Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Female Empowerment
• Healthcare Awareness
• Training Future Generations

Environmental Achievements

• Installed an intelligent adiabatic cooling system, expected to drastically decrease cooling electricity consumption (estimated double-digit decrease).
• Planted 100 trees in 2022.
• Implemented paper waste management initiative with material decreases in printing and introduction of electronic forms and signatures.

Social Achievements

• Over 62% of the Group’s total staff were women in 2022.
• Two of Al Hammadi’s six c-suite executives are women.
• Participated in several world health awareness days, including campaigns for cervical cancer awareness, diabetes awareness, hypertension awareness, hepatitis awareness, and hand hygiene awareness.

Governance Achievements

• Implemented an internal corporate governance framework.
• Established an Audit Committee and a Nomination and Remuneration Committee.
• Successfully distributed SAR 200 million in cash dividends on a quarterly basis over the course of 2022.

Climate Goals & Targets

Environmental Challenges

• Rapid development in medical devices and technologies requiring periodic updates.
• High costs for attracting doctors, nursing staff, and medical personnel.
• Potential for medical errors.
• Price competition and maintaining contractual relationships.
• Cost and location of new projects.

Mitigation Strategies

• Constantly updating medical devices and equipment.
• Implementing strategies to attract and retain qualified medical and nursing staff.
• Continuous procedures in monitoring the quality of medical services provided.
• Providing distinctive medical and treatment services.
• Conducting thorough cost estimations and securing necessary financing for new projects.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption through intelligent adiabatic cooling systems
• Planted 365 trees in 2023 and plans to plant one tree per day in 2024 and beyond
• Substantial reductions in paper waste through electronic forms and signatures

Social Achievements

• Over 71% of the Group’s total staff comprised females (1,997 out of 2,805)
• Two women in the six c-suite executive positions
• Various healthcare awareness campaigns (cervical cancer, diabetes, breast cancer, breastfeeding, hygiene)
• Participation in the International Labor Market conference
• Comprehensive training program for all new staff members, including mentorship programs and lectures

Governance Achievements

• Full compliance with Capital Markets Authority’s corporate governance laws and regulations (with some exceptions noted in the report)
• Establishment of the Audit Committee and the Nomination and Remuneration Committee
• Annual review of laws governing the committees

Climate Goals & Targets

Environmental Challenges

• Decline in patient volumes due to annual reclassification process by insurance companies
• High costs for attracting doctors, nursing staff, and medical personnel
• Risk of medical errors
• Price competition
• Cost and location of new projects
• Rapid development in medical devices and technologies requiring periodic updates

Mitigation Strategies

• Strategic price hikes
• Service mix optimization focusing on more complicated and expensive procedures
• World-class in-house training and development program
• Robust collection rates and improved revenue management cycle framework
• Careful assessment of demand patterns for new facilities
• Continuous updates of medical devices and equipment

Supply Chain Management

Responsible Procurement

• Centralized procurement framework allowing large-scale negotiations with vendors

Climate-Related Risks & Opportunities