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UNGC PRINCIPLES

PrincipleReport ReferenceCommitments and Actions
Principle 1 - Support and respect the protection of internationally proclaimed human rightsEthics & Compliance p. 16 Human Capital Development p. 58As a member of the United Nations Global Compact, SABIC is dedicated to creating and fostering a culture of respect and fair employment practices that prohibits all forms of illegal discrimination. Our Fair Employment Practices Policy not only requires compliance with all labor and employment laws in each country where we employ people, but also sets a standard of behavior that respects all people. Finally, it requires that employment decisions are based upon merit, capability, performance and other job-related criteria as consistent with local law. All employees are trained every two years on our Code of Ethics. SABIC also has a compliance reporting system and strict no-retaliation policy, so that all employees, suppliers, customers and other stakeholders can report compliance concerns to our Legal Department. All credible concerns are promptly investigated and acted upon.
Principle 2 - Noncomplicity in human-rights abusesEthics & Compliance p.17 Supply Chain p. 64As we strive to achieve our 2025 strategy of being the preferred world leader in chemicals, SABIC is dedicated to the highest standards of ethical, social and environmental responsibility. Both new and existing suppliers are evaluated and selected for reasons beyond just the price and quality of the product and/or service offered. We also look closely at each supplier’s commitment to provide safe working conditions, to act fairly and ethically, and to use environmentally responsible practices. Our SABIC Supplier Due Diligence Program asks suppliers detailed questions about their use of underage and forced labor, working conditions and other inquiries designed to ensure that our supply chain is free from human rights abuses.
Principle 3 - Uphold the freedom of association and the effective recognition of the right to collective bargainingIn SABIC, the right to join labor unions, workers' councils, or other collective bargaining organizations is granted, in compliance with applicable law. Where labor unions are not permitted by law, SABIC offers employees the right to join labor committees, which are representative bodies to address employee concerns with management.
Principle 4 - Elimination of all forms of forced and compulsory laborEthics & Compliance p. 16 Supply Chain p. 64Our Code of Ethics Fair Employment Practices Policy states that we will observe all applicable labor and employment laws wherever we operate, including “the prohibition of forced, compulsory and child labor.” As mentioned above, our SABIC Supplier Due Diligence Program also asks suppliers detailed questions about their use of underage and forced labor.
Principle 5 - Effective abolition of child laborSupply Chain pp. 64, 67SABIC does not employ underage workers. As mentioned above, our Supplier Due Diligence Program asks suppliers to disclose any use of child labor. A finding of child labor in Due Diligence would be grounds for non-qualification of that supplier or for mitigating actions to ensure that child labor is not used in the production of goods for SABIC.
Principle 6 - Elimination of discrimination in respect of employment and occupationEthics & Compliance p. 16

Our Code of Ethics Fair Employment Practices Policy states that we will observe “those laws that pertain to the elimination of any improper employment discrimination.”

In 2013, SABIC hired our first Saudi women in Riyadh. SABIC continued its recruitment journey in Jubail and then in Yanbu early 2014. In 2015, a second phase of female recruitment saw our numbers rise to 92 women in the MEA region, 56 of whom are Saudi.”

SABIC established a co-op pilot in SABIC HQ. In 2015, the first batch of 11 selected female college students started four-month internships. Furthermore, by the middle of 2016 we reached a total number of 40 female student interns.

SABIC Women’s Network (SWN) facilitates women’s professional development, with regional chapters providing opportunities for women to engage with senior colleagues and enhance their professional exposure. We have SWN chapters in all regions where we operate, including Saudi Arabia, where we have local hubs in Riyadh, Jubail and Yanbu.
Principle 7 - Support a precautionary approach to environmental challengesResource and Energy Efficiency, pp. 34-40The Precautionary Approach is based upon implementation of sound methodologies to assess and manage risks posed by an activity. SABIC has integrated risk assessment and risk management practices into our Company processes, including assessment and management of risks to human health, safety, security, and the environment (EHSS). For example, all manufacturing operations are subject to initial and periodic risk assessments. In addition, we include EHSS risks in our assessment of the products that we manufacture. Consistent with the Precautionary Principle, these risk assessment practices do not require scientific certainty before cost-effective risk mitigation actions are considered. Our focus on reduction of Greenhouse Gases (GHG) (see below) is a prime example of the Precautionary Approach.
Principle 8 - Undertake initiatives to promote greater environmental responsibilityResource and Energy Efficiency, pp. 34-40

Our long-term strategy (SABIC 2025) includes manufacturing footprint goals for greenhouse gases (GHG), energy, water, and material loss to be achieved through process, operating, and technology improvements. Reduction in GHG emissions is a key focus area for the Company. CO2 emissions reductions are being pursued through improvements in our own operations and also improved supply chain logistics and marine transportation fuel switching.

