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Better

every day

Sustainability Report 2019


This Sustainability Report is printed on 100% recycled paper from a sustainable source.
About this report
It contains insights into Almarai’s sustainability-related
Welcome to our third programs, achievements and performance, complementing
the information provided in our Annual Report 2019.
annual sustainability report.
This Sustainability Report Scope
represents a comprehensive This report covers our operations as Almarai Company.
This includes our operations in the GCC (Gulf Cooperation
overview of our commitments Council), which includes Saudi Arabia, United Arab Emirates,
Oman, Bahrain and Kuwait (referred to as ‘Almarai’) and our
and progress towards operations in Egypt (Beyti) and Jordan (Teeba) under our joint
venture International Dairy and Juice (IDJ), and in Argentina
improving our environmental, and the USA as Fondomonte (defined for the purposes of

social and economic impacts. this report as the ‘Subsidiaries’). This report does not cover
Almarai’s operations as Premier Foods, Pure Breeds, and
co-manufacturing. To the extent possible, considering data
limitations, and the boundaries outlined above, this report
covers all main operational and corporate functions, unless
otherwise stated.

Reporting guidelines
This report has been prepared in accordance with the
Cautionary statement
Global Reporting Initiative (GRI) Standards: Core option.
This report contains certain forward-looking statements that For further information and the GRI Content Index,
express the way in which Almarai and its Subsidiaries intend please see Appendices A-D.
to conduct its activities. These statements typically contain
words such as “anticipate,” “believe,” “expect,” “estimate,” Where relevant, we also show our contribution to the
“forecast,” “intend,” “plan,” “project” or similar expressions. National Transformation Program (NTP) of Saudi Arabia’s
Such statements are based on assumptions made using Vision 2030 and the Sustainable Development Goals (SDGs)
currently available information that is subject to a range in Appendices F and G.
of uncertainties that could cause actual results to differ
from these projected or implied statements. Any forward-
looking statements contained in this report are therefore not Reporting period
promises or guarantees of future conduct or policy, and thus This report covers the period from 1 January 2019 to
Almarai and its Subsidiaries assume no obligation to publicly 31 December 2019, unless otherwise indicated.
update any statements made in this report. Almarai and
its Subsidiaries rely on information obtained from sources
believed to be reliable but does not guarantee its accuracy Feedback
or completeness. For questions or comments regarding this report and
sustainability at Almarai, please contact us at:
sustainability@almarai.com.

2 Almarai Sustainability Report 2019


Contents
Message from the Chairman 4

Message from the


Chief Executive Officer 6

2019 at a Glance 8

About Almarai 10

Our value chain -


Quality you can trust 12

Sustainability
management at Almarai 14

Caring for people 20

Protecting the planet 32

Producing responsible products 44

Our subsidiaries 51

Appendices / GRI content index 56

www.almarai.com 3
Message from the Chairman

Message from
the Chairman

On behalf of the Board of


Directors, I am delighted
to introduce our 2019
Sustainability Report.

4 Almarai Sustainability Report 2019


Over the past year we have focused on becoming a more Our sustainability strategy will help us to drive better practices
dynamic Company to overcome challenges and seize in our own operations and strengthen our relationships with
opportunities available to us in an economically challenging stakeholders, whether they be local, regional or global. We
environment. We understand that operating in a changing have considered how our sustainability strategy aligns with
environment requires agility and novel approaches to the the sustainable development objectives of the Saudi National
way we do business. We believe that an intensified focus Vision 2030, as well as the global Sustainable Development
on sustainability complements our corporate strategy, Goals. Moreover, the launch of our sustainability strategy in
contributing to our dynamism and resilience, by recognizing 2020 comes at an exciting time when several initiatives are
and responding to the environmental, social and economic being launched within the Kingdom for the G20 summit.
factors that impact both our business and stakeholders.
It is our hope that Almarai inspires our peers to raise the
In 2019, we continued to build on the firm foundations we have bar, not only within the Food & Beverage sector, but the
put in place to more strategically manage sustainability and wider economy, to create shared valued through effective
drive tangible and impactful change. We have refocused sustainability management.
our approach to highlight how action on sustainability can
unlock our potential to create shared value, developing 25 Through our sustainability reporting we offer our stakeholders
sustainability targets to achieve by 2025. insights into how we are using sustainable thinking to
challenge and improve our practices every day. At Almarai,
As the Middle East’s largest food and beverage manufacturer we realize that the prosperity of future generations depends
and distributer, and the world’s largest vertically integrated on our actions today, and we are working towards positive
dairy company, we play an important role in shaping the change that can support a better tomorrow.
market for the better. Our sustainability strategy, ‘Better
every day’ is our answer to this call. By reporting our progress
against our targets from 2020, we are taking a significant
step forward in our ongoing journey to embed a sustainable
mindset within our business.

Sultan bin Mohammed bin Saud Al Kabeer


Chairman of the Board

www.almarai.com 5
Message from the Chief Executive Officer

Message from the


Chief Executive Officer
It is with great pleasure
as Almarai’s CEO to have
the chance to present our
third annual sustainability
report, providing us with
the opportunity to inform
our stakeholders about our
sustainability journey and
performance.

6 Almarai Sustainability Report 2019


Our focus on building a more dynamic future over the past We have also worked to remove nearly 3,000 tons of plastic
year falls squarely in line with our maturing approach to packaging from our products. Packaging innovation continues
coherently manage sustainability within our business. We to remain a focus area as we strive to reduce our contribution
acknowledge that our long-term growth prospects and to the consumer waste stream. This aim is leading us to
ability to create shared value are integral to how we actively support work to transform the packaging economy in the
manage our environmental, social, and economic impacts. Kingdom to deliver viable waste management solutions.
A sustainability mindset only adds to our dynamism as it
supports innovation and resilience, it simply makes good Supporting the health and wellbeing of our employees
business sense. is not only the right thing to do, it also supports business
performance. We began to roll-out our occupational health
In 2019, we solidified our belief that the world can be a program during 2019. Our mobile health unit has screened
better place if we are all committed to doing better every over 500 people during the year, identifying health conditions
day, through the development of our sustainability strategy which through early detection, has helped raise awareness of
for 2025, ‘Better every day.’ Our new strategy outlines our potentially harmful illnesses and conditions.
commitments and targets for sustainability that will drive
improvements within our business in the years ahead. While I invite you to read through this report which provides a
the strategy officially launches in 2020, we continued to comprehensive overview of our approach to sustainability,
implement initiatives throughout the year that have helped us covering the issues that matter most to us, and the efforts we
to make positive changes. are making to embed sustainability management throughout
our business.
In 2019, we completed the installation of the largest private
solar energy project in the Kingdom. By the end of 2020, I would like to thank the management for their support, and
through the commitments we have made to developing a I look forward to working with our stakeholders to develop a
clean energy portfolio, we expect that approximately 10% deeper level of engagement to help meet their expectations
of our total electricity consumption in the Kingdom will be in the coming year. By working in partnership and addressing
derived from renewable sources as more solar projects the issues that are most important to our stakeholders and
become operational. our business, we can continue to contribute to a sustainable
future.
In addition to clean energy, we are working to improve energy
efficiency. In 2019, we completed Phase 1 of our LED lighting
upgrade, contributing to an estimated load reduction of up
to 70%. Following the completion of Phase 2, in the coming
year, some 70,000 lights across our facilities will have been
replaced with LED technology.

Majed Nofal
Chief Executive Officer

www.almarai.com 7
2019 at a Glance

2019 at a glance
Beyond profitable growth, Almarai wants to ensure it makes a
positive contribution to society and minimize its impact on the
environment. In 2019, we continued to make progress every day
towards becoming a more sustainable company.

8 Almarai Sustainability Report 2019


2019 King Khalid Award 2000 Global Best Regarded
for Sustainability Companies
Best Performer in
Innovating Social
Development Solutions

1.6 50%+ Nearly

3,850
Percentage point decrease Increase in total hours of Metric tons of packaging
in employee absenteeism employee training removed from the consumer
waste stream

19.6 20% 20%+


GWh

Increase in Increase in the number of Increase in food waste


renewable energy participants in our Almarai site diverted from landfill
visit education program

www.almarai.com 9
About Almarai

About Almarai
Almarai Company is a Saudi publicly traded joint-stock company
listed on Tadawul, the Saudi Stock Exchange.

Founded in 1977, Almarai Company has grown to become the Saudi Arabia and Jordan, we also have arable farms primarily
Middle East’s largest food and beverage manufacturer and located in Argentina and the United States of America.
distributor, and the world’s largest vertically integrated dairy Through our direct control of the supply chain, we have the
company. With headquarters in Riyadh, Saudi Arabia, our unique ability to deliver safe, quality products to millions of
production and distribution footprint covers the GCC states, consumers every day.
Egypt and Jordan. In addition to our farming operations in
Mission
Values Vision

To be the consumers’ preferred To provide quality and


choice by leading in chosen nutritious food and beverages
markets with superior food and that enrich consumers’ lives
beverage products. every day.

Adaptable Sharing Passionate Innovative Respect Excellence

10 Almarai Sustainability Report 2019


Dairy Dairy is the cornerstone of Almarai’s range, including
Fresh Dairy, Long Life Dairy and Dairy Foods. We have
earned the trust of our consumers for more than 40 years
and are the regional market leader in a wide range of
sub-categories. New product launches in 2019 included
Mango-flavored set yoghurt, Blueberry-flavored Greek
yoghurt, Date-flavored milk, and 2.2l fresh milk bottles.
We have also implemented a facelift of our butter packaging
and expanded the range of food service products.

Juice Almarai is the GCC leader in fresh juice, offering consumers


a range of juices, nectars and drinks, as well as products for
children. Over the last year, Almarai has been expanding
its footprint into other areas of the juice market including
premium not-from-concentrate juice, super fruit and
everyday segment carton juices with the Joosy Life
product range.

Bakery
We deliver a wide range of bakery products to consumers
across the GCC, marketed under the L’usine and 7Days
brands. From bread and snacks to cupcakes, Almarai
provides consumers with exciting and innovative treats.
In 2019, we launched Coconut Swiss Roll, Red Velvet Muffin,
Bran Cream Cheese Sandwich, and Zatar Cream
Cheese Sandwich.

Poultry Alyoum is regarded by the market as synonymous with


quality and innovation – that’s why it is the brand of choice
for over 35.0% of Saudi Arabia’s fresh poultry consumers.
The product range includes a comprehensive selection of
whole, part and value-added stock-keeping units under the
Alyoum and Albashayer brands. In 2019, two versions of
our new Oven Ready Chicken product were launched on a
test-market basis.

Infant
Nutrition
Almarai’s Infant Nutrition products are available across
Saudi Arabia and other markets in the Middle East and
Asia. Our brands include Nuralac and other brands in
export markets.

www.almarai.com 11
Our Value Chain

Our value chain


Quality you can trust

Procurement Farming Manufacturing

Percentage of locally based


suppliers across our countries of
operation:

Over

51% 191
GCC million chickens 13
were raised on our manufacturing
69%
farms in Saudi Arabia.
facilities
in total across Saudi Arabia,
Egypt Jordan and Egypt produce
and package our wide range
of products.

97% 183,345
Jordan
cows
are cared for on our farms Dairy Juice
in Saudi Arabia and Jordan.

73%
United States Bakery Poultry

99% 32,367
hectares
Infant Nutrition
Argentina

of land under production in


Argentina and USA to grow feed
for our cows.

12 Almarai Sustainability Report 2019


Sales, distribution & logistics Consumers Our people

Almarai has over Almarai has

1,800 800+ All our


achievements

vehicles products
are made possible by
the commitment of our

42,382
on the roads at any given time.
which are sold to over

employees
across our global operations.
From our manufacturing facilities,
our products are transported to

83
depots in
5 countries
across the GCC.

62,500
customers in
5 countries
across the GCC.

www.almarai.com 13
Sustainability Management at Almarai

As the region’s largest food and


beverage company, Almarai plays
an important social, environmental
and economic role locally, regionally
and globally.

14 Almarai Sustainability Report 2019


Sustainability
management
at Almarai

Through the integrated management


of our economic, environmental and
social performance, we aim to maximize
the shared value we create for our
stakeholders, now and in the future.
We continue to implement industry-
leading practices to protect the wellbeing
of our consumers and employees, ensure
the health of our farm animals, protect
the natural environment and generate
significant economic value.

www.almarai.com 15
Sustainability Management at Almarai

Our sustainability strategy


In 2019, we developed a set of 25 goals and targets to
achieve by 2025 during the development of our sustainability
strategy, Better every day. Our strategy is built upon three
interconnected pillars and 12 material issues that are
essential in supporting our contribution to building a more
sustainable future.

Better every day


Almarai® believes the world can be a better place if we are all committed to doing better every day.
By living up to our commitments, we can make positive changes that support a better tomorrow.

Caring Protecting Producing


for people the planet responsible products

Nutrition and wellbeing Water management Quality and food safety


We are working to make sure that We are working to make sure We are working to make sure our
our products and communications we are effectively using water products are safe and satisfy
support healthy living every day. resources every day. consumers’ needs every day.

Health and safety Packaging innovation Animal welfare


We are working to make sure we We are working to make sure We are working to make sure that
foster a health and safety culture we reduce the impact of our our animals are treated and
among our people every day. packaging on the environment handled humanely throughout
every day. their lifecycle every day.
Employee talent and diversity
We are working to make sure that Climate change Ethical sourcing
our people are developed, valued We are working to make sure We are working to make sure we
and included every day. we implement more sustainable take a collaborative approach to
solutions to reduce our emissions elevate sustainability in our supply
Community investment every day. chain every day.
We are working to make sure that
we are leveraging our resources to Waste management
create a positive impact every day. We are working to make sure that
we are moving towards zero to
landfill every day.

Sustainable agriculture
We are working to make sure
that our agricultural practices are
regenerative every day.

For more detailed information about our materiality analysis process, please see Appendix A.

16 Almarai Sustainability Report 2019


Our belief that the world can be a better place if we are all committed to doing better every day is at the heart of what
sustainability means to Almarai. Our strategy is founded on this belief and from 2020 we will report against our strategic
sustainability goals and targets.

