Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained ISO 14001 (Environmental Management System) certificate to improve environmental sustainability
• Launched an initiative to rationalize energy consumption and reduce carbon emissions
• Reducing the consumption of water and non-renewable resources and applying an effective system for reuse and recycling in accordance with international standards

Social Achievements

• Enabling employees to work remotely from their homes during the COVID-19 pandemic
• Reviewing and evaluating the situation of employees residing in the Company’s accommodations in terms of their housing conditions and precautionary measures during the COVID-19 pandemic
• Preparing a separate building to receive positive COVID-19 cases and imposing complete isolation while providing all necessary needs during the quarantine period
• Supplying medical tools and devices for use when necessary during the COVID-19 pandemic

Governance Achievements

• Successful IPO of the Company in the Saudi Stock Exchange as a joint stock Company
• Compliance with the stipulations of the Corporate Governance Regulations issued by the Capital Market Authority

Climate Goals & Targets

Environmental Challenges

• Adverse repercussions of Covid-19 in 2021 on the economy, leading to a decrease in the offering of projects for purchasers in oil, gas and water sectors
• Increase in the prices of raw materials and other production requirements due to the COVID-19 pandemic
• Disruptions in supply chains negatively, which led to a significant increase in shipping costs and delays in shipments of raw materials due to the COVID-19 pandemic

Mitigation Strategies

• Strategic planning prior to the pandemic, which underlined its readiness to withstand the threats and risks with efficiency and competence
• Resumption of infrastructure projects activity, leading to a strong recovery in demand for HSAW pipes
• Periodic review of all policies and procedures for all departments of the Company to reduce errors associated with operations
• Application of business continuity plans and protection during disasters and reviewing them periodically

Supply Chain Management

Responsible Procurement

• Qualification and approval of adding new suppliers through a strict qualification system that includes a comprehensive review of manufacturing capabilities and the ability to carry out the required tests and examinations

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Health and Safety
• Environmental Performance
• Community Investment
• Corporate Governance

Environmental Achievements

• Initiatives to optimize energy and resource consumption, reduce emissions, and enable the circular economy.
• Implementation of technological solutions for products related to the energy transition (gas, hydrogen, carbon storage).
• ISO 14001 certification obtained.

Social Achievements

• Contribution to the health charity, Mu'afa, for kidney patients.
• Contribution to the popular campaign to aid the Palestinian people in the Gaza Strip through the 'Sahem' platform.
• Collaboration with King Fahd University of Petroleum and Minerals to provide industrial engineering training to students.
• Ramadan food distribution campaign for the needy in cooperation with the Eastern Province Charity Association.
• Blood donation campaign for company employees in cooperation with the Ministry of Health.

Governance Achievements

• Compliance with the Corporate Governance Regulations issued by the Capital Market Authority.
• Establishment of an internal control system.
• Formation of an Audit Committee, a Nomination and Remuneration Committee, and an Executive Committee.

Climate Goals & Targets

Environmental Challenges

• Significant increase in shipping costs and delays in raw material shipments.
• Diversity of demand from various parties and keeping up with project timelines.
• Rising interest rates.
• Geopolitical tensions impacting global trade and supply chains.

Mitigation Strategies

• Focus on cost optimization and operational efficiency.
• Diversification of products and markets.
• Strengthening strategic partnerships.
• Investing in research and development to enhance product innovation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• The company works with leading steel manufacturers and has a rigorous supplier qualification system.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, API 5L, API Spec Q1, ISO 45001, ISO 14001, IEC 17025/ISO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Technological solutions for products related to the energy transition (gas, hydrogen, carbon storage).

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy and resources efficiency
• Emissions reduction
• Circular economy
• Environmental protection
• Community contribution
• Health and safety
• Social responsibility

Environmental Achievements

• Launched initiatives to rationalize energy consumption and reduce carbon emissions
• Implemented measures for water and non-renewable resource reduction, reuse, and recycling
• Established an energy management program to reduce energy consumption and carbon emissions
• Obtained ISO 14001 (Environmental Management System) certificate

Social Achievements

• Financial support to Moafa Health Association for Kidney Disease Patients
• Contribution to Saudi Relief Campaign for Palestinian People in Gaza
• Partnership with KFUPM to provide Industrial Engineering training to students
• Distribution of Ramadan Baskets for needy people
• Organization of a blood donation campaign

Governance Achievements

• Compliance with Corporate Governance Regulations issued by the Capital Market Authority
• Establishment of Audit Committee, Nominations and Remuneration Committee, and Executive Committee
• Implementation of internal governance regulations
• Annual evaluation of the Board of Directors and independence of independent members

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to increased shipping costs and lack of containers
• Diverse product demand and keeping up with project schedules
• Increased interest rates
• Geopolitical tensions affecting the global economy

Mitigation Strategies

• Investing in plants, processes, and employees to maintain manufacturing advantage
• Cost management to lead in competitive pricing
• Leveraging strong market positioning to capture a large share of project awards
• Increasing focus on selling and marketing activities
• Balance sheet optimization

Supply Chain Management

Supplier Audits: rigorous system for continuous monitoring of supplier performance

Responsible Procurement

• Comprehensive quality audit before supplier approval
• Providing suppliers with company specifications to guarantee product quality and waste reduction
• Setting carbon emission standards for steel suppliers

Climate-Related Risks & Opportunities