SABIC

Sustainability strategy and accountability
SABIC discloses its process of identifying material issues based on stakeholder needs, major trends and benchmarks and selects six primary material topics. The company sets step-change targets to be achieved in 2025 on key sustainability topics, including absolute waste reduction, water intensity, material loss intensity and GHG emissions, which focus on key sustainability topics for the most material parts of its value chain. The company discloses its performance summary every year, reporting consistently against all its targets.

Stakeholder engagement
SABIC discloses an overview of the issues raised during its stakeholder engagement activities. The company discloses how often and through which channels it engages with various stakeholder groups.

Solid and air pollution
SABIC is reducing the production of hazardous substances. The company discloses its practice to reduce plastic use by minimizing packaging waste and the use of plastic foil.

No leading practices were identified for the company in the social inclusion and community impact area

Sustainability strategy and accountability
No evidence was found that SABIC links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. While the company provides biographies of its highest governance body, it is unclear whether the executive management members have expertise with respect to its most material pressures on nature.

Lobbying
SABIC discloses a list of trade associations of which it is a member wherever it operates. However, the company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. The company does not report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment
SABIC has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species
SABIC does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Ecosystem conversion and restoration
No evidence was found regarding SABIC’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Resource exploitation and circularity
SABIC does not disclose its inputs, including its material footprint. The company states it does not directly exploit organisms for commercial uses. The company does not report quantitatively on its group-wide circularity performance. The company does not disclose efforts to improve soil health.

Water
SABIC demonstrates it is reducing water withdrawal in its own operations. The company sets a target to reduce freshwater use intensity by 25% by 2025 compared to the baseline year 2010, but no goals were found for absolute reduction. The company does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not engage with suppliers to reduce water withdrawal.
SABIC discloses its water management strategy to ensure wastewater discharge are properly treated and reduce water quality pressures. The company does not disclose its processes for managing and monitoring discharge water quality. The company does not regularly report on water pollution. The company does not disclose targets to reduce water pollution. While the company is a signatory to the WBCSD pledge on access to safe water, sanitation and hygiene, this does not translate to a commitment to respect the right to water could be found in the public domain.  The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution
While SABIC discloses its regulation on SVHC (substance of very high concern), no evidence that the company has a commitment to not developing or marketing new chemicals or products with SVHC properties could be found in the public domain. The company is reducing the production of hazardous waste. No evidence that the company reduces plastic use and waste in its own operations was found. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company does not report on air quality parameters of emissions of harmful air pollutants. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

GHG emissions
SABIC is reducing its scope 1, 2 and 3 greenhouse gas emissions in 2021 compared to the previous year. The company sets a target to reduce 20% of scope 1 and 2 emissions by 2030 compared to its baseline year 2018 and reports against the target. However, no evidence that the company’s scope 1 and 2 emissions target is aligned with a 1.5-degree trajectory. Although the company mentions its collaboration with partners to reduce scope 3 emissions, no evidence that the company has a time-bound target to reduce scope 3 emissions could be found in the public domain.

Invasive species
SABIC has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Safe, healthy, clean environment
SABIC does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment. While the company mentions its delivery of 65 health and wellness programs, no evidence that the company tracks its actual or potential negative impacts on the health of local communities could be found in the public domain.  The company is not committed to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous peoples’ and land rights
SABIC does not disclose a commitment to respecting Indigenous Peoples’ rights or land rights of local communities.

While SABIC discloses two different risk identification processes for the identification of EHSS and security risks conclusively, the company does not describe the process(es) to identify its human rights risks and impacts in specific locations or activities covering its own operations. The company has an opportunity to describe a process for assessing the human rights risks it has identified and to disclose what it considers to be its salient human rights issues. A description of this process would include how relevant factors are considered, such as geographical, economic and social factors. While the company discloses that it conducts routine human rights risk assessments and that it remediates in locations with the highest risk, no evidence was found that it has a global system to act on all its salient human rights issues. No evidence that the company provides an example of the conclusions reached and actions taken or to be taken on at least one of its salient human rights issues as a result of assessment processes was found.
While SABIC discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. No evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities was found.

SABIC has a publicly available policy statement which shows it is committed to respecting the health and safety of workers and that it expects its suppliers to commit to respecting the health and safety of their workers. While the company discloses that it is committed to compensate its workers in compliance with the applicable laws, it has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. No evidence that the company describes how it determines a living wage for the regions where it operates was found. While the company states that it expects its suppliers to pay wages that are sufficient for workers and their families to fulfil their basic needs, it has an opportunity to disclose how it works to support the payment of a living wage by its suppliers.
No evidence that SABIC discloses the proportion of its total direct operations workforce covered by collective bargaining agreements was found. While the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in relation to those.

SABIC discloses a global tax strategy. The company has a policy that explains what bribery and corruption is and the responsibility on workers, but not the process of how the company identifies risks. The company includes anti-bribery and anti-corruption clauses in its contracts with direct business relationships. The company does not disclose its approach to lobbying and political engagement in a public policy document.