ESG Reporting for Saudi Listed Companies

ESG reporting in Saudi Arabia has shifted from a voluntary marketing exercise to a **regulated, audited, investor-grade disclosure**. With **Vision 2030**, the **Saudi Green Initiative**, the **Tadawul ESG Disclosure Guidelines**, and the global adoption of **IFRS S1 and S2 (ISSB)**, listed companies face the most demanding sustainability reporting environment in the region. [image:1] This guide explains what Saudi listed companies must publish in 2026, where the regulatory pressure is heading, and how to build an ESG reporting programme that withstands scrutiny from CMA, Tadawul, MSCI, S&P and large institutional investors. ## The 2026 Regulatory Landscape ### Tadawul ESG Disclosure Guidelines Tadawul publishes a list of **27 core ESG metrics** spanning environmental (GHG, energy, water, waste), social (workforce, safety, Saudization, community) and governance (board, ethics, data privacy). Disclosure is voluntary but tracked and benchmarked, and **non-disclosure is increasingly penalised by index providers**. ### Capital Market Authority (CMA) The CMA''s Corporate Governance Regulations require listed companies to address sustainability and stakeholder impact in their board reports. Expect tightening alignment with **IFRS S1 / S2** through 2026–2027. ### IFRS S1 & S2 (ISSB) The global baseline. **S1** covers general sustainability disclosures; **S2** covers climate — including **Scope 1, 2 and material Scope 3 GHG emissions**, transition plans, and climate-related financial risk. ### Saudi Green Initiative & Vision 2030 Net-zero by 2060, 50 % renewables by 2030, and sectoral emission reduction targets (cement, steel, petrochemicals). Listed companies are expected to **align disclosures to national targets**. ### NCEC and RCER-2025 For environmental data (air emissions, water, waste), **regulator-grade data from NCEC-compliant monitoring** is increasingly used as the source of truth in ESG reports. [callout: In 2026, ESG reports without **assured Scope 1 & 2 GHG numbers** will struggle to score well with MSCI, Sustainalytics or S&P Global.] ## What a Best-Practice Saudi ESG Report Contains ### 1. Strategy and Governance - Board-level ESG / sustainability committee - Material topics defined via **double materiality** assessment - Alignment with Vision 2030 and Saudi Green Initiative - Mapping to **IFRS S1/S2, GRI, SASB** ### 2. Climate (the heavy lift) - Scope 1 (direct combustion, process, fugitive) - Scope 2 (purchased electricity, location and market based) - Material Scope 3 categories (purchased goods, transport, use of sold products) - Energy intensity, renewable share - Climate risk and **transition plan** with science-based targets ### 3. Environment Beyond Climate - Air emissions (NOx, SO₂, PM, VOCs) — tied to NCEC data - Water withdrawal, consumption and discharge - Waste generation, hazardous waste, recycling rate - Biodiversity (for sites near protected areas) ### 4. Social - Saudization rate, gender diversity, training hours - TRIR / LTIFR safety metrics - Community investment, local content ### 5. Governance - Board composition and independence - Anti-corruption, whistleblower programme - Cybersecurity and data privacy [image:2] ## The Three Most Common Mistakes 1. **Reporting without a verifiable GHG inventory.** Numbers built from generic emission factors and spreadsheets fall apart under assurance. 2. **Treating ESG as a marketing project.** When the report is owned by communications instead of finance + operations, the data is shallow and disconnected from CMA filings. 3. **Ignoring assurance.** "Limited assurance" on Scope 1 & 2 is the new minimum for any company seeking inclusion in MSCI EM ESG, S&P/Hawkamah ESG, or FTSE4Good. ## A Pragmatic 2026 Roadmap [image:3] 1. **Quarter 1** — Materiality refresh, gap analysis vs IFRS S2 and Tadawul 27 metrics. 2. **Quarter 2** — Build / rebuild the GHG inventory to **GHG Protocol** for Scopes 1, 2 and prioritised Scope 3. 3. **Quarter 3** — Internal data platform and controls; integrate NCEC environmental data, HR data, energy bills. 4. **Quarter 4** — Independent **limited assurance** on GHG; publish the report aligned to IFRS S2 + GRI. ## How OzoneCo Helps Saudi Listed Companies OzoneCo is an **NCEC-licensed environmental services provider** that delivers the data backbone behind credible ESG reports. We help Tadawul-listed companies: - Build **defensible Scope 1, 2 and Scope 3 GHG inventories** aligned to GHG Protocol and IFRS S2 - Connect **NCEC-grade air, water and emissions data** directly into ESG dashboards - Run **double-materiality assessments** mapped to IFRS S1, GRI and SASB - Prepare for **limited and reasonable assurance** with documented controls and audit trails - Align disclosures with **Vision 2030 and the Saudi Green Initiative** Whether you are publishing your first sustainability report or upgrading from GRI-only to IFRS S2, our team can run a **rapid gap diagnostic** and deliver a 12-month plan that gets you investor-ready. **Request an ESG readiness consultation** through the form below — we typically respond within one business day.