Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Safety
• Employee Well-being
• Community Engagement
• Sustainable Products

Environmental Achievements

• Zamil Central Air Conditioners factory certified for OHSAS 18001 and ISO 14001.
• BCOMS' Rockwool panels received Warrington Certification Approval, highlighting energy savings and fire safety benefits.

Social Achievements

• Zamil Industrial participated in Wadaef Job Fair 2014 to increase Saudi employment.
• Held workshop on interaction and integration of employees with disabilities.
• Implemented a Mentor and Buddy System to improve workplace integration for employees with disabilities.

Governance Achievements

• Zamil Industrial’s Internal Auditing Department conducted a fraud controls seminar for management.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: OHSAS 18001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Rockwool panels

Awards & Recognition

• Honorary shield from HRH Prince Mansour bin Miteb bin Abdulaziz for sponsorship of the National Campaign for Energy Consumption Rationalization

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Minimizing environmental impact of production plants
• Improving energy efficiency
• Conserving water
• Reducing carbon footprint
• Recycling waste materials
• Maintaining standards for air quality, sewage, potable water and noise levels

Social Achievements

• Investing in nationals of every country of operation, providing comprehensive training
• Growing number of women and people with disabilities in Saudi Arabian workforce
• Participation in charitable and social activities
• Recognition of a female production supervisor by the Ministry of Labor
• Employment and encouragement of people with disabilities
• Collaboration with Qaderoon Business Disability Network
• Active participation in Saudi Food Bank (Eta’am)

Governance Achievements

• Implementing strong corporate governance
• Observing ethical and professional standards
• Adhering to the counsel of the Capital Market Authority
• Annual assessment of company performance by the Board of Directors
• Overseeing risk management, internal controls, and asset protection

Climate Goals & Targets

Environmental Challenges

• Challenging global economic environment
• Decline in oil price impacting Saudi Arabian economic development
• Strong competition for available business
• Instability in some export markets
• Depressed economic conditions in parts of Asia

Mitigation Strategies

• Pursuing a strategy of flexibility and efficiency in customer service
• Focusing on value-enhancing business adjacencies
• Adopting alternate business models
• Expanding and diversifying through initiatives in both the public and private sectors
• Widespread marketing initiatives
• Commitment to high-performance manufacturing

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Golden Dragon award (Zamil Steel Vietnam)
• Certificate of Recognition for Excellence in Safety (United Safety Council)
• CIO 100 Award for Innovation in IT
• Israr Award 2014 (Ministry of Labor)
• Bronze Award for Corporate Safety 2015 (United Safety Council)
• Performance Excellence (Técnicas Reunidas)
• Tekla Middle East BIM Award
• Inaugural MaxChoice Power Award

Environmental Metrics

ESG Focus Areas

• Community Investment
• Employee Well-being
• Environmental Responsibility
• Corporate Governance
• Diversity and Inclusion

Environmental Achievements

• Enhanced environmental friendliness through improved coil and unit leak testing process (replacing Freon with Hydrogen)
• Designed and tested the first solar-powered chilled water fan coil unit
• Increased scrap recycling in the Insulation Sector
• Improved utility utilization in the Insulation Sector
• Implemented effective exhaust pollution control system at SRWF
• Recycled chemical liquid wastes at SRWF

Social Achievements

• Supported Eta’am (Saudi Food Bank), providing 2.4 million preserved meals to 2,670 families
• Employed 49 individuals with disabilities across various business units
• Increased Saudi national employment to 25%
• Provided 69 training courses (255 days) for employee development
• Launched two new flagship leadership development programs accredited by the ILM
• Organized social events for employees (Ramadan Iftar, Sports Fest)
• Participated in Wadaef Job Fair 2016 to recruit Saudi nationals

Governance Achievements

• Implemented International Financial Reporting Standards (IFRS) starting January 1, 2017
• Strong corporate governance practices aligned with Capital Market Authority recommendations
• Annual Board assessment of company performance, risk management, and internal controls
• Periodic audit of ITG’s ISO 20000:2011 IT Service Management Certification completed without non-conformance issues

Climate Goals & Targets

Environmental Challenges

• Adverse impact of low oil prices on business confidence and construction sector
• Strong competition and tight margins
• Economic challenges in Egypt (currency devaluation), India (economic slowdown), and Southeast Asia (sluggish growth)

Mitigation Strategies

• Contained costs and enhanced productivity
• Focused on private sector projects in Saudi Arabia
• Sustained domestic business and export growth in Egypt
• Developed new business across Southeast Asia (Vietnam)
• Updated business plans and strategies to account for economic and geopolitical changes
• Pursued opportunities arising from Saudi Arabia's Vision 2030 and National Transformation Plan

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Solar-powered chilled water fan coil unit
• Hybrid solar DX split unit (under research)

Awards & Recognition

• Best Community Development Award (Eta’am)
• Golden Dragon Award (Zamil Steel Vietnam)
• Digital Excellence Award (Oracle Executive Digital Summit)
• 2015 Bronze Award for Corporate Safety (USC)

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Corporate Governance
• Occupational Safety and Health
• Workforce Localization
• Sustainability

