HMG ESG

Our Approach

HMG is firmly committed to the principles of transparency, integrity, and exemplary governance. This commitment is led by a highly capable and ethically grounded Board of Directors and Executive Management team. As outlined in this section, our governance approach encompasses ESG oversight, ethical conduct mechanisms, sustainability-related risk management, cybersecurity protocols, and compliance and ethics. With effective governance established, HMG can focus on achieving outstanding innovation and excellence in medical technology to better serve our communities.

Governance Structure

HMG is guided by a robust leadership structure comprising of the Board of Directors, its emerging Committees and the Executive Management team. Together they are entrusted with the responsibility of upholding the Group’s policies and the interests of key stakeholders, all while driving the Group’s success and ensuring the highest standards of service delivery. Our governance structure aligns with global corporate governance standards and the regulatory requirements set by the Saudi Capital Market Authority (CMA). Responsibilities and authority are clearly delineated between the Board and the Executive, ensuring synergy that drives transparency, effectiveness and performance.

ESG Governance

We embed ESG awareness and practices at every level of our Group. We ensure that every member of the Group takes responsibility for the Group’s financial, social and environmental sustainability with due consideration for the high standard of governance and ethics that we commit to upholding. Our ESG governance structures, as well as our policies, procedures and frameworks, all contribute to the achievement of long-term sustainability.

ESG Risks and Opportunities Management

Risk management is a critical component of our continuity planning, especially for a healthcare sector, where operational resilience directly impacts patient safety and wellbeing. At the same time, shifts in the social and environmental landscape provide opportunities for HMG to advance and even leapfrog its regional and international peers.

Climate Change Risk

The Group recognizes that climate change presents both physical and transition risks to its operations. We are committed to mitigating these risks through strategic planning and adaption measures.

Risk	Mitigating Actions
Physical Risks These are the risks to our operations and facilities because of climate change.
Extreme Weather Events:	We enhance emergency preparedness protocols and optimize energy management to reduce vulnerabilities against severe weather changes and ensure a safe and stable environment for our patients across all hospitals and clinics.
Water Scarcity:	To mitigate this risk, we implement several conservation methods, including the use of condensation water for our airconditioning systems and flush tanks. For more information about HMG’s water-saving initiatives, see page 56 of this report.
Transition Risks The transition to a warmer climate brings a range of associated risks. Two key area of concern are:
Regulatory Changes and Compliance:	We aligned our ESG strategic framework with emerging policies to ensure prompt regulatory compliance and minimize financial or operational disruptions.
The Cost of Transitioning to Clean Energy:	While we remain committed to reducing reliance on conventional energy sources, we recognize that the transition to low-carbon solutions necessitates strategic planning and sustained investment. To mitigate the financial impact of this shift, we are actively working to enhance energy efficiency across our operations and exploring the adoption of renewable energy alternatives. These efforts aim to minimize future exposure to carbon pricing mechanisms and escalating energy costs, while supporting our long-term sustainability objectives.

ESG Opportunities

Innovation

Achieving and sustaining leadership in global healthcare requires a relentless pursuit of cutting-edge medical technologies, continuous process optimization, and the integration of advanced digital strategies. This approach not only drives operational efficiency but also enhances patient satisfaction and supports long-term growth.

Accessibility

In line with Saudi Vision 2030 and as part of the responsibility that HMG assumes for its communities, the Group seeks to extend greater access to healthcare for remote and vulnerable populations. Digital health solutions present a powerful tool to bridge the accessibility challenge, with HMG’s LiveCare and mobile healthcare app advancing patient care.

In 2024, HMG implemented new online check-ins to decrease waiting times, with a new WhatsApp business service for scheduling and changing appointments. We also automated our inpatient pharmacy services.

The HMG Mobile Application

The HMG app, launched in 2015, is a comprehensive digital supplement to our healthcare offering. Through the app, HMG patients can book appointments, call emergency services, make payments and view their medical reports. The Group’s LiveCare, home healthcare and pharmacy services are also available via the app, so that even remotely located patients can access medical care from the comfort of their home.

HMG e-Pharmacy

One of HMG’s 2024 highlights was the success of the new HMG e-Pharmacy as part of the Group’s broader digital health and e-commerce strategy. Launched in November 2023, the e-Pharmacy:

Expands the Group’s market
Supports customer engagement and loyalty
Provides data insights

Interactions

683,525,969

(2023: 551,814,905)

Internal Digitalization for Advanced Healthcare

Communication technology, implemented within HMG to facilitate the flow of information digitally through our telehealth solutions, also supports improved efficiency. In 2024, HMG’s Tele-stroke program received the Ada’a Health Award from the Ministry of Health, recognizing the Group as foremost in its dedication to delivering outstanding and pioneering healthcare services.

