Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Risks related to Non-compliance with the Companies Law and the Company’s Articles of Association
• Risks related to Issuance of the New Companies Law
• Risks related to Newness of Formation of the Board of Directors and Committees and Inability to Apply Governance Rules
• Risks related to Lack of Experience in Management of Listed Joint Stock Companies
• Risks related to Non-compliance with the Capital Market Law and its Implementing Regulations
• Risks of Management Decisions
• Risks related to Employee Errors or Misconduct
• Risks related to Difficulty of Hiring Experienced Employees in the Health Sector
• Credit Risks
• Risks related to the Company’s Dependence on Al-Faisaliah Group Holding Company to obtain Financing
• Liquidity Risks
• Risks related to Availability of Financing in the Future
• Risks related to the Company Accounts Payables and Notes Payable
• Risks related to Saudization Requirements
• Risks related to Natural Disasters
• Risks related to the Operation and Unexpected Interruption of Business
• Risks related to Inventory Expiry
• Risks related to Non-compliance with Quality Standards and Specifications required by Clients
• Risks related to Non-issuance or Non-renewal of Licenses, Permits and Regulatory Certificates
• Risks related to Potential Zakat Dues and Additional Claims
• Risks related to Changes in Important Accounting Standards and the New Standards
• Risks related to Relaying on Suppliers
• Risks related to International Suppliers going to work directly inside the Kingdom
• Risks related to Standardize Procurement of Medicines, and Medical Equipment and Supplies
• Risks related to the Volume of Government Spending on the Health Sector
• Risks related to Concentration of the Company’s Revenues
• Risks of Clients Concentration
• Risks related to Protection of Trademarks and Proprietary Rights
• Risks related to Lawsuits and Fines
• Risks related to Adequacy of Insurance Coverage
• Risks related to Transactions with Related Parties
• Risks related to Inability to Implement the Company’s Strategic Plan
• Risks related to Operating Systems and Information Technology
• Risks related to Government Fees Applicable to non-Saudi Employees
• Risks related to Relying on non-Saudi Employees
• Risks related to Reliance on Key Persons
• Risks related to Having only one Independent Board Member
• Risks Associated with Vacant Positions of Department Managers in the Company
• Risks related to Existing and Future Projects and their Implementation
• Risks related to the Guarantees of Government Projects
• Risks related to Memoranda of Conditions and Alliance
• Risks related to the Contingent Liabilities
• Risks related to Value-added tax (VAT)
• Risks related to the Coronavirus (COVID-19) Pandemic
• Risks related to the Economic Performance of the Kingdom
• Risks related to Political and Economic instability in the Middle East
• Risks related to the Competition Environment
• Risks of Growth Opportunities
• Risks related to Non-compliance with Existing Regulations and Laws and/or the Issuance of New Regulations and Laws
• Risks related to VAT
• Risks related to Fluctuations in Supply and Demand
• Risks Associated with the Mandatory Application of Corporate Governance Regulations
• Risks related to Withdrawal of Licenses
• Risks related to Currency Exchange Rate Fluctuations
• Risks related to Interest Rate Volatility
• Risks related to Changing the Calculation Mechanism of Zakat and Income Tax
• Risks related to the Imposition of New Fees or Taxes
• Risks related to the Actual Control by the Substantial Shareholder (Advanced Pharmaceutical Company)
• Risks related to the Liquidity of the Offer Shares
• Risks related to Limiting the Trading on Qualified Investors
• Risks related to the Lack of Previous Market of the Company’s Shares and Fluctuation of the Share Price
• Risks related to Non-distribution of Dividends
• Risks related to Selling or Offering Additional Shares in the Future
• Risks related to Selling a Large Number of Shares in the Market after the Offering Process
• Risks related to the Company not being able to Meet the Current Requirements to move to the Main Market or any Future Regulatory Requirements
• Risks related to the Company’s Desire to Continue in the Parallel Market

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001:2015, ISO 13485:2016

Third-party Assurance: KPMG Al Fozan & Partners

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental, Social, and Governance (ESG)
• Quality and Safety Management
• Environmental Relations
• Community Relationships

Environmental Achievements

• Applies a set of measures towards the environment in accordance with the relevant legislation and strives to reduce pollutants that can be harmful to human health and the environment together. Serious interest in the principle of reducing energy consumption and carbon emissions harmful to the environment.
• Obtained several international certificates for compliance with international standards of health, safety and environment (ISO 9001:2015, ISO: 13485:2016, EN ISO: 13485:2016).

Social Achievements

• Committed to implementing an advanced occupational health and safety management system to provide a safe and healthy environment for all its employees.
• Dedicated a culture of health, safety and clean environment management, in all our businesses, supply chains and partners.
• Keen to adopt responsible professional practices, guaranteeing close cooperation with society and business leaders and ensuring the support and development of community environments.

Governance Achievements

• Board of directors committed to carrying out all activities in accordance with principles consistent with TIBBIYAH’s values, considering societal interests.
• Aware of impacts of TIBBIYAH’s activities on employees, shareholders, society, stakeholders, and the environment; adherence to laws and regulations.
• Conversion to a closed joint stock company.

Climate Goals & Targets

Environmental Challenges

• Difficulty in hiring experienced staff in the healthcare sector
• Credit risk
• Liquidity risk
• Risks related to reliance on suppliers
• Risks related to standardizing the purchase of medicines, equipment and medical supplies
• Risks related to the concentration of TIBBIYAH’s revenue
• Risk relating to Customer Concentration
• Risks related to reliance on key persons
• Risks related to current and future projects and their implementation
• Risks related to the economic performance of the Kingdom
• Risks related to political and economic instability in the Middle East
• Risks to Growth Opportunities
• Risks related to currency exchange rate fluctuations
• Risks related to interest rate fluctuations

Mitigation Strategies

• Applies best practices in managing and monitoring risks through the Board of Directors and a specialized risk management team.
• Develops strategies for preparedness, advance preparation and readiness to face risks and mitigate their effects.
• Effective application of various controls, including a risk management framework, documented policies and procedures, record keeping, observation of organizational obligations, and preparation of internal and external reports.

Supply Chain Management

Climate-Related Risks & Opportunities