Environment Social and Governance (ESG) at Sohar International

At Sohar International our vision is to become a world-leading Omani service company, helping customers, communities and people to prosper and grow.

Linked to our vision as a Bank is our vision for ESG which is – to be enablers of positive social, environmental and economic impact and change, supporting our stakeholders (people, customers, and communities) to prosper and grow.

At Sohar International we are focused on integrating our ESG vision and approach into our business strategy – a commitment that is reflected in being the first Bank in Oman to establish an ESG Function and appoint a Head of ESG.

Sohar International’s ESG Approach

Our ESG Approach is underpinned by the Bank’s ESG Framework which maps out how sustainability is woven into our strategy and business. The Framework was developed to focus on the most critical ESG issues for the Bank, our stakeholders, and the impact of these ESG issues (both inward and outward impacts) – double ESG materiality. This dynamic approach draws insights from both within the Bank and from the external stakeholders to ensure we remain responsive to market trends and stakeholder expectations.

The ESG Framework was approved by the Board in 2023 and is outlined in the following chart.

Enabling the transition to a sustainable future

• Sustainable Finance and Investment (Decarbonisation, NetZero, Biodiversity, and Natural Capital)
• Direct environmental footprint (Energy, Waste, and Water management)

Embedding responsible business operations

• Governance, Compliance and Ethics (Culture, AML and Anti-corruption, Transparency, Financial performance)
• Sustainable Supply Chain / Procurement
• E and S risk management (ESRM)
• Digital Leadership

Empowering and developing people – employees, customers and communities

• Human Capital (Employee Health Safety; Wellbeing; Diversity and Inclusion; Talent Attraction; Engagement and Retention; Training and Development)
• Customer protection (Privacy and Security; Responsible Communications / Marketing)
• Financial inclusion, accessibility and education (financial wellbeing)
• Community investment and socio-economic development (CSR)

Plan, Monitor, Report

• ESG Framework Review
• ESG Materiality
• ESG Management System
• ESG Monitoring and Reporting

The ESG Framework maps out how ESG is woven into every part of our operations, zooming in on the most material ESG issues. Our ESG Framework is living and breathing and will evolve as market dynamics shift and stakeholder needs change.

As we advance, ESG will continue to be at the heart of our corporate strategy, driving us toward sustainable growth and positioning Sohar International as a sustainability leader in banking in Oman and beyond.

Sohar International has made great strides in relation to ESG integration, but we recognize we have a long way to go – we will continue our efforts to mainstream ESG.

ESG Governance

The Sultanate of Oman is advancing towards a more sustainable future.  It has embedded sustainability within its Oman Vision 2040, and in 2022 announced its commitment to reaching NetZero Emissions by 2050.

Foreseeing this focus, Sohar International were first movers in establishing an ESG function (and until today is the only Bank with a Head of ESG).  This was in recognition of the critical role the Bank (and the financial services sector) can play in enabling and supporting the Sultanate’s commitment to sustainable and inclusive economic development.

The ESG Function has been granted the highest level of accountability of the function, reporting directly to the Chief Executive, and indirectly to the Board of Directors through the Executive, Nomination and Remuneration Committee.

The ESG Function at Sohar International is tasked with developing and implementing ESG across the Bank.

ESG Case studies