Al Rajhi Banking and Investment Corporation.

Fair Money & Economic Opportunity

As a major Islamic bank, Al Rajhi operates on Sharia-compliant principles which inherently prohibit interest-based (riba) lending and promote risk-sharing, often providing financial access to populations that avoid conventional banking; however, the score remains moderate pending evidence of specific outreach to underserved or marginalized demographics. Al Rajhi Bank (ARB) demonstrates a strong commitment to financial inclusion and economic opportunity within the Saudi Arabian and Malaysian markets, supported by quantitative evidence from its 2024 reporting. Regarding inclusion initiatives, the bank's SME portfolio reached SAR 39.1 billion in 2024, representing approximately 5.6% of its total financing portfolio (SAR 693.3bn).

While significant, this falls into the lower tier for inclusion lending share. The bank also reported substantial social impact through its Sustainable Finance Framework, constructing 35,659 affordable housing units benefiting over 89,000 individuals. In Malaysia, 50% of its retail home financing portfolio is comprised of first-time homebuyers, and it actively participates in the "My First Home Scheme" for low-income (B40) segments. For underserved client share, the bank has seen a 100% growth in female customers since 2015 and targets individuals with special needs through sign-language-trained staff in 9 cities. However, specific percentages for low-income or rural segments across the entire group are not fully disclosed. In terms of data accessibility, the bank provides 218 open banking APIs, facilitating real-time data portability, which aligns with modern open-banking standards. Geographic inclusion is supported by the largest network in Saudi Arabia (512 branches and 4,371 ATMs), with approximately 40% of service points effectively reaching diverse populations, including a vast remittance network of 230+ centers. Fair lending compliance is robust, with the bank reporting zero incidents of discrimination in 2024 and maintaining Sharia-compliant operations that inherently exclude extractive sectors like gambling and tobacco. It tracks regulatory compliance fines as a percentage of operating income, though specific fine amounts were not disclosed in the provided text.

Fair Pay & Worker Respect

As a major financial institution, Al Rajhi Banking and Investment Corporation is a significant employer subject to labor laws and human rights standards, making Fair Pay & Worker Respect a relevant metric for its internal operations. Al Rajhi Bank demonstrates a stable workforce environment with specific quantitative data provided in its 2023 and 2024 reporting.

Regarding worker engagement, the bank reported an engagement score of 74% in 2023, which aligns with a healthy workplace culture (Tier 10). The voluntary turnover rate was reported at 21.7% in 2024, which indicates a relatively stable workforce but sits within the 20-25% range (Tier -20). However, evidence from its subsidiary, Bahrain Islamic Bank (BisB), shows a much lower turnover of 7%, suggesting better retention in specific segments, though the group-wide figure remains the primary anchor. In terms of labor violations, the bank reported zero incidents of discrimination in 2024. It maintains formal grievance channels and anti-discrimination policies, supporting a Tier 10 rating for having no documented discrimination findings in the reporting period. Health insurance coverage is comprehensive; evidence indicates that the bank provides health insurance as a standard benefit for employees, and its subsidiary BisB explicitly includes dependents and mental health services. Given the regulatory environment in Saudi Arabia for banking institutions and the reported benefits packages including health insurance for all permanent and temporary staff, the company aligns with Tier 90 (approximately 100% coverage including dependents). While the bank mentions a commitment to gender pay equity and provides detailed executive vs. employee compensation totals, the median employee salary is not explicitly stated, preventing the calculation of a CEO-to-median pay ratio or a precise pay equity ratio. Collective bargaining is not mentioned, which is typical for the jurisdiction's regulatory framework.

Honest & Fair Business

As a major financial institution, Al Rajhi Bank is subject to rigorous regulatory oversight and disclosure requirements, making 'Honest & Fair Business' a core operational standard rather than an inherent product feature or harm. Al Rajhi Bank (1120.TADAWUL) demonstrates a mixed record regarding Honest & Fair Business practices based on the provided evidence. Regarding regulatory compliance, the bank incurred significant fines from the Saudi Central Bank (SAMA).

