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