Our strategic goals and targets

Caring for people

• Develop and implement a holistic plan to further enhance our nutrition and wellbeing offering
Nutrition and wellbeing
by 2025
• Achieve ISO 45001 compliance for all our divisions by 2025
Health and safety
• Institute an occupational health and wellbeing program accessible to all employees by 2025
• Increase the number of female employees in our workforce year-on-year
Employee talent
• Reduce voluntary employee turnover to achieve an average of 12% over the period 2020-2024
and diversity
• 90% of managers engage in at least 40 hours of professional development per year by 2025
Community investment • Donate 2.5 million healthy servings by 2025
• Educate 250,000 people through our site visit program by 2025
• Improve the employability of at least 1,400 young people through the Dairy and Food Polytechnic
(DFP) program by 2025

Protecting the planet

Water management • Increase water efficiency across our Manufacturing, Sales, Distribution and Logistics Divisions
by 15% by 2025 (against a 2018 intensity baseline)
• Initiate and support collaborative efforts with stakeholders to address water risk and enhance
conservation by 2025
Packaging innovation • Avoid the use of 9,000 metric tons of plastics from entering the consumer waste stream by 2025
(against a 2015 baseline)
• Actively support the transformation of the packaging economy in KSA by 2025
Climate change Transport and refrigeration
• Explore and trial alternative fuel vehicles for our sales transport fleet on an ongoing basis
• Increase the fuel efficiency of our sales, distribution and logistics vehicles by 10% by 2025
(against a 2018 baseline)
• 100% of our sales depot cold stores will be CFC free by 2025
Energy
• Reduce energy consumption across our Manufacturing, Sales, Distribution and Logistics
Divisions by 15% from efficiency measures by 2025 (against a 2018 intensity baseline)
• Increase the share of electricity from clean energy sources across our Administration,
Manufacturing, Sales, Distribution and Logistics Divisions to 20% by 2025
• Achieve ISO 50001 certification for our Administration, Manufacturing, Sales, Distribution and
Logistics Divisions by 2025

Waste management • Reduce waste going to landfill across all our divisions by 50% by 2025 (against a 2018 baseline)

Sustainable agriculture • Enhance sustainable practices on our arable farms by 2025

Producing responsible products

• All manufacturing sites will be Global Food Safety Initiative (GFSI) certified by 2025
Quality and food safety
• All high-risk ingredient suppliers will be Global Food Safety Initiative (GFSI) certified by 2025

Animal welfare • Achieve global animal welfare certification for our dairy and poultry farming operations by 2025

Ethical sourcing • Put an ethical sourcing process and audit plan in place by 2025

For more detailed information about the boundaries of our strategy, please see Appendix E.

www.almarai.com 17
Sustainability Management at Almarai

Sustainability governance
Our Vice President of Quality, Regulatory, Health, Safety, Security & Sustainability reports directly to our Chief Executive Officer
(CEO) and Executive Management on sustainability during bi-monthly management meetings, while our Head of Sustainability
plays a coordinating role to ensure progress against our strategic goals and targets.

Our Environmental Policy

As Almarai is committed to minimizing its impact on • Encourage our suppliers and contractors to be
the environment and to continual improvement of its environmentally responsible;
environmental performance, we have an environmental • Identify and implement opportunities for environmental
policy which applies to all Almarai business units and sustainability.”
facilities, inclusive of co-manufacturers and joint-venture
partners. The Almarai Environmental Policy is endorsed by
Almarai’s CEO.
“To minimize environmental impacts, we shall:
• Comply with applicable legal requirements; Our Sales, Distribution and Logistics and Farming
• Minimize pollution, waste and consumption of Divisions, and our Poultry Processing Plant hold
resources; International Organization for Standardization (ISO) 14001
• Educate, train and motivate all employees to carry out Environmental Management System certification.
tasks in an environmentally responsible manner;

Our performance summary 2018 2019

Number of incidents of non-compliance with environmental laws and regulations (GGC only) 0 0

18 Almarai Sustainability Report 2019


Stakeholder engagement
At Almarai, we understand that balancing the needs and
expectations of our stakeholders is essential to delivering
on our commitments and maximizing shared value creation.
We engage in regular dialogue with our stakeholders (our
consumers, shareholders/investors, employees, government
regulatory bodies, and civil society organizations), through
various communication channels to ensure we consider and
respond to their needs and expectations, on the issues that
matter to each of our key stakeholder groups.

For more information about our stakeholder engagement,


please see Appendix B.

Alignment and contribution to


national and international frameworks
Saudi Arabia’s Vision 2030 and National Transformation development. Based on our sustainability framework, we have
Program (NTP) provide a clear roadmap for Saudi Arabia’s mapped out areas of alignment with national and international
future, guiding economic, social and environmental sustainable development objectives. Appendix F identifies
development over the coming decade; while the Sustainable the NTP targets and appendix G identifies the SDG targets
Development Goals (SDGs) provide governments and that align with our sustainability framework.
businesses with a framework to achieve sustainable

National
Transformation
Program 2020

www.almarai.com 19
Caring for People

Our promise to
improve the lives
of those that are
integral to our
business success
every day.

20 Almarai Sustainability Report 2019


Caring
for people

Nutrition and wellbeing


We are working to make sure that our
products and communications support
healthy living every day.

Health and safety


We are working to make sure we foster
a health and safety culture among our
people every day.

Employee talent and diversity


We are working to make sure that our
people are developed, valued and
included every day.

Community investment
We are working to make sure that we
are leveraging our resources to create a
positive impact every day.

www.almarai.com 21
Caring for People

Our strategic goals and targets

To support our commitments towards ‘Caring for people’ and enhance our accountability,
we have identified the following goals and targets.

Nutrition and wellbeing • Develop and implement a holistic plan to further enhance our nutrition and wellbeing
offering by 2025

Health and safety • Achieve ISO 45001 compliance for all our divisions by 2025
• Institute an occupational health and wellbeing program accessible to all employees
by 2025

Employee talent • Increase the number of female employees in our workforce year-on-year
and diversity • Reduce voluntary employee turnover to achieve an average of 12% over the period
2020-2024
• 90% of managers engage in at least 40 hours of professional development per year
by 2025

Community investment • Donate 2.5 million healthy servings by 2025


• Educate 250,000 people through our site visit program by 2025
• Improve the employability of at least 1,400 young people through the Dairy and Food
Polytechnic (DFP) program by 2025

22 Almarai Sustainability Report 2019


Nutrition and wellbeing We are working to make
sure that our products and
As part of our mission of providing quality and nutritious
food and beverages that enrich consumers’ lives every
communications support
day, we have been supportive of growing consumers’
demands for more healthful and nutritious products. We are
healthy living every day.
constantly investing in and developing new technologies and
competencies to improve the health and nutritional profile of
our products, and we are incorporating health and nutrition
specific criteria into product innovation and development.
Almarai remains committed to
We strongly believe that our marketing plays an integral role public education for consumers and
in our ability to support healthy consumer lifestyles and it healthcare professionals
should be governed by the highest ethics and responsibility.
It is important to us that our marketing practices promote our In collaboration with various organizations, Almarai
products responsibly, which is why we strive to be transparent has supported health and nutritional awareness in
with our consumers by offering choice, providing credible and Saudi Arabia. In 2019, we engaged in the following
clear communications, and labeling to empower consumer projects:
purchasing decisions. We seek to market not only the taste
of a product or brand, but also the health and nutritional • Supported a health week program with the
value, quality and safety. As per Saudi law, all our products Royal Saudi Air Force
are labeled with nutritional information, including information • Supported a symposium on Osteoporosis at the
on sodium and safe storage. Labeling now also includes University of King Abdulaziz
additional information such as the serving size and number of • Supported a health assembly event promoting
servings per item. exercise and health awareness with the
Ministry of Health
Empowering our consumers to make better-informed choices • Supported a marathon for diabetics carried out
regarding the nutritional value of our products is further at King Saud University
supported through our efforts to build health and nutrition • Collaborated with Princess Nora Bint Abdul
awareness. We have multiple communication platforms that Rahman University on workshops raising health
include health and nutritional education. We work closely awareness among students and practical learning
with the healthcare community, and key pediatric and clinical on product formulation
nutritional medicine opinion leaders. We participated in a • Supported a dental care campaign
number of scientific conferences and sponsored an online
educational program for healthcare professionals, as well as
other continuing education events for frontline health workers
during the past year.

In 2019, we continued to focus on product reformulation by


eliminating added sugar in juices and salt reduction in baked
goods and other foods. Over half of our bakery product range
now has reduced salt and all our fresh juices in select markets
contain zero added sugar. We also launched new product Almarai Almarai
lines, such as our low fat, protein rich Greek Style Yoghurt, products contain products contain
and our high in fiber Bran Bread. In line with Almarai’s no artificial no trans
strategic sustainability goals, we will commence work in 2020 colors. fats.
on developing a holistic plan to further enhance Almarai’s
nutrition and wellbeing offering by 2025.

www.almarai.com 23
Caring for People

Almarai remains committed to breastfeeding

Almarai supports breast milk as the unique and best At Almarai, all commercial practices are guided and fully in
nutrition for babies, by promoting exclusive breastfeeding compliance with the World Health Organization code, as
during the first year of life. Breast milk is the gold standard well as regulated by the rules of the Saudi Breastfeeding
and the only milk that provides babies with the most Law. Promoting healthy habits and best nutrition for moms
complete nutrition. It also strengthens the bond between and babies, including breastfeeding, is at the core of
mother and child with numerous benefits for both. Almarai Infant Nutrition principles.

Our performance summary 2018 2019

Number of incidents of non-compliance concerning product information and labeling 0 1

Number of incidents of non-compliance with regulations and/or voluntary codes concerning


0 0
marketing communications
Percentage of significant product categories covered by and assessed for compliance with
100% 100%
product information and labeling procedures (%)

Health and safety We are working to make


sure we foster a health and
Our greatest asset is our employees, their health and safety
is extremely important to us at Almarai. We protect our
safety culture among our
employees by applying international occupational health and
safety standards, introducing policies to stimulate employee
people every day.
engagement, providing training and awareness, and
encouraging communication between employees at all levels.
Employee engagement is another dimension of our approach
In 2019, our incident reporting system became fully to improving both the health of our employees and preventing
operational. Accessible to all employees, this tool has occupational accidents before they occur. We have taken
improved our ability to track and analyze Health, Safety and a conscious decision to proactively support our people’s
Security (HSS) incidents and risks, which in turn will enable wellbeing through earlier detection of health conditions.
us to more effectively prevent incidents from occurring in the In 2019, we commenced screening employees at our main
future. As a result, near miss reporting has increased by over manufacturing site in KSA using our occupational mobile
250% against 2018 levels. In addition, 80% of our sales van health unit and were able to reach over 500 people within
fleet has been fitted with speed restrictors as part of our road the first three months. While we are still in the initial roll-out
risk strategy. As part of this strategy, behavioral training and phase, we are already seeing the benefits of this new program
road safety campaigns are conducted, which has helped to in detecting employee health conditions. For example,
reduce our vehicle collision frequency by 30% against 2018 amongst those screened, we have detected 6% with early
levels. In 2019, the employee lost-time injury rate increased onset diabetes and 14% as pre-diabetic. Employees identified
by nearly 9%, which is attributed to a combination of reduced with abnormal results were advised to consult a physician.
man-hours worked and the increased utilization of the The mobile health unit forms an integral part of reaching our
incident reporting system. In addition to continued training on strategic sustainability goal to institute an occupational health
appropriate incident reporting, we expect that our health and and wellbeing program accessible to all employees by 2025.
safety strategy and supporting programs will help to reduce During the coming year, we are aiming to reach all employees
our incident rate in the coming years. at our main manufacturing site in KSA.

24 Almarai Sustainability Report 2019


In 2020, several digitalization projects are planned, including the management of hot works permits and the development of a
health and safety dashboard for managers to analyze their safety performance. We are also planning to migrate our incident
reporting system on to the cloud, which will provide access to anyone with a smart phone. These changes will further enhance our
ability to create pre-emptive solutions to our health and safety challenges.

Our Health and Safety Policy Achieving Occupational Health and Safety
Management System ISO 45001:2018
compliance
We have a two-level health and safety policy.
Level one operates at the corporate level, from which
individual divisions and business units develop their In line with our strategic sustainability goals, we are
own distinct level two policies, tailored to reflect their working towards achieving ISO 45001 compliance
hazard profile and management structure. for all our divisions by 2025. During 2018 our Farming
Division achieved certification and our Sales,
The corporate level one policy includes the Almarai Distribution and Logistics (SDL) Division certified 30%
“Safe Person, Place and Practice Strategy” which of its sites. In 2019, Farming successfully completed
define our approach to the safe management of assets a surveillance audit and SDL certified an additional
and people. This strategy seeks to drive 1. safety 30% of its sites in addition to successfully completing
performance, 2. leadership visibility and accountability, a surveillance audit of the sites certified during 2018.
3. continuous safety culture improvement and 4. In 2020, we will continue to work towards achieving
ensure resources are in place for all sites to improve ISO 45001 compliance across our manufacturing and
safety performance. Taking our commitment one step poultry divisions.
further, we have a group HSS forum which drives our
focus on HSS across the business and who’s role is
to develop HSS strategy, performance, standards
and guidelines.

Our performance summary 2018 2019


Number of employee lost-time injuries 256 195
Employee lost-time injury rate (per 1 million man-hours) 1.72 1.87
Number of contractor lost-time injuries NIA NIA
Contractor lost-time injury rate (per 1 million man-hours) NIA NIA
Hours of employee HSS training 155,320 352,338
Average hours of HSS training per employee 4.0 9.7
Hours of contractor HSS training NIA 1,289
Average hours of HSS training per contractor NIA 2.1
Employee absenteeism rate (%) 6.5% 4.9%

Note: NIA stands for no information available; average hours of training per worker type are based on average headcount.

www.almarai.com 25
Caring for People

Employee talent We are working to make


and diversity sure that our people are
developed, valued and
At Almarai, we recognize that we are only as strong as our
employees, and we are committed to attracting, developing,
included every day.
and retaining a motivated and diverse workforce.

To ensure our employees have the required knowledge Our efforts to offer equal opportunities also extend to those
and skills to perform their roles effectively, Almarai has a with disabilities. To this end, Almarai was the first company
comprehensive training policy that covers all aspects of in Saudi Arabia to obtain a “Moaamah” certificate, which
training. Our Training Policy addresses all key elements in an certifies that we have met the infrastructure requirement
annual training cycle, including training needs assessment, standards to accommodate people with disabilities in the
training plan, training delivery, training evaluation, and work environment. We employed more than 430 people with a
new employee induction. It also addresses education disability during this past year.
assistance for employees, study leave, summer and co-op
trainee programs.

Established in 2014, the Almarai Academy focuses on In 2019, we have


leadership development for all management levels. Almarai
Academy collaborates with local and global providers to increased
deliver the best in class leadership development programs for the number
its employees. of e-learning
Our comprehensive Talent Management Process (Project
users by 25%.
Horizon), enables Almarai to understand its talent portfolio,
and build a pool of successors for our future business
opportunities and challenges. Using leadership potential
psychometrics assessments, Talking Talents discussions and
calibration sessions, Almarai can target specific and tailored
training needs for its people talent.

In 2019, we reviewed and adjusted all our leadership programs


to ensure alignment with our corporate strategy for 2025.
We also increased the number of Almarai Academy cohorts,
introduced a new program for specialist grades, and finalized
the design of a program for junior management which will
begin in 2020. With these changes we have expanded our
leadership program offering for all our management grades.
As part of our strategic sustainability goals, we have set a
target that 90% of managers engage in at least 40 hours of
professional development per year by 2025. To support this
target, we have identified initiatives to increase the uptake of
additional professional development opportunities from
2020 onwards.

Almarai also aims to provide an inclusive work environment


for all and we are making strides towards this end. We seek to
provide career opportunities for women in the markets where
we operate, and we employed more females in 2019 than the
previous year. From 2020 as part of our strategic sustainability
goals, we have set a target to increase the number of female
employees in our workforce year-on-year.

26 Almarai Sustainability Report 2019


Keeping employees engaged, motivated, and satisfied

Almarai provides a wide range of activities that seek to • Employee satisfaction and engagement surveys
create a flexible work culture that encourages productive, • E-connect, a mobile app to receive company news
healthy work/life balance, employee retention, and updates and special employee discounts and offers
personal and professional growth opportunities, including: • Opportunities to support society through blood
donation events and micro home-based business
• Recognition and rewards, such as the Annual in collaboration with the Saudi Human Resources
Service award Development Fund
• Special day celebrations, such as National Day • Recreational facilities e.g. facilities for sport and
• Social outings and trips relaxation at our plants
• Health and wellbeing opportunities through discounted
gym membership and other in-house events We will be identifying additional opportunities to
• Training and e-learning opportunities further engage our employees to achieve our strategic
• Leadership opportunities, such as our Future Leaders sustainability goal to reduce voluntary employee turnover
program to achieve an average of 12% over the period 2020-2024.

