SEC Green Sukuk Report

SEC Green Sukuk Report November 2021

Table of Contents

3 Introduction

6 SEC’s debut green sukuk – key highlights

7Allocation of proceeds

8Impact reporting

10SEC’s Green Sukuk Framework

11Use and management of proceeds

12Case studies: Smart meters and renewable energy

16Summary of impacts

19Third-party assurance of SEC’s green sukuk

November 2021 2Green Sukuk Report

Saudi Electricity Company (“SEC”) and its subsidiaries and affiliates (taken as a whole, the SEC Group) is the Kingdom’s leading producer of electricity and has a dominance over the transmission and distribution of electric power in the Kingdom. SEC is, indirectly, 81.1% owned by the Government, comprising a 74.3% share held by the PIF and a 6.9% share held by Saudi Aramco, with the remaining 18.8% being held by the general public. SEC has been rated A1 by Moody’s, A- by Fitch and A- by S&P.

SEC remains the largest electric energy system provider in the MENA region. SEC is one of Saudi Arabia’s largest employers with a current staff of 33,437 of whom 93.1% are Saudi nationals. In 2020, SEC had SAR 485.4 billion of assets and generated revenues of SAR 68.7 billion.

The SEC Group’s principal business activities are the generation, transmission and distribution of electricity within the Kingdom, the largest economy in the GCC.

SEC’s strategy is focused on implementing the Government’s policy for the development of the electricity sector in the Kingdom, with the primary objective being the provision of a safe, reliable and cost-efficient supply of electricity to end-users. In addition, SEC’s strategy aims raising the efficiency

Company overviewof power plants and transitioning towards a cleaner energy mix including the full displacement of liquid fuel by 2030, raise the level of environmental compliance, enhance the reliability of the electricity transmission network to enable the production of electricity from renewable energy sources and enhancing its interconnectivity, both internationally and within the Kingdom. These as well as improving and the automation of the distribution networks while focusing on raising the satisfaction of end consumers in the Kingdom. Supported by the sector stakeholder form the government, we aim to contribute to realize the objectives of the Kingdom’s optimal energy mix to produce electricity, in line with vision 2030.

The Kingdom’s Vision 2030 plans include ambitious projects to take advantage of alternative energy resources, as the Kingdom seeks to establish a number of projects to use renewable energy sources, in order to diversify sources of electrical energy production, reduce the use of crude oil in local electricity production, and preserve the nation’s wellbeing for future generations.

INTRODUCTION01


As Saudi Arabia’s main electric energy supplier, and the largest electric energy system provider in the MENA region, we recognize the impact of our operations on the environment and the strategic role we have regarding the Kingdom’s ambitions towards clean energy.

SEC’s commitment to sustainability is integral to the company’s vision of creating value for our stakeholders. We have developed a comprehensive ESG framework to articulate and drive our ambition to create a sustainable future in line with the ambition to the Saudi Vision 2030 and the Sustainable Development Goals (SDGs). SEC’s three strategic goals for a sustainable and efficient power sector include driving a smart and sustainable electricity system, operating on a lean and world-class basis, and providing innovative and world class services to its customers.

SEC’s ESG Committee, which comprises executive-level management and periodically reports to the Risk & Compliance, is committed to overseeing and implementing SEC’s new ESG framework, as well as creating consensus on operational and investment recommendations by the executive management team to the Board on key material issues related to environmental and ESG policy/strategy implementation. The day-to-day implementation of the sustainability framework is the responsibility of SEC’s business lines.

Sustainability at SECOur 2020 ESG report has addressed the key criteria that are material for SEC and our investors including responsible customer relations, emissions, renewable energy, water management, waste management, and good governance. The report was prepared in accordance with the Global Reporting Initiative (GRI) Standards.