Cloud Solutions, part of the HMG Group, also helped to implement the following solutions at our hospitals:

Ara’a Survey Management System

A survey platform that collects data from employees and patients, with real-time analytics providing greater confidence and precision in decision-making.

Asset Inventory and Maintenance Management

A system that monitors and maintains critical resources effectively, ensuring maximum lifecycle value.

Radiory

A proprietary radiology information system (RIS) and picture archiving and communications system (PACS) that allows for seamless integration and data management across facilities.

Queueing Management System

A sophisticated patient queueing management system that minimizes wait times and streamlines service delivery across various patient-facing operations.

Nurse Call System

A communication system that ensures prompt response times, significantly improving care standards.

Real-Time Location Systems (RTLS)

A system that facilitates indoor navigation, staff tracking, patient tracking and asset inventory management, enabling hospitals to optimize workflows and enhance safety.

Hand Hygiene Solution

A system that promotes good hygiene practices by nurses and patients, reducing infection rates.

Infant Protection Solution

A solution that sets new standards in neonatal care security.

The HMG Innovation Growth Hub (HIGH)

The Group’s Innovation Growth Hub (HIGH), launched in 2023, provides a platform for entrepreneurs to develop and test healthcare innovations. The platform hosts cohorts of employees and SMEs that submit ideas to the HIGH competitions.

More than 1,000 employees have registered on the platform to contribute numerous ideas aimed at enhancing patient data security, preventive care, machine learning, robotics and the overall HMG brand in the market.

Artificial Intelligence Across the Group

We are increasingly leveraging Artificial Intelligence (AI) across our operations to enhance efficiency, accuracy, and decisionmaking. AI is being applied to streamline internal functions such as human resources, legal workflows, and administrative support, enabling faster processing and improved compliance. Clinically, AI is supporting areas like radiology by assisting in image analysis and diagnostics, contributing to more timely and precise patient care. These initiatives reflect our commitment to adopting responsible technology that supports both operational excellence and better health outcomes.

Regulatory Compliance

The Group operates within a complex regulatory and legislative environment. HMG is committed not only to providing patients with high-quality and caring medical services, but also to providing those services pursuant to the highest ethical, business and legal standards. As a leading healthcare provider and a benchmark in the sector, HMG maintains exemplary regulatory compliance - fostering trust and confidence among our stakeholders.

The Board of Directors has formally adopted the Group’s compliance plan, which is designed to perpetuate a culture within HMG that promotes prevention, detection and immediate resolution of instances of conduct that do not conform to all laws, regulations, policies and procedures through:

Governance and oversight

Education and training

Monitoring and auditing

Reporting and accountability

Code of Conduct

HMG’s Code of Conduct is the keystone of our commitment to integrity, honesty, respect for people and ethical decisionmaking, where it assists our employees in making the right choices on a daily basis. Our Code of Conduct upholds accountability at all organizational tiers and defines what HMG expects of its business and employees regardless of their positions. Our Code of Conduct is the foundation of our mission and core values while also being a key part of HMG’s compliance program.

Raising Concerns (Reporting Hotline)

A safe environment for reporting misconduct is key to achieving and maintaining regulatory compliance and an ethical workplace. Any employee or other stakeholder who observes unethical behavior, or an action that otherwise violates the Code of Conduct, can do so via the confidential HMG Reporting Hotline without fear of retaliation. The hotline is available 24 hours a day, seven days a week – it is also completely anonymous if the reporting individual so chooses.

Report any misconduct here

Patient Records and Data Privacy

Every patient has the right to patient-doctor confidentiality, along with the right for their personal information to be protected. This extends beyond clinical records to include medication, financial and contact information, to the Group’s institutional and employee data - all of which require stringent safeguards.

To ensure data integrity and security, HMG has implemented robust cybersecurity measures aligned with local regulations, best practice and designed to ensure the correct processing of data while preventing unauthorized access. The Group’s cybersecurity and data governance efforts are underpinned by HMG’s IT governance framework, which outlines the standards and responsibilities for managing data with integrity and transparency.

In addition to internal safeguards, HMG enforces strict data protection standards for third-party vendors and partners, ensuring alignment with the Group’s security and compliance requirements. Access to sensitive information is managed through role-based access controls, and continuous monitoring to prevent unauthorized exposure.

Cybersecurity Performance

HMG has maintained an impeccable record with zero data breaches over the last 12 years since fully transitioning to digital operations, including personal and health data, despite the high volume of cybersecurity threats faced by the Group’s safeguards every day. Risk and vulnerability assessments are effective at proactively closing gaps in HMG’s defenses.

ISO/IEC 27001

for the secure management of its data center and patient information system

ISO/IEC 20000 certification

for IT service management

data breaches reported over the past 12 years

monetary losses resulting from data security or privacy-related legal proceedings in 2024