Developing local leaders

At Almarai, we are committed to prioritizing the including the Almarai Future Leaders program, the
development of local leadership. We are proud of our Graduate Professional Trainee program and the Dairy &
status of Platinum level for Saudization in the Nitaqat Food Polytechnic (please see page 29 for DFP overview).
Program, which aims to Saudize jobs in the Saudi private
sector, with 26% of our Saudi Arabia employees being In the broader sense, our commitment to local leadership
Saudi nationals. In middle and senior management roles, development focuses on supporting education and
Saudization is at 24% and 17% in 2019, respectively. excellence through initiatives such as the Almarai Award
for Scientific Innovation, the Almarai Education Excellence
Our dedication to our local employees does not end Award for Arab students in the GCC, and the Almarai
with their employment. We run several leadership and Award for Veterinary Excellence.
professional development initiatives for Saudi employees,

Our performance summary 2018 2019


Number of Saudi employees 8,766 8,466
Percentage Saudization among total workforce (%) 26% 26%
Percentage Saudization of middle management (%) 25% 24%
Percentage Saudization of senior management (%) 16% 17%
Number of female Saudi employees 645 635
Number of Saudi Almarai Academy participants 291 265
Number of Saudi Graduate Professional Trainee participants 22 23
Number of Saudi Almarai Future Leaders participants 21 0
Number of Saudi Dairy & Food Polytechnic participants 584 400
Number of Saudi Almarai Driving School participants 126 133
Total number of Saudi nationals in professional development programs 1,044 821

www.almarai.com 27
Caring for People

Our performance summary 2018 2019


Number of employees 38,416 37,231
Female employees 750 769
2.0% 2.1%
Women in middle management 45 31
3.5% 2.4%
Women in senior management 2 2
0.8% 0.8%
Women in non-management positions 703 736
1.9% 2.1%
Board seats occupied by women 0 0
0% 0%
Number of employees with a disability 468 436
Number of formal incidents of discrimination reported 0 0
Total voluntary turnover 4,360 3,999
11.3% 10.7%
Total hours of training provided 375,258 579,152
Average hours of training per employee 9.8 15.6
Number of Almarai Academy participants (National and non-national) 520 565
Number of Almarai Driving School participants (National and non-national) 413 1,384

28 Almarai Sustainability Report 2019


Community investment We are working to make sure
that we are leveraging our
Almarai continues to strive to support its communities
wherever possible. Through education, training and
resources to create a positive
development, charitable donation, and other programs, impact every day.
we provide a greater positive impact for society. Whether
in collaboration with organizations or direct engagement,
Almarai is actively supporting various causes throughout
the year. qualified people with dairy and food industry specific skills.
In line with our strategic sustainability goals, we have set a
In 2019, Almarai continued its food distribution and nutritional target to improve the employability of at least 1,400 young
awareness program for schools in Saudi Arabia, providing people through the DFP program by 2025.
over 1,000 schools with more than 880,000 nutritious snacks
for the children. Our employee driven food basket donation Our manufacturing facilities are regularly opened to the
program was also successful and we reached 1,800 lower public for visits. Tours of our facilities offer an important
income families this past year. In line with our strategic opportunity to show case our facilities, engage directly with
sustainability goals, we have set a target to donate 2.5 million our consumers and educate them about our company and
healthy servings by 2025. our production processes. We invite schools, families and
interested individuals to visit our factories, and we even offer
We also support robust technical and vocational educational free bus services, as well as lunch to our guests. In 2019, we
training (TVET) programs, such as the Dairy and Food hosted more than 88,000 visitors, 15,000 more than 2018.
Polytechnic (DFP). This is a joint project between Almarai In line with our strategic sustainability goals, we have set a
and the Technical and Vocational Training Corporation target to educate 250,000 people though our site visit program
which commenced in 2011. DFP was established with the aim by 2025.
of developing young Saudi Nationals skills with a focus on
the dairy and food Industry. As one of the major industries in In 2020, we will be working on developing our community
Saudi Arabia, the project takes high school graduates and investment strategy in support of our strategic
provides training to meet business demand for technically sustainability goals.

Awarding those that are making a difference

As a socially responsible business, we support several • Almarai Veterinarian Award – Launched in 2010, the
awards in partnership with other organizations to reward award supports the veterinary profession and aims at
achievement in society. These include: reinforcing the importance of the veterinarian’s role in
protecting the general health of the GCC’s livestock
• Almarai Scientific Innovation Award - The award which is so crucial to supporting food security. We work
was launched in 2001 in collaboration with the King in collaboration with the Saudi Veterinary Medical
Abdulaziz City for Science and Technology, and aims Society and King Faisal University.
to strengthen scientific capability through supporting
scientists and researchers in the fields of fundamental • Almarai Award for Ideal Mother - Almarai launched
science, applied and developmental sciences, and this award in 2017 in partnership with the Disabled
innovation in Saudi Arabia. Children’s Association. It aims to honor mothers who
support their children with disabilities in the process of
• Almarai Academic Excellence Award – Launched in treatment, education and rehabilitation. In its first year,
2006, it provides support to students who are enrolled five women won the award, and in its second year, 10
in the public education system in GCC countries. women won the award.
The award aims to encourage outstanding students,
developing their abilities and talent, and supporting their • Photography Award – Launched in 2013, partnering
achievements. with National Geographic Abu Dhabi, this award
encourages Arab photographic talent to expand their
creative capabilities. Since launch more than 160,000
participants have engaged in the competition.

www.almarai.com 29
Caring for People

Our performance summary 2018 2019


Total CSR spending (SAR million) 39.6 34.7
Total CSR spending as a percentage of net profit (%) 2.0% 1.9%
Product donations
Number of schools provided with snacks for students 947 1,036
Snacks for school children (Number of servings) 853,242 880,228
Number of low-income families provided with food baskets 600 1,800
Number of charities provided with food donations 301 230
Product donations for charities (Number of servings) 216,612 239,616
Total number of product servings donated 1,069,854 1,119,844
Total financial value (SAR million) 0.9 1.0
Support for vulnerable groups
Number of lower income couples provided with weddings 1,200 1,400
Number of children at orphanages and charities provided with Iftars 40 58
Charity, orphanage and other association event sponsorships (Number of beneficiaries) 80 172
Total financial value (SAR million) 0.4 0.5
Support for learning and technical, vocational and education training (TVET)
Number of TVET beneficiaries (Dairy & Food Polytechnic) 505 486
University student groups sponsored (Number of beneficiaries) 70 340
Braille booklets (Number of books donated) N/A 500
Dental care campaign (Number of schools attended) 20 32
Almarai site visit program (Number of visitors) 73,286 88,030
Sponsorship of Food Loss and Waste Index and awareness campaign (value in SAR). N/A 100,000
Sponsorship of Qaderoon documentary (value in SAR) N/A 113,000
Total financial value (SAR million) 35.3 30.2
Sponsorship of awards
Number of award winners 119 162
Total financial Value (SAR million) 3.0 3.0

Note: Figures for 2018 have been restated in some instances due to recategorization; N/A stands for not applicable.

30 Almarai Sustainability Report 2019


www.almarai.com 31
Protecting the Planet

Our promise to minimize our


impact on our shared natural
resources every day.

32 Almarai Sustainability Report 2019


Protecting
the planet

Water management
We are working to make sure we are
effectively using water resources
every day.

Packaging innovation
We are working to make sure we reduce
the impact of our packaging on the
environment every day.

Climate change
We are working to make sure we
implement more sustainable solutions to
reduce our emissions every day.

Waste management
We are working to make sure that we are
moving towards zero to landfill every day.

Sustainable agriculture
We are working to make sure that our
agricultural practices are regenerative
every day.

www.almarai.com 33
Protecting the Planet

Our strategic goals and targets

To support our commitments towards ‘Protecting the planet’ and enhance our accountability,
we have identified the following goals and targets.

Water management • Increase water efficiency across our Manufacturing, Sales, Distribution and Logistics
Divisions by 15% by 2025 (against a 2018 intensity baseline)
• Initiate and support collaborative efforts with stakeholders to address water risk and
enhance conservation by 2025

Packaging innovation • Avoid the use of 9,000 metric tons of plastics from entering the consumer waste
stream by 2025 (against a 2015 baseline)
• Actively support the transformation of the packaging economy in KSA by 2025

Climate change Transport and refrigeration


• Explore and trial alternative fuel vehicles for our sales transport fleet on an
ongoing basis
• Increase the fuel efficiency of our sales, distribution and logistics vehicles by 10% by
2025 (against a 2018 baseline)
• 100% of our sales depot cold stores will be CFC free by 2025

Energy
• Reduce energy consumption across our Manufacturing, Sales, Distribution
and Logistics Divisions by 15% from efficiency measures by 2025
(against a 2018 intensity baseline)
• Increase the share of electricity from clean energy sources across our Administration,
Manufacturing, Sales, Distribution and Logistics Divisions to 20% by 2025
• Achieve ISO 50001 certification for our Administration, Manufacturing, Sales,
Distribution and Logistics Divisions by 2025

Waste management • Reduce waste going to landfill across all our divisions by 50% by 2025
(against a 2018 baseline)

Sustainable agriculture • Enhance sustainable practices on our arable farms by 2025

34 Almarai Sustainability Report 2019


Water management We are working to make
sure we are effectively
In line with Saudi Arabia’s Vision 2030, and considering
Saudi Arabia’s current and impending water challenges,
using water resources
water conservation and stewardship are at the forefront of
our environmental goals.
every day.
In 2019, we formed a water steering group as part of our
sustainability strategy development process. The group
was instrumental in setting our water management targets
and action plan for improving water efficiency across our
operations over the coming years. The group will continue
to serve as a collaborative knowledge sharing platform and
will play an important role driving initiatives to enhance our
water culture over the coming years. In 2020, we are planning
to expand surveying of employees to better understand
behaviors and identify improvement areas in support of
this aim.

During the past year we implemented several successful


changes across our operations from the installation of various
water saving devices to optimizing cleaning processes.
We also commissioned a new system for water reuse in
our dairy and juice operations which is estimated to reduce
groundwater consumption by 14% over the next five years.
In our Sales Division, we have installed a water recycling
system for vehicle washing as part of a trial. In 2020, we are
planning to install similar systems at 9 further sales depots
and we estimate that this will contribute to a 65% reduction
in vehicle wash down water consumption. In line with our Almarai has been a member of the Alliance for Water
strategic sustainability goals, we have set a target to increase Stewardship (AWS) since 2018. As part of the AWS,
water efficiency across our Manufacturing, Sales, Distribution Almarai is part of a global collaboration of businesses,
and Logistics Divisions by 15% by 2025 (against a 2018 non-governmental organizations and the public sector
intensity baseline). working to achieve good water stewardship practices. In 2020,
and in line with our strategic sustainability goal, to initiate and
Our approach to dairy farming is focused on maximizing support collaborative efforts with stakeholders to address
milk yield per cow. Such an approach reduces the number water risk and enhance conservation by 2025, we are planning
of cattle required to meet our market demand. This focus to self-assess our dairy farming operations against the
on yield efficiency reduces the total water requirements for AWS guidance.
animal drinking water and growing animal feed for our cattle.
Therefore, less water input is required overall to supply
market demand by driving yield efficiency on our dairy and
arable farms.

Our performance summary 2018 2019


Water withdrawal (m ) 3
11,685,518 12,247,436
Water recycling and reuse (m ) 3
1,643,355 1,665,798
Percentage of water recycled and/or reused (%) 14.1% 13.6%
Total water consumption (m3) 13,328,873 13,913,234
Water discharge (m ) 3
8,142,212 8,946,156
Manufacturing water intensity (m /metric ton of finished product)
3
5.0 5.5

Note: Water data excludes poultry, dairy, and arable farming; figures for 2018 have been restated in some instances, see Appendix H for details.

www.almarai.com 35
Protecting the Planet

Packaging innovation We are working to make


sure we reduce the impact
Packaging waste is a global challenge that we are committed
to help resolve. This requires a holistic approach to be
of our packaging on the
taken by understanding how consumers use our products
in conjunction with the requirements of our supply chain. By
environment every day.
using innovative designs, materials and technologies we can
not only reduce the amount of materials entering the waste
stream but contribute to greater supply chain efficiency.
Packaging is an essential material that protects and
preserves our products throughout the supply chain, which is
why we are continually improving our packaging solutions to
maintain the best possible freshness and taste.

2019 has been a successful year overall in terms of weight Almarai has introduced
reduction across Almarai’s portfolio with 2,945 metric tons oxo-biodegradable
of plastics being removed from our primary packaging and
an additional 902 metric tons of paper being removed from
compliant plastic films
our secondary packaging. We also revisited the palletization in alignment with government regulation in 2019.
of our incoming packaging that resulted in increased load
efficiency reducing the number of deliveries on the roads.

Plans are already in place to remove additional plastic In 2019, the combined weight of
tonnage from our primary and secondary packaging in 2020, our paper and plastic packaging
in line with our strategic sustainability goal, to avoid the use reduction amounted to nearly
of 9,000 metric tons of plastics from entering the consumer
waste stream by 2025 (against a 2015 baseline). 3,850
metric tons
Our ability to further drive change is highly dependent on which is about the
the public sector working with the private sector. We have same weight as 2,750
therefore set a goal to actively support the transformation average family cars.
of the packaging economy in KSA by 2025, as part of our
strategic sustainability goals.

More than just a new bottle

2019 saw the introduction of our new 200 ml juice bottle


which gave Almarai the opportunity to redesign this
popular bottle to address the needs of the consumer in
the most resource efficient manner. The new bottle offers
the convenience of a narrow neck, which is easier to drink
from whilst “on the go,” with a size and shape which fits
comfortably in the hand. By adopting the latest lightweight
design of narrow neck, it was possible to reduce the
bottle weight by almost 25%, making it the lightest 200ml
juice bottle in the region. In addition, the outer packaging
was changed, removing the cardboard tray resulting in
a further 600 metric tons of packaging from entering the
waste stream.

