ESG reporting in Saudi Arabia: Vision 2030, net zero 2060 and the Saudi Exchange guidelines

Saudi Arabia's economic transformation under Vision 2030 has brought sustainability onto the agenda of boards across the Kingdom. With a national net zero target, large-scale renewable energy programmes and growing investor scrutiny, Saudi companies are building their ESG reporting capabilities quickly.

National commitments

Saudi Arabia launched the Saudi Green Initiative in 2021 and announced a target of net zero emissions by 2060. The Kingdom aims for renewable energy to provide a large share of its electricity mix by 2030, alongside programmes for tree planting, land restoration and carbon capture.

These commitments shape expectations for companies, especially in energy-intensive sectors such as cement, steel, petrochemicals and mining, which are central to the national economy and to its emissions profile.

The Saudi Exchange ESG Disclosure Guidelines

The Saudi Exchange published ESG Disclosure Guidelines for listed companies in 2021. The guidelines remain voluntary, and Saudi regulators have not yet formally adopted the ISSB standards, but they set out the metrics investors expect, covering environmental topics such as emissions, energy and water, social topics such as employment, diversity and health and safety, and governance topics such as board composition and ethics. They reference international frameworks including GRI, SASB and the TCFD.

The number of Saudi listed companies publishing sustainability reports has grown steadily since the guidelines were issued, and international index providers and investors increasingly assess Saudi issuers on their ESG disclosures.

Voluntary carbon market and climate finance

Saudi Arabia has also been building infrastructure for carbon markets. The Regional Voluntary Carbon Market Company, established by the Public Investment Fund and Saudi Tadawul Group, has held carbon credit auctions and launched an exchange platform in late 2024. On the supply side, the Greenhouse Gas Crediting and Offsetting Mechanism (GCOM) provides a national route for generating credits from emission reduction projects. Green bonds and sustainability-linked financing are becoming more common, and lenders attach climate data requirements to them.

For companies, this means credible emissions data is useful not only for reporting but for accessing finance and participating in carbon markets.

Pressures from customers and exports

Saudi exporters of steel, aluminium and fertilisers face the EU Carbon Border Adjustment Mechanism. Petrochemical and materials producers supplying global brands receive detailed Scope 1, 2 and 3 questionnaires. Giga-projects and large developers set sustainability requirements for their contractors and suppliers. In each case, the company that can provide accurate, verified emissions data has an advantage.

Building a reporting capability

1. Run a materiality assessment that reflects Saudi context and stakeholders as well as international investors.
2. Build a GHG inventory under the GHG Protocol, starting with Scope 1 and 2 at every facility.
3. Map your disclosures to the Saudi Exchange guidelines, GRI and IFRS S2 so one dataset serves all three.
4. Set up data ownership across sites and functions, with monthly collection and evidence.
5. Set targets that link to the national net zero direction and your sector's decarbonization levers.
6. Prepare for assurance as investor and lender expectations rise.

Working with NCV

NCV works with cement and steel producers in Saudi Arabia on ESG reporting and decarbonization, including materiality assessments, framework alignment, ESG reports and SustainOS deployments. Our consultants combine knowledge of local expectations with deep process expertise, and SustainOS gives every department a single place to submit data with evidence attached and approvals tracked.