UNGC PRINCIPLES

Principle 1 - Support and respect the protection of internationally proclaimed human rights

As 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. 

The SABIC Code of Ethics is the foundation of our integrity culture. Our Code of Ethics applies to all employees, management, and directors, and is communicated regularly through email outreach, mandatory online training modules, in-person trainings, and an annual integrity pledge. The online compliance training and Code of Ethics acknowledgment is completed by employees of both SABIC and our wholly owned affiliates and joint venture companies. 

Information on the Code of Ethics and details on reporting compliance concerns including human rights issues can be found on SABIC’s website.

Principle 2 - Noncomplicity in human-rights abuses

SABIC is dedicated to the highest standards of ethical, social and environmental responsibility. 

Contracts with our suppliers are governed by the SABIC Sustainable Procurement Policy, which has been developed in compliance with legal and ethical standards. In addition, we also have a SABIC Supplier Code of Conduct, which was reviewed and updated in 2020, impressing behavioral and operational best practices on our suppliers. We procure materials and services from qualified suppliers through lawful, ethical, and fair practices, as specified by the SABIC Code of Ethics, and they must meet our technical, quality, Environment, Health, Safety & Security (EHSS), and social responsibility standards. 

We use our Supplier Lifecycle Management (SLM) Program to vet new supplier qualifications and verify ongoing compliance. Suppliers must meet our standards to be included in our global database for procurement and supply chain needs.

Principle 3 - Uphold the freedom of association and the effective recognition of the right to collective bargaining

In 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 labor

Our 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 labor

SABIC does not employ underage workers. The SABIC Supplier Code of Conduct requires that suppliers comply with applicable laws pertaining to the prohibition of forced, compulsory and child labor. A supplier’s failure to follow the SABIC Supplier Code of Conduct may result in non-consideration for future business or in termination of an existing relationship. 

Our Supplier Lifecycle Management (SLM) Program requests suppliers to disclose any use of child labor. Any findings of child labor in Due Diligence would result in non-qualification of that supplier, or for mitigating actions to ensure that child labor is not used in the production of SABIC goods.

Principle 6 - Elimination of discrimination in respect of employment and occupation

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.” 

The SABIC Women’s Network (SWN) was rebranded as “SHE” to make SABIC the preferred brand for women working in the chemicals industry. Supported by senior leadership, SHE aspires to encourage workplace diversity, equity, inclusion and belonging for all by creating insights and by identifying areas for improvement while supporting SABIC’s corporate priorities. 

The SABIC Young Leadership Council (SYLC) continues to empower our young leaders to shape future business decisions through direct interaction with the CEO and executive leadership. It offers young leaders a forum to propose disruptive, out-of-the-box, bold solutions to various challenges and encourages them to shape the Company’s culture and strategic priorities. 

In a concerted effort with SABIC Women’s Network and SABIC Young Professionals (SYP), SYLC hosted its first global iENGAGE event, bringing together participants from 56 cities, 25 countries and four regions to explore what matters to the Organization and its young leaders. Learn more about the iENGAGE event here.

Principle 7 - Support a precautionary approach to environmental challenges

Our climate strategy is aimed at making us carbon neutral by mid-century by building climate resilience into our business and creating roadmaps tailored to the regions in which we operate.

Principle 8 - Undertake initiatives to promote greater environmental responsibility

Our Carbon Neutrality Roadmap sets out a strategy to decarbonize our operations by 2050 in line with the goals of the Paris Agreement. The roadmap identifies five pathways to decarbonization – Reliability, Energy Efficiency, and Improvements; Renewable Energy; Electrification; Carbon Capture; and Green/Blue Hydrogen – along with SABIC’s ongoing focus on circular, sustainable solutions, and renewable feedstock. Find out more about SABIC's approach to mitigate environmental challenges in SABIC Integrated Annual Report.

Principle 9 - Development and diffusion of environmentally friendly technologies

SABIC believes innovation is the way to a more sustainable future. Hence, our commitment to innovation drives our development of sustainable products, operations, and business models. This enables us to contribute to solving the issues most pertinent to society, from eliminating used plastic to reducing our global greenhouse gas footprint and curbing climate change. Furthermore, it benefits our business and customers and allows for new ways to collaborate. We continue to deepen our investment in the circular economy and sustainable solutions, thereby ensuring that we can sustain the benefits of plastic for society while upholding our duty to protect the planet. 

Find out more on SABIC's approach to innovation and advancing sustainable solutions through SABIC Integrated Annual Report.

Principle 10 -Work against corruption in all its forms, including extortion and bribery

In order to stay abreast of the latest regulatory developments, to have a broader perspective, learn best practices, and in some cases, act collectively to impact change, we work closely with external organizations that lead on important compliance issues. 

Since 2013, SABIC has participated in the annual G20/B20 policy process on anti-corruption. Under our leadership of the Saudi B20 Integrity and Compliance Task Force, an anti-bribery training and mentorship program was initiated for female entrepreneurs and those working in small and medium-sized enterprises. The program gained significant attention from numerous organizations that work against corruption, including the OECD, UN Development Program, and the World Bank Group. These organizations are taking this program forward amongst their constituencies. 

Building compliance capacity in our business environment is important to our customers, suppliers and other third parties. They are not satisfied with just knowing what SABIC is doing internally, but want to have visibility over the entire supply chain and know that these are free of corruption, forced and child labor, environmental violations and other elements. In 2021, SABIC launched a comprehensive compliance-training program for third party business partners including suppliers, distributors and contract workers. Through this online, local-language training, we are able to ensure that our third parties have a grounding in the compliance concepts that we adhere to.