Climate Change Data

Almarai Company

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:2,632,101 tCO2e/year
Scope 1 Emissions:794,241 tCO2e/year
Scope 2 Emissions:984,406 tCO2e/year
Scope 3 Emissions:853,454 tCO2e/year
Renewable Energy Share:2.3% of total energy use
Total Energy Consumption:1,863,645 thousand kWh/year
Water Consumption:11,049,898 m3/year
Waste Generated:157,780 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Increased water recycling and reuse from 18.3% in 2018 to 21% in 2021
  • Reduced waste sent to landfill from 70% in 2018 to 53% in 2021
  • Increased percentage of electricity consumption from solar from 0.2% in 2018 to 2.3% in 2021

Social Achievements

  • Reduced employee lost-time injuries from 256 in 2018 to 228 in 2021
  • Increased hours of employee health and safety training from 155,320 in 2018 to 167,915 in 2021
  • Reduced employee absenteeism rate from 6.5% in 2018 to 3.1% in 2021
  • Increased number of FSSC 22000 certified plants from 1 in 2018 to 3 in 2021
  • Increased number of GFSI certified plants from 1 in 2018 to 12 in 2021

Governance Achievements

  • 100% of significant product categories covered by and assessed for compliance with product information and labeling procedures in 2021
  • 100% of products which health and safety impacts are assessed for improvement in 2021
  • Zero incidents of non-compliance with laws, regulations, and adherence with voluntary standards related to transportation, handling, and slaughter practices for live terrestrial and aquatic mammals in 2021

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: FSSC 22000, GFSI

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:8.4%

ESG Focus Areas

  • Nutrition and wellbeing
  • Health and safety
  • Employee talent and diversity
  • Community investment
  • Water management
  • Packaging innovation
  • Climate change
  • Waste management
  • Sustainable agriculture
  • Quality and food safety
  • Animal welfare
  • Ethical sourcing

Environmental Achievements

  • Achieved ISO 14001 Environmental Management System certification in Farming, Sales, Distribution, and Poultry sectors.
  • Reduced waste going to landfill to 55% compared to 70% in 2018.
  • Recycled 50% more waste compared to 2022.
  • Increased food waste sold to animal feed by 45%.
  • Increased the share of electricity from clean energy sources to 8.4%.

Social Achievements

  • Supported nearly 400 organizations through donations and sponsorships.
  • Distributed over 1,000,000 complimentary products to beneficiary societies.
  • Achieved ISO 45001:2018 certification for all Business Units.
  • Invested 206,222 hours in health and safety training.
  • Reduced voluntary employee turnover to 10.2%.

Governance Achievements

  • Established robust corporate governance strategy.
  • Executive Vice President of Quality, Regulatory, Health, Safety, Security & Sustainability reports directly to CEO.
  • Updated materiality process in 2023.

Climate Goals & Targets

Short-term Goals:
  • Develop and implement a holistic plan to further enhance our nutrition and wellbeing offering by 2025
  • Achieve ISO 45001 compliance for all our divisions by 2025
  • Institute an occupational health and wellbeing program accessible to all employees by 2025
  • Ensure gender equality in our workforce by 2025
  • Reduce voluntary employee turnover to achieve an average of 12% over the period 2020-2024
  • 90% of managers engage in at least 40 hours of professional development per year by 2025
  • Donate 2.5 million healthy servings by 2025
  • Educate 250,000 people through our site visit program by 2025
  • Improve the employability of at least 1,400 young people through the Dairy and Food Polytechnic (DFP) program by 2025
  • Increase water efficiency across our Manufacturing, Sales, Distribution and Logistics Divisions by 15% by 2025
  • Initiate and support collaborative efforts with stakeholders to address water risk and enhance conservation by 2025
  • Avoid the use of 9,000 metric tons of plastics from entering the consumer waste stream by 2025
  • Actively support the transformation of the packaging economy in KSA by 2025
  • Explore and trial alternative fuel vehicles for our sales transport fleet on an ongoing basis
  • Increase the fuel efficiency of our sales, distribution and logistics vehicles by 10% by 2025
  • 100% of our sales depot cold stores will be CFC free by 2025
  • Reduce energy consumption across our Manufacturing, Sales, Distribution and Logistics Divisions by 15% from efficiency measures by 2025
  • Increase the share of electricity from clean energy sources across our Administration, Manufacturing, Sales, Distribution and Logistics Divisions to 20% by 2025
  • Achieve ISO 50001 certification for our Administration, Manufacturing, Sales, Distribution and Logistics Divisions by 2025
  • Reduce waste going to landfill across all our divisions by 50% by 2025
  • Enhance sustainable practices on our arable farms by 2025
  • All manufacturing sites will have Global Food Safety Initiative (GFSI) recognized certification by 2025
  • All high-risk ingredient suppliers will have Global Food Safety Initiative (GFSI) recognized certification by 2025
  • Put an ethical sourcing process and audit plan in place by 2025

