Climate Change Data

Environmental Metrics

ESG Focus Areas

• Saudization
• Women in the workforce
• Sustainability
• Vision 2030 alignment
• Technology adoption
• Quality improvement
• Waste reduction

Environmental Achievements

• Established a state-of-the-art laundry facility in King Abdullah Economic City (KAEC) with a daily capacity of 30 tonnes.
• Implemented continuous improvement methodologies to reduce production costs and improve efficiency in key production facilities.

Social Achievements

• Increased Saudization rate to approximately 29.5 percent.
• Created a special committee to address issues related to female employees and improve working conditions.
• Developed partnerships with local institutes to train and recruit graduating students.
• Implemented a Management Training Program (MTP) to develop future leaders.

Governance Achievements

• Implemented a new finance system to meet IFRS compliance and disclosure obligations.
• Established a Continuous Improvement function to enhance quality and identify new operational possibilities.
• Implemented an Oracle-based HR system to automate HR data and processes.
• Established a “five-minute service” pledge for HR-related requests.

Climate Goals & Targets

Environmental Challenges

• Pressure on margins in the core airline catering business due to market opening and client focus on cost efficiencies.
• Economic slowdown impacting airline fleet expansion and services.
• Competition in core division.

Mitigation Strategies

• Focus on selective diversification into high-potential sectors (Hajj and Umrah, retail, lounges, security, rail catering).
• Continuous improvement methodologies to reduce costs and maximize value from existing resources.
• Improved labor, material, and production needs forecasting.
• Enhanced IT systems for purchasing and receiving materials.
• Leaner, “just in time” production model.

Supply Chain Management

Responsible Procurement

• E-bidding system for suppliers.
• Centralization of procurement.
• Real-time tracking of shipments.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 9001:2008, ISO 22000:2005, HACCP, HALAL (HAB), OHSAS 18001:2007

Third-party Assurance: KPMG Al Fozan & Partners

Awards & Recognition

• Platinum Award of Excellence (2011) from MADINA.
• Five Golden Awards (2009-2013) from MADINA.
• Silver Award (2016) from MADINA.

Environmental Metrics

ESG Focus Areas

• Saudisation
• Female Employment
• Sustainability
• Social Responsibility

Environmental Achievements

• Reduced costs by SAR 31 million through efficiency measures, waste reduction, and improved production planning in In-Flight Catering.

Social Achievements

• Increased the number of Saudi female employees by almost 20%.
• Maintained Platinum level for Saudisation (over 33% Saudi nationals among employees).
• Welcomed new female members to the executive management team.
• Received a Gold Mowammah certificate for inclusive policies and workplace facilities for employees with disabilities.
• Conducted employee engagement surveys to improve communication and maximize employee engagement.
• Implemented a Young Reward Programme to recognize academic excellence among employees’ students.
• Expanded health insurance coverage to include various treatments.

Governance Achievements

• Strengthened corporate functions, especially in Business Development and Strategy.
• Strengthened risk and governance functions to ensure long-term sustainability.
• Adopted IFRS 15 and IFRS 9 accounting standards.
• Improved baggage recovery rate by 30% through Trace and Track Logistics.

Climate Goals & Targets

Environmental Challenges

• Turbulent economic climate and depressed oil prices leading to cost-cutting in the aviation industry and increased customer price sensitivity.
• Slowdown in in-flight retail growth due to global and domestic declines.
• Resourcing challenges in some businesses due to a lack of industry experience and appropriately qualified people among candidates.
• Highly competitive markets in some sectors.

Mitigation Strategies

• Focus on efficiency, quality, and cost control, supported by automated systems.
• Strategic plans to reassess retail strategy, focusing on profit and loss assessment and online platforms.
• Efficient resource management, mobilization of existing employees, and training and development programs.
• Promoting differentiated propositions and focusing on points of strength (flexibility, quality, value, innovation).

Supply Chain Management

Responsible Procurement

• Automated procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 22000:2005, HACCP, HALAL, ISO 9001:2015, OHSAS 18000, GACA R 151

Third-party Assurance: KPMG Al Fozan and Partners

Awards & Recognition

• Mercuries award (ZADI date dressings)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Saudization
• Environmental impact reduction

Environmental Achievements

• Exploring opportunities to reduce emissions and lessen the impact of operations on the environment, including the potential introduction of more electric vehicles and increased focus on food waste recycling.