36 Almarai Sustainability Report 2019


Our performance summary 2018 2019
Percentage of card board coming from recycled materials used as an input material (%) 65% 65%
Plastics removed from packaging (tons) 283 2,945
Paper removed from packaging (tons) 128 902
Total packaging removed from the consumer waste stream (tons) 411 3,847

Climate change We are working to make


sure we implement more
We continually work on reducing the environmental footprint
of our business, in part, because we are conscious of the
sustainable solutions to
inherent risks from climate change. Rising fuel costs and the
greenhouse gas emissions associated with fuel and electricity
reduce our emissions
consumption have an impact not only on the environment every day.
but also on our financial bottom line. Almarai’s Energy Team
has developed an “Energy Roadmap,” outlining how Almarai
will improve its energy performance through efficient energy
consumption and generation from sustainable sources. Our energy strategy focuses on solar power generation
and battery storage, LED lighting technology, enhanced
Climate change potentially creates risks for agricultural energy monitoring, and improving Almarai’s energy culture
production including drought, pest and disease issues as well. through awareness.
These can pose challenges to maintaining and increasing
production levels over the long term. We therefore look to
adjust our practices to enable us to meet our production
needs now and in the future.

www.almarai.com 37
Protecting the Planet

Energy efficiency Clean energy

In 2019, we completed Phase I of our LED lighting upgrade In 2019, we commissioned solar panels at our main
across our Sales and Manufacturing Divisions and head manufacturing site in KSA, in addition to our existing sales
offices, and commenced Phase II of our LED upgrade depot solar rooftop installations. By the end of 2019, we
program. Once completed, we will have replaced more than increased our clean energy generation capacity to 17 MWp,
70,000 lights across our facilities. From Phase 1 alone, we producing more than 30,000 MWh of clean energy annually.
have estimated that our lighting load has been reduced by On average, sites fitted with solar panels are drawing
up to 70%, which translates to a reduced energy demand for 30% of their energy demand from this clean energy source.
lighting of over 10 million kWh. We are on track that 100% of We also began construction on a 12 MWp solar project at our
our lighting will be LED in our KSA operations over the coming manufacturing site in Hail (KSA), and this is scheduled to
year. Several energy saving initiatives are underway and be commissioned by the end 2020. In addition, during 2020,
additional ones are being developed. In line with our strategic we also plan to install 12 further solar rooftop installations at
sustainability goals, we have set a target to reduce energy our sales depots across the GCC. In line with our strategic
consumption across our Manufacturing, Sales, Distribution sustainability goals, we have set a target to increase the
and Logistics Divisions by 15% from efficiency measures by share of electricity from clean energy sources across our
2025 (against a 2018 intensity baseline). Administration, Manufacturing, Sales, Distribution and
Logistics Divisions to 20% by 2025.
As part of our fuel efficiency initiatives, we were able to roll out
392 of the planned 425 biofuel vehicles in the UAE by the end
of 2019. We also increased the number of dual temperature
vehicles in our fleet. In total, 900 sales vehicles and 100 reefers
had this feature, helping to further decrease the number of
In 2019, we
trips required. Other initiatives which helped to increase fuel
efficiency in 2019, include the following: 100% of our short-haul avoided emitting
vehicles have been fitted with engine idle timers, 100% of
both our short-haul and long-haul vehicles have been fitted
more than 6,250
with vehicle speed restrictors. These modifications have help metric tons CO2e
to increase overall efficiency, and in the case of short-haul from relying on renewable solar energy, which is
vehicles, we have seen a 9% increase in fuel efficiency. In line equivalent to planting nearly 540 hectares of trees.
with our strategic sustainability goals, we have set a target
to increase the fuel efficiency of our sales, distribution and
logistics vehicles by 10% by 2025 (against a 2018 baseline).

We have also set a goal to explore and trial alternative fuel


vehicles for our sales transport fleet on an ongoing basis.
In the future, we will be piloting different alternatives.

38 Almarai Sustainability Report 2019


Energy culture Refrigeration

Energy awareness is an important element of our overall Our cold chain distribution system relies upon refrigeration
energy management strategy and ability to capitalize on at all stages, from farm to shelf. We are constantly improving
technological solutions. Our energy steering group was efficiencies in this area as we are aware that the use of certain
instrumental in setting our energy management targets refrigerants such as R22 contribute to climate change.
and action plan for improving energy efficiency across our We have an active program to replace R22 refrigerants with
operations over the coming years. The group will continue to CFC (Chlorofluorocarbons) free alternatives such as 134a
serve as a collaborative knowledge sharing platform and will and R404A, which not only perform better, but also reduce
play an important role driving initiatives as we work towards atmospheric emissions that contribute to global warming. In
our strategic goals. 2019, we continued to upgrade our sales depot cold stores and
by the end of the year, 70% are now CFC free. In line with our
In 2020, we will be implementing Phase 1 of an energy strategic sustainability goals, we have set a target that 100%
monitoring system and improving metering to better of our sales depot cold stores will be CFC free by 2025.
understand energy consumption patterns, which will In 2020, we are planning to upgrade an additional 7 sales
invariably enable us to improve our performance. In line depot cold stores.
with our strategic sustainability goals, we have set a target
to achieve ISO 50001 certification for our Administration, Currently 95% of our refrigerated transport vehicles are CFC
Manufacturing, Sales, Distribution and Logistics Divisions by free with the remaining 5% to be replaced at the end of their
2025. Through achieving this certification, we will be able to lifecycle. All in-store refrigerators are currently CFC free, and
build a more robust culture and drive further improvements. in 2020, we will be making modifications to reduce refrigerant
In support of this target, we are planning to engage usage by 25%.
employees through surveying, awareness campaigns, and
will prepare for ISO 50001:2018 certification at our head offices
this coming year.

Our performance summary 2018 2019


Direct stationary energy usage (in thousands kWh) 801,850 836,570
Indirect stationary energy usage (in thousands kWh) 845,531 936,070
Total stationary energy usage (direct and indirect, in thousands kWh) 1,647,382 1,772,640
Solar energy usage (in thousands kWh) 2,421 22,095
Percentage of electricity consumption from solar (%) 0.2% 1.6%
Almarai owned refrigerators in stores (in thousands kWh) 906,305 961,093
Manufacturing energy intensity (kWh/metric ton of finished product) 512.3 549.8
Total vehicle fuel consumption (thousands of liters) 410,512 357,485
Scope 1 (direct) emissions (metric tons CO2e) 1,113,639 1,005,862
Scope 2 (indirect) emissions (metric tons CO2e) 718,292 795,419
Scope 3 emissions from Almarai refrigerators in stores (metric tons CO2e) 780,088 827,246
Total emissions (metric tons CO2e) 2,612,019 2,628,528
Manufacturing emissions intensity (metric tons CO2e/metric ton of finished product) 0.30 0.32
Emissions from refrigerant leakage and replacement (metric tons CO2e) 167,686 200,036

Note: Figures for 2018 have been restated in some instances, see Appendix H for more details; emissions cover stationary energy, transportation
and refrigerants only.

www.almarai.com 39
Protecting the Planet

Waste management We are working to make


sure that we are moving
At Almarai, we are committed to protecting vital food
resources by reducing waste. One of the most effective ways towards zero to landfill
of reducing food waste is prevention. To this end, we are
working hard to ensure that our demand forecasting is highly
every day.
accurate to avoid food waste generation and unnecessary
cost to the business and the environment. Where possible, we
also seek to recycle as much packaging and process waste as
we can from both our manufacturing and distribution facilities.
We now recycle waste cardboard and shrink wrap from our Redistributing food surplus and waste
sales depots. This is collected by a waste management
company and recycled into various other materials, diverting
it from landfill. We are always exploring new options to redistribute
unused food surplus for human consumption. We
We have been conscious of understanding where our waste collaborate with local food regulatory bodies in Oman,
goes and reviewing this against the waste hierarchy. In the Bahrain and the UAE, like the Dubai Municipality,
GCC we have been working on several initiatives that look to, for example. We redistribute food, juice and dairy
where possible, keep waste in the more favored prevention products still in date to local charities and food banks
category on the waste hierarchy, treating it as food surplus to minimize environmental impact and support those in
and avoiding disposal to landfill. need. In 2019, we redistributed 269 tons of food surplus
to these good causes.
In 2019, we formed a waste steering group as part of our
sustainability strategy development process. The group When we are not able to redistribute the food surplus
was instrumental in setting our waste management targets to humans, we redirect surplus to animal feed, so it
and action plan for improving waste diversion across our has a more useful purpose. In 2019, more than 39,000
operations over the coming years. The group will continue to tons of bakery, poultry and dairy waste has been sent
serve as a collaborative knowledge sharing platform and will to various organizations for animal feed purposes,
play an important role driving initiatives as we work towards representing over a 20% increase from the
our strategic goal, to reduce waste going to landfill across all previous year.
our divisions by 50% by 2025 (against a 2018 baseline).
Finally, in another project in Dubai, we are working with
During the coming year, we will be making a concerted effort a third-party provider who currently takes food and
under the direction of the waste steering group to identify dairy waste and recycles the packaging and removes
additional opportunities to not only divert waste from landfill, water for reuse through reverse osmosis. In 2020, we
but to reduce it at source. We have plans underway to expect to commence a new partnership to redirect
identify partners with innovative solutions as well as in-house a significant element of surplus products to ensure
solutions. In 2019, across our divisions we have commenced a the plastic is recycled, the water recovered, fats are
waste avoidance program with over 15 different interventions converted into biofuels and proteins into animal feed.
using the DMAIC (Define, Measure, Analyze, Improve, and
Control) methodology. This program has contributed to our
understanding of our overall waste issues and management
approaches for the future.

Our performance summary 2018 2019


Food waste resold for animal feed (Store returns and operational) (metric tons) 32,375 40,086
Recycled waste (metric tons) 16,577 22,071
Total waste generated (metric tons) 184,512 202,738
Waste sent to landfill (metric tons) 135,954 141,292
Percentage of waste sent to landfill (%) 74% 70%

Note: Figures for 2018 have been restated in some instances, see Appendix H for more details.

40 Almarai Sustainability Report 2019


Sustainable agriculture We are working to make
sure that our agricultural
Almarai owns Fondomonte, who operate our arable farms
located in primarily Argentina and the United States. Ensuring
practices are regenerative
that we produce the highest quality feed for our dairy herds in
Saudi Arabia is as important as our commitment to ensuring
every day.
sustainable agricultural practices.

We utilize best land-use practices to ensure land productivity In California, where we rely on irrigation canals, we have
on our arable farms and continue to adopt regenerative ongoing work to line them with concrete to increase flow and
farming practices where possible. Regenerative farming reduce water loss from both evaporation and aquatic plant life.
practices are important for the long-term sustainability All canals are gravity fed and rely on no energy for pumping.
of our arable farms through contributing to the health In our United States and Argentina operations, we monitor
and vitality of the soil through microbial development water use in line with local regulations and maintain ongoing
and topsoil regeneration, while also supporting bio dialogue with local bodies governing water management.
and carbon sequestration, soil structure, and overall
ecological biodiversity. In California, we participate in a In the United States, we ceased transporting feed from our
land conservation program, where around 15% of the land arable farms to port by truck in 2019. Feed is now transported
lays fallow at any given time to support soil regeneration. by train to port for shipping. Although this has increased our
In Argentina, environmental impact assessments are internal fuel consumption, as we no longer rely on third-parties
conducted on a regular basis on alfalfa farms. We carefully to transport the feed, there is a substantial indirect benefit
monitor the application of fertilizer and pesticides in line with in terms of emissions related to the transport of feed. This
local regulations and maintain ongoing dialogue with local change means that around 550 trucks per week are removed
environmental regulatory bodies in both countries. from roads making the 250-mile journey from Arizona and the
190-mile journey from California.
Our arable farming operations based in the United States
and Argentina, utilize irrigation methods most suitable for In line with our strategic sustainability goals, from 2020 we
the environment. We have invested heavily in irrigation will be making a concerted effort to enhance sustainable
infrastructure since acquiring the farms in the United States. practices on our arable farms by 2025. To support this goal,
For example, our arable farms in Arizona use a combination we will be assessing our arable farming operations and
of highly efficient subsurface drip and pivot irrigation. developing improvement plans over the coming year.

www.almarai.com 41
Protecting the Planet

Excelling in health and safety Engaging with the community

All of our operational Fondomonte USA sites are Fondomonte USA has appointed a ‘community
SHARPs (Safety & Health Achievement Recognition engagement champion’ at each of its three operational
Program) certified, an OSHA (Occupational Safety sites. Community engagement champions are
and Health Administration) accreditation program. responsible for coordinating engagement activities
The SHARPs certification recognizes small and and allocating charitable donations to where they are
medium business employers who have used OSHA’s most needed and valued within the community.
On-Site Consultation Program services and operate
exemplary safety and health programs. In Arizona, we We provide ongoing support to several activities
were the first agricultural operation to ever be awarded such as 4-H (Young Farmers of America), a program
with this certification. This is a demonstration of the administered by the National Institute of Food and
steps Fondomonte USA has taken over and above Agriculture of the United States Department of
industry standards to ensure our employees’ health Agriculture. The program works to inspire youth
and wellbeing. to enter agricultural careers, providing them with
awareness and skill building through applied projects.

Fondomonte USA also provides support to local


schools when the need arises whether it be school
supplies for those in need or equipment, we are proud
to give back to the communities where we operate.

Creating a positive economic impact

In 2019, Fondomonte USA commissioned an independent million over the last five years. These investments have
consulting firm to assess its economic and fiscal impact. created 2,082 jobs in the country, over $111.0 million in
The findings highlight Fondmonte USA’s positive wages, and over $335 million in economic output.
contribution to its locations of operation.
In total, the annual business activities for Fondomonte
Fondomonte USA has made significant capital USA support 2,538 jobs, over $132.7 million in wages, and
investments in both Arizona and California. As of 2018, over $385.8 million in annual economic activity.
a total of $301.4 million in capital expenditure has been
spent in the United States. The total economic output created by Fondomonte from
their arrival through 2018 is estimated at over $1.3 billion for
Capital improvements related to the construction activity the United States.
on the farms has been estimated to be nearly $127.0

Fondomonte | Performance summary 2018 2019


Number of incidents of non-compliance with environmental laws and regulations 0 0
Arable farming land under production (hectares) – USA 7,840 8,269
Arable farming land under production (hectares) – Argentina 24,314 24,098
Total arable farming land under production (hectares) 32,154 32,367

42 Almarai Sustainability Report 2019


www.almarai.com 43
Producing Responsible Products

Our promise to deliver


“Quality you can trust”
and enhance supply
chain sustainability
every day.

44 Almarai Sustainability Report 2019


Producing
responsible
products

Quality and food safety


We are working to make sure our products
are safe and satisfy consumers’ needs
every day.

Animal welfare
We are working to make sure that our
animals are treated and handled humanely
throughout their lifecycle every day.

Ethical sourcing
We are working to make sure we take
a collaborative approach to elevate
sustainability in our supply chain every day.

www.almarai.com 45
Producing Responsible Products

Our strategic goals and targets

To support our commitments towards ‘Producing responsible products’ and enhance our accountability,
we have identified the following goals and targets.

Quality and food safety • All manufacturing sites will be Global Food Safety Initiative (GFSI) certified by 2025
• All high-risk ingredient suppliers will be Global Food Safety Initiative (GFSI) certified
by 2025

Animal welfare • Achieve global animal welfare certification for our dairy and poultry farming
operations by 2025

Ethical sourcing • Put an ethical sourcing process and audit plan in place by 2025

46 Almarai Sustainability Report 2019


Quality and food safety We are working to make
sure our products are safe
Our promise to all stakeholders is to deliver “Quality you
can trust.” Since 1977, we have been committed to providing
and satisfy consumers’
products and services that are manufactured to global best
practice standards in food safety and quality.
needs every day.
The integrity of the Almarai food safety and quality systems is
the shared responsibility of all Almarai employees to ensure
“Quality you can trust” in all our products. The capability and
effectiveness of our systems is supported by training and
Leading the market in food safety
various multilevel internal audit programs, independently
verified by globally recognized certification and inspection
bodies who carry out both announced and unannounced In 2019, the 2nd annual Almarai Food Safety conference
system audits and physical inspections at our sites. focused on the following theme, “What happens when
food safety goes wrong?” The conference looked
Our facilities hold various certifications which include at various company case studies from around the
ISO 22000 Food Safety Management and ISO 9001 Quality world seeking to drive change on real issues facing
Management. Furthermore, our Infant Nutrition Division our industry and contributing to practical solutions
and our Poultry Manufacturing Division achieved Food Safety applicable to food safety systems, processes,
System Certification (FSSC) 22000 certification which is practices and behaviors. This year’s conference
a Global Food Safety Initiative (GFSI) recognized scheme attracted more than 150 delegates, including
which will be extended to other manufacturing sites in international food safety experts and representatives
due course. from various ministries in KSA. In the future, we see
this conference as becoming an important industry
In 2019, we reviewed our supplier risk profiling and audit platform to raise the bar on food safety across KSA.
program to increase its robustness and to further reduce
potential quality and food safety issues within our supply
chain. In line with our strategic sustainability goals, we have
set a target that all high-risk ingredient suppliers will be
GFSI certified by 2025.

