This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Saudi Cement is a major producer of cement and clinker, a core material for construction in Saudi Arabia and a globally recognized high-emissions industrial sector. The Transition Pathway Initiative (TPI) assesses corporate climate performance against the Paris Agreement goals. According to TPI's Carbon Performance assessment, Saudi Cement's current and projected emissions trajectory is misaligned with the international goal of limiting warming to well below 2°C. The company's decarbonization strategy lacks the ambition and specificity required for a heavy industrial emitter in a region facing acute climate risks.
Saudi Cement Company (Arabian Cement) operates a major cement manufacturing facility in Rabigh, Saudi Arabia. The cement production process is inherently resource-intensive and polluting, involving the quarrying of limestone, high-temperature kiln operations, and significant emissions of dust and other particulates. While the company's 2023 ESG report outlines environmental management systems and commitments, the fundamental nature of its business involves substantial local environmental impacts, including landscape alteration from quarrying and the risk of soil and water contamination from industrial operations.
The company's operations are situated in a region facing acute water scarcity. Cement manufacturing requires significant water for cooling and dust suppression, placing strain on local water resources. The 2023 report notes the company's efforts to monitor and manage its environmental footprint, but does not disclose any major environmental penalties or remediation liabilities. The exclusion is based on the inherent and documented environmental damage caused by large-scale cement production as a core business activity, a sectoral characteristic that places it in conflict with environmental stewardship principles.
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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