Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Quality of Life
• Mental Health

Environmental Achievements

• All clubs are designed to meet LEED certifications. The company is the only fitness club operator in the GCC Region to achieve such a rating.

Social Achievements

• Commitment to Saudi Vision 2030 and Quality of Life Programme; providing opportunities for increased participation and physical activity; positive impacts on lifestyle diseases.
• Partnership with Minderful (UK-based mental health provider) to offer mental health options for members.

Governance Achievements

• Board approved internal Corporate Governance manual; General Assembly appointed members of the Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Short operating history
• Inability to identify and secure suitable sites for new fitness clubs
• Competition from existing and new fitness clubs
• Rising costs of maintaining existing fitness clubs
• New fitness clubs generating operating losses or lower margins
• Inability to attract or retain members
• Health and safety risks to members
• Higher membership prices and sensitivity thereof
• Concentration of revenues
• Deferred revenue
• Credit card and debit card payments
• Cash collected at fitness clubs
• Fitness clubs reaching capacity during peak hours
• Failure to execute the targeted business plan and growth strategy
• Supplier concentration
• Dependence on suppliers of sports equipment and consumables
• Outsourcing certain aspects of the supporting business
• Financing
• Fixed assets
• Real estate owned by the company
• Adverse changes in exchange rates
• Exposure to financial risks, including interest rate risk
• Inability to maintain confidentiality and integrity of member and employee data
• Impact of cybersecurity attacks
• Geographical concentration
• Outbreaks of infectious diseases
• Natural disasters
• Failure to secure adequate insurance coverage
• Availability of future financing
• Capital management and liquidity
• Litigation
• Protection of intellectual property rights
• Company’s marketing activities
• Reliance on executive management and key personnel
• Employee misconduct and errors
• Employing and sponsoring non-Saudi employees
• Related party transactions and agreements
• Engagement of directors or senior executives in competing businesses
• Potential Zakat liability and tax
• Use of accounting assumptions, estimates and judgments
• Corporate governance
• Lack of experience in managing a publicly listed joint stock company
• Non-registration of lease agreements
• Leased properties
• Licenses and approvals
• Vacancy of Director of Internal Audit and Compliance and Human Resource Manager positions
• Real estate disposal tax
• Sale of memberships through post-paid service providers
• Exit of current shareholders
• Consumer spending
• Seasonal factors
• Political instability
• High level of competition
• Changes in regulatory environment
• Changes in energy prices
• Zakat and income tax calculation mechanism changes
• Non-compliance with VAT regulations
• Increase in government fees for non-Saudi employees
• Non-compliance with Saudization requirements
• Compliance with the new Companies Law
• Unanticipated costs related to health and safety and environmental laws
• Effective control by current shareholders after the offering
• Forward-looking statements
• Absence of a prior market for the offer shares
• Selling a substantial number of shares
• Issuance of new shares
• Fluctuations in market price of shares
• Distribution of dividends
• Liquidity and fluctuations in share price
• Failure to meet requirements for transition to main market
• Desire to remain in the parallel market
• Restricting trading to qualified investors

Mitigation Strategies

• Focused network strategy
• Technology infrastructure
• Strong supplier network
• Internal project management team
• Long-term lease agreements
• Health and safety policies and procedures
• Data protection measures
• Cybersecurity investments
• Insurance policies
• Competitive compensation packages
• Internal controls and procedures
• Compliance with laws and regulations
• Corporate governance manual
• Experienced management team
• Brand guidelines
• Marketing strategy
• Preventative maintenance program
• Continuous research and development

Supply Chain Management

Responsible Procurement

• Competitive bidding process

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities

Initiatives contribute to these goals through promoting health and well-being, creating job opportunities, and developing sustainable fitness facilities.