Galfar Engineering & Contracting SAOG
Climate Impact & Sustainability Data (2020, 2023)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Omanization
- Corporate Social Responsibility
- Health, Safety, and Environment (HSE)
Environmental Achievements
- Maintained HSE certifications (ISO 9001:2015, ISO/TS 29001:2010, OHSAS 18001:2007, ISO 14001:2015) demonstrating commitment to environmental management.
Social Achievements
- Largest employer of Omani nationals in the private sector, leading in Omanization within the construction industry. Employed over 4000 Omani nationals.
- Contributed to local communities at project sites and supported innovation and safety campaigns.
Governance Achievements
- Implemented a Transformation Strategy with six focus areas: restructuring, efficiency, financial improvements, diversification, technology, and reputation.
- Complied with the principles of the Code of Corporate Governance and had no penalties imposed.
Climate Goals & Targets
Long-term Goals:
- Align with Oman’s Vision 2040 for sustainable development and technological advancement.
Medium-term Goals:
- Further strengthen financial position by winning new contracts.
Short-term Goals:
- Achieve positive return from existing order book (RO 370 million).
Environmental Challenges
- Net loss of RO 28.3 million (2019: RO 6.2 million) due to COVID-19 pandemic, project delays, and cost overruns.
- Liquidity issues due to delays in payments from government entities (RO 64 million in unpaid receivables).
- Challenges in attracting experienced Omani nationals and retaining expatriate workforce due to higher salaries in other countries.
Mitigation Strategies
- Implemented measures to control manpower and overhead expenses.
- Implemented a turnaround strategy.
- Exploring avenues to strengthen financial position and improve liquidity.
- Evaluating options for financial restructuring.
- Actively involved in risk management and frequent review of project progress.
- Continued commitment to employing Omani nationals (recruited nearly 100 in 2020).
Supply Chain Management
Responsible Procurement
- Procured goods in Oman for RO 37 million and subcontracts for RO 51 million.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: IFRS
Certifications: ISO 9001:2015, ISO/TS 29001:2010, OHSAS 18001:2007, ISO 14001:2015
Third-party Assurance: Abu Timam Grant Thornton
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Quality
- Health, Safety, Security, and Environment (HSSE)
- Road Safety
- Drugs and Alcohol
Climate Goals & Targets
Environmental Challenges
- Road Traffic Accidents
- Drug and Alcohol abuse in the workplace
Mitigation Strategies
- Appropriate control measures and continual communication
- Surprise checks, random and periodic alcohol breath tests
- Disciplinary measures against non-compliance
- Immediate dismissal for driving under the influence
- Support for employees with alcohol or drug dependency