Harnessing the power of big data and our agility to do so


have both greatly improved in 2019. We have carried out
extensive work on how our system integrates across the
business, and we are continuing to expand the scope in terms
of the information being gathered from our processes and
systems. Improved data collation and analytics are helping
us to better understand process compliance and improve
decision making.

To maintain our strong quality and food safety performance, One of the key messages from the conference was
we recognize that it is also important that our employees that even when a system is in place, things can go
are well trained within a quality culture. Employees are wrong. We wanted to reflect this in our own approach
provided with tailored training on an annual basis provided by and as a result we conducted an end-to-end review of
international experts such as AIB International and Campden our Hazard Analysis Critical Control Points (HACCP)
BRI (UK). In 2019, we also provided training to our executive process to ensure that our comprehensive approach to
management on FSSC and GFSI certification. We continued food safety risk is standardized across Almarai.
rolling out our quality and food safety survey across more
areas of the business, reaching 2,000 employees by the end
of 2019, the analysis of which is providing us with new insights,
and has identified actionable areas for improvement. For
example, we have developed a recognition program which is
set to be launched in 2020.

www.almarai.com 47
Producing Responsible Products

Achieving Global Food Safety Initiative (GFSI) certification

The Global Food Safety Initiative (GFSI) brings together


key factors to drive continuous improvement in food safety
management systems around the world. Our shared belief
in continuous improvement has been a key driver in our
interest to measure ourselves against the world’s most
prominent food safety management accreditation.
In line with our strategic sustainability goals, we have set
a target that all manufacturing sites will be Global Food
Safety Initiative (GFSI) certified by 2025.

In 2018 our Infant Nutrition Division was the first to achieve


this distinction, and in 2019, our Poultry Manufacturing
Division achieved certification against the GFSI
requirements. In 2020, we will move forward with preparing
our Dairy, Juice and Bakery Divisions for certification.

Our performance summary 2018 2019


Percentage of production volume manufactured in sites certified by an independent third party
100% 100%
according to internationally recognized food safety management system standard (%)
Number of incidents of non-compliance with regulations and/or voluntary codes concerning the
0 0
health and safety impacts of products and services

Number of recalls 0 0

Percentage of significant product categories covered by and assessed for compliance with
100% 100%
product information and labeling procedures (%)

Total number of manufacturing plants 10 10

48 Almarai Sustainability Report 2019


Animal welfare We are working to make
sure that our animals
We are committed to safeguarding the health and wellbeing
of all animals within our care, as this impacts not only the
are treated and handled
animal’s quality of life, but also the quality and safety of the
food we produce. We ensure that the animals we raise to
humanely throughout their
produce our products are properly and humanely treated lifecycle every day.
throughout their lifecycle. We follow the World Organization
for Animal Health (OIE) guiding principles on animal welfare,
as well as the universally recognized ‘Five Freedoms’ for
animals under human control.

Almarai’s farms look after our livestock to an exceptionally


high standard, ensuring maximum yields and quality. Our
Holstein dairy herds have 24-hour support from professional
veterinary teams, year-round shaded housing, and air cooling
and showering. Cows are fed a healthy diet that is specifically
formulated for their needs.

We go to great lengths to ensure the right amount of feed


is fed by using high quality ingredients sourced from well
managed farms. Poultry flocks receive best-in-class care,
ensuring that health consistently exceeds global standards.
Such standards are achieved by focusing on high levels of
husbandry and nutrition for our birds. For example, we have
a unique air filtration system in our broiler farms. Broilers are
housed in climate-controlled barns and are provided with a
healthy diet. Almarai also does not use cages on any of our Therapeutic antimicrobials are not used in our cows as an
poultry farms. alternative to good management. We have a health plan
to continually improve our cows’ health with an emphasis
on effective vaccination, good husbandry and best hygiene
practices. During treatment, our cows are removed from
In 2019, we had and raised production until treatment has been completed and they test
more than more than negative for antibiotics in their milk. With our broiler chickens,

180,000 191 million we do not use antimicrobials (antibiotics) ever.

cows chickens. In 2020, and in line with our strategic goal to achieve global
animal welfare certification for our dairy and poultry farming
operations by 2025, we are planning to select a certification
in our herd in Saudi Arabia
standard, conduct a self-assessment on a limited number of
selected sites, and after implementing any corrective actions,
achieve certification on those sites.

Our performance summary 2018 2019

Number of cows 188,071 180,504

Number of chickens processed 157,372,110 191,103,518

Number of incidents of non-compliance with laws and regulations, and adherence with voluntary
standards related to transportation, handling, and slaughter practices for live terrestrial and 0 0
aquatic mammals

Percentage of cows in enclosed housing with resting areas (%) 100% 100%

Percentage of chickens in enclosed cage free housing (%) 100% 100%

www.almarai.com 49
Producing Responsible Products

Ethical sourcing We are working to make


sure we take a collaborative
Suppliers play an integral role in our ability to deliver on our
commitments to sustainability. At Almarai, we believe that to
approach to elevate
become a more sustainable company, we must work with our
suppliers to ensure they act ethically.
sustainability in our supply
chain every day.
Ensuring that the materials and services we use are ethically
sourced is not only the right thing to do, but it also stimulates
sustainability performance improvements for the entire
company and supply chain. It is key towards ensuring a
sustainable future for our business and positioning us as a
leader in sustainability.

We also believe that we have a duty to our consumers to


ensure that the materials and services we use are ethically
sourced. Consumers and stakeholders have increasing
concerns about their personal health, not only with regards
to their consumption of products, but also to the impact that
the products may have on the factors of production, including
workers and resources.

As a market leader in the food and beverage industry in the


region, and the world’s largest vertically integrated dairy
company, we understand that our suppliers need to behave
in an ethically responsible manner. To this end, Almarai
has a Supplier Code of Conduct. In line with our strategic
sustainability goals, we have set a goal to put an ethical
sourcing process and audit plan in place by 2025. We have
identified several actions to undertake during the coming year
to help us better understand supply chain risks that go above
and beyond food safety and quality concerns and to enhance
supplier due diligence.

Our performance summary 2018 2019

Percentage of locally based suppliers engaged (%) 50% 51%

Percentage of spending on locally based suppliers (%) 45% 41%

Percentage of purchased volume from suppliers compliant with company's sourcing policy NIA NIA

Percentage of purchased volume which is verified as being in accordance with credible,


NIA NIA
internationally recognized responsible production standards

New suppliers that were screened using social and/or environmental criteria 0 0

Number of negative social and/or environmental impacts in the supply chain and actions taken NIA NIA

Note: NIA stands for no information available.

50 Almarai Sustainability Report 2019


Our
subsidiaries
Beyti

Teeba

www.almarai.com 51
Our Subsidiaries

Beyti
Beyti will continue to focus on water efficiency and recycling
in 2020 and is planning to roll out water reuse systems
for cleaning. Over the coming year, Beyti will focus on
implementing waste management and green building
Beyti is one of the largest solutions. Some key solutions will focus on identifying
opportunities to sell food waste for animal feed and recycling
producers of milk, juice and packaging, as well feasibility planning for a zero-energy

yoghurt products in Egypt, multipurpose meeting room.

and a subsidiary of Almarai


Company, under the joint Reclaiming desert lands

venture IDJ. In 2019, Beyti commenced an afforestation project to


utilize water from its effluent treatment plant to forest
an area of 29,400 m2 adjacent to its manufacturing
facilities. In total, 400 trees will be planted and will
As a leader in the Egyptian market, Beyti is working to embed sequester an estimated 2.3 tons of CO2e annually.
sustainability within its operations. To this end, Beyti has
established an environmental and sustainability function
responsible for managing sustainability companywide.

This section of the report outlines Beyti’s approach to


managing sustainability and highlights the achievements it Community engagement
has made in 2019 and its plans for the year ahead.
Beyti engages in several activities to support education
throughout the year. Beyti has a factory visit program for
Environmental performance primary and secondary schools, providing an overview of the
production process, quality and safety, and sustainability.
In 2019, Beyti has put in place an environmental roadmap On average, more than 500 students a year visit the business.
with key actions through to 2021, covering the following areas:
environmental management systems and compliance; Beyti also hosts agricultural and engineering students and
carbon and energy; water; operational and food waste; provides technical presentations to support their studies.
and supplier and contractor environmental performance On average, Beyti welcomes more than 230 university
management. Beyti’s roadmap is a commitment to ensure students a year as part of this educational program. Beyti is
that its Environmental Policy is put into action. The policy currently working to build relationships with local universities
sets out the company’s commitment to support and preserve to support research programs in the years ahead.
the environment in which it operates, responding to its key
environmental impact areas as a business.

Over the past year, Beyti has implemented several initiatives


to optimize energy and water consumption from process
and equipment modifications, helping Beyti reduce water
consumption by up to 105 m3 per day and 398,000 kWh per
day. Some of the biggest improvements have come from
installing a boiler economizer and switching to LED lights. For
example, the upgrade to LED lighting has contributed to a 40%
lighting energy demand reduction.

In 2020, Beyti will commission a 6.7 MWp solar array at its


manufacturing site, which will provide more than 30% of peak
electricity demand. Once all phases of the 20 MWp solar
array project are completed, Beyti will draw an estimated
19% of its total electricity demand from clean energy. In
addition to switching from diesel to natural gas boilers, these
improvements will significantly reduce the carbon intensity of
Beyti’s manufacturing facilities.

52 Almarai Sustainability Report 2019


To support Egyptian youth’s transition into the workforce,
Beyti operates a paid internship program for university Supporting charitable causes
students. In its third year, Beyti’s internship program hosted
43 interns for 2 months each. In 2019, 4 interns joined as Beyti supports community members in need
full-time employees following graduation. In total, of the through product donations and other charitable
81 interns hosted, 8 have joined as full-time employees causes. Every Ramadan, Beyti hosts daily “Iftars”
following the program. Beyti also runs a job shadowing at its manufacturing site and engages with local
program to help support university students to identify non-governmental organizations. In addition, they
potential career opportunities. sponsored an event for over 100 orphans in 2019.

Offering career opportunities


Developing employees
Beyti’s “Kaseeb” program helps the company
enhance its distribution coverage into rural areas, All 3,000+ management and supervisory employees
while offering gainful employment opportunities have bespoke performance objectives with access
for Egyptians. Through relationships with banking to leadership and development programs and
institutions, “Kaseeb” participants can purchase e-learning courses. Beyti also provides manufacturing
small distribution vans and become Beyti sales employees with skills development training and has
agents, managing their own sales routes. Beyti developed competency assessments for 2020 to
Sales employees also provide on-going support and support their professional development. In addition,
coaching to “Kaseeb” sales agents. 39 employees have been identified to become internal
training facilitators for Almarai food safety, ISO and
Launched in 2018, the program is a great success. hygiene courses.
Currently 200 “Kaseeb” sales agents are managing
over 100 routes, and Beyti is targeting to increase this
number to 240 in 2020.

Prioritizing safety for all

In 2019, Beyti has prepared to upgrade its health


and safety management certification to ISO 45001.
Beyti continues to engage in activities which support
building a strong health and safety culture, from the
development of a near miss reporting program to road
safety campaigns, Beyti is working to ensure the
safety of all.

‘Quality you can trust’

Beyti lives by Almarai’s motto, ‘Quality you can trust.’


To support the company to deliver only the highest
quality products, Beyti follows the same quality audit
process as Almarai. Beyti’s main manufacturing plant
is GFSI certified.

www.almarai.com 53
Our Subsidiaries

Teeba Environmental performance

Over the past year, Teeba has implemented several initiatives


Teeba is one of the largest to optimize energy and water consumption from process and
equipment modifications. In 2019, Teeba converted its boilers
producers of dairy products to heavy fuel oil from diesel. This modification will contribute

in Jordan, and a subsidiary of to reducing the carbon intensity of Teeba’s manufacturing


facilities. Teeba is also in the process of switching to LED
Almarai Company, under the lighting. In total, lighting loads will be reduced by up to an
estimated 15%. Following the review of cleaning processes,
joint venture IDJ. the modifications Teeba has made have further supported
reducing overall water and energy use requirements.

In 2019, Teeba commissioned a 0.35 MWp solar array at


As a leader in the Jordanian market, Teeba is working to its head offices, contributing 50% of the site’s total energy
embed sustainability within its operations. Sustainability consumption in 2019 alone. In 2020, further planning for a
management is currently decentralized but coordinated by 0.5 MWp solar array at Teeba’s manufacturing plant is
Teeba’s Quality and Regulatory Department. scheduled pending approval from the Jordanian Electric
Power Company.
This section of the report outlines Teeba’s approach to
managing sustainability and highlights the achievements it
has made in 2019 and its plans for the year ahead.

54 Almarai Sustainability Report 2019


Community engagement

Teeba works to support the local community through various


events throughout the year. During the past year, Teeba
organized an event for World Cleanup Day, where employees
volunteered to collect waste in the areas adjacent to its
manufacturing site. In 2019, Teeba also organized a breast
cancer awareness and blood donation campaign in co-
operation with the King Hussein Cancer Foundation (KHCF)
and supported the KHCF’s ‘Run for Life initiative,’ donating
juice to the participating Jordanian schools.

Teeba hosted nearly 900 visitors from schools, universities


and governmental bodies during 2019. In total it also donated
over 7,500 food servings to charitable organizations.

‘Quality you can trust’

Teeba lives by Almarai’s motto, ‘Quality you can trust.’


To support the company to deliver only the highest
quality products, Teeba follows the same quality audit
process as Almarai. Currently Teeba’s manufacturing
plant is ISO 22000 certified, and this will be extended to
sales depots in the coming year.

www.almarai.com 55
Appendices / GRI Content Index

56 Almarai Sustainability Report 2019


Appendices /
Gri content
index

Appendix A
Defining and prioritizing the issues
that matter the most

Appendix B
Stakeholder mapping

Appendix C
Topic boundaries

Appendix D
GRI content index

Appendix E
Sustainability strategy boundaries

Appendix F
Alignment to NTP

Appendix G
Alignment to SDGs

Appendix H
Sustainability in numbers

www.almarai.com 57
Appendices / GRI Content Index

Appendix A
Defining and prioritizing the issues that matter the most
Our materiality process Our 2019 materiality assessment

We use the principle of materiality to identify the economic, In 2019, we reviewed our list of 20 material issues from 2018
social, and environmental issues that matter most to our against international industry guidelines, frameworks and
business and our stakeholders. By considering the concerns industry peers, along with analysis of our operating market
of our stakeholders, alongside the risks and opportunities and regulatory landscape. We engaged internal stakeholders
that face our business, materiality helps us prioritize where to supplement our market analysis. Based on internal
to focus our efforts to enhance stakeholder value and our feedback and external considerations, we have consolidated
sustainability performance. Materiality also guides us on what our list of material issues from 20 to 12 issues and replotted
we should report on publicly. them on the matrix below. We consider governance to
be material and interwoven throughout our sustainability
We conducted a formal materiality assessment engaging framework rather than a standalone topic. We continue
both internal and external stakeholders in 2018. In 2019, to address governance vis a vis our annual report and
we conducted an internal review of materiality. We intend to GRI-based disclosures. Our materiality update was validated
conduct another formal materiality assessment in 2021. by our executive management.
In the interim, we will monitor priority issues considering
internal and external considerations on an ongoing basis.

