Sustainability Reporting in Saudi Arabia
Your Guide to ESG Disclosure as per Tadāwul (Saudi Exchange)
Saudi Arabia is moving towards a stronger culture of corporate transparency, with the Saudi Exchange (Tadāwul) actively encouraging companies to adopt Environmental, Social, and Governance (ESG) practices. While reporting is not yet mandatory, it is already becoming a competitive advantage.
Why ESG Matters Now in Saudi Arabia
Since joining the UN Sustainable Stock Exchanges Initiative in 2018, Tadāwul has emphasized ESG as a key enabler of Vision 2030 and the Net-Zero 2060 target. Investors are increasingly seeking businesses that demonstrate responsible governance, social impact, and environmental stewardship.
Current Status of ESG Disclosures
ESG reporting in Saudi Arabia is voluntary for now. Tadāwul issued official ESG Disclosure Guidelines in 2021, and many listed companies have already begun publishing reports in anticipation of future regulations.
Key Recommendations from Tadāwul
Tadāwul advises companies to align with recognized frameworks such as GRI, SASB, IFRS SDS, and the UN SDGs, and to ensure reports are transparent, consistent, and focused on the most relevant issues for stakeholders.
Tadāwul Leading by Example
In 2025, Tadāwul Group released its first Sustainability Report, highlighting work in green finance, carbon markets, and ESG targets. The report used multiple global standards to ensure credibility and comparability.
Steps Companies Should Take Now
Businesses are encouraged to download the guidelines, map their ESG strategies to global standards, conduct materiality assessments, and start voluntary reporting to build readiness for potential future mandates.
Final Takeaway
ESG is not just about disclosure—it’s about long-term value, resilience, and readiness. Companies that act now will be better positioned to meet stakeholder expectations and stay ahead of evolving requirements.
