Najran Cement Company
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Renewable Energy Share:25% of total power requirement
ESG Focus Areas
- Environmental safety
- Social contributions
- Saudization
Environmental Achievements
- Installed a waste heat recovery-based power plant, generating 25% of the factory's power requirement and reducing CO2 emissions
- Installed online monitoring system for continuous monitoring of emissions from production facilities
Social Achievements
- Made cash and in-kind donations to charitable and social activities in Najran
- Maintained platinum category in the Nitaqat Saudization program
Governance Achievements
- Implemented a robust risk management system
- Established a fully owned subsidiary for transportation (Wasl Janub Land Transportation Company), doubling its fleet size in 2023
Climate Goals & Targets
Environmental Challenges
- Decreased cement demand in the Saudi market (7% decrease)
- Increased competition leading to pressure on selling prices and reduced profit margins
- Global and local inflationary pressures due to supply chain disruptions
- Higher freight and transport costs
- Higher costs and fees for expatriate employment
- Higher export costs
- Political conditions in the Najran border region
Mitigation Strategies
- Continued efforts to rationalize expenses and raise production efficiency
- Established a fully owned transportation subsidiary to reduce operational costs
- Maintained production cost per ton despite inflationary pressures
- Developed a training plan for Saudi employees to assume larger roles
- Adopted the “Your Voice is Heard” initiative to improve the work environment
- Maintained sufficient clinker stock to meet any surge in demand