United International Transportation Company
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Saudization
- Environmental Responsibility
- Social Responsibility
- Disability Inclusion
Environmental Achievements
- Reduced petrol engine oil consumption by 56% from 258,000 liters in 2017.
- Implemented Water Efficient Cleaning Process, recycling and reusing up to 80% of used water.
- Operates electric forklifts and plans to reach 30% hybrid vehicles by 2025.
- Achieved ISO 14001 certification (Environmental Management System).
Social Achievements
- Hired 10 employees with disabilities.
- Achieved Mowaamah certification for disability-inclusive workplace.
- Partnership with Al-Irada organization for customer donations.
- Sponsorship of Gifted with Disabilities.
- Sponsorship for the most popular player award in King Cup.
- Held educational and awareness sessions for breast cancer.
- Ongoing societal awareness campaigns through social media.
Governance Achievements
- Established a Governance and Risk Management Committee.
- Complied with Corporate Governance Regulations issued by the Capital Market Authority (with some exceptions noted in the report).
- Achieved ISO 9001 and ISO 45001 certifications.
Climate Goals & Targets
Short-term Goals:
- Reach 50% Saudization by 2024.
- Reach 30% hybrid vehicles by 2025.
Environmental Challenges
- Risks associated with pandemics (lockdowns impacting revenue).
- Risks associated with changes in the transportation sector (new fees or regulations).
- Risks related to logistics and supply chain services (semiconductor shortage, inflation).
- Political and geological risks affecting investment opportunities.
- Foreign currency risks increasing costs.
- Risks related to the sale of vehicles at the end of their operational life (decreased selling prices).
- Credit risk (non-payment by customers).
- Risks of high rents (especially for airport sites).
- Risks associated with relying on the human element and workforce (attracting skilled labor).
- Risks associated with foreign investments.
- Liquidity risk.
- Competition risks.
- Risks associated with the use of trademark licenses.
- Insurance risks (increased cost of car insurance).
- Risks associated with funding (securing financing sources).
- Risks associated with possible Zakat and tax.
- Risks associated with government work permit fees.
Mitigation Strategies
- Policies and plans to manage risks.
- Risk management policy based on organized systems, rules, and procedures.
- Regular monitoring and management of risks by various company entities.
- Maintaining good relationships with banks to ensure liquidity.
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Hybrid vehicles
Awards & Recognition
- Mowaamah certification
- Best CEO Award (Fawaz Abdullah Danish)
- Guinness World Record (text messages)