-way communication is essential. By open dialogues between the Management and staff we can achieve understanding of each others’ viewpoints and perspectives. We conduct a biennial employee satisfaction survey through which we gauge the pulse of our staff. The need for such a survey became clear with the backdrop of the current volatile, uncertain, complex and ambiguous (VUCA) milieu. Through this survey a wide range of employee related variables are measured including satisfaction with performance appraisal, pay and benefits, work processes, working environment, communication and customer focus. The employee suggestion programme “my idea” allows employees to suggest ideas to our innovation centre for consideration.

We seek to promote diversity in our workforce giving emphasis to growing the numbers of young people and women. The female staff ratio has increased
on average by 2% each year and we are making every effort to grow the percentage. We have been gradually narrowing the gap in the male: female salary ratios.

Staff are evaluated each year via an employee appraisal program which is required by our respective regulator.

One of our five sustainability pillars is Hifth (environmental protection). Our environmental impact is two-fold; the direct
impact through our operations and the indirect impact which occurs through our value chain. Conserving natural resources
and minimising adverse impact on the environment contributes to our long-term sustainability. The importance we have given
to the environment highlights our commitment to Vision 2030 and the United Nations Sustainable Development Goals.

SAIB has adopted the ISO14000 standard and implemented its Environmental Management System (EMS) based on the
standard. The EMS covers the entire gamut of environment related issues. It includes protecting the environment by
minimising and mitigating adverse impact, mitigating the environment’s impact on SAIB, fulfilling compliance obligations,
realising financial and operational benefits from environmentally sound alternatives, and communicating environment-related
information. Environmental risks and opportunities need to be prioritised for the EMS to be implemented.
We have also developed a Standard Accounting and Operating Procedure (SOAP), to provide a framework for environmental
management.

The SOAP facilitates implementation of the EMS through the following:
• Defining needs and expectations of stakeholders concerned with the environment
• Identifying environmental conditions that bear on the Organisation
• Identifying environmental impact of SAIB’s activities
• Defining risks and opportunities that need to be taken into account in management of environmental issues
• Crafting a framework for implementing SAIB’s environmental policies and objectives
• Identifying key performance indicators (KPIs) for measuring SAIB’s environmental performance

The Banks Sustainability Committee oversees all activities concerning the Banks and its environmental polices and risks. Our Business Continuity Department manages all incidents within the Bank and are guided by the Banks Business Continuity Policy.

The Environmental Management System EMS lays down the responsibilities of Executive Management,
Middle Management and various functional departments. The Executive Management bears overall responsibility for
endorsing the EMS and conducting advocacy for the EMS throughout the organisation; appointing a person with overall
responsibility for the EMS; and providing the necessary resources and conducting reviews. Middle management bears
the main responsibility for implementation and compliance. The HR Department also plays a key role by identifying the
needed competencies and training needs and delivering the necessary training. It is also responsible for incorporating
environmental considerations into performance appraisal and reward systems.
The Finance Department contributes by tracking data on environmental management costs and conducting environmental
feasibility studies regarding environmental initiatives. The Procurement Department is responsible for aligning purchases
with SAIB’s environmental policy, identifying requirements for suppliers and criteria for procurement, and monitoring
suppliers’ environmental performance.

The Banks Code of Conduct defines issues surrounding any for no non compliance with the Banks various polices and local laws and regulations.

The Banks Compliance Department ensure compliance with our various regulators and local laws.

The Banks Compliance Department monitors and reports on all noncompliance issues either directly to the Board or via official channels.