Environmental Challenges

  • Challenges in finding a suitable biofuel supply in regions other than UAE.
  • Supply chain disruptions (implied, not explicitly stated).
Mitigation Strategies
  • Exploring alternative fuel options for sales fleet.
  • Collaborating with suppliers to reduce their environmental footprint and ensure safe working conditions.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Risk assessments
  • Self-assessment questionnaires
  • Collaboration with suppliers on sustainability objectives and GFSI certification (74% achieved).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 45001, FSSC 22000, ISO 17025, ISO 14001 (partially)

Third-party Assurance: Intertek Saudi Arabia Ltd.

Awards & Recognition

  • Numerous awards, certifications, and rankings at local, regional, and international levels (details not provided).

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2,758,542 tCO2e/year
Scope 1 Emissions:967,266 tCO2e/year
Scope 2 Emissions:895,549 tCO2e/year
Scope 3 Emissions:895,727 tCO2e/year
Renewable Energy Share:4.0%
Water Consumption:12,913,791 m3/year
Waste Generated:232,799 tons/year

ESG Focus Areas

  • Climate Change
  • Water Management
  • Packaging Innovation
  • Waste Management
  • Sustainable Agriculture
  • Quality and Food Safety
  • Animal Welfare
  • Ethical Sourcing
  • Nutrition and Wellbeing
  • Health and Safety
  • Employee Talent and Diversity
  • Community Investment

Environmental Achievements

  • Reduced waste going to landfill across all divisions to 55% (from 70% in 2018)
  • Recycled nearly 50% more waste compared to 2022
  • Increased food waste sold to animal feed by 45% compared to 2022
  • Increased water efficiency across Manufacturing, Sales, Distribution, and Logistics Divisions
  • Removed 164 metric tons of plastics and 628 annualized metric tons of paper weight from packaging
  • 28% increase in solar energy usage from 2022
  • Sales, distribution, and logistics vehicles used 3% less fuel vs. 2021

Social Achievements

  • Supported nearly 400 organizations through sponsorships, events, campaigns, and product donations
  • Distributed over 1,000,000 complimentary products to beneficiary societies
  • Reduced voluntary employee turnover to 10.2%
  • Provided 507,551 training hours to staff
  • Implemented an occupational health and wellbeing program

Governance Achievements

  • Achieved ISO 45001:2018 for all Business Units
  • Published ESG policies and position statements on various issues
  • Obtained NSF Global Animal Wellness Standards certification for all dairy and poultry farms

Climate Goals & Targets

Short-term Goals:
  • Reduce water consumption by 15% by 2025
  • Reduce waste going to landfill by 50% by 2025
  • Avoid the use of 9,000 metric tons of plastics from entering the consumer waste stream by 2025
  • Increase the share of electricity from clean energy sources to 20% by 2025
  • Achieve ISO 50001 certification for Administration, Manufacturing, Sales, Distribution, and Logistics Divisions by 2025

Environmental Challenges

  • Challenges in finding a suitable biofuel supply in regions other than the UAE
  • Pandemic-related limitations on public access to manufacturing facilities
Mitigation Strategies
  • Exploring alternative fuel options for sales fleet
  • Resumed facility visit program after pandemic restrictions eased

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Risk assessments
  • Self-assessment questionnaires
  • Collaboration with suppliers to improve labor practices, economic resilience, agricultural methods, and ethical standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: Intertek Saudi Arabia Ltd

Awards & Recognition

  • 'Best resource use Practices: GHG Emission Reduction in Poultry' award at the InFlavour Food Production Expo
  • Numerous awards, certifications, and rankings at local, regional, and international levels