Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Community
• Employees
• Environment
• Sector

Environmental Achievements

• USC achieved a 21,445 tons of CO2-eq reduction in emissions.
• AFIA saved 1,012,586 liters of fuel by replacing diesel engine forklifts with electric ones.
• Panda introduced LED lamp technology at both King Abdullah Economic City and Riyadh to reduce power consumption.

Social Achievements

• Savola awarded “Great Place to Work” Certificate in 2019.
• Achieved a participation rate of 98% in the “Tawer” employee engagement program.
• +47% increase in KSA’s female workforce since 2018. In total, 1,207 women were employed by Savola.
• 6,000 people benefited from Savola’s community initiatives and contributions.
• Panda launched the “Can’t miss Initiative” for waste reduction.
• Makeen program benefited 420 people.

Governance Achievements

• Savola ranked 4th in governance and transparency by Standard & Poor’s, the Hawkamah Institute and the International Finance Corporation.
• Savola was selected among the Top 9 highest scoring companies in the Saudi Corporate Governance index.
• Savola was among the 31 companies added to MSCI (Morgan Stanley Capital International), as part of the Saudi Stock Exchange (Tadawul) inclusion into the MSCI Emerging Market Index.
• Zero fines and penalties during 2019. Full compliance with Savola CG policies, rules and Companies’ Law.

Climate Goals & Targets

Environmental Challenges

• Food waste
• Energy consumption
• Water consumption
• Waste management

Mitigation Strategies

• Negaderha program for food waste reduction
• Initiatives to improve energy efficiency across operating companies (e.g., LED lighting, replacing diesel forklifts with electric ones)
• Monitoring and management of water consumption, installation of mass flowmeters
• Waste reduction, reuse, and recycling measures across operating companies

Supply Chain Management

Supplier Audits: 14 out of 25 local factories audited (Panda)

Responsible Procurement

• Code of Conduct and Ethical Values
• Integrated social and environmental considerations into the supplier selection process
• Support for local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Saudi National Standards for Sustainability Reporting

Certifications: Great Place to Work, Mowaamah Certification-Gold, ISO 14001, ISO 45001, ISO 9001, ISO 22000, ISO 22301, BRC Global Standard for Food Safety, HACCP, Halal, AIB International Consolidated Standards for Prerequisite and Food Safety Programs, RSPO

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 17 (Partnerships for the Goals)

Savola's sustainability strategy is aligned with the SDGs, integrating them into its five strategic pillars: employees, community, sector, environment, and business.

Sustainable Products & Innovation

• Fine sugar
• Wider range of spray oils
• New specialty fat products

Awards & Recognition

• Great Place to Work
• Excellence in Customer Experience Award

Environmental Metrics

ESG Focus Areas

• Business
• Community
• People
• Environment
• Sector

Environmental Achievements

• Panda completed the installation of LED lights and Smart Thermostats for air conditioning control and energy savings in 20% of stores.
• USC reduced water consumption by 13 liters per ton of sugar produced, resulting in savings of 16,400 m³ in 2020.
• USC completed the installation and commissioning of a new 5,000 m² evaporator to reduce energy consumption.

Social Achievements

• Savola was ranked among Top 20 Great Places To Work® in the Kingdom.
• Employee retention rate reached 91% in 2020, up from 89% in 2019.
• 7% increase in female workforce
• 6,000 people benefited from Savola’s community initiatives and contributions.
• SAR 10 million in donations for COVID-19 related causes through initiatives by Panda and Savola World.

Governance Achievements

• Savola ranked in the top 10 of all non-financial companies traded on Tadawul in the Corporate Governance Index (CGI) by Al Faisal University’s Corporate Governance Center.
• Zero incidents reported for legal action regarding competition, monopoly or related outcomes in 2020.
• Zero penalties or precautionary attachments imposed on the Company by the Capital Market Authority or by any other supervisory, regulatory or judicial body.
• Zero cases of non-compliance with regard to breach or loss of customer data.

Climate Goals & Targets

Environmental Challenges

• Challenging macro-environment across our operating countries, with disruption caused both by the COVID-19 pandemic and ongoing economic reforms that threaten to undermine consumer purchasing power.
• Changing consumer behavior is affecting customer preferences and tastes in a pronounced manner, with potential implications for existing products and business models.
• Limited number of transactable assets, from the perspective of an investment holding whose key directive is to allocate capital.
• High relative valuation of food assets, in view of the scarcity of sizeable assets that fit Savola’s investment mandate, as well as other factors such as economic and business cycles, and their impacts on such assets.

Mitigation Strategies

• Swift, coordinated response leveraging Savola’s position as a key contact point with communities and enabler of food security.
• Implementation of remote working program, precautionary measures in offices and facilities, and promotion of heightened health and safety awareness.
• Introduction of new, safe channels to access products (PandaClick).
• Safeguarding critical elements of the supply chain through close monitoring of trends and restrictions.

