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Ayda Salem

Saudi Electricity Company Sees Major Improvement in ESG Rating by S&P


Riyadh, September 10, 2024 — The Saudi Electricity Company (SEC) has achieved a notable 43% increase in its 2024 Environmental, Social, and Governance (ESG) rating from Standard & Poor's (S&P). SEC’s rating has risen from 35 to 50, reflecting the company’s strong commitment to sustainability and its alignment with the Kingdom's energy sector objectives.


This improvement highlights the Kingdom’s leadership support for advancing operational efficiency, enhancing service quality, and reducing environmental impact and carbon emissions. SEC has embedded sustainability into its core operations through a range of environmental, social, and governance initiatives. The company has committed to reaching net-zero emissions by 2050 and emphasizes community engagement and transparency in its governance practices.


As a key player in the Kingdom’s energy strategy, SEC is instrumental in achieving the target of a 50/50 energy mix by 2030—comprising 50% renewable energy and 50% high-efficiency natural gas-powered plants—under the oversight of the Ministry of Energy. Additionally, the company focuses on social responsibility through community initiatives and increasing local employment within the electricity sector.


SEC’s approach underscores its commitment to environmental protection, social responsibility, and strong governance, aligning with both national and international sustainability standards. The company's efforts are in accordance with global standards and the ESG guidelines issued by the Saudi Exchange (Tadawul), and it meets investor disclosure expectations. SEC continually enhances its environmental and social practices based on its ESG rating to ensure it meets the highest sustainability benchmarks.


For more information on SEC’s sustainability initiatives and efforts, please refer to its Sustainability Report available at: [SEC Sustainability Report](https://www.se.com.sa/-/media/sec/Investors/Sustainability-Reports/Sustainability-_Report_2023_EN.ashx).

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