Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Cultural

Environmental Achievements

• Reduced CO2-equivalent emissions by 60,000 tons through compost production
• Increased average yield of raw cotton by almost 30% to 1,220 kg per acre
• Reduced the use of synthetic pesticides in Egypt by over 90%

Social Achievements

• Transferred 170% more financial support to the SEKEM Development Foundation (SDF) in 2007 than in 2006
• Improved the overall well-being of its population (HDI rose from 0.631 in 1996 to 0.723 in 2006)
• Established the Cooperative of SEKEM Employees (CSE) in 2000 to promote respect for human dignity and equality
• Implemented a Personal Performance Agreement (PPA) system for all managerial positions

Governance Achievements

• Developed a Corporate Governance Code in 2007
• Implemented an effective integrated quality management system (QMS-EMS-OHSAS-HACCP) since 2002
• Emphasizes anti-corruption strategies through clear financial and project reports

Climate Goals & Targets

Environmental Challenges

• Recruitment of a large number of new employees
• Meeting the standards of international food markets with small-scale farmers
• Rising energy prices for drying herbs and medicinal plants
• Climate change effects on coastal zones, water resources, and agriculture

Mitigation Strategies

• Investments in new buildings, assets, and personnel
• Developing the ability of small-scale farmers to meet international standards
• Developing hybrid solar dryers
• Investing in research and development of new technologies for water management, renewable energies, and waste management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair trade practices
• Long-term cultivation contracts with farmers

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise
• Temperature rise
• Water shortages

Transition Risks

• Rising energy prices

Opportunities

• Development of energy-efficient products
• Generation of CO2-emission certificates

Reporting Standards

Frameworks Used: GRI Guidelines (Level B)

Certifications: ISO 14001, OHSAS 18001, HACCP, Demeter, EU regulation EEC 2092/91, Bioswiss, ISO 22000

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Organic cotton textiles
• Organic food
• Natural medicines

Awards & Recognition

• Right Livelihood Award (2003)
• Outstanding Social Entrepreneur (Schwab Foundation, 2003)

Environmental Metrics

ESG Focus Areas

• Economic Life
• Societal Life
• Cultural Life
• Ecology

Environmental Achievements

• Reduced direct gasoline consumption by over 40%
• Reduced direct CO2 emissions by 1884 tons
• Reduced waste by about 52%
• Reduced water used for agricultural activities by 37%
• Reduced water for company and personal use by over 44%
• Reclaimed 1628 feddan (almost 684ha) of desert land

Social Achievements

• Increased employee efficiency without layoffs
• Reduced employee turnover
• Maintained supplier commitment despite difficulties in Egypt
• More than 34,000 people visited SEKEM’s Medical Center
• 74% of employees had additional health insurance
• Distributed 105 micro-credits

Governance Achievements

• 100% compliance according to ISO 18001 for Occupational Health & Safety Management System
• Each month an internal quality and sustainability audit takes place.

Climate Goals & Targets

Environmental Challenges

• Difficult economic situation in Egypt leading to reduced investments in reclaiming desert land
• Instability in Egypt
• Internal and external barriers hindering distribution

Mitigation Strategies

• Contracted a local investment bank to raise equity
• Concentrated on efficiency to maintain sales performance
• Optimized company portfolios

Supply Chain Management

Supplier Audits: 75% of suppliers cooperated for more than a year

Responsible Procurement

• Fairtrade and Demeter standards

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Economy
• Societal Life
• Cultural Life
• Ecology

Environmental Achievements

• Increased the number of animals on the farm.
• Installed the largest single solar-water pump on SEKEM’s farm in Wahat El Bahareya, replacing a diesel generator and irrigating 25 hectares of date palms.
• Decreased water usage for agriculture through maintenance and infrastructure improvements.
• Received the Land for Life Award for revitalizing dry lands through biodynamic agriculture methods and combating desertification.

Social Achievements

• Published a comprehensive Gender Strategy for a Balanced Society.
• Organized various activities to empower women.
• Hosted the Global Ecovillage Network Africa (GEN Africa) event, celebrating collaboration and the 20th anniversary of the initiative.
• Improved employee health and safety through various initiatives.

Governance Achievements

• Rethought and developed its management structure to foster autonomy and decentralization.
• Achieved debt reduction as planned.

Climate Goals & Targets

Environmental Challenges

• Various challenges faced by SEKEM’s companies since the Egyptian revolution.
• Difficult start for ATOS Pharma in 2015.
• Difficulties faced by NatureTex in the first half of 2015.
• Profit Before Tax and Profit for the Year below last year due to currency devaluation.
• Less Organic Anise Tea production due to external contaminations.

Mitigation Strategies

• Reliable partnerships and supporters helped SEKEM get back on track.
• ATOS Pharma hired a new General Manager and invested in employee training.
• NatureTex developed new product lines and supported co-workers with training and social activities.
• SEKEM focused on stability, resilience, and healthy growth.
• Developed a Self-Assessment Tool for sustainable business practices in agriculture.

Supply Chain Management

Responsible Procurement

• Fairtrade principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sustainability Flower framework

Sustainable Products & Innovation

• Chia and Quinoa

Awards & Recognition

• Land for Life Award
• Staufermedaille
• Golden Diploma from the Technical University Graz

Environmental Metrics

ESG Focus Areas

• Economic Life
• Societal Life
• Cultural Life
• Ecology

Environmental Achievements

• Reclaimed 1,628 feddan of desert land.
• Reduced CO2 emissions (details in Metrics section)
• Installed a new solar water pump reducing carbon dioxide emissions by around 50 tons per year.
• 100% of wastewater recycled and reused for tree irrigation.

Social Achievements

• Increased total amount of female workforce by +3%.
• Organized Hand in Hand training sessions for 50 women.
• Organized a five-day workshop on building a sustainable economic and life model for 20 young participants.
• Successfully completed a crowdfunding campaign raising more than 21,000 USD.

Governance Achievements

• Initiated SEKEMsophia, a process to create a resilient and agile governance structure for the future.
• Helmy Abouleish elected as a Councillor of the World Future Council.

Climate Goals & Targets

Environmental Challenges

• Challenging economic situation in Egypt (currency devaluation, inflation, reduced purchasing power).
• Rising water and air pollution impacting organic raw material sourcing.
• The passing away of SEKEM Founder Ibrahim Abouleish.

Mitigation Strategies

• Financial reorganization of SEKEM (extending long-term liabilities, working on a long-term financial strategy).
• Disseminating Biodynamic practices among farmers.
• Sourcing from new, less polluted lands (requires investments).
• Initiated SEKEMsophia to create a new governance structure.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing organic and biodynamic raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Desertification

Transition Risks

• Economic challenges in Egypt

Opportunities

• Development of sustainable agriculture and renewable energy solutions.

Reporting Standards

Frameworks Used: Null

Certifications: Demeter, Organic

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

SEKEM's activities contribute to all 17 SDGs.

Sustainable Products & Innovation

• Organic and biodynamic products, textiles, phyto-pharmaceuticals.

Awards & Recognition

• Land for Life Award 2015 (UNCCD)
• Right Livelihood Award 2003
• Special Mention Award (German Brand Award 2017) for partner People Wear Organic