We are proud to have issued the first Green Sukuk out of the Kingdom and for a utility company in the Middle East region and was the largest Green/ESG corporate issuance in the Kingdom in 2020. The issuance was based on SEC Green Sukuk Framework which was published in 2020 and covers two green projects under two distinct eligible categories. These include energy efficiency, which consist of projects for the procurement and installation of smart meters and renewable energy, which consist of projects, by way of capital expenditure, for the construction and/or operation of the transmission and/or distribution infrastructure for connecting renewable energy sources to the grid.

SEC aligns its business practices and sustainability performance to the relevant Sustainable Development Goals (SDGs). The SDGs highlighted below are addressed directly through our Green Sukuk financing portfolio.


https://www.se.com.sa/en-us/invshareholder/Pages/sustainabilityreport.aspx

https://www.se.com.sa/en-us/Lists/GreenSukukReports/Attachments/3/Green_Sukuk_Framework_Final.pdf


In response to the COVID-19 pandemic, health and safety was prioritized. We have been adopting COVID-19 guidelines and issuing guides with the latest government advice. We continue to use our channels and platforms to educate our employees, citizens, and residents about the risks of COVID-19, which includes emails, internal screens, our website, the Bawabati application, and social media. Several initiatives also were implanted to protect employees and contractors such as social distancing,

Supporting our stakeholders during COVID-19screening technology and educational initiatives. In addition, contingency plans were established for critical roles within SEC.

In addition to supporting employees and customers, SEC has also offered extensive support to the community during the COVID-19 outbreak. Initiatives including the donation of SAR 30 million to the Health and Endowment Fund to combat COVID-19 throughout the Kingdom.


We are proud to shape the development of our green finance portfolio and the overall growth of sustainable finance in Saudi Arabia and the Middle East. We are delighted to be able to share our first “Green Sukuk Report” showcasing key projects that contribute for making the network smarter with the help of smart meters and connecting various renewable energy projects to the grid.

Our Green Sukuk issuances are based on the SEC Green Sukuk Framework and follows the 2018 ICMA Green Bond Principles (GBP). SEC’s Green Sukuk Framework, received a favorable external second party opinion by Vigeo Eiris (V.E). V.E is of the opinion that Saudi Electricity Company’s Green Sukuk Framework is aligned with the four core components of the Green Bond Principles 2018. V.E expressed a reasonable assurance (V.E highest level of assurance) on SEC sustainability commitments and on the overall positive contribution of the contemplated Sukuks to sustainability. The V.E. Second Party Opinion is available on the SEC Investor Relations webpage.

In September 2020, SEC successfully issued USD 1.3 billion RegS dual-tranche international Green Sukuk, comprising of a USD650mn 5-year and a USD650mn 10-year Sukuk. The transaction signified an immense success for SEC as it marks its debut Green Sukuk issuance, the First Green issuance from the KSA and also making SEC the first utility company in the Middle east region to issue a Green Sukuk.

SEC’S DEBUT GREEN SUKUKKEY HIGHLIGHTS

02

GREEN SUKUK LABEL

Saudi Electricity Global Sukuk Company 5

Issuer Saudi Electricity Company

Issuance Date September 2020

Currency USD

Tenor 5

Issued amount USD 650,000,000

ISIN XS2203995670

GREEN SUKUK LABEL

Saudi Electricity Global Sukuk Company 5

Issuer Saudi Electricity Company

Issuance Date September 2020

Currency USD

Tenor 10

Issued amount USD 650,000,000

ISIN XS2203996306




https://www.se.com.sa/en-us/Lists/GreenSukukReports/Attachments/2/20200602_VigeoEiris_SPO_SEC_VF.pdf

Use of proceeds allocation table

Eligible categories as per ICMA Green Bond Principles

Budgeted and committed amount in USD million

Allocated amount in USD million

% financing / refinancing ISIN Issuance

dateMaturity date

Amount USD million

Energy Efficiency (Smart Meters) 2,432 (1)

