A Client preparing to bring an ESG rating product to the Saudi market needed a framework built for local conditions. We developed sector-specific methodologies and a scoring model that bring global ESG standards in line with the Kingdom's national priorities.
- Location
- Saudi Arabia
- Sectors
- Multiple
The Brief
The Client asked us to develop an ESG rating framework tailored to Saudi Arabia and aligned with Vision 2030 and the Kingdom's Net Zero 2060 target.
At its core, the framework needed methodologies capable of evaluating ESG risks and performance across five priority sectors, giving the Client a consistent basis for rating companies in each.
The Obstacle
ESG data in the Saudi market is limited, inconsistent and published infrequently, which left little reliable information on which to build meaningful benchmarks.
Global ESG themes and standards also do not map neatly onto the local market. Each had to be localized so that the framework reflected how companies in the Kingdom actually operate and report.
Our Approach
We began with in-depth research to adapt ESG themes and factors to the local context, identifying where global measures applied directly and where they needed to change.
We then built sector-specific benchmarks using international frameworks such as Global Reporting Initiative (GRI) standards, World Economic Forum (WEF) metrics and global credit rating frameworks, with contextual adjustments for Saudi market conditions and the gaps in available data.
What We Delivered
The engagement delivered three tailored methodologies and a scoring model based on 548 metrics across five industries.
- A scoring model incorporating 548 ESG metrics.
- Coverage of five priority sectors within the assessment framework.
- Designed three tailored rating methodologies to reflect different ESG assessment needs.
Our Impact
The framework enabled the Client to launch a competitive ESG product tailored to Saudi priorities.
By aligning local ESG analysis with international standards, it also strengthened the product's credibility with the market, giving users ratings that reflect local realities while remaining comparable with global practice.