Environmental Social Governance (ESG)

Millions of acres in the western US and Australia burned in 2020 creating post apocalyptic orange skies, choking communities with smoke, and destroying wildlife.

As a leading investor and market leader in the Bahraini financial services industry, SICO is committed to promoting responsible investments. SICO takes pride in being an ethical organization, where we value how profit is made just as much as how much profit we make. We are committed to ensuring that our operations are environmentally sustainable and making business decisions with environmental, social, and governance (ESG) factors at their core. Additionally, we have always been an equal opportunity employer, with a diverse workforce, and strive to promote a culture that empowers women.

Accordingly, the Bank has worked to integrate ESG considerations into the fabric of its operations and align its strategy with both the UN Sustainable Development Goals (SDGs) and international best practices. This allows us to create value for all of our stakeholders, including our clients, partners, employees, and the community at large.

2020 Highlights

Sustainable Investing

SICO is committed to integrating sustainable business practices into the fabric of its operations as well as promoting them among its surrounding community.

During the year, SICO was ranked fourth in Bahrain overall and first in the diversified financial services sector by ESG Invest in their annual ranking, rising from 13th spot last year. This has come on the back of concerted efforts to streamline our operations and ensure that we are increasingly accounting for ESG considerations in each of our business decisions.

As sustainability becomes an increasingly important consideration for investors, SICO has partnered with IdealRatings to begin embedding their ESG data in SICO’s research products to provide comprehensive reports featuring insights into companies’ ESG progress. This will offer investors a full picture of companies’ performance through research and data collections across the ESG pillars. This will serve not only to raise awareness about sustainable investing but will also encourage investors to take ESG factors into consideration while making financial decisions.

Quality Education

At SICO, we believe that quality education is the foundation for driving economic growth and prosperity. Since our establishment, we have sponsored multiple education and career development initiatives with a number of local sponsors including the Bahrain Bourse, CFA Society, and the Bahrain Institute of Banking and Finance (BIBF).

Owing to the onset of the COVID-19 pandemic, SICO was unable to sponsor its regular workshops and trainings, in order to abide by government-directed health and safety protocols and social distancing guidelines. During the year, the Bank participated in a seminar for the Bahrain Chapter of the Institute of Chartered Accountants of India (BCICAI) titled ‘Investment Approaches During a Global Pandemic’. The seminar examined an array of investment techniques to be employed during volatile times, in order to provide investment tips during times of uncertainty such as the ongoing pandemic by citing practical examples. SICO continued to sponsor the Bahrain CFA society, enabling it to operate a number of programs during the year, including the Mutamahin initiative, the Qodwa mentorship program, along with a number of additional professional development workshops. The Bank further conducted a webinar held by CEO Najla Al-Shirawi and Head of Research Nishit Lakhotia on investments in GCC markets throughout the pandemic. In addition, SICO sponsored E-Pay Summit, an annual event where key experts meet to discuss the ever-evolving digital banking landscape.

During the year, SICO also provided support to the University of Bahrain in establishing a currency and securities trading room at its department of Economics and Finance in order to provide students with basic financial skills and training that will enable approximately 2000 students to receive trading certificates at the end of each academic year.

In addition, SICO sponsors some of Bahrain’s flagship educational programs including the Al Mabarrah Al Khalifia Foundation and the Crown Prince’s International Scholarship Program (CPISP). The CPISP is a program established by Bahrain’s Prime Minister and Crown Prince, HRH Prince Salman bin Hamad Al Khalifa, operated through funding by the Crown Prince as well as a number of local and international sponsors and seeks to support talented individuals in their academic journey. SICO has worked with CPISP since 2006 and has supported more than 140 scholars in pursuing higher education degrees at some of the world’s leading educational institutions.

In 2020, the Bank through Al Mabarah Al Khalifia’s Rayaat Scholarship Program fully financed an Accounting and Finance scholarship for a young student, Mariam Al Daghen, to attend Bangor University at Bahrain Institute of Banking and Finance (BIBF). Mariam was selected out of 12 final candidates owing to her strong academic background and extensive extracurricular activities and community work. The scholarship marks the Rayaat program’s first scholarship in the undergraduate Accounting and Finance program at BIBF. SICO also runs ongoing internship and executive training programs allowing young university graduates and students to explore potential careers in the financial services sector.

Healthcare and Social Services

SICO has been involved in a number of initiatives over the years aimed at improving healthcare and social services in Bahrain, attesting to the value it places on improving the wellbeing of our community. The Bank regularly extends support to a number of organizations and initiatives. Among the organizations it has previously supported are:

• Bahrain Breast Cancer Awareness
• Bahrain Down Syndrome Society
• Al Noor Charity Welfare
• UCO Parents Care Center Children and Mothers Welfare Society
• Child Care Home

In addition, SICO sponsors a number of initiatives with the aim of promoting good health and wellbeing among the local community. The Bank has spearheaded multiple initiatives including blood drives, sponsorships of Movember activities, and breast cancer awareness, as well as offering support to local football teams in order to promote the revitalization of Bahrain’s sports sector and youth athletics.

Following the onset of the COVID-19 pandemic this year, SICO has made a number of donations to charitable organizations across the kingdom in order to alleviate the worst of this impact. Among the initiatives supported are the Fina Khair campaign, an initiative launched by the Royal Humanitarian Foundation in response to a growing desire among the private sector to contribute to combatting the spread of the virus. SICO made a number of contributions to the campaign, including a BD 300,000 monetary contribution as well as sponsoring an 11-year-old boy who walked 140 kilometers to raise funds for the campaign. SICO additionally sponsored a local wellbeing initiative, the TeamBahrain30for30 challenge, which encouraged people to exercise for 30 minutes each day, with total donations going to support the Fina Khair campaign.

In addition, SICO also offered support to the Supreme Council for Women (SCW) in the form of monetary contributions instead of the annual Ramadan gifts with the aim of supporting them in their Together for the Safety of Bahrain initiative, which seeks to distribute basic commodities, health supplies, family guidance, legal counsel, and educational support to households in need supported by Bahraini women across the country.

Code of Conduct

SICO is committed to upholding the strictest ethical and sustainable standards in its operations. In 2020, the Bank updated its code of conduct to reflect changes in global best practices and integrate them into the fabric of its operations. SICO updated its policies on environmental preservation, sexual and employee harassment, and social media usage in order to introduce more stringent measures. The Bank also enhanced its existing policies on conflict of interest, including receiving gifts, insider trading and usage of material non-public information, all aimed at ensuring that employees uphold sound and clearly defined ethical practices as they conduct their duties in the workplace.

Environmental Preservation

Promoting environmental preservation is a key priority for SICO. Accordingly, the Bank has implemented a number of policies with the aim of fostering a healthy, clean, and safe environment for the community at large. SICO is constantly working to implement initiatives that will minimize its carbon footprint and integrate environmental awareness into the fabric of its operations.

The Bank has taken a number of measures throughout the years in order to raise awareness both among its employees as well as the surrounding community. Among these measures have been the reduction of single-use plastics on premises by providing employees with personalized reusable glass water bottles; streamlining our printing usage in order to eliminate waste and reduce paper consumption; and improving our energy efficiency across our offices.

SICO has successfully managed its energy consumption, reducing electricity and water consumption in 2020 by 11%, in spite of a 7% increase in the area of the Bank’s premises. This continues to build on the achievements SICO made in 2019, successfully reducing its consumption by 29% from the preceding year. In addition, the Bank was able to successfully reduce its paper consumption by 55% in 2020. This comes following efforts to increase digitalization across the Bank, including automating and digitalizing a range of services which has resulted in a considerable decrease in paper usage across the Bank. These positive strides attest to SICO’s steady efforts towards becoming a more sustainable organization.