In 2024, it faced 59 decisions totaling SAR 102.6 million for supervisory violations, SAR 4.1 million for customer protection breaches, and SAR 11.86 million for cybersecurity risk failures. In 2023, fines for similar violations totaled approximately SAR 37.4 million. The combined two-year total of approximately SAR 156.1 million (roughly $41.5 million USD) places the bank in the -50 tier for regulatory penalties. Governance structures show room for improvement in independence. The Board of Directors consists of 11 members, only 4 of whom (36.4%) are classified as independent. This falls into the -70 tier, as it is below the 40% threshold for higher tiers and indicates a board dominated by non-independent members. The bank maintains a comprehensive whistleblower policy, providing anonymous hotlines and email channels for reporting concerns. It reported zero incidents of discrimination in 2023 and no reports of retaliation, supporting a -10 tier. In terms of anti-corruption, while the bank has established AML, CFT, and KYC policies and conducts regular training, it recorded minor fines for violating due diligence in combating money laundering and terrorism financing (SAR 115,000 in 2024 and SAR 565,000 in 2023). These recurring, albeit small, penalties suggest enforcement gaps in its robust policy framework, resulting in a -20 tier. The bank is audited by EY and KPMG, but specific audit coverage percentages were not disclosed.

No War, No Weapons

As a major financial institution, Al Rajhi Bank is not inherently involved in the arms trade, but its broad commercial lending activities could potentially facilitate conflict-related industries, making the value neutral rather than inherently positive or negative. Al Rajhi Bank demonstrates a strong commitment to the 'No War, No Weapons' value through its formal Sustainable Finance Framework and Shariah-compliant operational model. According to its Sustainable Finance Framework (Articles , ), the bank maintains an explicit 'Exclusion List' that prohibits the allocation of proceeds from sustainable financing instruments to projects where the majority of revenues are derived from weapons or conflict minerals.

This codification of ethical 'red lines' supports a tier of 50 for both 'ethical_red_lines_coded' and 'zero_exposure_controversial_weapons,' as the bank employs independent third-party verification (S&P Global and Carbon Trust) to ensure zero exposure to these sectors within its sustainable portfolio. Regarding 'revenue_arms_contracts,' the bank is the world's largest Islamic bank and operates under Shariah principles which generally restrict involvement in harmful industries; its reporting focuses entirely on retail, corporate, and SME banking, with no evidence of defense-related revenue. The explicit ban on military sales within its sustainable framework warrants a tier of 10. For 'sales_embargoed_regimes,' the bank maintains a robust Sanctions Framework (). It utilizes automated 'Daily-Delta Screening' against UN, US (OFAC), EU, UK, and Swiss sanctions lists. The bank reported zero failures in its sanctions compliance programs over the reporting period, justifying a tier of 50. Finally, the bank's exclusion of conflict minerals from its financing activities () and its commitment to international standards (GRI, IFRS) support a tier of 30 for 'conflict_minerals_percentage,' reflecting a certified conflict-free approach within its investment and financing supply chain.

Planet-Friendly Business

As a major financial institution, Al Rajhi Bank does not have an inherently harmful or beneficial environmental impact through its core business model, but its lending and investment activities significantly influence climate outcomes through the carbon footprint of its portfolio. Al Rajhi Bank (ARB) demonstrates a structured approach to environmental stewardship, primarily through its Sustainable Finance Framework and operational efficiency measures.

Regarding emissions, the bank's Malaysian subsidiary (ARBM) provides granular Scope 1, 2, and 3 data (totaling approximately 13,000 tCO2e), but group-wide consolidated figures are not explicitly totaled in the evidence. However, ARBM's reporting indicates a relatively low footprint for a financial services provider. ARB has not yet declared its own specific net-zero target year, though it aligns with Saudi Arabia's national 2060 target. In operations, the bank has implemented significant energy efficiency measures, including LED lighting and thermal insulation across 80 buildings. It has equipped 64 properties with solar power (1.5MW capacity), though this represents a small fraction (approx. 10%) of its total energy consumption (319,756 GJ). The bank is moving toward green building standards, with its Malaysian HQ relocating to a LEED Platinum certified building in 2025, and its main tower utilizing intelligent building management systems. Climate risk management is an emerging focus. ARBM has published TCFD-aligned disclosures including physical risk assessments under RCP 4.5 scenarios and transition risk analysis. At the group level, ESG risks are integrated into credit approvals, and the bank maintains an exclusion list for fossil fuels and mining in its sustainable financing instruments. ARB is a major financier of the energy transition in the region, with USD 7.75 billion in sustainable assets, including financing for 2,140 MW of renewable energy capacity. It maintains an exemplary compliance record with zero reported major environmental violations.