Our approach to materiality is consistent with the


GRI Standards.

Nutrition and wellbeing Quality and food safety Pillar theme key:
Water management Climate change Caring for people
Waste management
Protecting the planet
Major

Packaging innovation
Producing responsible
products
Importance to stakeholders

Sustainable Ethical sourcing Health and safety


agriculture
Animal welfare
Significant

Community Employee talent


investment and diversity
Moderate

Importance to Almarai

Moderate Significant Major

58 Almarai Sustainability Report 2019


Appendix B
Stakeholder mapping
The table below identifies our most important stakeholders, the importance of each stakeholder group to Almarai, their needs and
expectations, channels for engagement with each group, and the examples of specific measures to respond to them.

Stakeholders Importance Needs and Almarai engagement How Almarai


expectations channels is responding
Shareholders/Investors Our shareholders and • Financial performance, • Board of Directors • Annual Report,
investors provide the efficient production meetings Corporate Governance
capital necessary for and growth • Public reports Code, Financial reports,
sustainable growth; • Dividends • Shareholders’ Earnings presentations,
therefore, Almarai’s future • Contribution to economic Rights Policy etc.
growth and success development • Investor Relations • Net income growth
ultimately depends • Share price • Sustainability report
on its ability to attract • Data disclosure
investment domestically and credibility
and internationally. We are • Customer satisfaction
committed to delivering • Market share
long term sustainable • Publicly disclosed
returns for shareholders data about our ESG
and investors in a growing performance, including
range of diversified strategies, targets and
product lines. goals, methods for
evaluation, policies, and
procedures

Consumers Our consumers are at the • Product and ingredients • Social media channels • Direct dialogue with
heart of our business. quality, freshness and • Visitor tours consumers on social
We want consumers across safety • Website media, including
the region to think Almarai • Product nutritional value • Call center Facebook, Twitter,
first when purchasing food and health implications • Electronic mail YouTube, Instagram
and beverages. Building • Product price and more
trust and ensuring that • Brand reputation • Monthly consumer
our products are the best • Environmentally sound surveys
is essential to our production practices • Consumer hotline and
continued growth. • Animal welfare WhatsApp
• Fair and ethical
marketing
• International recognition
and certificates
• Direct communication
channels

Employees Our employees are • Fair payment and • HR Policy • Housing allowance and
paramount to our business benefits • Training and transport
success, as they hold the • Equal opportunity development program • Life / Medical insurance
commitment, dedication, • Engagement and • Training needs analysis • Annual service award
and intellectual capital to motivation • Employee grievance • Recreational activities
drive innovation within our • Transparent hierarchies mechanism for work/life balance
organization and deliver on • Job security • Employee satisfaction • Talent assessments
our strategy. • Training and career surveys (on an ad hoc • E-learning and training
development basis) program
• Safe work environment • Management courses
• Grievance mechanisms • Almarai Academy
• Graduate Professional
Trainee Program

www.almarai.com 59
Appendices / GRI Content Index

Stakeholders Importance Needs and Almarai engagement How Almarai


expectations channels is responding
Governmental We deeply value our • Compliance with national • Internal audit • Corporate Governance
regulatory bodies relationships with our legislation and regulation • Stakeholder meetings Code
regulators and other • Contribution to economic and open dialogue • Annual Report
government stakeholders, development • Public reporting • Sustainability Report
as they help us ensure that • Environmentally sound • Working closely with • Regulatory team
we effectively manage production practices regulators to develop meet regularly with
risks to our business and • GHG emissions and improved standards government bodies
produce safe, quality impact on climate representatives
products for consumers. change • Corporate affairs team
We are committed to • International recognition meetings
complying with all legal and and certificates • Government forums
regulatory requirements.

Civil society As a people centric • Corporate Social • CSR activities • Food support for lower
organizations business, we believe that Responsibility (CSR) • Student learning income and vulnerable
contributing to communities and engagement opportunities groups
in the countries of our • Funds and financial • Food donations • Educational awards
operations is important to support • Dairy and Food
building trust and bonds. • GHG emissions and Polytechnic
We are committed to impact on climate • Almarai Driving School
ensuring that access to change
quality and healthy food is • Data disclosure and
not only a luxury, but a right. credibility
• Animal welfare
• Environmentally sound
production practices
• Contribution to
social and economic
development

Engagement in associations

As part of our engagement with stakeholders, we are members of strategic external associations.

Almarai is an active member in the following associations:

• National Dairy Committee under the Council of Saudi Chamber


• National Bakery Committee under the Council of Saudi Chamber
• National Poultry Committee under the Council of Saudi Chamber
• National Transportation Committee under the Council of Saudi Chamber
• National Labor Market Committee under the Council of Saudi Chamber
• Agricultural Committee under the Riyadh Chamber of Commerce
• Human Resources and Labor Market Committee under the Riyadh Chamber of Commerce
• Saudi CODEX Committee
• Food and Beverage Association, Dubai
• Alliance for Water Stewardship
• Agriculture and Food Security Council (Riyadh Chamber of Commerce)

60 Almarai Sustainability Report 2019


Appendix C
Topic boundaries

Material issue Category Topic boundaries

Caring for people

Nutrition and wellbeing Social Almarai, Subsidiaries, consumers

Health and safety Social, Economic Almarai, Subsidiaries, consumers

Employee talent and diversity Social Almarai, Subsidiaries

Community investment Social Almarai, Subsidiaries, consumers

Protecting the planet

Water management Environmental, Economic Almarai, Subsidiaries

Packaging innovation Environmental, Economic Almarai, Subsidiaries

Climate change Environmental Almarai, Subsidiaries

Waste management Environmental, Economic Almarai, Subsidiaries

Sustainable agriculture Environmental, Social, Economic Almarai, Subsidiaries

Producing responsible products

Almarai, Subsidiaries, consumers,


Quality and food safety Governance
suppliers

Animal welfare Social Almarai, Subsidiaries

Ethical sourcing Environmental, Social, Economic Almarai, Subsidiaries, suppliers

www.almarai.com 61
Appendices / GRI Content Index

Appendix D
GRI content index

GRI Standard Disclosure Page number(s)

GRI 101: Foundation 2016


General
Organizational profile
Disclosures
GRI 102: 102-1 Name of the organization Almarai Company
General
Disclosures 2016 102-2 Activities, brands, products, and services Annual Report 2019 pg. 8-9 and 62-71

102-3 Location of headquarters Riyadh, Saudi Arabia


Saudi Arabia, Oman, UAE, Bahrain, Kuwait, Jordan,
102-4 Location of operations
Egypt, USA, Argentina and Romania
102-5 Ownership and legal form Annual Report 2019 pg. 137-141
Primary markets served: Saudi Arabia, Oman, UAE,
102-6 Markets served
Bahrain, Kuwait, Jordan, Egypt
102-7 Scale of the organization Annual Report 2019 pg. 4, 8-9, 34-35 and 132-133

102-8 Information on employees and other workers 79-91

102-9 Supply chain 12-13


102-10 Significant changes to the organization and
Annual Report 2019 pg. 86-87
its supply chain
102-11 Precautionary Principle or approach 14-19, 37
GRI, World Organization for Animal Health, Alliance
102-12 External initiatives
for Water Stewardship
102-13 Membership of associations 60

Strategy

102-14 Statement from senior decision-maker 4-7

102-15 Key impacts, risks, and opportunities 4-7, 14-19

Ethics and integrity


102-16 Values, principles, standards, and norms of
Annual Report 2019 pg. 6 and 54-55
behavior
Governance

102-18 Governance structure Annual Report 2019 pg. 80 and 95

102-19 Delegating authority Annual Report 2019 pg. 96-97


102-22 Composition of the highest governance body
Annual Report 2019 pg. 98 and 106-107
and its committees
102-23 Chair of the highest governance body Chair is a non-executive member.

62 Almarai Sustainability Report 2019


GRI Standard Disclosure Page number(s)
102-24 Nominating and selecting the highest
GRI 102: Annual Report 2019 pg. 96-97
governance body
General
Disclosures 2016 102-26 Role of highest governance body in setting
Annual Report 2019 pg. 96-97
purpose, values, and strategy
102-30 Effectiveness of risk management
Annual Report 2019 pg. 42-47
processes
102-35 Remuneration policies Annual Report 2019 pg. 110-111

Stakeholder engagement

102-40 List of stakeholder groups 19


102-41 Collective bargaining agreements Trade unions are not allowed in the GCC.
Employees in Argentina are represented by trade
unions. Employees in the USA, Jordan and Egypt
are not members of trade unions.
102-42 Identifying and selecting stakeholders 58-60

102-43 Approach to stakeholder engagement 19, 58-60

102-44 Key topics and concerns raised 58-60

Reporting practice
102-45 Entities included in the consolidated
Annual Report 2019 pg. 137-141
financial statements
102-46 Defining report content and topic
58-61
Boundaries
102-47 List of material topics 58

102-48 Restatements of information 79-80, 84, 86-87, 91-99

102-49 Changes in reporting No significant changes.

102-50 Reporting period 2

102-51 Date of most recent report 2018

102-52 Reporting cycle Annual


102-53 Contact point for questions regarding the
2
report
102-54 Claims of reporting in accordance with the
2
GRI Standards
102-55 GRI content index 62-73

102-56 External assurance This report has not been assured by a third party.

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Appendices / GRI Content Index

GRI Standard Disclosure Page number(s)


Material Topics

GRI 200 Economic Standard Series

Economic Performance
GRI 103: 103-2 The management approach and its
Annual Report 2019 pg.30-31
Management components
Approach 2016
103-3 Evaluation of the management approach Annual Report 2019 pg. 32-33
GRI 201: 201-1 Direct economic value generated and
Annual Report 2019 pg. 132-136
Economic distributed
Performance 2016 201-2 Financial implications and other risks and
37-39
opportunities due to climate change
201-3 Defined benefit plan obligations and other
Annual Report 2019 pg. 154-155
retirement plans
201-4 Financial assistance received from SAR 459.4 million total: SAR 427.8 million from
government government subsidies for feed stock and SAR 31.6
million from the Human Resource Development
Fund.
Market Presence
GRI 103: 103-1 Explanation of the material topic and its
26-28, 61
Management Boundary
Approach 2016 103-2 The management approach and its
26-28
components
103-3 Evaluation of the management approach 26-28
GRI 202:
202-2 Proportion of senior management hired from
Market Presence 91
the local community
2016
Indirect Economic Impacts
GRI 103: 103-1 Explanation of the material topic and its
26-30, 41-42, 52-53, 55, 61
Management Boundary
Approach 2016 103-2 The management approach and its
26-30, 41-42, 52-53, 55
components
103-3 Evaluation of the management approach 26-30, 41-42, 52-53, 55
203-1 Infrastructure investments and services
GRI 203: Zero
supported
Indirect Economic
Impacts 2016 203-2 Significant indirect economic impacts 42, 91-93

Procurement Practices
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
50
components
103-3 Evaluation of the management approach 50
GRI 204: 204-1 Proportion of spending on local suppliers 102
Procurement
Practices 2016

64 Almarai Sustainability Report 2019


GRI Standard Disclosure Page number(s)
Anti-corruption
GRI 103: 103-2 The management approach and its Almarai has a Policy for Reporting Violations,
Management components which is designed to help stakeholders (including
Approach 2016 employees, suppliers and third parties) to report
any acts or practices which violate the Almarai
Code of Conduct (CoC), laws, rules and regulations.
Almarai has an electronic form to disclose any
conflict of interest and the form has been shared
twice with all Almarai’s employees that have emails
in 2019. In line with the above, Almarai has a model
for ethics and compliance reporting and resolution
duly approved by the Senior Management and the
Audit Committee. The ethics and compliance model
is also supported by a reporting website, NAVEX
EthicsPoint, which is linked directly to Almarai’s
corporate website. Employees, customers, any
concerned third parties, essentially anyone, can
use the website and report violations safely and
anonymously. A stand-alone policy on anti-bribery
and corruption policy with procedures is under
development and set to be introduced along with
employee training in 2020.
103-3 Evaluation of the management approach Annual Report 2019 pg. 21 and 42-47
GRI 205: 205-1 Operations assessed for risks related to Assessment of risks is regularly carried out by
Anti-corruption 2016 corruption our Internal Audit and Risk functions. At least two
assessments took place in 2019. One related to
supplier contract and the second was related to
sales.
205-2 Communication and training about In 2019, Almarai introduced an updated version of its
anti-corruption policies and procedures CoC, which was communicated to all employees, is
available on Almarai’s Intranet, and will form part of
all new employee on-boarding. In addition, a digital
course on the CoC is under development.
Anti-competitive Behavior
GRI 103: 103-2 The management approach and its
Annual Report 2019 pg. 42-47
Management components
Approach 2016
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47
GRI 206: 206-1 Legal actions for anti-competitive behavior, Zero
Anti-competitive anti-trust, and monopoly practices
Behavior 2016

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Appendices / GRI Content Index

GRI Standard Disclosure Page number(s)

GRI 300 Environmental Standards Series

Materials
GRI 103: 103-1 Explanation of the material topic and its
36, 61
Management Boundary
Approach 2016 103-2 The management approach and its
36
components
103-3 Evaluation of the management approach 36
GRI 301: 301-2 Recycled input materials used 94
Materials 2016
301-3 Reclaimed products and their packaging No reclaimed products are used to produce our
materials products.
Energy
GRI 103: 103-1 Explanation of the material topic and its
37-39, 61
Management Boundary
Approach 2016 103-2 The management approach and its
37-39
components
103-3 Evaluation of the management approach 37-39
GRI 302: 302-1 Energy consumption within the organization 95-97
Energy 2016
302-2 Energy consumption outside of the
95-97
organization
302-3 Energy intensity 96

302-4 Reduction of energy consumption 38-39

Water and Effluents


GRI 103: 303-1 Interactions with water as a shared resource 35
Management
Approach 2018 303-2 Management of water discharge-related
35
impacts
GRI 303: 303-3 Water withdrawal 35, 93
Water and Effluents
2018 303-4 Water discharge 35, 94

303-5 Water consumption 35, 93

Biodiversity
GRI 103: 103-1 Explanation of the material topic and its
41, 61
Management Boundary
Approach 2016 103-2 The management approach and its
41
components
103-3 Evaluation of the management approach 41
GRI 304: 304-1 Operational sites owned, leased, managed Zero to our knowledge.
Biodiversity 2016 in, or adjacent to, protected areas and areas of
high biodiversity value outside protected areas
304-2 Significant impacts of activities, products,
Zero to our knowledge.
and services on biodiversity
304-3 Habitats protected or restored Zero to our knowledge.
304-4 IUCN Red List species and national
conservation list species with habitats in areas Zero to our knowledge.
affected by operations

66 Almarai Sustainability Report 2019


GRI Standard Disclosure Page number(s)

Emissions
GRI 103: 103-1 Explanation of the material topic and its
37-39, 61
Management Boundary
Approach 2016 103-2 The management approach and its
37-39
components
103-3 Evaluation of the management approach 37-39
GRI 305: 305-1 Direct (Scope 1) GHG emissions 96
Emissions 2016
305-2 Energy indirect (Scope 2) GHG emissions 97

305-3 Other indirect (Scope 3) GHG emissions 97

305-4 GHG emissions intensity 97


305-6 Emissions of ozone-depleting substances
97
(ODS)
Effluents and Waste
GRI 103: 103-1 Explanation of the material topic and its
35, 40, 61
Management Boundary
Approach 2016 103-2 The management approach and its
35, 40
components
103-3 Evaluation of the management approach 35, 40
GRI 306: 306-1 Water discharge by quality and destination 94
Effluents and
Waste 2016 306-2 Waste by type and disposal method 98

306-3 Significant spills Zero to our knowledge.