In 2020, rather than offering clients traditional annual gift packages, SICO instead planted 1000 trees on the 16th December Avenue in Bahrain. The street’s proximity to Manama’s main school district means that the growth of these trees will improve air quality in the area, contribute to combatting climate action, and promote a healthy environment for children as well as the local community at large.

Data Privacy

SICO is committed to maintaining the confidentiality, integrity, and security of information collected from customers, in accordance with all applicable privacy laws. For the purposes of applicable privacy law in Bahrain, SICO acts as a data manager with respect to any personal information obtained from clients.

The Bank has a privacy policy which governs how it collects, shares, and processes personal information through all means including corporate offices, subsidiaries, affiliates, and the SICO website. In addition, the notice also covers any additional personal information that SICO may collect from clients. This policy aims to ensure that there is transparency between SICO and its clients and maintains the integrity of all interactions in order to ensure ethical and consensual conduct in the handling of all client data.

Equal Opportunity

SICO takes pride in being an equal opportunity employer and strives to create a culture that fosters diversity, teamwork, and open communication.

In addition, the Bank is committed to female empowerment and promoting gender equality in the workplace. Since 2014, the Bank has been led by its first female CEO, Najla Al-Shirawi, and is joined by a number of other women assuming leadership roles within the Bank. In addition, SICO’s Board of Directors saw its new appointments include three female board members, amounting to more than 30% representation on the Board. The Bank’s initiatives are spearheaded by an Equal Opportunity committee, created in 2017 to ensure equal employment opportunities and consistently improving policies, procedures, and practices to promote gender inclusion and diversity.

SICO has also implemented policies in line with the Kingdom of Bahrain’s efforts to provide support to women through the COVID-19 crisis. The Bank extended a flexible remote working policy during the majority of the pandemic, with special priority given to pregnant women and women with school-aged children. This will seek to close the gender gap in the workplace and cushion women, who are disproportionately affected and face greater social risks from the onset of the pandemic.

Headcount and Bahrainization

*Figure includes two executive trainees

Employee Gender Breakdown

Governance

SICO is committed to upholding the highest standards of corporate governance. This entails complying with regulatory requirements, protecting the rights and interests of all stakeholders, enhancing shareholder value, and achieving organizational efficiency. The Bank has Board-approved policies for risk management, compliance and internal controls, in accordance with the rules and guidelines from the Central Bank of Bahrain (CBB). SICO’s Board of Directors consists of nine directors, three of whom are independent directors, and six are executive directors, including the Chairman and Vice-Chairman.

SICO takes pride in the integrity and ethics of its employees in all of their dealings. The Bank’s ethical conduct policy requires honesty and integrity in all interactions with clients, including the full disclosure of all relevant information, in line with global best business practices and CBB regulations and directives. In addition, all SICO employees are required to observe all confidentiality and data protection requirements, in accordance with all relevant laws, regulations, directives, and the Bank’s data privacy policy. Any disclosures required by relevant legal entities may only take place following approval from the Bank’s Compliance Officer and authorization by senior management for disclosure.

SICO has adopted a whistle blowing policy and operates under the supervision of the CBB in compliance with Decree Law No. (4) of 2001 and its amendments (collectively, the AML Law) with respect to the Prevention and Prohibition of money laundering. The CBB has adopted and is compliant with the recommendations issued by the Financial Action Task Force (FATF), which are the international standard for effective anti-money laundering regimes and the requirements of the Basel committee (Customer Due Diligence for Bank’s paper, that are relevant to conventional bank licensees. The Kingdom of Bahrain is a member of the Gulf Cooperation Council (GCC), which is a member of FATF, and also a member of MENAFATF, which is an associate member of FATF.

SICO is working to implement initiatives that will minimize our carbon footprint and raise climate change awareness among employees and the surrounding community. Initiatives include the reduction of single-use plastics, reducing waste and consumption, and improving energy efficiency across our offices.