Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased the number of recycled and reused waste
• Setting targets to increase material effectiveness
• Implementing environmental solutions in building design
• Applying new environmental technology in its masterplan communities
• Implementing water conservation strategies and targeting the optimisation of water usage
• Reused and recycled 14,000 m3 - 7,000 m3 of waste
• Adopted a paperless system

Social Achievements

• Increased the participation rate of females in the workforce to 37% in 2021 from 30% in 2020
• Increased employee and contractor work hours by 30% and 80% respectively since 2020
• 60% of employees are Saudi nationals
• Sponsored the 1st ladies football team in Jeddah
• 35% of senior management staff are female
• 6 women occupy senior management roles
• Hiring fresh Saudi national graduates from esteemed universities
• Offering training programs for new hires and real estate brokers

Governance Achievements

• 60% increase on local suppliers to reduce paper waste
• Zero incidents of corruption reported
• Zero data security breaches
• Conducted 6 emergency response drills
• Adopting best practices in corporate governance to enhance the trust and support of the local and global investment community
• 92.3% of suppliers engaged with are local suppliers

Climate Goals & Targets

Environmental Challenges

• Price fluctuation in real estate products
• Cyber-attacks and security breaches
• Country risk (investing in foreign countries)
• Project development and execution risks
• Insufficient clients due to market decline
• Health, safety, and security risks in real estate projects
• Liquidity risk
• Cost of funding
• Credit risk
• Commission rate risk

Mitigation Strategies

• Providing cost-effective products
• Expert IT staff and consultant contracts for information security
• Adequate investment studies of foreign investment opportunities
• “Stage Gate” project system for monitoring project costs, risks, and returns
• Diversifying product portfolio and using effective marketing tools
• Implementing health and safety procedures
• Maintaining sufficient liquid assets
• Avoiding short-term borrowings for long-term projects
• Dynamic cash flow assessment policy
• Monitoring changes in funding costs
• No credit terms, enhanced payment schedules for selected customers
• Holding back property delivery until full payment
• Shariah-compliant commission rate swap contract

Supply Chain Management

Supplier Audits: 92.3% of spending on local suppliers

Responsible Procurement

• Increased the ratio of Saudi nationals in the workforce to 60%

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed one of the largest 3D printed villas in the world using concrete mix, reducing construction time and concrete usage.
• Completed a second 3D printed villa of 280 sqm in 26 days.
• Adopting environmentally sustainable solutions in all new projects' concept design.
• Implementation of LED lighting with sensors for energy conservation.
• Use of smart HVAC’s and smart water meters in residential projects.
• Protection and Preservation of greenery and other plantation in our development projects in Eastern Province of Saudi Arabia & Sarajevo, Bosnia

Social Achievements

• Promoting diversity in the workforce with employees representing 16 different nationalities.
• Participation rate of female workers in the workforce is around 30% in 2022.
• More than 50% of employees are Saudi nationals.
• 36% representation of female workers in senior management.
• Around 2,500 beneficiaries benefited in 2022 from community efforts.
• Continuous sponsorship of 1st ladies’ football team in Jeddah

Governance Achievements

• Formation of a Sustainable Management Committee chaired by the Chief Financial Officer.
• Zero incidents of corruption reported.
• Zero data security breaches.
• Implementation of robust corporate governance to ensure high performance across all operations.
• Integrated sustainability into corporate governance framework.

Climate Goals & Targets

Environmental Challenges

• Price fluctuation in the real estate market.
• Country risk associated with international projects.
• Cybersecurity threats.
• Project development and execution risks.
• Market decline leading to insufficient clients.
• Health, safety, and security risks.
• Cost of funding.
• Credit risk.
• Commission rate risk.
• Liquidity risk.

Mitigation Strategies

• Providing cost-effective products.
• Undertaking adequate investment studies of foreign investment opportunities and investing in stable countries.
• Employing expert IT staff and specialist consultants to enhance information security.
• Using a “Stage Gate” project system to manage costs, risks, and returns.
• Diversifying product portfolio and using effective marketing tools.
• Implementing health and safety procedures.
• Regularly monitoring changes in the costs of funding.
• Implementing “No Credit” terms and holding back property delivery until full payment.
• Maintaining sufficient liquid assets and dynamic cash flow assessment.
• Diversifying sources of funding and using shariah’ compliant commission rate swap contract

Supply Chain Management

Supplier Audits: 86% of spending on local suppliers; local suppliers are assessed for sustainability risk assessment

Responsible Procurement

• Code of conduct policy for suppliers covering all aspects of ESG principles.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and smart buildings

Reporting Standards

Frameworks Used: Saudi VISION 2030, UN SDGs

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

The report maps the sustainability strategy against the UN SDGs.

Sustainable Products & Innovation

• 3D printed villas
• Smart buildings

Environmental Metrics

ESG Focus Areas

• Conserve resources
• Enable communities
• Develop our people
• Deliver value
• Drive technological innovation

Environmental Achievements

• Reduced direct and indirect emissions by almost 16%
• Reduced freshwater consumption by 9%
• Reduced solid waste by 21%
• Reduced non-hazardous waste by 16%

Social Achievements

• Representation of female workers in senior management improved 55% in 2023 in our residential projects
• Zero safety incidents
• Zero data breaches
• 100% return to work rate for employees returning from parental leave
• 3 cybersecurity training sessions for 336 employees

Governance Achievements

• Board comprises 33.33% independent directors
• Zero harassment cases
• Zero incidents of discrimination
• Implementation of robust governance practices and policies

Climate Goals & Targets

Environmental Challenges

• Global headwinds (pandemic impacts, supply chain issues, inflation)
• Higher interest rates
• Slowdown in residential property sales due to rising mortgage rates and existing property prices
• Cybersecurity threats

Mitigation Strategies

• Proactive reforms and resilience strategies
• Prudent economic stewardship and strategic reforms
• Disciplined approach to capital management
• Robust cybersecurity policies and systems
• Regular cybersecurity awareness programs

Supply Chain Management

Supplier Audits: 100% of suppliers assessed for sustainability risk assessment

Responsible Procurement

• Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN SDGs

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Dar Al Arkan has aligned its sustainability strategy and material topics to the UN Sustainable Development Goals - SDGs - and Saudi VISION2030.

Sustainable Products & Innovation

• 3D printed villas

Awards & Recognition

• Not disclosed