Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Environmental Responsibility

Social Achievements

• Continued to obtain ISO quality certification for their products, including ISO 9001 and ISO 22000 certificates as well as BRC (British) food quality certification.

Governance Achievements

• Updating the governance regulation in its second version.
• The third version of the governance regulations of Takween Advanced Industries Company was approved.
• Members of the Board of Directors were elected for the third three-year term.
• Establishment of a marketing branch for the Company in Dubai Free Zone, United Arab Emirates.

Climate Goals & Targets

Environmental Challenges

• Delay in customer orders in the first quarter of 2016.
• Decline of the Egyptian currency after the Egyptian Pound flotation decision.
• Increase in fuel, water, and power prices.
• Risks of group’s inability to execute its expansion and implementation strategy.
• Non-availability of capitals required for financing Company plans, business and investments.
• Reliance on financing and credit facilities.
• Risks relating to transportation.
• Clients concentration risks.
• Risks of reliance on main suppliers.
• Non-fulfillment of contractual obligations by third parties.
• Risks relating to machinery and equipment.
• Risks of Company inability to cope with the technological advancements.
• Risks relating to instability of prices of raw materials, energy and water.
• Risks relating to cessation or suspension of governmental subsidy supporting the industrial sector in the Kingdom.
• Risks relating to operational systems and information technology.
• Risks of increase of doubtful debts.
• Risks of variances in the amounts of due Zakat and tax.
• Risks of reliance on transactions with related parties.
• Risks related to insurance coverage adequacy.
• Risk relating to fluctuations in currency exchange rates.
• Risks relating to transfer of New Marina earnings from Egypt abroad.
• Risks relating to local and international economy.
• Risks relating to changes in the plastic industries market.
• Risks relating to the Kingdom’s access to World Trade Organization.
• Risks relating to competition.
• Risks relating to amendment of laws and regulations.
• Risks relating to Environmental Laws and Standards.
• Risks of withdrawal of the industrial license.
• Risks of non-compliance with the new laws and procedures.
• Risks of inefficiency of anti-dishonesty, theft and fraud internal controls.
• Risks relating to importation and exportation.
• Risks of inability to comply with the Saudization requirements.
• Risks relating to expatriate staff.
• Proceedings and Litigation.
• Risks relating to agreements which are subject to foreign laws and jurisdiction of foreign courts or international arbitration.

Mitigation Strategies

• Procedures for the amendment of ownership of Al Sharq Plastic Industries Company and New Marina Plastic Products Company were finalized.
• Transfer of the main commercial registration of Saudi Plastic Packaging Systems Company was completed.
• Complete renovation of the Company’s factory in Al Oyoun.
• Transfer of Ultrapak Factory equipment from Jeddah to Al Ahsa.
• Appointing Al Aql Al Modabber for Administrative Consultations to work with an in-house team to carry out the conversion plan to IFRS.
• Establishment of a marketing branch in Dubai.
• Subscription in the rights issue of 60,000,000 was completed.
• Commercial license was issued by the Dubai Government.
• Reappointment of Mr. Abdullah Bin Mohammed Al-Othman as Chairman of the Board, Mr. Abdulmohsen Bin Mohammed Al-Othman as the Managing Director, Mr. Ahmed Ali Al Zayyat as the Corporate Secretary.
• Formation of the Audit Committee, the Nominations and Remuneration Committee, the Executive Committee and the Investment Committee.
• Amendment of the Company’s new Articles of Association.
• Continued obtaining ISO quality certification.
• Acquisition of Plastico.
• Expansion plans for all plants to increase production capacity.
• Focus on R&D activity.
• Risk management and availing itself of international expertise.
• Development of the international accounting standards implementation plan.
• Raising capital for New Marina Company in Egypt.
• Precautionary measures to meet the decline of the Egyptian currency.
• Provision to meet the increase in fuel, water, and power prices.
• Establishment of the Risks and Compliance and Legal Affairs Department.
• Development of plans and procedures to apply the risk management and compliance control process.
• Taking necessary steps to control any risks of non-compliance with the laws and regulations.
• Taking necessary corrective measures for risks classified as high or medium risks.
• Coordination between the Risks and Compliance Department and Internal Control.
• Updating of policies and procedures.
• Updating governance policies and procedures.

Supply Chain Management

Climate-Related Risks & Opportunities