Climate Change Data

Desert Control AS

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Water conservation
  • Soil health
  • Biodiversity
  • Climate change mitigation
  • Sustainable agriculture

Environmental Achievements

  • Reduced water usage by 46% while increasing yield by 8% and gaining >20% increase in fruit quality in date palm cultivation.
  • Positive results from collaboration with the University of Arizona showing potential for reduced irrigation frequency, increased lateral movement of water in the soil profile, and promising potential for fertilizer savings.

Social Achievements

  • Established an office in Yuma, Arizona to accelerate commercialization.
  • Strengthened management team improves the organizational scalability for future growth.
  • 17 employees in Mawarid Desert Control, including seconded personnel.

Governance Achievements

  • Restructuring of UAE entity increases efficiency and lowers operational cost.
  • Transitioning to an indirect business model in the UAE allows for shifting resources to accelerate the activity in the U.S.

Climate Goals & Targets

Long-term Goals:
  • Establish a Sub-Sahara social impact initiative by 2025 to reduce poverty and hunger
Medium-term Goals:
  • Reclaim 100 million hectares of degraded land and desert by 2030
Short-term Goals:
  • Execute and deliver a successful pre-project with Limoneira
  • Develop the pipeline to secure additional pre-projects with new clients in the US
  • Fully implement Desert Control Middle East as an LNC production company with MDC as its sole off-taker, and empower MDC as the exclusive sales and distribution partner in the UAE
  • Support training of the newly hired MDC sales team to ensure sales effectiveness
  • Execute and deliver a successful MDC pre-project for the strategic food security company
  • Support development of MDC pipeline to secure additional pre-projects with new clients in the UAE
  • Prepare the next stage for the Amarenco Group MoU (anticipated H1-2023)

Environmental Challenges

  • Initial challenges in operationalizing the Mawarid partnership in the UAE.
  • Need to accelerate commercialization in the US market.
Mitigation Strategies
  • Restructured UAE entity to fully implement the indirect go-to-market model through the Mawarid partnership with significant cost-efficiency gains for Desert Control.
  • Launched a recruitment campaign for salespeople in Q3 2022 to accelerate commercialization in the US.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts
Opportunities
  • Development of climate-smart agriculture solutions

UN Sustainable Development Goals

  • SDG 2: Zero Hunger
  • SDG 6: Clean Water and Sanitation
  • SDG 13: Climate Action
  • SDG 15: Life on Land

LNC contributes to these goals by reducing water consumption, increasing crop yields, restoring degraded land, and improving soil health.

Sustainable Products & Innovation

  • Liquid Natural Clay (LNC)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Human rights
  • Decent working conditions
  • Environmental sustainability
  • Responsible business conduct

Environmental Achievements

  • Not disclosed

Social Achievements

  • Developed a comprehensive set of guidelines for employees, vendors, and partners to ensure minimal negative impact on ESG matters.
  • Achieved a sustainability score of 78/100 in Factlines self-assessment based on UN Global Compact risk score.

Governance Achievements

  • Assigned responsibility for implementation and monitoring of compliance with guidelines to the CFO.
  • Established a Third-Party Code of Conduct outlining expectations regarding human rights and respectful work environment for vendors and partners.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce the number of suppliers by end of 2024.
  • Develop a procurement policy addressing human rights and the environment by end of 2024.
  • Ensure all vendors have signed the Third-Party Code of Conduct by end of 2024.

Environmental Challenges

  • Lack of ethical guidelines among some suppliers.
  • Lack of systems and routines for supplier risk assessment and monitoring of human rights violations among some suppliers.
  • Lack of systems for measuring and following up on environmental impact among some suppliers.
Mitigation Strategies
  • Conducting due diligence assessments before engaging new suppliers.
  • Evaluating the need for a procurement policy addressing human rights and the environment.
  • Conducting regular supplier surveys and publishing results.
  • Ensuring all vendors sign the Third-Party Code of Conduct.
  • Including the Third-Party Code of Conduct in supplier negotiations.
  • Evaluating the need for systematic measurement of CO2 emissions.
  • Following up with suppliers regarding identified areas for improvement.

Supply Chain Management

Supplier Audits: 56% response rate to supplier survey

Responsible Procurement
  • Third-Party Code of Conduct
  • Supplier self-assessments based on UN Global Compact requirements and OECD guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: OECD Guidelines, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Liquid Natural Clay (LNC)

Awards & Recognition

  • Not disclosed