SABIC GOVERNANCE FRAMEWORK

CORPORATE GOVERNANCE STRUCTURE

SABIC maintains high standards of governance as part of its commitment to maximize the company’s added value. This is achieved through effective strategic planning, risk management, transparency, and social and environmental responsibility, in addition to compliance with regulatory corporate governance requirements.

Corporate governance’s role goes beyond meeting compliance requirements. SABIC has developed its own corporate governance framework, which sets out roles, responsibilities, and methods of decision making, putting into action and following up. It also includes the main governance bodies of the company and clarifies how they interrelate, integrate, and coordinate their activities.

The SABIC governance framework also embodies the shareholders' rights and the manner of enabling them to exercise such rights in accordance with the relevant regulatory provisions and the global best practices of governance. This includes enhancing communication with shareholders through Shareholders Management, as well as providing tools that aim to enhance the effectiveness of such communication.

The structure of SABIC's Board of Directors includes four committees helping the Board to fulfill its prescribed duties. These are: the Audit Committee, the Nomination and Remuneration Committee, the Risk and Sustainability Committee and the Investment Committee. The performance of the Board and these committees is subject to periodic review and assessment in order to enhance their effectiveness in achieving the targeted goals.

SABIC believes that governance, through its Corporate Governance Framework and its governance bodies, is a key enabler towards achieving its goals and enhancing its ability to sustain, and to build and maintain strategic relationships with various stakeholders.