����ֱ��

An Environmental, Social and Governance Compliance Framework helps Saudi organizations track and manage their impact across three key areas: environmental protection, social responsibility, and corporate governance. It aligns with the Kingdom's Vision 2030 sustainability goals and helps companies meet requirements under the Saudi Green Initiative.

The framework guides organizations through setting measurable targets, implementing policies, and reporting progress on issues like carbon emissions, water usage, workplace safety, community engagement, and board accountability. Companies use it to demonstrate compliance with Saudi Capital Market Authority regulations while building trust with investors, regulators, and stakeholders who increasingly demand responsible business practices.

Saudi organizations need an Environmental, Social and Governance Compliance Framework when expanding operations, seeking investment, or preparing for regulatory reviews. It's especially crucial when pursuing listing on Tadawul (Saudi Stock Exchange) or engaging with international partners who require ESG disclosure.

The framework becomes essential during annual reporting cycles, major infrastructure projects, or when entering sectors with significant environmental impact like manufacturing or energy. Companies also implement it when aligning with Vision 2030 sustainability targets, responding to stakeholder concerns about social responsibility, or updating corporate governance structures to meet Capital Market Authority requirements.

• Basic Framework: Covers essential ESG metrics aligned with Saudi Green Initiative requirements, suitable for small and medium enterprises starting their sustainability journey
• Comprehensive Framework: Includes detailed reporting mechanisms, stakeholder engagement protocols, and alignment with international standards while meeting local CMA requirements
• Industry-Specific Framework: Tailored versions for high-impact sectors like oil and gas, manufacturing, or financial services, with sector-specific KPIs and compliance measures
• Public Listing Framework: Enhanced governance and disclosure requirements for companies listed or planning to list on Tadawul
• Vision 2030 Aligned Framework: Specifically structured to demonstrate contribution to national sustainability goals and development priorities

• Corporate Boards: Set strategic ESG direction, approve framework policies, and oversee implementation across the organization
• Compliance Officers: Manage day-to-day framework implementation, monitor performance metrics, and ensure alignment with Saudi regulations
• Legal Departments: Review and update framework components to maintain compliance with Capital Market Authority requirements and Vision 2030 guidelines
• Sustainability Teams: Collect data, prepare reports, and coordinate ESG initiatives across departments
• External Auditors: Verify framework compliance and ESG performance metrics for regulatory reporting and stakeholder transparency
• Investors and Shareholders: Use framework disclosures to evaluate company performance and sustainability commitments

• Current Assessment: Document existing environmental impacts, social practices, and governance structures across all operations
• Regulatory Review: Compile relevant Saudi ESG regulations, CMA requirements, and Vision 2030 sustainability targets
• Stakeholder Input: Gather feedback from department heads, investors, and key stakeholders on ESG priorities
• Metric Selection: Choose appropriate KPIs aligned with industry standards and Saudi reporting requirements
• Resource Planning: Identify teams, tools, and systems needed for framework implementation
• Implementation Timeline: Create realistic deadlines for policy rollout, training, and reporting cycles
• Documentation System: Set up robust data collection and reporting processes for ongoing compliance

• Scope Statement: Clear definition of environmental, social, and governance objectives aligned with Vision 2030
• Regulatory Compliance: References to Saudi Green Initiative and Capital Market Authority requirements
• Environmental Metrics: Specific targets for emissions, water usage, waste management, and energy efficiency
• Social Parameters: Policies on workforce Saudization, community engagement, and employee welfare
• Governance Structure: Board oversight mechanisms, reporting hierarchies, and accountability measures
• Risk Management: Procedures for identifying and mitigating ESG-related risks
• Reporting Framework: Data collection protocols and disclosure requirements aligned with Saudi standards
• Implementation Plan: Timeline, resource allocation, and responsibility assignments

An Environmental, Social and Governance Compliance Framework differs significantly from a Corporate Social Responsibility Policy in several key ways. While both documents address organizational responsibility, their scope and application vary considerably in the Saudi context.

• Regulatory Focus: ESG frameworks directly align with Capital Market Authority requirements and Vision 2030 metrics, while CSR policies typically focus on voluntary community initiatives
• Measurement Approach: ESG frameworks require specific, measurable KPIs across environmental, social, and governance areas; CSR policies often outline general principles and intentions
• Legal Standing: ESG frameworks serve as compliance documents for regulatory reporting and investor due diligence, whereas CSR policies are primarily internal guidance documents
• Stakeholder Scope: ESG frameworks address multiple stakeholder groups including regulators, investors, and board members; CSR policies mainly target community and employee engagement