306-4 Transport of hazardous waste Any waste classified by local regulations as
hazardous is transported from sites by authorized
third-parties.
306-5 Water bodies affected by water discharges
Zero to our knowledge.
and/or runoff
Environmental Compliance
GRI 103: 103-1 Explanation of the material topic and its Annual Report 2019 pg. 42-47; 18, 41, 52, 54 and 61
Management Boundary of this report
Approach 2016 103-2 The management approach and its Annual Report 2019 pg. 42-47; 18, 41, 52 and 54
components of this report
Annual Report 2019 pg. 42-47; 18, 41, 52 and 54
103-3 Evaluation of the management approach
of this report
GRI 307: 307-1 Non-compliance with environmental One incident in Egypt related to the installation
Environmental laws and regulations and commissioning of the water treatment plant.
Compliance 2016 Corrective actions were taken to renew permit and
the issue was resolved with no fines incurred.

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Appendices / GRI Content Index

GRI Standard Disclosure Page number(s)


Supplier Environmental Assessment
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
50
components
103-3 Evaluation of the management approach 50
GRI 308: 308-1 New suppliers that were screened using
103
Supplier environmental criteria
Environmental 308-2 Negative environmental impacts in the supply
Assessment 2016 103
chain and actions taken
GRI 400 Social Standards Series

Employment
GRI 103: 103-1 Explanation of the material topic and its
26-28, 61
Management Boundary
Approach 2016 103-2 The management approach and its
26-28
components
103-3 Evaluation of the management approach 26-28
GRI 401: 401-1 New employee hires and employee turnover 84-87
Employment 2016
401-2 Benefits provided to full-time employees All employees are entitled to benefits, such as
that are not provided to temporary or part-time medical insurance (life assurance is provided for
employees senior management), annual leave, and full-time
employees receive housing or a housing allowance
and transportation.
401-3 Parental leave 90-91

Labor/Management Relations
GRI 103: 103-1 Explanation of the material topic and its
26-28, 61
Management Boundary
Approach 2016 103-2 The management approach and its
26-28
components
103-3 Evaluation of the management approach 26-28
GRI 402: 402-1 Minimum notice periods regarding We do not have a minimum notice period by which
Labor/Management operational changes we must communicate operational changes ahead
Relations 2016 of time.

68 Almarai Sustainability Report 2019


GRI Standard Disclosure Page number(s)
Occupational Health and Safety
GRI 103: 403-1 Occupational health and safety management
24-25
Management system
Approach 2018 403-2 Hazard identification, risk assessment, and
24-25
incident investigation
403-3 Occupational health services 24-25

403-4 Worker participation, consultation, and 24-25


communication on occupational health and safety
403-5 Worker training on occupational health and 24-25, 78-79
safety
403-6 Promotion of worker health 24-25

403-7 Prevention and mitigation of occupational 24-25


health and safety impacts directly linked by
business relationships
GRI 403: 403-9 Work-related injuries 78
Occupational
Health and Safety
2018
Training and Education
GRI 103: 103-1 Explanation of the material topic and its
26-28, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 56; 26-28 of this report
components
103-3 Evaluation of the management approach Annual Report 2019 pg. 56; 26-28 of this report
GRI 404: 404-1 Average hours of training per year per
91
Training and employee
Education 2016 404-2 Programs for upgrading employee skills and We do not currently have any transition assistance
transition assistance programs programs. Common practice within our GCC
operations is to train and redeploy workers within the
business.
404-3 Percentage of employees receiving regular 100%, excluding USA and Argentina
performance and career development reviews (data not available)
Diversity and Equal Opportunity
GRI 103: 103-1 Explanation of the material topic and its
26-28, 61
Management Boundary
Approach 2016 103-2 The management approach and its
26-28
components
103-3 Evaluation of the management approach 26-28
GRI 405: 405-1 Diversity of governance bodies and
Diversity and Equal employees 87-89
Opportunity 2016
Non-discrimination
GRI 103: 103-1 Explanation of the material topic and its
26-28, 61
Management Boundary
Approach 2016 103-2 The management approach and its
26-28
components
103-3 Evaluation of the management approach 26-28
GRI 406:
406-1 Incidents of discrimination and corrective
Non-discrimination 89
actions taken
2016

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Appendices / GRI Content Index

GRI Standard Disclosure Page number(s)


Freedom of Association and Collective Bargaining
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 42-47; 50 of this report
components
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47; 50 of this report
GRI 407: 407-1 Operations and suppliers in which the right to Trade unions are not allowed in the GCC.
Freedom of freedom of association and collective bargaining Employees in Argentina are represented by trade
Association may be at risk unions. Employees in the USA, Jordan and Egypt
and Collective are not members of trade unions. No information is
Bargaining 2016 available for suppliers.
Child Labor
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 42-47; 50 of this report
components
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47
GRI 408: Child 408-1 Operations and suppliers at significant risk To our knowledge our operations face no significant
Labor 2016 for incidents of child labor risk for incidents of child labor. No information is
available for suppliers.
Forced or Compulsory Labor
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 42-47; 50 of this report
components
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47; 50 of this report
GRI 409: Forced or 409-1 Operations and suppliers at significant risk To our knowledge our operations face no significant
Compulsory Labor for incidents of forced or compulsory labor risk for incidents of forced or compulsory labor. No
2016 information is available for suppliers.
Security Practices
GRI 103: 103-1 Explanation of the material topic and its
24-25, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 42-47; 24-25 of this report
components
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47;24-25 of this report
GRI 410: 410-1 Security personnel trained in human rights All security guards in our GCC operations receive
Security Practices policies or procedures our standard manned guarding course. This course
2016 covers effective conflict management proportionate
to the risk level as identified by the High Commission
for Industrial Safety of the Ministry of Interior in
Saudi Arabia. No information available for Jordan,
Egypt, USA or Argentina.

70 Almarai Sustainability Report 2019


GRI Standard Disclosure Page number(s)
Rights of Indigenous Peoples
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 42-47; 50 of this report
components
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47; 50 of this report
GRI 411: 411-1 Incidents of violations involving rights of Zero
Rights of indigenous peoples
Indigenous Peoples
2016
Human Rights Assessment
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 42-47, 50 of this report
components
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47, 50 of this report
GRI 412: 412-1 Operations that have been subject to human Zero to our knowledge.
Human Rights rights reviews or impact assessments
Assessment 2016 412-2 Employee training on human rights policies Zero
or procedures
412-3 Significant investment agreements and Zero
contracts that include human rights clauses or that
underwent human rights screening
Local Communities
GRI 103: 103-1 Explanation of the material topic and its
29, 52-53, 55, 61
Management Boundary
Approach 2016 103-2 The management approach and its
29, 52-53, 55
components
103-3 Evaluation of the management approach 29, 52-53, 55
GRI 413: 413-1 Operations with local community 29-30, 52-53, 55
Local Communities engagement, impact assessments, and
2016 development programs
413-2 Operations with significant actual and Throughout our operations, we recognize that these
potential negative impacts on local communities operations could pose a potential negative impact
on surrounding communities.
Supplier Social Assessment
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
Annual Report 2019 pg. 42-47; 50 of this report
components
103-3 Evaluation of the management approach 50
GRI 414: 414-1 New suppliers that were screened using
103
Supplier Social social criteria
Assessment 2016 414-2 Negative social impacts in the supply chain
103
and actions taken

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Appendices / GRI Content Index

GRI Standard Disclosure Page number(s)


Customer Health and Safety
GRI 103: 103-1 Explanation of the material topic and its
47-48, 61
Management Boundary
Approach 2016 103-2 The management approach and its
47-48
components
103-3 Evaluation of the management approach 47-48, 53, 55, 99-101
GRI 416: 416-1 Assessment of the health and safety impacts 100
Customer Health of product and service categories
and Safety 2016
Marketing and Labeling
GRI 103: 103-1 Explanation of the material topic and its
23-24, 61
Management Boundary
Approach 2016 103-2 The management approach and its
23-24
components
103-3 Evaluation of the management approach 23-24, 77
GRI 417: 417-1 Requirements for product and service
23-24, 77
Marketing and information and labeling
Labeling 2016 417-2 Incidents of non-compliance concerning One incident in the GCC related to artwork
product and service information and labeling compliance with the Saudi Food and Drug Authority
specifications. Corrective actions were taken, and
financial penalties were paid to the amount of SAR
25,000.

25 incidents in Egypt related to on pack


communication compliance with a new Egyptian
Standards Specification. The company worked with
the authorities on the corrective actions and the
necessary revisions were implemented. Financial
penalties were paid to the amount of EGP 62,000.
417-3 Incidents of non-compliance concerning
77
marketing communications
Customer Privacy
GRI 103: 103-2 The management approach and its
Annual Report 2019 pg. 42-47
Management components
Approach 2016
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47
GRI 418: 418-1 Substantiated complaints concerning Zero
Customer Privacy breaches of customer privacy and losses of
2016 customer data
Socioeconomic Compliance
GRI 103: 103-2 The management approach and its
Annual Report 2019 pg. 42-47
Management components
Approach 2016
103-3 Evaluation of the management approach Annual Report 2019 pg. 42-47
GRI 419: 419-1 Non-compliance with laws and regulations in Zero to our knowledge.
Socioeconomic the social and economic area
Compliance 2016

72 Almarai Sustainability Report 2019


GRI Standard Disclosure Page number(s)
Sector Specific Disclosures – Food Processing

Procurement/Sourcing Practices
GRI 103: 103-1 Explanation of the material topic and its
50, 61
Management Boundary
Approach 2016 103-2 The management approach and its
50
components
103-3 Evaluation of the management approach 50, 102-103
Procurement/ FP1 Percentage of purchased volume from
103
Sourcing Practices suppliers compliant with company's sourcing policy
FP2 Percentage of purchased volume which is 103
verified as being in accordance with credible,
internationally recognized responsible production
standards
Labor/Management Relation
GRI 103: 103-1 Explanation of the material topic and its
26-28, 61
Management Boundary
Approach 2016 103-2 The management approach and its
26-28
components
103-3 Evaluation of the management approach 26-28
Labor/Management FP3 Percentage of working time lost due to
Zero
Relation industrial disputes, strikes and/or lock-outs
Customer Health and Safety
GRI 103: 103-1 Explanation of the material topic and its
23-24, 47-48, 61
Management Boundary
Approach 2016 103-2 The management approach and its
23-24, 47-48
components
103-3 Evaluation of the management approach 23-24, 47-48, 53, 55, 99-101
Customer Health FP5 Percentage of production volume 99
and Safety manufactured in sites certified by an independent
third party according to internationally recognized
food safety management system standards
Animal Welfare
GRI 103: 103-1 Explanation of the material topic and its
49, 61
Management Boundary
Approach 2016 103-2 The management approach and its
49
components
103-3 Evaluation of the management approach 49
Animal Welfare FP9 Percentage and total of animals raised and/or
101
processed, by breed type
FP10 Percentage and total animals raised and/or
101-102
processed, per housing type
FP 12 Policies and practices on antibiotic,
anti-inflammatory, hormone, and/or growth 49, 101
promotion treatments, by species and breed type
FP 13 Total number of incidents of significant 101
non-compliance with laws and regulations, and
adherence with voluntary standards related to
transportation, handling, and slaughter practices
for live terrestrial and aquatic animals

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Appendices / GRI Content Index

Appendix E
Sustainability strategy boundaries
The scope of Almarai’s sustainability strategy covers Almarai’s GCC owned operations, excluding our subsidiaries Beyti and
Teeba, as well as Premier Foods and Pure Breeds unless otherwise stated within the specific target or below.

Targets Scope exceptions


Reduce waste going to landfill across all our divisions by 50%
This does not include animal manure.
by 2025 (against a 2018 baseline)

Enhance sustainable practices on our arable farms by 2025 This includes Fondomonte USA and Argentina only.

All manufacturing sites will be Global Food Safety Initiative


This includes Premier Foods, IDJ and co-manufacturing.
(GFSI) certified by 2025
All high-risk ingredient suppliers will be Global Food Safety
This includes Premier Foods and IDJ.
Initiative (GFSI) certified by 2025

Appendix F
Alignment to NTP
Material issue Relevant NTP strategic objectives

Caring for people

Nutrition and wellbeing 2.1.3

Health and safety 2.1.1 | 2.1.3 | 2.3.4

Employee talent and diversity 4.2.2 | 4.4.2 | 4.4.3

Community investment 2.1.3 | 6.2.1

Protecting the planet

Packaging innovation N/A

Climate change N/A

Water management 5.4.2

Waste management 2.4.1

Sustainable agriculture N/A

Producing responsible products

Quality and food safety 5.4.1

Animal welfare N/A

Ethical sourcing 3.1.6 | 3.3.5

74 Almarai Sustainability Report 2019


NTP 37 strategic objectives
mapped into the eight themes:

Ensure the
Improve Living
Transform Healthcare Sustainability of
Standards and Safety
Vital Resources

2.1.1 Ease Access to Health Services 2.3.1 Improve the Quality of Services 2.4.2 Provide Environmental Protection
Provided in Saudi Cities from Natural Hazards
2.1.2 Improve the Quality and Efficiency
2.3.2 Improve the Urban Landscape
of Healthcare Services 2.4.3 Protect and Rehabilitate Natural
in Saudi Cities
Landscapes
2.1.3 Promote Prevention Against 2.3.4 Enhance Traffic Safety
5.4.1 Ensure Development and Food
Health Risks Security
2.4.1 Reduce All Types of Pollution
5.4.2 Ensure Sustainable Access to
4.4.1 Improve the Living Water Resources
Conditions of Expatriates

Social Empowerment Achieve Labor Market


and Non-Profit Sector Governmental Accessibility and
Development Operational Excellence Attractiveness

2.6.4 Empower Citizens Through the 5.2.3 Improve the Productivity 4.2.2 Increase Women’s Participation
Welfare and Social Development of Government Employees in the Labor Market
System 5.2.4 Develop e-Government
2.6.5 Improve Effectiveness and Efficiency 4.2.3 Enable Integration of People with
5.2.5 Improve the Quality of Services Disabilities in the Labor Market
of Welfare and Social Development
Provided to Citizens
System 4.4.2 Improve Working
6.1.2 Encourage Volunteering 5.3.1 Enhance Transparency Across Conditions for Expatriates
Government Entities 4.4.3 Effectively Attract
6.2.1 Enhance Business Focus on
their Social Responsibilities Suitable Global Talent
5.3.2 Support Communication Channels
6.3.1 Support Non-profit Sector Growth with Citizens and Businesses
6.3.2 Enable Non-Profit Organizations 5.3.3 Ensure Government Entities’
to Achieve Greater Impact Response to Customers’ Feedback

Contribute in Develop the Tourism


Enabling the and National Heritage
Private Sector Sectors

3.1.1 Facilitate Doing Business


1.3.2 Conserve & Promote the
Kingdom’s Islamic, Arab,
3.1.6 Attract Foreign Direct Investment
and National Heritage
(FDI )
3.3.6 Develop the Tourism Sector
3.3.2 Develop the Digital Economy
3.3.5 Develop the Retail Sector
4.3.2 Increase the Contribution of Small-
and Medium-size Enterprises (SMEs)
to the Economy
4.3.3 Increase the Contribution of
Productive Households to the
Economy
6.2.2 Encourage Businesses’ Interest in
Sustaining the National Economy

