Climate Change Data

Saudi Ground Services Company

Climate Impact & Sustainability Data (2021)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • Safety
  • Saudisation

Environmental Achievements

  • Participation in Earth Hour global initiative to remind people of the importance of rationalizing electricity consumption

Social Achievements

  • Achieved a Saudisation rate of 82%
  • Graduated the first batch of students from The Ground Services Diploma, in collaboration with the Faculty of Tourism at King Abdulaziz University
  • Expanded the scope of operations by providing services to “Saudi Cruise”
  • Awareness-raising events (Autism Awareness Month, Blood donation campaigns, Breast Cancer Awareness month)
  • Coordination with Nama charity to collect Zakat Al-Fitr

Governance Achievements

  • Amendment to the Procurement Policy Manual
  • Appointment of Mr. Raed Bin Hassan Al-Idrisi as the Chief Executive Officer
  • Contract with Bupa Arabia for Cooperative Insurance Company to provide medical insurance services to employees

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic impact on the aviation sector causing travel disruption
  • Risks of insufficient liquidity to meet operational obligations
  • Concentration of 86% of the company’s revenues in 20 customers
  • Risks of accidents and injuries in the airport environment
  • Equipment depreciation and replacement
  • Credit risk
  • Risks of delayed payment and non-payment
  • Cybersecurity risks
  • Risks of change in laws and regulations
  • Reputational risk
Mitigation Strategies
  • Established clear frameworks based on an assessment of operational and financial prospects to overcome the crisis with the lowest losses, while considering to reduce and maintain costs
  • Strategy for growth and diversification of sources of income by investing in several technical projects
  • Maintaining a high balance of cash assets and managing them appropriately
  • Regular audits of outstanding receivables of customers and collecting appropriate guarantees
  • Taking statutory and contractual actions to ensure preservation of the Company’s rights in case of non-payment
  • Continuous audits and monitoring of cybersecurity policy activities
  • Renewed contracts for periods of between three to five years for major customers
  • Conducting training courses and education programs for employees and organizing workshops
  • Regular reviews to ensure proper implementation of policies and procedures
  • Signed a joint venture agreement with the French TLD Group to provide competitive services at all Kingdom’s airports in digitalization and maintenance of specialized equipment

Supply Chain Management

Climate-Related Risks & Opportunities