650 100% financing XS2203995670 10-Sep-20 17-Sep-25 650

650 100% financing XS2203996306 10-Sep-20 17-Sep-30 650

Renewable Energy (Integration of renewables) (3) (4)

505 (2) - - - - - -

Total portfolio of eligible assets 2,937 1,300 Total Green Sukuk 1,300

(1)Includes US$50 million, which has been earmarked against a green credit facility under the Japan Bank for International Cooperation green operations (2)Includes US$450 million, which has been earmarked against a green credit facility under the Japan Bank for International Cooperation green operations(3)SEC expects that the cumulative investment in integration of renewable projects to grow to SAR 7.1 bn by 2025. (4)Renewable Energy (Integration of renewables): Not allocated to the Greek Sukuk until the issuance of this report.

Portfolio date 30 September 2021

ALLOCATION OF PROCEEDS

03

44% 100% 0%Percentage of

Portfolio of Eligible Assets allocated to Green Finance Instruments net proceeds

Percentage of Green Sukuk allocated

Percentage of refinanced projects


In line with the ICMA Green Bond Principles, SEC is committed to report information on the allocation of proceeds. We are also committed to provide information on the environmental and social benefits, for projects financed.

SEC adopts the Harmonized Framework1 for impact reporting, initially developed by an informal group of eleven international development banks including the World Bank (IBRD), the International Finance Corporation (IFC) and the European Investment Bank (EIB). The harmonized

1Harmonized Framework for Impact Reporting, June 2021https://www.icmagroup.org/assets/documents/Sustainable-finance/2021-updates/Handbook-Harmonised-Framework-for-Impact-Reporting-June-2021-100621.pdf

framework for impact reporting outlines core principles and recommendations for Green Bond reporting and provides core indicators and reporting templates for energy efficiency, renewable energy, sustainable water and wastewater management, waste management and resource efficiency, clean transportation, green buildings, biodiversity, climate change adaptation and circular economy project related categories. The expanded core principles and recommendations were compiled by ICMA in April 2020.

IMPACT REPORTING

04


Energy Efficiency (Smart Meters): SEC applies a conservative estimate of 1% energy saving making the annual GHG emissions avoided for the whole project estimated at 1,825,786 tCo2e. The project will also significantly reduce the number of operations related field trips.2 Over 100 million electro-mechanical meter reading trips, as well as over 1 million trips related to disconnect and reconnect, can potentially be avoided annually. SEC estimated an additional CO2 emission avoided of 376.37 tCO2 eq to be observed thanks to meter reading truck rolls. The emissions avoided have been estimated by taking the annual fuel consume (gallons) and applying the emission per gallon of gasoline consumed3. The fuel consumed is calculated by multiplying fuel efficiency by distance covered. The distance covered was calculated by multiplying the number of truck rolls by distance covered per truck roll4.

For more details about the methodologies and assumption, please refer to section 7 of this report: Case Studies: Smart Meter, Renewable Energy.

ICMA Green Eligible category Energy Efficiency (Smart Meters)

Signed amount (in USD Mn) a/ 2,432

Share of Total Financing b/ 100%

Eligibility for Green Sukuks c/ 100%

Allocated Amount (in USD Mn) d/ 1,300

Project Location Saudi Arabia

Project lifetime (in years) e/ 10

Capacity of renewable energy production connected in the grid (in MW) f/ -

Renewable energy production feed in to the grid by total solar, wind capacity (in MWh) f/ -

Estimated annual avoided CO2 emissions(in tCO2 eq.)SCOPE 1+2

f/

Overall:1,825,786Pro-rated**: 975,954+An additional overall 376.37 tCO2 eq to be observed thanks to expected reduction in meter reading trips

Estimated annual avoided CO2 emissions(in tCO2 eq.)SCOPE 3

f/ -

Number of smart meters installed f/ 10,404,262

Estimated energy consumption savings (in MWh) f/

Overall:2,808,110 Pro-rated**: 1,501,046

Other indicators

+34 million people in Saudi Arabia benefited from project

Enhanced customer satisfaction

Reduced exposure to worker’s road accidents due to reduction in meter reading trips