Social Achievements

• Maintained robust measures to ensure the wellbeing of employees during the COVID-19 pandemic; enhanced coronavirus safety protocols; efficient communication channels with employees; continued professional development; launched a new Culinary Academy; achieved a platinum Nitaqat rating; supported new regulations concerning Saudization; increased the proportion of Saudi employees in cold and hot kitchens.

Governance Achievements

• Implemented Enterprise Risk Management (ERM) function; robust risk management and governance structures; maintained focus on cost and quality enhancements; full implementation of ERM in 2022; successful upgrade of Food Safety Management system to satisfy ISO 22000:2018 standards; first GACA R151 certification for operations at RUH, MED, and DMM; renewal of R151 at JED; external audits for ISO 9001, ISO 45001, ISO 22000, and HACCP; government audits by MOH and SFDA; external occupational health and safety audits; ISO 17025:2017 accreditation for Central Laboratory; HALAL Certification from SFDA; updated Hazard Identification Program; initiated ISO 41001:2018 certification process.

Climate Goals & Targets

Environmental Challenges

• Ongoing disruption to the global economy and travel industry; unpredictable demand patterns; supply availability barriers; manpower deficiency issues; unprecedented increases in freight costs; depressed air travel market; slow recovery in air travel; implications of the latest Covid-19 variant; fluctuations in cargo freight rates; reduced mobility affecting major tourist events; suspension of Saudi Seasons Festivals.

Mitigation Strategies

• Activated backup strategies; reduced dependency on long lead-time international suppliers; shifted to local distributors; boosted vertical alignment with suppliers; closely monitored prices; managed inflation by hedging high-risk items; recommended new items; qualified new suppliers; optimized orders and inventories; minimized storage outside SACC; implemented sales and operational planning (S&OP) processes; developed a new Procurement Policy Manual; moved forward with Procurement Centralization initiative; accelerated Supply Chain Digital Transformation program; upgraded technology capabilities; enhanced local procurement network.

Supply Chain Management

Responsible Procurement

• Developed strategies to reduce dependency on long lead-time international suppliers, shifting to local distributors; shared long-term forecasts with suppliers; closely monitored prices; implemented sales and operational planning (S&OP) processes; developed a new Procurement Policy Manual; moved forward with Procurement Centralization initiative; upgraded technology capabilities; enhanced local procurement network.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001, ISO 45001, ISO 22000, HACCP, ISO 17025:2017, HALAL

Third-party Assurance: KPMG

Sustainable Products & Innovation

• White label frozen meals range

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced paper use by 30% since Q2 2021 through company-wide digitization.
• Replaced 50 ICE lorries with electric vehicles.
• Launched project to assess carbon footprint of meal ingredients.

Social Achievements

• Support of new regulations on Saudisation of key roles and functions.
• Renewed gold status Mowaamah certificate for disability-friendly work environments.
• Commitment to community and social responsibility programs (Prince Sultan Bin Abdulaziz Development Fund, Qadroon, MOU with Eta’am).

Governance Achievements

• Implementation of Sustainability function to set a comprehensive sustainability strategy.
• Implementation of corporate governance framework.
• Implementation of Enterprise Risk Management framework.
• Business Continuity Initiative in place.
• Whistleblower policy in place.

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: ISO 22000, HACCP, HALAL (SFDA), ISO 9001, ISO14001, Mowaamah, ISO 45001, GACA R 151, ISO 17025:2017

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced paper use by 30% since Q2 2021 (company-wide digitization)
• Replaced 50 ICE lorries with electric vehicles
• Launched project to assess carbon footprint of meal ingredients

Social Achievements

• Support of new regulations on Saudisation of key roles and functions
• Renewed gold status Mowaamah certificate for disability-friendly work environments
• Commitment to community and social responsibility programs (Prince Sultan Bin Abdulaziz Development Fund, Qadroon, MOU with Eta’am)

Governance Achievements

• Implementation of Sustainability function to set a comprehensive sustainability strategy
• Implementation of corporate governance framework
• Implementation of Enterprise Risk Management framework
• Business Continuity Initiative in place
• Whistleblower policy in place

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: ISO 22000, HACCP, HALAL (SFDA), ISO 9001, ISO14001, Mowaamah, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed