Climate Change Data

Saudia Dairy and Foodstuff Company (SADAFCO)

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023-04-01 to 2023-12-31)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:86111 tCO2e/year
Scope 1 Emissions:45922 tCO2e/year
Scope 2 Emissions:40189 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:235080 MWh/year
Water Consumption:1193027 m3/year
Waste Generated:6155170 tons/year
Carbon Intensity:0.3 TCO2/MT Production

ESG Focus Areas

  • Consumer
  • Environment and Climate
  • People & Community
  • Governance

Environmental Achievements

  • Setup a photovoltaic (PV) system at Riyadh Distribution Centre (RDC) generating 226KW of power, reducing diesel usage and emissions.
  • Implemented a rooftop solar project at Jeddah Central Warehouse (JCW).
  • Increased recycling rate of non-hazardous waste to 40%
  • Reduced fuel consumption through route optimization and improved order compliance.

Social Achievements

  • Launched an e-learning platform delivering over 20,000 training hours to around 900 employees.
  • Reduced employee turnover to 13.5%
  • Increased Saudization to 38%
  • Implemented various initiatives to improve gender diversity and women's representation in management roles.
  • Community investment of USD 2.1 million to fight COVID-19.

Governance Achievements

  • Established a sustainability governance structure with a steering committee and cross-functional task force.
  • Implemented Ethicspoint, a confidential incident reporting system.
  • No compliance breaches or significant fines for environmental non-compliance.

Climate Goals & Targets

Long-term Goals:
  • Avoid any recyclable waste from reaching landfills.
  • Achieve ISO 37000:2021 certification for governance standards by FY2023-24.
Medium-term Goals:
  • Reach 100% usage of solar power generated at JCW by 2024.
  • Increase female employment to more than 10%.
Short-term Goals:
  • Reduce water intensity of production.
  • Achieve 50% recycling rate for recyclable waste.
  • Maintain attrition rate <12%.

Environmental Challenges

  • High water risk and water stress in operating areas.
  • GHG emissions from grid electricity, LPG, and diesel used in transportation.
  • Packaging waste generated from products.
  • Need to increase the pace of energy and climate actions to meet global goals.
  • Low representation of Saudi nationals and females in senior management.
Mitigation Strategies
  • Implementing digital factory program to improve efficiency and reduce waste.
  • Exploring initiatives to reduce energy intensity and emissions, increase renewable energy usage.
  • Collaborating with Tetra Pak for sustainable packaging solutions and waste management.
  • Developing a robust GHG emission inventory to track progress.
  • Partnering with local institutes for training and skill development to increase Saudization.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • ISO accreditation (Food safety management system) is a basic requirement for supplier selection.

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts and flooding
Transition Risks
  • Regulatory changes
Opportunities
  • Utilizing solar power

Reporting Standards

Frameworks Used: GRI Standards – Core option

Certifications: ISO 22000:2018, ISO 14001:2015, ISO 45000:2018, Halal certified, ISO/IEC 27001:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • 1, 2, 7, 12, 13, 16, 17, 19, 20, 24, 25, 26, 27, 30, 34

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Oat milk
  • Reduced sodium and low sugar products
  • Calcium-enriched low-fat milk
  • Low-fat milk with cholesterol-reducing plant sterols
  • Soy milk

Awards & Recognition

  • GreenBox Contribution Certificate

Reporting Period: 2023-04-01 to 2023-12-31

Environmental Metrics

Total Carbon Emissions:61223 tCO2e (pro-rated for 9 months)
Scope 1 Emissions:33,839 tCO2e
Scope 2 Emissions:37,391 tCO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:670.5 TJ
Water Consumption:953,005 Liters
Waste Generated:2,463,374 kg
Carbon Intensity:0.2 tCO2/MT Production

ESG Focus Areas

  • Governance
  • Consumer
  • Community
  • Environment & Climate

Environmental Achievements

  • Achieved a 94% waste recycle rate in 2023
  • Reduced milk factory water consumption ratio (WCR) by 17%
  • Saved 122 million liters of water
  • Reduced average COD (Chemical Oxygen Demand) by 4%
  • 14% reduction in plastic use in packaging over the last few years
  • GHG saving up to 2.1 million KG/year in CO2 emissions from replacing steam boilers

Social Achievements

  • Reduced employee turnover to 8% in 2023
  • 65% reduction in work-related injuries
  • Spent SAR 254,712 on community activities
  • Educated 1.3 million kids on healthy food
  • Launched a culinary collection featuring products that are 100% natural and free from preservatives

Governance Achievements

  • 100% of employees signed the code of conduct
  • Zero cases of corruption, anti-competitive behavior, and anti-trust during the SFY
  • No significant regulatory non-compliance or fines paid
  • Implemented the personal data protection policy

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2060
Medium-term Goals:
  • Achieve zero wastewater discharge into municipal systems from its Jeddah ice cream and milk factory by 2027
  • Decarbonize entire fleet by 2045
Short-term Goals:
  • Reduce water consumption, achieve desired effluent quality, and maintain continuous compliance with regulatory standards on water by 2024
  • Implement ISO 37001:2021 governance standards by 2024
  • Complete Digital Factory program by 2024
  • Reduce added sugar by 30% in flavored milk and salt by 20% in snacks by 2030
  • Achieve female employment of more than 35% by 2030
  • Collect and reuse 80% of pallets used in material transport by 2024
  • Operate Jeddah Central Warehouse (JCW) 100% on solar power before the end of next year
  • Offset up to 40% of its grid-based electricity consumption with solar power across depots and factories in KSA by the end of 2024

Environmental Challenges

  • Fluctuating demand from shifting consumer preferences
  • Logistical hurdles affecting distribution efficiency
  • Import dependence exposing vulnerability to global supply chain disruptions and currency fluctuations
  • Competition from non-dairy alternatives
  • High overall water risk in Saudi Arabia
  • Non-availability of EV charging stations in the country
Mitigation Strategies
  • Developed a multi-phased “Fleet Decarbonization Roadmap” to be implemented by 2045
  • Procurement of the first Frozen EV in the Middle East
  • Collaboration with NTSC to install EV charging stations
  • Implementing a digital route-to-market strategy to optimize routes and reduce fuel consumption
  • Implementing a water-cooling system to reduce water consumption
  • Evaluating the possibility to utilize treated effluent in agricultural applications
  • Evaluating the possibility of installing a water treatment plant

Supply Chain Management

Supplier Audits: Physical review and audit of some key raw material suppliers

Responsible Procurement
  • Code of Business Principles for suppliers encompassing environmental, social, and governance (ESG) aspects

Climate-Related Risks & Opportunities

Physical Risks
  • Disruption in fresh water supplies
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
  • Supply chain disruptions
Opportunities
  • Development of energy-efficient products
  • Increased usage of renewables

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), UN Sustainable Development Goals (SDGs), National Transformation Program (NTP)

Certifications: ISO 22000:2018 (Food Safety), ISO 14001:2015 (Environment), ISO 45000:2018 (Occupational Health & Safety), ISO/IEC 27001:2013 (Information Security)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Aligned with the United Nations Sustainable Development Goals (SDGs) and the National Transformation Program (NTP)

Sustainable Products & Innovation

  • New non-dairy options (coconut and almond drinks)
  • 21 new products
  • Mezete by Saudia Range Products (natural and preservative-free)

Awards & Recognition

  • Best place to work recognition