*Renewable Energy (Integration of renewables): Not allocated to the Greek Sukuk at this moment.** Pro-rated to allocated proceeds

Notes to impact reportinga/ Signed amount represents the amount legally committed by SEC for the project, a portfolio of projects or component that is/are eligible for green bond financing. b/ This is the share of the total portfolio per eligible categoryc/ This is the share of the total portfolio costs that is eligible for financingd/ This represents the amount of green bond proceeds that has been allocated for disbursements to the project/ portfolio. e/ Project life based on the expected financial life of the projectf/ Impact reporting indicators per eligible category - methodology and assumptions used:

2For more details, please refer to section 7 of this document – Case study – Smart Meter3Emissions per gallon of guel (MT/Gallons) is 0.008887 metric tons CO2/gallon of gasoline. https://www.epa.gov/energy/greenhouse-gases-equivalencies-calculator-calculations-and-references 4Distance covered per truck roll= (daily meter reads/ number of meters per km) multiplied by 2 to account of round trip.


SEC’S GREEN SUKUK FRAMEWORK05

The “Framework” applies to Green Sukuk issued by SEC on or after June 2020. It sets out the guidelines for SEC’s Green Sukuk issuances in accordance with the 2018 ICMA Green Bond Principles. The ICMA Green Bond Principles are voluntary guidelines that promote transparency, disclosure, and integrity in the development of the Green Bond market. The principles:1. Use of Proceeds 2. Process for Project Evaluation and Selection 3. Management of Proceeds 4. Reporting5. External Review

Pillars of SEC’s Green Sukuk Framework

External reviewReportingManagement

of proceeds

Process for project

evaluation and selection

Use of proceeds-

eligible project categories

Governance

SEC’s Green Financing Committee is responsible for the evaluation and selection of the projects to be financed and/or refinanced and will review this Framework on a regular basis

Renewable energy

The Green Financing Committee receives a pre-approved project list from the ‘Investment Committee

Tracking and management of proceeds

Second Party Opinion: SEC has obtained a Second Party Opinion from Vigeo Eiris (V.E) Verification: An annual allocation reporting will be subject to external verification by an External Auditor

Second Party Opinion: SEC has obtained a Second Party Opinion from Vigeo Eiris (V.E)

SEC’s Green Financing Committee meets at least on a semi-annual basis

Energy efficiency

The Green Financing Committee reviews the project list and assesses project eligibility for Green financing, in accordance with the pre-determined Eligibility Criteria

Monitoring the allocated funds as a part a formal internal process

Verification: An annual allocation reporting will be subject to external verification by an External Auditor

An internal audit is conducted annually to assess adherence to SEC’s Green Sukuk Framework

Projects that meet the Green financing criteria are included in SEC’s eligible Green Project portfolio



SEC has set in place a process to the use and management of proceeds in accordance with the SEC Green Sukuk Framework. SEC will allocate 100% of an amount equal to the net proceeds of a Sukuk issuance to funding Eligible Green Projects and will monitor the allocated funds as a part a formal internal process.

The eligible Green Project will be earmarked for allocation only once. If a project is no longer eligible, The Green Financing Committee will make every effort to replace

such projects with other eligible green projects as quickly as feasible. If SEC or SEC’s projects are ever subjected to material ESG allegations, SEC will investigate the allegations and, if necessary, take corrective action. SEC will also report publicly on their position to such situations.

Any unallocated funds will be held in cash, short term deposits or marketable Sovereign securities, within SEC’s Treasury liquidity policy, at its own discretion.

USE AND MANAGEMENT OF PROCEEDS

06

Projects allocated to the SEC Green Sukuk fall under two eligible categories:

Details of these project categories are highlighted in the case studies.

ENERGY EFFICIENCY (SMART METERS)

RENEWABLE ENERGY


CASE STUDIES: SMART METERS AND RENEWABLE ENERGY

07


CASE STUDY

A INCREASE THE RELIABILITY AND EFFICIENCY OF OUR DISTRIBUTION NETWORKS

SMART METERS

SEC embarked on a Smart Meter (SM) & Distribution Automation (DA) Program to roll out smart meters and automate the distribution grid. As of 30 September 2021, SEC has installed approximately 10.4 million smart meters that will benefit all the Kingdom to achieve the highest accuracy in monitoring consumption, improve service quality, enhance customer satisfaction and optimize the use of natural and financial resources. The 10.4 million smart meters installed so far includes the SEC’s largescale roll-out of replacing approximately 10.1 million old electromechanical in the Smart Metering Project (SMP), in addition to all new subscribers are being connected by smart meters. As of September, 2021 SEC installed about 300 thousands smart meters for new subscribers.

Our target milestones for the smart meter roll out which started in January 2020 is for 35% implementation by 30 April 2020, 50% implementation by 30 September 2020, 80% implementation by 31 December 2020 and 100% implementation by 31 March 2021. The installation of smart meters will considerably contribute to optimal usage of energy in the Kingdom, as well as improving networks in terms of demand-size management and overall access to electricity.

Smart meters are an integral part of a flexible, decentralised and decarbonised energy system. Smart meters are very beneficial to both consumers and energy suppliers.

To the consumer - Smart meters allow the consumer to monitor their electricity consumption and its costing through the customer service online applications. The smart meters send meter readings remotely and are able to differentiate between different types of tariffs. It eliminates the unpredictability of estimated billing. The smart tariff gives opportunity and flexibility to the user to alter their behaviour, to use less energy and to reduce their bills.

To the energy supplier - Monitoring the consumption of energy through smart meters helps energy providers understand the current demand and meet future increases in demand. The energy companies predict how much energy is required by using near real time data to create ‘smart grids’ to match supply with demand. A smarter grid delivers low carbon electricity more efficiently and thereby reducing environmental impact.

SM & DA services will reduce GHG across the KSA through two main mechanisms: reducing peak demand and reducing truck rolls. SM & DA will enable services that will reduce the KSA’s peak demand, such as through enabling distributed generation and optimizing energy use. In addition, SM & DA will enable services that will reduce the required distance covered by trucks and vehicles, such as through enabling real-time remote measurement of loads and feeder switching. The number of meter reader arrived at 2,729 meter reader at the end of 2020 and the number of meter reading truck rolls is estimated to be a round 654,960.

There is a substantial evidence base demonstrating that feedback enabled by smart metering leads, on average, to a reduction in energy demand. An EU study from December 2019 on the deployment of smart meters in the EU found that on average, smart meters provide savings of EUR 270 for electricity per metering point (distributed amongst consumers, suppliers, distribution system operators, etc.) as well as an average energy saving of at least 2% and as high as 10% based on data coming from pilot projects.5 In 2015, the UK Government published the findings of the Early Learning Project (ELP) exploring how British consumers who received smart meters between 2011 and early 2013 engaged with smart metering. The ELP included a statistical study which quantified the impact of early smart-type meter installations in 2011 on household energy consumption in the year following installation. The study found a reduction in electricity consumption of 1.6% -2.8%.6

SEC has applied a conservative reduction estimate of 1% in energy saving resulting in estimated annual GHG emissions avoided of 1,825,786 tCo2e, and energy saving of MWh 2.8 million. The project will also significantly reduce the number of operations related field trips. Over 100 million electro-mechanical meter-reading visits, as well as over 1 million visits related to disconnection and reconnection, can potentially be avoided annually putting an additional emission avoidance of 376.37 tCO2 eq per year.

5European Commission: Benchmarking smart metering deployment in the EU-28, December 2019: https://ec.europa.eu/energy/topics/markets-and-consumers/smart-grids-and-meters_en?redir=16UK Department for Business, energy & Industrial Strategy, Smart Meter Roll-out – Cost-Benefits Analysis, 2019: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/831716/smart-meter-roll-out-cost-benefit-analysis-2019.pdf


To contribute to the Kingdom’s efforts in reducing its reliance on oil for power generation. SEC has been pioneering the introduction and integration of renewable energy. Starting in 2011, we commissioned the first grid-connected and the first solar photovoltaics (SPV) project with Showa Shell in Farsan. In 2017, we commissioned a 2.75 MW (megawatt) wind turbine with General Electric in Huriamla.

We have entered into two Engineering, Procurement and Construction (EPC) contracts to develop two power plants producing electric power integrated with solar thermal energy. The power plant at Duba Al-Khadra is intended to produce a total of 605 MW of power, including 50 MW of solar capacity, and the plant at Waad Al-Shamal industrial city will produce a total of 1,390 MW plus 43 MW of solar capacity. Moreover, we have invested in PP / IWPP program joint venture investments using highly efficient technology. Includes IPPs / IWPPs efficient combined cycle power plant investment, committing to output off-take power purchase agreements (PPA), implementing small solar PV cell by private IPPs, and signing and integrating utility scale renewable energy PPA’s into the grid, which led resulted in 916.6 Gwh of renewable energy produced by Independent Power Producers (IPP), a 1,374% increase from 2019.

Our first step to utilize renewable energy in the Kingdom was our launch of Sakaka IPP PV, this project is one of the first large scale solar energy projects in Saudi Arabia, with a capacity of 300 MW. The plant will harness solar energy using cutting edge PV technology to generate electricity at a world record breaking tariff of US Cents 2.3417/ kilowatt hour (8.781 halalas/kWh). In 2019, another 20-year PPA was signed with the Douwmat Al-Jandel wind farm project. This project has a capacity of 400 MW and commercial operations start in 2022. Furthermore, we have signed PPA’s for seven new solar power projects in various regions in the

Kingdom. The output capacity of the seven projects, in addition to the projects of Sakaka and Doumat Al-Jandel, will amount to more than 3,600 MW. They will also power more than 600 thousand households and reduce greenhouse gas emissions by more than 7.8 million tons*. Some of these projects have set new world records for the lowest cost of solar-produced electricity.

SEC supports the increase for electricity generated from renewable energy sources and is responsible for the capital expenditure required to connect the new renewable energy sources to the grid, including connecting renewable energy (wind), connecting the renewable energy plant and connecting the renewable energy station.

Until September 30 2021, SEC has an approved budgeted capital spending of SAR 1.85 billion (US$ 494 million) to be spent until 2023, relating to integrating to the grid throughout the Kingdom, phase 2 and 3 renewable energy capacity projects in line with the national renewable program. SEC expects these projects will increase the total renewable energy capacity connected to the grid to about 4,870 MWAC. Furthermore, SEC expects that up until 2025, the cumulative investment into renewable energy integration projects to reach approximately SAR 7.1 billion and will contribute growing the grid’s renewable energy capacity to approximately 19 GWAC.

CASE STUDY

BCONTRIBUTION TO THE KINGDOM’S EFFORTS IN REDUCING ITS RELIANCE ON OIL FOR POWER GENERATION

RENEWABLE ENERGY

7Renewable energy per year [MWh] = Full load hours [hours per year] x Power [MW]

Renewable Energy (Integration of renewables): The capacity of renewable energy production connected in the grid is MWAC 4,870. The avoided annual CO2 emissions of 10.3 million tCO2 eq. have been estimated by taking the annual expected electricity production from connected wind and solar capacity7 in 2020 and calculating the amount of CO2 that would have been emitted if conventional production methods have been used.