Supply Chain Management

Responsible Procurement

• Pre-qualification and initial screening processes
• Evaluation and formal screening based on requirements and specifications
• Inspection visits and product sample testing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Saudi National Standards for Sustainability Reporting

Certifications: Mowaamah – Gold

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Savola’s strategic direction aligns with the SDGs, maximizing positive impact and addressing potential negative impacts from operations.

Sustainable Products & Innovation

• Fine sugar
• Wider range of spray oils
• New specialty fat products

Awards & Recognition

• Top 20 Great Places To Work® in KSA
• Forbes Middle East’s Top 100 companies in the Middle East (14th in KSA, 39th in the Middle East)
• Top 10 non-financial companies traded on Tadawul in the Corporate Governance Index (CGI)

Environmental Metrics

ESG Focus Areas

• Community
• Employees
• Environment
• Sector
• Business

Environmental Achievements

• USC reduced GHG emissions scope 1 (tCO2e) by 14% and fuel consumption by 7%
• Panda completed the installation of LED lights and Smart Thermostats for air conditioning control and energy savings in 20% of stores
• USC continued using the new 5,000 m² evaporator to reduce energy consumption

Social Achievements

• Launched the new Savola Youth Development Program (SYDP)
• Continued collaboration with INSEAD for Developing Emerging Leaders Program
• Maintained partnership with Udemy online learning platform
• Increased female workforce across the Group by 11.11%
• 80% Employee Engagement score
• 13,044 employees enrolled in training programs
• Partnered with the Human Resources Development Fund to support its Forsa Business Assistance Program
• Savola World Foundation partnered with Mohammed bin Salman (Misk) Foundation to launch the ‘Discover Your Path’ Program
• Savola Foods Hackathon held for university students

Governance Achievements

• Establishment of 3 ESG Management Committees (Social Responsibility, Environment, Government Relations)
• Ranked in the top 10 of all non-financial companies traded on Tadawul in the Corporate Governance Index (CGI) by Al Faisal University’s Corporate Governance Center for 3rd consecutive year
• Received the Excellence Award for the 3rd consecutive year for being one of the top 10 publicly listed companies in Saudi Arabia in the Corporate Governance Index (CGI)

Climate Goals & Targets

Environmental Challenges

• Challenging macro-environment in operating countries
• Change in consumer behavior
• Limited number of transactable assets
• High relative valuation of food assets

Mitigation Strategies

• Gradually selling investments in other industries and using funds to tap into new markets and higher-value product categories
• Gradually moving toward a new model where companies and brands have greater autonomy
• Implementing best practices across its portfolio to ensure alignment of incentives among stakeholders and selection of the right leaders

Supply Chain Management

Responsible Procurement

• Integrated social and environmental considerations into the supplier selection process
• Adherence to the Code of Conduct and Ethical Values
• Support local suppliers in the Kingdom of Saudi Arabia

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 17025, ISO 9001, ISO 22000, ISO 22301, ISO 55000, BRC Global Standard for Food Safety, HACCP, SASO, Halal, AIB International Consolidated Standards for Prerequisite and Food Safety Programs, RSPO, Mowaamah

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Savola’s actions contribute to maximizing the collective positive impact; and we carefully address any potential negative impact from our operations.

Awards & Recognition

• Great Place to Work®
• Forbes Top 100 Companies in the Middle East

Environmental Metrics

ESG Focus Areas

• Community
• Employees
• Environment
• Sector
• Business

Environmental Achievements

• Panda introduced smart thermostats across 98 outlets to monitor, manage and optimize air conditioning, saving SAR 5.1 million.
• IFI reduced electricity consumption per produced unit by 12% vs. 2021.
• Panda replaced fluorescent lighting with LEDs in 108 stores, saving an estimated SAR 3.78 million and installed timers in 163 stores saving an additional SAR 3.87 million.
• Waste was reduced in Panda’s DC by 61% and CO2 commission reduction by 78%.
• United Sugar Company made considerable savings on fuel, electricity, and steam through automation and efficient operations.
• Savola renewed its ISO 14001 certification in 2022.
• Group saved 50,000 metric tons of waste across HQ, Afia, United Sugar Company, and Savola’s International Food Industries compared to 2021.

Social Achievements

• Launched ‘Discover Your Path’ Program in partnership with the Mohammed bin Salman Foundation (Misk) Foundation, benefiting more than 50,000 students.
• Named in Top 20 Great Places To Work® in the Kingdom of Saudi Arabia for the 4th consecutive year.
• 85% Employee Engagement score with 100% participation.
• 95% employee retention rate.
• Recognized by the Chartered Institute of Personnel and Development as an Employer of Choice.
• Ata’a Program achieved more than 100 voluntary hours, with over 520 beneficiaries Kingdom-wide.
• Launched Yumnak, Savola World’s Business Assistance Program, to support the growth of food and retail SMEs in the Kingdom.
• Makeen program employed 1,273 employees with special needs across the Kingdom.
• Panda launched its ‘Panda Caravan’ initiative in 2022 to encourage employees to donate to accredited charities.

