Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social Responsibility

Environmental Achievements

• Introduction of energy-efficient lighting solutions and fixtures across all 74 stores.
• Danube carrier bags made from biodegradable plastic.
• Initiatives to further reduce the use of single-use carrier bags.

Social Achievements

• Significantly increased security and cleaning at all 74 sites and introduced social distancing, hygiene measures and larger layouts.
• Improved online transaction experience.
• Rolled out four major investments in technology infrastructure.
• Areas under consideration are support for organic farming and providing supermarket access to businesses started by young entrepreneurs.

Governance Achievements

• Detailed training sessions on corporate governance delivered to Board of Directors and senior management.
• Independent assessment on all Executive Board members and key management personnel in 2019.
• Formation of the Corporate Governance Committee and approval of its charter in Q1 FY 2021.
• Whistleblowing policy under review and approval by the Board of Directors in 2021.

Climate Goals & Targets

Environmental Challenges

• Challenging trading environment in the second half of 2020 due to reduced pilgrim inflow because of travel restrictions imposed on account of the pandemic.
• Significant reduction in promotional campaigns to adhere to social distancing norms and the absence of the important back to school season following the introduction of e-learning.
• Decrease in BinDawood sales due to reduction in number of pilgrims, absence of Umrah, Hajj and Ramadan seasons, store restrictions in Makkah and Madinah area, change in customer buying trends, absence of Back to School season and year-end and food festival promotions, and steep increase in VAT.
• Loss of festival and promotional campaigns due to government health and safety social distancing regulations.

Mitigation Strategies

• Conscious management decision to achieve operational efficiencies, resulting in reduction in shrinkage and wastage.
• Covid related health and safety, hygiene and procurement expenses were largely offset by utility subsidies and waiver of certain bank charges.
• Continued focus on efficiently managing operating expenses at the store level and the corporate level, including introducing the latest technology and digitisation measures.
• New strategies to expand delivery areas and logistics infrastructure to enhance and expand the omnichannel experience.

Supply Chain Management

Responsible Procurement

• Strong relationships with 25 large, strategic key suppliers.

Climate-Related Risks & Opportunities

Awards & Recognition

• Shortlist: Danube Online, Retail Transformation and Reinvention Award, World Retail Congress Awards, 2020
• Most Admired Online Retailer, KSA, from the Retail Middle East Awards (April 2019)
• Most Admired F&B Retailer, KSA, by the Retail Middle East Awards (November 2018)
• Digital Transformation of the Year award at the IDG Awards in 2019
• Shortlist: Most Notable Listing, Tadawul, 2020

Environmental Metrics

ESG Focus Areas

• Governance
• Social Responsibility (CSR)

Social Achievements

• Shortlisted in the ‘Accelerating Diversity in Retail’ category at the World Retail Awards for championing women in retail.
• Organized a blood donation campaign for employees in cooperation with King Abdulaziz University Hospital.

Governance Achievements

• Achieved full compliance with the Corporate Governance Regulations issued by the Capital Market Authority (CMA).
• Developed a Company ‘Whistleblowing Policy’.
• Developed a ‘Governance Committee Charter’.
• Developed a ‘Remuneration Philosophy’ and a ‘Remuneration Policy’ for the BOD, Committee Members and Executive Management.
• Developed a ‘Related Party Transaction’ Policy.
• Developed a policy for ‘Regulating the Relationship with Stakeholders’.

Climate Goals & Targets

Environmental Challenges

• Interruptions/outages in the Company’s IT network or cloud systems
• Supply chain disruption
• Availability of good locations for expansion
• Disruption to traditional brick and mortar business due to the shift to online shopping
• Product liability

Mitigation Strategies

• Designated IT team monitors transactions with backup service; restructuring IT Department for stronger controls; external IT security assessment by PwC.
• Maintaining strong supplier relationships, sophisticated inventory management system, flexible sourcing, logistics, and warehousing solutions (two central refrigerated warehouses).
• Relationships with leading real estate developers; full-fledged department for identifying and developing new stores; proven methodology for assessing new store viability.
• Acquired majority interest in IATC (online platform operator); planned investment in dark stores and fulfillment centers.
• Stringent quality controls; supplier liability for defective products.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Shortlisted in ‘Accelerating Diversity in Retail’ category at the World Retail Awards

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Social responsibility
• Governance

Environmental Achievements

• Installed LED lighting across 87 stores, reducing power consumption and CO2 emissions.
• Installed modern printers at Head Office, reducing energy usage and paper/toner consumption.
• Reduced paper flyer production by approximately 40% through digitalization.
• Replaced traditional plastic shopping bags with oxo-biodegradable bags.
• Implemented waste management optimization with compactors and recycling programs for cardboard and plastic.
• Launched 'Yalla Return' program for responsible waste disposal.

Social Achievements

• Provided health check-ups and influenza vaccinations for employees.
• Offered organic and gluten-free foods and promoted a healthy lifestyle.
• Partnered with fitness centers for employee gym memberships.
• Promoted female empowerment through recruitment policies (over 800 female staff).
• Provided compliance training on whistleblowing, anti-bribery, and corruption.
• Engaged with the National Craftsmanship Association and provided training to unemployed women.
• Arranged store visits for students from 28 schools.
• Implemented an employee stock option plan (ESOP).

Governance Achievements

• Completed a five-year strategic plan.
• Finalized a Corporate Governance Roadmap, Board and Committees Evaluation Report, and Risk Management Plan.
• Strengthened governance, risk management, and compliance.
• Reduced related party transactions.
• Conducted a Board effectiveness review by Governance Compass.

Climate Goals & Targets

Environmental Challenges

• IT network or cloud system interruptions/outages.
• Supply chain disruptions (import reliance).
• Securing good store locations while minimizing cannibalization.
• Shift to online shopping impacting brick-and-mortar business.
• Product liability risks.
• Human capital risks (complacency, turnover, fraud, workplace events, negligent hiring).

Mitigation Strategies

• Dedicated IT team with backup service and stringent controls.
• Strong supplier relationships, sophisticated inventory management, flexible sourcing, centralized logistics.
• Relationships with real estate developers, proven methodology for assessing new stores.
• Acquisition of IACo, expansion of dark stores, launch of automated Mega Dark Store.
• Stringent quality controls, supplier liability for defective products.
• Dedicated risk management department, policies (code of conduct, whistleblowing), training.

Supply Chain Management

Responsible Procurement

• Strong relationships with suppliers, securing priority/preference in supply.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Oxo-biodegradable shopping bags; organic and gluten-free food offerings.

Awards & Recognition

• Awards for BinDawood from the General Authority for Competition and for Danube in connection with Red Sea Mall in Jeddah.
• Danube's 'Most Admired Collaboration of the Year' at the Retail Middle East Awards.