Sustainability Strategy
At SADAFCO
Purpose and profit go in tandem to drive long term growth and value creation for its stakeholders. We continuously align our sustainability approach to the renewed and upgraded stakeholder expectations. Our quest ‘Towards Sustainability’ continues to evolve and get defined and refined. We aspire to achieve meaningful results and improve the quality of life of all stakeholders through this process.
In FY21-22, we reviewed international standard like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) along with the ESG guidelines issued by the Tadawul stock exchange to identify the most material sustainability topics for us and our stakeholders to focus on in the coming years.
We conducted our first materiality assessment by engaging with a focus group of senior and diverse pool of employees from various company functions. The 14 material topics identified are grouped into four strategic focus pillars Consumer, Environment & Climate, People & Community and Governance.
Consumer
Commitment to consumer delight by providing innovative, high quality, nutritious and safe products
Environment & Climate
Commitment to preserving the environment and minimizing impact of our operations on the planet
People & Community
Commitment to our employees and the community at large to improve inclusiveness and quality of life
Governance
Commitment to all stakeholders to conduct our business ethically while maintaining highest standards of corporate governance
We have also aligned our Sustainability roadmap with the United Nations Sustainable Development Goals (SDGs) and the National Transformation Program (NTP), which is part of Saudi Arabia’s Vision 2030.
On the governance front, we put in place a sustainability governance structure to bridge gaps in transparency and accountability. The ESG steering committee has been constituted with the responsibility for providing oversight, guidance, and strategic direction; approving the strategy; action plans; and disclosing and reviewing performance. The committee has CXOs as its members and reports to the Board of Directors. A cross-functional task force supports the steering committee in coordination and assistance in developing strategy and action plans, reviewing the implementation of the action plans, and developing required disclosures. It provides periodic updates to the steering committee. The task force shall be further supported by the initiative owners who undertake implementation and regularly monitor and review the progress of sustainability activities.
This year we are increasing the transparency of our sustainability disclosures through our first standalone sustainability report. The report contains the sustainability performance of the company’s two plants in Jeddah, one in Dammam, its depots, and distribution centres in Saudi Arabia. The report has been prepared in accordance with GRI standards – Core option while giving due consideration to the guidelines issued by the Tadawul stock exchange. Going forward, we plan to publish the sustainability report annually to ensure that our sustainability ambition, journey, and efforts are well understood by all.