The second and third phases of the National Renewable Energy Program aims to develop six renewable energy projects with a total volume of about 2.67 GW. The projects are classified into two categories, whereby Class A includes projects with a capacity of less than 100 MW, and Class B projects with a capacity of more than 100MW. This in addition to Sudair Solar Power Plant project with a total capacity of 1500 MW.

HighlightProjects for the National Renewable Energy Program

Phase Class Project nameProduction

capacity (MW)Private sector

investmentExpected

completion date

2

ARafah Solar Power Plant 20 100% 2021

Madina Solar Power Plant 50 100% 2021

B

Shuaibah Solar Power Plant 600 100% 2022

Jeddah Solar Power Plant 300 100% 2022

Rabigh Solar Power Plant 300 100% 2022

Qurayyat Solar Power Plant 200 100% 2022

3

ALayla Solar Power Plant 80 100% 2023

Wadi Ad Dawasir Solar Power Plant 120 100% 2023

BAr Rass Solar Power Plant 700 100% 2023

Saad Solar Power Plant 300 100% 2023

Through significant capital expenditure, SEC continues to connect new renewable energy sources to the grid; the renewable energy projects we have connected or are expecting to connect include:

Integration of Renewable Energy Capacity into The Grid

Sakaka solar PV power plant

(operational mid-December 2019)

Rabigh solar power plant

Shuaibah solar power plant

Qurayyat renewable energy station

Jeddah solar power plant

Medina solar power plant

Sudair solar power plant

Ar Rass Solar Power PlantSaad Solar Power Plant

Wadi Ad Dawasir Solar Power Plant

Layla Solar Power Plant

Rafha solar power plant

Up until 2025, we are planning to invest approximately SAR 7.1 billion into renewable energy integration projects, growing the grid’s renewable energy capacity to approximately 19 GW.

Doumat Al-Jandal wind power plant

(Commercial operation expected Jan 2022)


SUMMARY OF IMPACTS

SUMMARY OF IMPACTS 09


Category: Energy Efficiency

Description: Smart Meter

Location: Saudi Arabia

Number of meters: 10 million

Proceeds allocated to the project: 100%

SDG CATEGORY SDG TARGET DESCRIPTION

7.3By 2030, double the global rate of improvement in energy efficiency.

9.4By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

11.2 By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels.

13.1Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

PROJECT IMPACT

PROJECT DESCRIPTION

Output benefit:

10,404,262 of smart meters installed

Impact benefit of overall project:

1,825,786 tCO2eavoided

2,808,110 MWh of energy saved

Pro-rated: Impact benefit of Green Sukuk funded project contribution:

997,278 tCO2e avoided

1,533,842 MWh of energy saved

An additional overall 376.37 tCO2 eq to be observed thanks to expected reduction in meter reading trips


Category: Renewable Energy

Description:Connecting renewable energy sources to the grid

Location: Saudi Arabia

Number of projects: 10

Proceeds allocated to the project: 0%

SDG CATEGORY SDG TARGET DESCRIPTION

7.2By 2030, increase substantially the share of renewable energy in the global energy mix.

9.4By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

11.2 By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels.

13.1Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

PROJECT IMPACT

PROJECT DESCRIPTION

Output benefit:

4,870 MWAC (Total)

Impact benefit of overall project:

10,324,508 tCO2e avoided

Pro-rated: Impact benefit of Green Sukuk funded project contribution:

0 tCO2e avoided*

*since project has not been allocated to the Green Sukuk yet.


THIRD-PARTY ASSURANCE OF SEC’S GREEN SUKUK

10

This report represents SEC’s primary reporting on the performance of its Green Sukuk. This is the first SEC Green Sukuk’s report. We will also provide details of our Green Sukuk in our annual ESG report and Green Sukuk Framework.

This report has been prepared in line with the Green Sukuk Framework, and with adherence to the 2018 ICMA Green Bond Principles. Third part assurance is provided by KPMG.

The assurance statement is included on page 20.

For further information on SEC’s Green Sukuk, please contact SEC’s Investor Relations (IR) team at [email protected].





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