Environmental Achievements

• ISO 14001 Environmental Management System (EMS) certification across most subsidiaries
• Development of ResisTec®, an anti-corrosion coating for HVAC products
• Offering solar and green building solutions since 2012

Social Achievements

• Continued support of community service and development programs
• Intensified pledge to employ persons with disabilities (over 60 employed)
• Bronze category of “Mowaamah Certification” for supportive work environment for people with disabilities
• First Place Gold Award for Corporate Safety for 2017 from the United Safety Council
• Occupational Safety and Health (OSH) Champions Award for 2018

Governance Achievements

• Adherence to all mandatory provisions of corporate governance controls
• Establishment of Audit Committee and Nomination and Remuneration Committee
• Regular Board of Directors meetings and detailed reporting

Climate Goals & Targets

Environmental Challenges

• Lower domestic revenues
• Increases in the costs of raw materials
• Severe competition leading to pressure on selling prices and decreasing gross margins
• Turbulent economic climate in the region
• Fluctuating commodity and materials prices and exchange rates
• Declining support and intensifying competition

Mitigation Strategies

• Reducing expenditures
• Redirecting business to privately funded projects
• Enhancing operational expenditure-based activities
• Maintaining an effective, low-cost structure
• Considering opportunities to reduce costs and increase productivity
• Rationalizing expenditures and maximizing yields

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001, OHSAS 18001, ISO 14001, ISO/IEC 20000, Mowaamah Certification (Bronze)

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• ResisTec® anti-corrosion coating
• Solar Modules, Inverters, Batteries, LED lights and Thermal Heaters

Awards & Recognition

• Bronze Mowaamah Certification
• First Place Gold Award for Corporate Safety (2017)
• K2 Workflow Hero Award
• Occupational Safety and Health (OSH) Champions Award (2018)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social Responsibility
• Health and Safety
• Workforce Localization

Environmental Achievements

• All Zamil Industrial subsidiaries are ISO 9000 certified, and most have OHSAS 18001 and ISO 14001 certifications.
• Zamil Steel Buildings Vietnam received the Golden Dragon Award for the 17th consecutive year.
• Zamil Air Conditioning & Refrigeration Services Co. Ltd. (Zamil CoolCare) was recertified by the NEBB for testing, adjusting and balancing environmental systems.
• Zamil Steel Construction Co. Ltd. was certified by RICI Company Ltd. for meeting the requirements of ISO 9001:2015.
• Zamil Construction India Pvt. Ltd. completed all construction work without a single workplace accident resulting in a fatality.
• Zamil Steel Buildings India Pvt. Ltd. and Zamil Construction India Pvt. Ltd. were recertified for their Integrated Management System (IMS).

Social Achievements

• Zamil Industrial continued to focus on implementing initiatives that helped mitigate the impact of the Coronavirus (COVID-19) pandemic.
• Organized annual blood donation events.
• Organized the annual Health Lounge for Zamil Industrial employees.
• Organized a field trip for female students from the College of Architecture & Design.
• Participated in the HVAC-R Egypt ExpoASHRAE 2021.
• Participated in The Big 5 Construct Egypt.
• Organized the Zamil Industrial Ice Cream Day.
• Sponsored a ceremony to honor healthcare professionals.
• Organized an educational program for its employees on the early detection of breast cancer.
• Welcomed a group of information technology (IT) students from Imam Abdulrahman Bin Faisal University.
• Participated as a Bronze Sponsor in the Real Estate Development Summit-Middle East.
• Zamil Steel Buildings Vietnam actively participated in the COVID-19 vaccination campaign.
• Launched its annual seasonal influenza vaccination campaign.
• Zamil Steel Buildings India conducted a vaccination program for its employees.

Governance Achievements

• The Board of Directors was eager to carry out its responsibilities and ensure that the company’s operations followed best practices in corporate governance.
• Adhered to all mandatory provisions of the Corporate Governance Regulations.
• The Audit Committee convened (5) times during the Board’s eighth term.
• The Nomination and Remuneration Committee convened twice in 2021.

Climate Goals & Targets

Environmental Challenges

• Challenges facing the construction industry and the domestic industrial sector.
• Economic situation and market conditions.
• Decrease in sales across all sectors.
• Consequences of the coronavirus pandemic.
• Suspension of several construction sector activities.
• Decline in the value of the local currency in Egypt and India.
• Economic slowdown, new taxes, and effects of the coronavirus pandemic on global supply chains.
• Intense competition in all markets.

Mitigation Strategies

• Cost-cutting and expense-control efforts.
• Improved operating margins in the Steel and Insulation sectors.
• Decrease in financial charges and losses from discontinued operations.
• Reducing expenses to adapt to changing work environments.
• Enhancing activities and businesses that benefit from ongoing government projects.
• Relying on operating expenses rather than capital expenditures.
• Capitalizing on all available opportunities.
• Emphasis on operational and business excellence.
• Updating management systems, policies, and procedures.
• Implementing new and global digital transformation technologies.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9000, OHSAS 18001, ISO 14001, ISO/IEC 20000, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Sustainable Products & Innovation

• ResisTec® anti-corrosion coating
• Solar and green building solutions

Awards & Recognition

• Golden Dragon Award 2020–2021