Environmental Social Governance (ESG)

As a responsible investor and market leader in Bahrain’s financial sector, SICO continually works to align its strategy with Environmental, Social and Governance (ESG) factors. As the momentum towards sustainable investments builds worldwide, we are committed to becoming a more sustainable organization in every sense of the word. As such we are working to make our day-to-day operation more efficient and environmentally sound. We are and have always been an equal opportunity employer with a diverse workforce and a culture that promotes the empowerment of women, and we are increasingly taking into account the ESG credentials of our investments and business decisions.

SICO takes pride in being an ethical organization that believes “How profits are made” is just as important as “How much profits are made.” We ensure that we are creating value not just for our shareholders, but for all of our stakeholders, which includes our clients, our partners, our employees, and the community at large.

Our core values and principles are aligned with the United Nations Sustainable Development Goals (SDGs). While we believe in the merit of aligning with and promoting all 17 Goals, we have been actively and consistently delivering on at least seven of the goals –

SDG 3 Good Health and Well-Being

Improving the wellbeing and overall health of our community has been one of the main pillars of SICO’s CSR agenda for many years. We have spearheaded multiple initiatives including blood drives, sponsorships of Movember activities, breast cancer awareness, and support for the revitalization of Bahrain’s sports sector and youth athletics.

SDG 4 Quality Education

SICO has always been a firm believer that quality education for all is a key driver of economic growth and prosperity. Since inception, the Bank has sponsored worthwhile education and career development initiatives in cooperation with the Bahrain Bourse, the CFA Society, the Bahrain Institute of Banking and Finance, and Bahrain’s flagship educational programs including the Al Mabarrah Al Khalifia Foundation and the Crown Prince’s International Scholarship Program (CPISP). SICO began its cooperation with CPISP in 2006 and has since provided support for 140 scholars. SICO also runs ongoing internship and executive training programs to give young university graduates and students the opportunity to experience careers in finance.

SDG 5 Gender Equality

Women’s empowerment and gender equality in the workplace are an integral component of SICO’s core values. Since 2014, the Bank has been led by a female CEO. In 2017, we established an Equal Opportunity Committee under the auspices of SICO’s Charter for Gender Diversity. This Committee has been tasked with ensuring equal employment opportunities for men and women at SICO as well as identifying areas in which our policies, procedures, and practices can be improved to promote gender inclusion and diversity. Women account for more than 35% of total Group employees, occupying key managerial and supervisory positions.

SDG 8 Decent Work and Economic Growth

As Bahrain’s leading asset manager, broker, and investment bank with USD 2.15 bn in assets under management, SICO is regarded as a positive force for overall economic growth in the Kingdom and a major contributor to the revitalization of capital markets. From spearheading Bahrain’s most successful IPO in a decade to crucial market making activities and new investment products, we are proud to be regarded an integral component of Bahrain’s growth story.

SDG 9 Industry Innovation and Technology

SICO is a technology driven organization that believes in investing in information and communication technology both internally as an investment bank and externally within the broader community. We continue to automate our processes and procedures and build our online trading capabilities. In Bahrain, a country that is emerging as a regional leader in the fintech space, we have partnered with Fintech Bay, a versatile technology incubator that provides entrepreneurs with a dedicated co-working space that includes state of the art meeting rooms, innovation labs, acceleration programs, and educational opportunities.

SDG 12 Responsible Consumption and Production

In 2018, SICO launched an internal Go Green initiative to promote sustainable business practices and help preserve our environment. The ongoing initiative, which includes eliminating the use of plastic, minimizing the use of paper and working to reduce electricity consumption, is raising awareness within the Bank on ways to reduce our carbon footprint and minimize our environmental impact.

SDG 17 Partnerships for the Goals

SICO’s internal and external stakeholders view us as more than just a service provider, but as a true partner. The Bank is the partner of choice for IPOs and investments in sectors that are helping propel growth and create opportunities for millions of people in Bahrain and the wider GCC. SICO has built a successful track record as a strategic partner to the Bahraini government, the private sector, and civil society which has placed us in a very strong position to make maximum impact as the local champion for sustainable government-driven initiatives.

2019 ESG Highlights

Environmental

In 2019, we continued to expand our Go-Green initiative and integrate environmentally responsible practices across the organization. In an effort to reduce our consumption of paper, we initiated a successful no-print day, which saw daily printing volumes decrease by 95%. Power consumption during the year was also reduced significantly with a 22% decrease year-on-year. SICO also partnered with the local chapter of AIESEC on their Impact Bahrain for Environment program 2019/2020 that focuses on creating awareness for waste reduction, and Impact Bahrain for Women Empowerment that focuses on community development workshops in cooperation with several NGOs giving assistance to Bahraini Women.

Social

As part of SICO’s commitment to education and skills training, the Bank sponsored a number of events including a specialized trading simulation course hosted by the Bahrain Institute of Banking and Finance, a Career Day and Research Challenge that provides university students with hands on mentoring and training in investment analysis hosted by Bahrain’s CFA, and the annual TradeQuest challenge, a competitive financial simulation designed to hone student skills in finance that SICO has been supporting for the past 11 years benefiting a total 2,200 students. SICO continued its cooperation with Al Mabarrah Al Khalifia’s Rayaat Scholarship Program. In 2019, the Bank fully financed an Accounting and Finance scholarship for a student to attend Bangor University at Bahrain Institute of Banking and Finance (BIBF). We also gave support to children with autism through the Bahrain Society for Children with Behavioral and Communication Disorders, an organization that aims to create public awareness on autism and provide both children and families with the educational resources that they need to become fully functioning members of society.

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 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.