Governance Achievements

• Ranked 4th in governance and transparency in the MENA Region as per Standard & Poor’s, Dow Jones, and Hawkamah Institute Index.
• Zero incidents reported for legal action regarding competition, monopoly or related outcomes in 2022.
• Zero penalties or precautionary attachments imposed on the Company by the Capital Market Authority or by any other supervisory, regulatory or judicial body.
• Zero cases of non-compliance with regard to breach or loss of customer data.

Climate Goals & Targets

Environmental Challenges

• Challenging macro-environment in operating countries impacting consumer purchasing power.
• Changes in consumer behavior impacting product preferences and business models.
• Limited number of transactable assets.
• High relative valuation of food assets.

Mitigation Strategies

• Focus on long-term consumer trend-driven lens and dynamic capital allocation.
• Robust governance and transparency framework.
• Largest distribution network, retail space and brand portfolio in Saudi Arabia.
• Implementation of best practices across portfolio to ensure alignment of incentives and selection of right leaders.

Supply Chain Management

Responsible Procurement

• Strengthening relationships with business partners
• Integrated social and environmental considerations into the supplier selection process
• Adherence to the Code of Conduct and Ethical Values
• Support local suppliers in the Kingdom of Saudi Arabia

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Saudi National Standards for Sustainability Reporting

Certifications: ISO 14001, ISO 45001, Mowaamah Golden Certificate

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Savola’s strategic direction considers international frameworks and global initiatives, aligning with the SDGs through various initiatives.

Awards & Recognition

• Great Place to Work® (4 consecutive years)
• Employer of Choice (Chartered Institute of Personnel and Development)
• Forbes Top 100 Companies in The Region
• Mowaamah Golden Certificate

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Human Empowerment
• Business Development
• Community Development

Environmental Achievements

• Reduced Scopes 1 and 2 greenhouse gas emissions by 15% between 2019 and 2023 (Savola Foods Company)
• Recycled 10% of material used (approximately 18,084 tons) – Panda Retail Company
• Recycled 27,737 tons of oil waste into soap, biofuels, or chemical and poultry feed – Savola Foods Company
• Converted 179,688 tons of sugar waste and 37,178 tons of pasta waste into useful products – Savola Foods Company
• Replaced fluorescent lighting with 80% more efficient LED lights in Panda stores, significantly reducing power needs
• Introduced digital leaflets to replace in-store paper leaflets – Panda Retail Company
• Renewed ISO 14001 certification

Social Achievements

• Launched promotional campaign for the Ata’a program
• Developed Ata’a program guidelines
• Total volunteering hours: 300; Total beneficiaries: 500 (Ata’a program)
• Yumnak program facilitated successful investment and financing deals worth SAR 39,457,000, delivering 5 commercial partnership contracts for emerging companies
• 85% employee engagement score with 100% participation rate
• 84% employee retention rate
• 70% Saudization rate
• Makeen program trained 221 participants in 12 workshops
• United Sugar Company received Gold Mowaamah Certificate; Panda Retail Company received Bronze Mowaamah Certificate

Governance Achievements

• Zero incidents reported for legal action regarding competition, monopoly or related outcomes
• Zero penalties or precautionary attachments imposed by the Capital Market Authority or by any other supervisory, regulatory or judicial body
• Zero cases of non-compliance for any breach or loss of customer data
• Updated Corporate Governance framework and policies in line with CMA regulations and international best practices

Climate Goals & Targets

Environmental Challenges

• Challenging macro-environment in operating countries with economic reforms impacting consumer purchasing power
• Change in consumer behavior impacting products and business models
• Limited number of transactable assets
• High relative valuation of food assets

Mitigation Strategies

• Implementing best practices across portfolio to align stakeholder incentives and select right leaders
• Building tools for effective performance management with short-term and long-term KPIs
• Maximizing returns on investments by deploying/redeploying capital
• Long-term strategic planning focusing on maximizing share of consumer spend

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable packaging
• Partnership with Made in Saudi
• Increased number of qualified local suppliers (USC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Saudi National Standards for Sustainability Reporting

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 22000, ISO 22301, ISO 55000, BRC Global Standard for Food Safety, Halal, AIB International Consolidated Standards, RSPO, VIVE Sustainable Raw Sugar, Organic Certification, SEDEX, NDPE Verification

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Savola's initiatives contribute to these goals through food waste reduction, healthy product offerings, employee development, gender equality initiatives, job creation, disability inclusion, sustainable practices, ethical governance, and community engagement.

Awards & Recognition

• Princess Seetah Bint Abdul Aziz Award in Social Work (Negaderha)
• King Khalid Foundation Award for Excellence in Non-Profit Organizations (Savola World Foundation)
• Excellence in Sustainability Environmental Certificate (CHEP)