Within our own business, we have established the Manufacturing Center of Excellence (MCE) to share our sustainability efforts across different sites. Through MCE, we have managed to develop a robust data collection and analysis process for our environmental footprint. Many of the local community-based efforts and much of the scientific research we support are designed to promote a culture of environmental conservation.

Principle 9 - Development and diffusion of environmentally friendly technologiesInnovation and Sustainability Solutions p. 25, Resource and Energy Efficiency p.40We have continued the integration of sustainability into our thinking about the product lifecycle, from selection of raw materials, to design and manufacturing, and finally product use and end-of-life. SABIC is supporting various customers to enhance their sustainability efforts through the products we produce and we have defined “enabling others to operate more sustainably” as one of our key strategic objectives. SABIC has been applying several processes and metrics to the development of innovative sustainability solutions. That includes our Sustainability Product Qualification process, in which a business team nominates products for an initial assessment of their sustainability proposition.
Principle 10 -Work against corruption in all its forms, including extortion and briberyEthics & Compliance pp. 16-17

As a manufacturing company, we rely on the ability to move our products across borders around the world each day. Eradicating corruption at points of entry is crucial to our business success. 2016 was an active year for SABIC’s anti-corruption efforts. SABIC participated in the Business 20 (B20) Anti-Corruption Forum in Beijing, China in April 2016, the focus of which was to make concrete, actionable endorsements to the governments of the world’s 20 largest economies (G20). Azlan Nageli, SABIC’s Chief Regional Counsel, Asia Pacific, participated in a panel entitled “Sharing Anti-Corruption Experience between Multinational Corporations and Emerging Markets.” In May 2016 SABIC held events in Riyadh and Jubail to highlight our efforts around sustainable procurement, including preventing corruption in the supply chain. The events were held with the Siemens Integrity Initiative and the Pearl Initiative – a non-profit organization promoting a corporate culture of accountability and transparency as a key driver of competitiveness across the Gulf region. The Riyadh event was opened by Dr. Ali Al-Kheshaiban, Director of Department of Promotion of Integrity, Nazaha (Saudi National Anti-Corruption Commission). This was followed by a panel session entitled “Attracting International Customers and Investment through Supply Chain Compliance.” Panelists included Khalid Al-Hussan, CEO, Tadawul (Saudi stock market), Ahmed Al-Shangiti, VP Global Procurement Services, SABIC, Khalid Al-Aseeri, Legal Advisor, Ministry of Economics & Planning, National Transformation Project, and Andreas Glogowsky, Corporate Account Manager, Siemens. During the session, private sector and government participants, including Dr. Hanan Al-Ahmadi, Shoura Council, heard perspectives on the business imperative for ethical business and why stakeholders - both global and regional - are increasingly requesting evidence of good compliance practices in the Saudi supply chain. Speaking at the panel session, Ahmed Al-Shangiti, Vice President, Global Procurement Services, SABIC, said: “The wealth that comes into Saudi Arabia through the opening of the Tadawul will be directed, at least in part, to those companies that present the lowest business risk. At SABIC, we are reducing risk in the supply chain by requiring our suppliers and vendors to demonstrate that they embrace the same strong compliance culture that our business is built upon. In the future, we will award business to those suppliers and vendors that offer us the best product, lowest price and strongest compliance practices.”

Over 100 SABIC suppliers attended to learn about key initiatives from Procurement, including the latest developments in supplier relationship management, supplier compliance and details around our new supplier due diligence program. In order to help our suppliers to develop their own compliance programs, all in attendance were given a takeaway assignment – an online anti-bribery training course that SABIC offered in conjunction with Trace International. Training suppliers and other third parties on anti-bribery is a global best practice which we are offering to our suppliers in Saudi Arabia to help reinforce our message that strong compliance is a business imperative for SABIC.


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