Respect for Cultures & Communities

As a major financial institution, Al Rajhi Bank's core business does not inherently harm or advance community rights, but it remains in scope due to the potential for its lending and investment activities to impact communities and cultural heritage sites through project financing. Al Rajhi Bank demonstrates strong performance in local economic integration, particularly through its 'Saudisation' and local procurement initiatives. According to

, the bank has achieved a Saudisation rate of over 98% and directs 94% of its procurement spending to local vendors (1,199 registered local vendors). This high level of local engagement is further supported by the 'National Excellence Award in Localisation Initiatives' mentioned in . Regarding community investment and benefit-sharing, the bank has documented significant voluntary disbursements. and highlight over SAR 5 billion invested in community development since 2000, including SAR 250 million for the 'Jood Eskan' housing program and SAR 2.2 billion in Zakat. While these are substantial voluntary programs with documented disbursements, they are categorized as voluntary community investments rather than formal, independently-verified revenue-sharing agreements with frontline communities affected by industrial operations. In terms of grievance management, confirms the existence of formal grievance handling mechanisms and a whistleblowing policy, with 8,366 employees affirming the Code of Conduct in 2024. However, the evidence focuses on internal labor and ethics grievances rather than community-facing resolution outcomes, placing it at a functional but standard industry level. There are no documented incidents of FPIC violations, community displacement, water rights conflicts, or cultural heritage destruction. As a financial institution primarily operating in Saudi Arabia, its direct operational footprint does not typically intersect with indigenous lands or high-risk extractive sites that would trigger these specific harms. The bank also maintains Shariah-compliance across all transactions, which inherently involves ethical screening relevant to cultural values.

Safe & Smart Tech

As a major financial institution, Al Rajhi Bank handles sensitive personal and financial data, making cybersecurity, data protection, and responsible digital infrastructure core to their operational integrity. Al Rajhi Bank (1120.TADAWUL) demonstrates a robust and compliant approach to Safe & Smart Tech, primarily driven by strict adherence to Saudi Central Bank (SAMA) and National Cybersecurity Authority (NCA) regulations.

Regarding data security, the bank reported 0% cybersecurity-related breaches or operational impacts during the 2023 reporting period, supporting a tier of -50 for data_breach_severity. Its security infrastructure is comprehensive, featuring a 24/7/365 Security Operation Centre (SOC), multi-layered firewalls, and encryption for data at rest and in transit. The bank holds multiple relevant certifications, including ISO 27001 (Information Security), ISO 22301 (Business Continuity), and PCI DSS, justifying a tier of 20 for privacy_certifications. In terms of authentication, the bank has seen significant growth in secure access, with 50% of mobile logins secured via Mobile PIN (MPIN) and Biometric Login (FaceID), a 300% increase since 2020. Security testing is integrated into the development pipeline using source code scanners and penetration testing, earning a 20 for security_testing_coverage. Data privacy governance is aligned with the Saudi Personal Data Protection Law (PDPL). The bank established a central repository for personal data processing and introduced a Privacy Notice in 2024 that allows users to withdraw consent, supporting a 10 for user_data_control. While the bank utilizes AI and machine learning for fraud detection and predictive analytics, evidence regarding specific AI ethics governance outcomes or independent algorithmic audits remains at industry-standard levels (0). Similarly, while training is mandatory and includes gamified elements like 'METAKKED,' specific outcome metrics like phishing click rates were not disclosed, resulting in a neutral 0 for training effectiveness.