Responsible Governance

The Saudi Electricity Company (SEC) places utmost importance on building trust both within the organization and externally, viewing it as intricately linked to good governance practices. This dedication is manifested through the assurance of an effective board, transparent committees, ethical operations, and responsible relationships with stakeholders such as suppliers and the community. SEC’s comprehensive ESG strategy, endorsed by the Board, underscores the company’s dedication to sustainability, responsible business practices, and the creation of long-term value, shaped by insights from internal and external stakeholder consultations, as well as investors’ expectations.

In alignment with its vision, objectives, and strategies, SEC is devoted to supporting the Kingdom’s Vision 2030, by unlocking the potential for other revenue streams and being responsible in business. While SEC is focused on transitioning towards a cleaner energy mix including the displacement of liquid fuel from its feedstock by 2030, the company is looking into adding new generation capacity from renewables through partnerships with the private sector. In addition, as the sole transmitter and distributor of electricity in Saudi Arabia, it has allocated substantial capital investment to upgrade the grid’s infrastructure. SEC has started the roll out of 22 new renewable interconnection projects by 2025 with total renewable capacity of about 19 GW. Almost 6 projects have been completed as of 2023. SEC aims to allocate 75% of total procurement spending to locally owned manufacturers by 2030 and has launched the “Build and Employ National Abilities” (BENA) program focused on increasing localization in energy products, and the Saudi Skills Development Program which strengthens local suppliers, showcasing dedication to regional economic growth and future prosperity. SEC supports the Kingdom’s Vision 2030 goal of being responsible in business by fostering excellence in governance.

The dynamic approach taken by SEC considers all perspectives, maintaining alignment with the overarching business strategy. This is reinforced by executive-level governance and heightened accountability, collectively contributing to the cohesive and effective implementation of ESG initiatives. The company is resolute in upholding the highest standards of transparency, accountability, and ethical conduct in its operations, ensuring sustainable growth and building trust among its stakeholders. SEC’s commitment extends to the continuous refinement and improvement of governance structures, demonstrating its dedication to adaptability and responsiveness to the evolving landscape of corporate governance principles and industry standards, while implementing robust governance structures and policies which ensure ongoing accountability and oversight.

Strategic Objectives

Disclose transparently, openly and meaningfully through stakeholder dialogues

Enhance coverage of code of conduct and ethics policies

Informed decision-making through strong and unbiased governance

SEC’s responsible governance strategy revolves around three strategic pillars to ensure thorough implementation of initiatives‭. ‬Firstly‭, ‬transparent disclosures are ensured through regular engagement with stakeholders‭. ‬Secondly‭, ‬SEC seeks to enhance coverage of Code of Conduct and Ethics to ensure alignment with international best practices‭, ‬conduct periodic reviews and keep updating the Code of Conduct and policies‭. ‬Lastly‭, ‬SEC ensures informed decision-making by planning to launch comprehensive employee governance awareness programs‭, ‬coupled with an updated corporate governance manual‭. ‬This chapter addresses key governance elements at‭ ‬SEC‭, ‬including corporate governance‭, ‬business ethics and integrity‭, ‬emergency response planning‭, ‬sustainable financial performance‭, ‬data privacy‭, ‬digitalization‭, ‬research‭, ‬development‭ & ‬innovation‭, ‬and supply chain‭.‬