9
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Appendices / GRI Content Index

Appendix G
Alignment to SDGs

Material issue Relevant SDG targets

Caring for people

Nutrition and wellbeing 2.2 | 3.4 | 17.16 | 17.17

Health and safety 3.4 | 3.6 | 8.8

Employee talent and diversity 5.1

Community investment 1.2 | 2.1 | 2.2 | 4.3 | 17.17

Protecting the planet

Packaging innovation 12.2 | 14.1

Climate change 7.2 | 7.3 | 9.4 | 13.1

Water management 6.3 | 6.4 | 6.5 | 6.6 | 17.16 | 17.17

Waste management 12.3 | 12.4 | 12.5


1.2 | 2.3 | 2.4 | 6.3 | 6.4 | 6.5 | 6.6 | 8.7 | 8.8 | 12.2 | 12.4 | 15.1 | 15.3 | 15.5 | 15.A |
Sustainable agriculture
15.B | 17.16
Producing responsible products

Quality and food safety 3.9

Animal welfare 17.16

Ethical sourcing 1.2 | 6.3 | 6.4 | 6.5 | 6.6 | 8.7 | 8.8 | 12.2 | 12.4 | 12.7 | 15.1 | 15.3 | 15.5 | 15. A | 15.B

76 Almarai Sustainability Report 2019


Appendix H
Sustainability in numbers

Our sustainability performance 2018 2019


Managing sustainability at Almarai

Number of incidents of non-compliance with environmental laws and regulations 1 1

GCC 0 0

Egypt 1 1

Jordan 0 0

USA 0 0

Argentina 0 0

Nutrition and wellbeing

Number of incidents of non-compliance concerning product information and labeling 1 26

GCC 0 1

Egypt 1 25

Jordan 0 0

USA N/A N/A

Argentina N/A N/A


Number of incidents of non-compliance with regulations and/or voluntary codes
0 0
concerning marketing communications
GCC 0 0

Egypt 0 0

Jordan 0 0

USA N/A N/A

Argentina N/A N/A


Percentage of significant product categories covered by and assessed for compliance
100% 100%
with product information and labeling procedures (%)
GCC 100% 100%

Egypt 100% 100%

Jordan 100% 100%

USA N/A N/A

Argentina N/A N/A

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Health and safety

Number of employee lost time injuries 283 248

GCC 256 195

Egypt 4 7

Jordan 23 15

USA NIA 14

Argentina NIA 17

Contractor lost-time injuries 0 3

GCC NIA NIA

Egypt 0 0

Jordan 0 0

USA NIA 3

Argentina NIA 0

Employee rate of lost-time injury (per 1 million man-hours)

GCC 1.72 1.87

Egypt 2.16 3.20

Jordan 9.48 7.06

USA NIA NIA

Argentina NIA 29.71

Contractor lost-time injury rate (per 1 million man-hours)

GCC NIA NIA

Egypt 0 0

Jordan 0 0

USA NIA NIA

Argentina NIA 0

Hours of employee health and safety training 165,430 375,932

GCC 155,320 352,338

Egypt 9,603 11,058

Jordan 507 883

USA NIA 11,544

Argentina NIA 109

78 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Hours of contractor health and safety training 5,446 7,351

GCC NIA 1,289

Egypt 5,396 4,215

Jordan 50 100

USA NIA 1,711

Argentina NIA 36

Average hours of health and safety training per employee 3.9 9.2

GCC 4.0 9.7

Egypt 3.0 3.4

Jordan1 0.8 1.1

USA NIA 38.1

Argentina NIA 0.8

Average hours of health and safety training per contractor 6.1 4.5

GCC NIA 2.1

Egypt 10.6 4.8

Jordan 1.7 1.7

USA NIA 37.2

Argentina NIA 1.0

Employee absenteeism rate (%)

GCC 6.5% 4.9%

Egypt 1.7% 1.9%

Jordan <1% <1%

USA NIA NIA

Argentina NIA 5.0%

Employee talent and diversity

Number of employees 42,971 41,884

GCC 38,416 37,231

Egypt 3,181 3,265

Jordan 837 798

USA 2 366 389

Argentina 171 201

1
2018 figure has been restated.
2
Fondomonte USA employed 80 seasonal employees in 2019.

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Male employees 3
42,086 40,869

GCC 37,666 36,462

Egypt 3,138 3,224

Jordan 816 775

USA 324 248

Argentina 142 160

Female employees4 885 929

GCC 750 769

Egypt 43 41

Jordan 21 23

USA 42 55

Argentina 29 41

Employees by location 42,971 41,884

GCC 38,416 37,231

Egypt 3,181 3,265

Jordan 837 798

USA 366 389

Argentina 171 201

Full time, male employees 42,064 40,859

GCC 37,662 36,456

Egypt 3,138 3,224

Jordan 816 775

USA 306 245

Argentina 142 159

Full time, female employees 885 928

GCC 750 769

Egypt 43 40

Jordan 21 23

USA 42 55

Argentina 29 41

3
2018 figures for USA and Argentina have been restated.
4
2018 figures for USA and Argentina have been restated.

80 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Part time, male employees 22 10

GCC 4 6

Egypt 0 0

Jordan 0 0

USA 18 3

Argentina 0 1

Part time, female employees 0 1

GCC 0 0

Egypt 0 1

Jordan 0 0

USA 0 0

Argentina 0 0

Senior management employees 287 310

GCC 243 248

Egypt 22 24

Jordan 22 15

USA NIA 8

Argentina NIA 15

Middle management employees 1,507 1,484

GCC 1,272 1,266

Egypt 136 151

Jordan 99 14

USA NIA 31

Argentina NIA 22

Non-management employees 40,576 40,089

GCC 36,901 35,717

Egypt 2,959 3,090

Jordan 716 769

USA NIA 350

Argentina NIA 163

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


New employee hires 7,270 6,065

GCC 6,693 4,964

Egypt 563 730

Jordan 14 19

USA NIA 281

Argentina NIA 71
New employee hires, age 18-30 5,029 4,017

69.2% 66.2%
GCC 4,677 3,320

69.9% 66.9%
Egypt 343 505

60.9% 69.2%
Jordan 9 14

64.3% 73.7%
USA NIA 150

NIA 53.4%
Argentina NIA 28

NIA 39.4%
New employee hires, age 31-50 2,228 1,986

30.6% 32.7%
GCC 2,003 1,617

29.9% 32.6%
Egypt 220 220

39.1% 30.1%
Jordan 5 5

35.7% 26.3%
USA NIA 101

NIA 35.9%
Argentina NIA 43

NIA 60.6%

82 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
New employee hires, age 51+ 13 62

0.2% 1.0%
GCC 13 27

0.2% 0.5%
Egypt 0 5

0% 0.7%
Jordan 0 0

0% 0%
USA NIA 30

NIA 10.7%
Argentina NIA 0

NIA 0%
New employee hires, male 7,110 5,835

97.8% 96.2%
GCC 6,542 4,786

97.7% 96.4%
Egypt 554 723

98.4% 99.0%
Jordan 14 14

100% 74%
USA NIA 258

NIA 91.8%
Argentina NIA 54

NIA 76.1%

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


New employee hires, female 160 225

2.2% 3.7%
GCC 151 178

2.3% 3.6%
Egypt 9 7

1.6% 1.0%
Jordan 0 0

0% 0%
USA NIA 23

NIA 8.2%
Argentina NIA 17

NIA 23.9%
Voluntary employee turnover 5
5,221 4,885

12.3% 11.7%
GCC 4,360 3,999

11.3% 10.7%
Egypt 684 661

21.5% 20.2%
Jordan 177 9

21.1% 1.1%
USA NIA 200

NIA 51.4%
Argentina NIA 16

NIA 8.0%

5
2018 percentage has been restated.

84 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Voluntary employee turnover, age 18-30 2,321 2,190

44.5% 44.8%
GCC 1,890 1,708

43.3% 42.7%
Egypt 297 363

43.4% 54.9%
Jordan 134 3

75.7% 33.3%
USA NIA 112

NIA 56.0%
Argentina NIA 4

NIA 25.0%
Voluntary employee turnover, age 31-50 2,728 2,471

52.3% 50.6%
GCC 2,326 2,098

53.3% 52.5%
Egypt 362 293

52.9% 44.3%
Jordan 40 5

22.6% 55.6%
USA NIA 63

NIA 31.5%
Argentina NIA 12

NIA 75%

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Voluntary employee turnover, age 51+ 345 224

6.6% 4.6%
GCC 144 193

3.3% 4.8%
Egypt6 25 5

3.7% 0.8%
Jordan 176 1

99.4% 11.1%
USA NIA 25

NIA 12.5%
Argentina NIA 0

NIA 0%
Voluntary employee turnover, male 5,120 4,731

98.1% 96.8%
GCC 4,270 3,871

97.9% 96.8%
Egypt 674 654

98.5% 98.9%
Jordan 176 9

99.4% 100%
USA NIA 185

NIA 93%
Argentina NIA 12

NIA 75.0%

6
2018 percentage has been restated.

86 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Voluntary employee turnover, female 101 154

1.9% 3.2%
GCC 90 128

2.1% 3.2%
Egypt 10 7

1.5% 1.1%
Jordan 1 0

0.6% 0%
USA NIA 15

NIA 8%
Argentina NIA 4

NIA 25.0%

Female employment rate (%)7 2.1% 2.2%

GCC 2.0% 2.1%

Egypt 1.4% 1.3%

Jordan 2.6% 3.0%

USA 11.5% 14.1%

Argentina 17.0% 20.4%


Women in senior management 10 11

3.5% 3.5%
GCC 2 2

0.8% 0.8%
Egypt 6 6

27.3% 25.0%
Jordan 2 1

9.1% 6.7%
USA NIA 0

NIA 0%
Argentina NIA 2

NIA 13.3%

7
2018 figures have been restated for Jordan, USA and Argentina.

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Women in middle management 71 65

4.7% 4.4%
GCC 45 31

3.5% 2.4%
Egypt 18 18

13.2% 11.9%
Jordan 8 4

8.1% 28.6%
USA NIA 8

NIA 25.8%
Argentina NIA 4

NIA 18.2%
Women in non-management positions 733 849

1.8% 2.1%
GCC 703 736

1.9% 2.1%
Egypt 19 19

0.6% 0.6%
Jordan 11 17

1.5% 2.2%
USA NIA 42

NIA 12.0%
Argentina NIA 35

NIA 21.5%

88 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Board seats occupied by women 0 2

0% 22.2%
GCC 0 0

0% 0%
Egypt 0 0

0% 0%
Jordan 0 1

0% 12.5%
USA NIA 0

NIA 0%
Argentina NIA 1

NIA 20.0%

Number of employees with a disability 540 508

GCC 468 436

Egypt 55 55

Jordan 17 17

USA NIA 0

Argentina NIA 0

Number of formal incidents of discrimination reported 0 0

GCC 0 0

Egypt 0 0

Jordan 0 0

USA NIA 0

Argentina NIA 0

Percentage of working time lost due to industrial disputes, strikes and/or lock-outs (%)

GCC 0% 0%

Egypt 0% 0%

Jordan <1% 0%

USA NIA 0%

Argentina NIA 0%

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Number of female employees entitled to maternity leave 344 425

GCC 327 333

Egypt 2 4

Jordan 15 11

USA NIA 38

Argentina NIA 39

Number of female employees that took parental leave 48 46

GCC 44 38

Egypt 2 4

Jordan 2 0

USA NIA 2

Argentina NIA 2
Number of female employees that returned to work in the reporting period after
42 37
parental leave ended
GCC 39 30

Egypt 1 3

Jordan 2 0

USA NIA 2

Argentina NIA 2
Number of female employees that returned to work after parental leave ended that
41 33
were still employed 12 months after their return to work
GCC 39 30

Egypt 0 1

Jordan 2 0

USA NIA 1

Argentina NIA 1

Female employee return to work rate of employees that took parental leave (%) 88% 80%

GCC 89% 79%

Egypt 50% 75%

Jordan 100% N/A

USA NIA 100%

Argentina NIA 100%

90 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Female employee retention rate of employees that took parental leave (%) 85% 72%

GCC 89% 79%

Egypt 0% 25%

Jordan 100% N/A

USA NIA 50%

Argentina NIA 50%

Total hours of training provided 405,559 630,551

GCC 375,258 579,152

Egypt 28,701 37,230

Jordan 1,600 4,956

USA NIA 8,346

Argentina NIA 867

Average hours of training per employee8 9.4 15.1

GCC 9.8 15.6

Egypt 9.0 11.4

Jordan 1.9 6.2

USA NIA 21.5

Argentina NIA 4.3

Learning and development programs - GCC only 933 1,949

Number of Almarai Academy participants (National and non-national) 520 565

Number of Almarai Driving School participants (National and non-national) 413 1,384

Saudization - GCC only

Number of Saudi employees 8,766 8,466

Percentage Saudization among total workforce 26% 26%

Percentage Saudization of middle management 25% 24%

Percentage Saudization of senior management 16% 17%

Number of Saudi female employees 645 635

Number of Saudi Almarai Academy participants 291 265

Number of Saudi Graduate Professional Trainee participants 22 23

Number of Saudi Almarai Future Leaders participants 21 0

Number of Saudi Dairy & Food Polytechnic participants 584 400

Number of Saudi Almarai Driving School participants 126 133

Total number of Saudi nationals in professional development programs 1,044 821

8
2018 figure has been restated.

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Community investment 9

Total CSR spending (SAR million) - GCC only 39.6 34.7

Total CSR spending as a percentage of net profit (%) - GCC only10 2.0% 1.9%

Product donations - GCC only

Number of schools provided with snacks for students 947 1,036

Snacks for school children (Number of servings) 853,242 880,228

Number of low-income families provided with food baskets 600 1,800

Number of charities provided with food donations 301 230

Product donations for charities (Number of servings) 216,612 239,616

Total product servings donated 1,069,854 1,119,844

Total financial value (SAR million) 0.9 1.0

Support for vulnerable groups - GCC only

Number of lower income couples provided with weddings 1,200 1,400

Number of children at orphanages and charities provided with Iftars 40 58


Charity, orphanage and other association event sponsorships
80 172
(Number of beneficiaries)
Total financial value (SAR million) 0.4 0.5

Support for learning and technical, vocational and education training (TVET) - GCC only

Number of TVET beneficiaries (Dairy & Food Polytechnic) 505 486

University student groups sponsored (Number of beneficiaries) 70 340

Braille booklets (Number of books donated) N/A 500

Dental care campaign (Number of schools attended) 20 32

Almarai site visit program (Number of visitors) 73,286 88,030

Sponsorship of Food Loss and Waste Index and awareness campaign (value in SAR). N/A 100,000

Sponsorship of Qaderoon documentary (value in SAR) N/A 113,000

Total financial value (SAR million) 35.3 30.2

Sponsorship of awards - GCC only


Number of award winners (Veterinarian Award, Scientific Innovation Award,
Ideal Mother Award, Academic Excellence Award, Photography Award and 119 162
Sheikha Latifa Award)
Total financial Value (SAR million) 3.0 3.0

CSR - Jordan

Total CSR spending (SAR) 7,613 10,129

Number of school and university visitors hosted N/A 438

Product donations (Number of servings) NIA 7,583

9
Figures for 2018 have been restated in some instances due to recategorization.
10
Based on profit attributable to Shareholders of the Group.

92 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
CSR - Egypt

Total CSR Spending (SAR) NIA 23,329

Number of school and university visitors hosted NIA 735

School bag donations (Number of bags donated to students) NIA 20,000

Hours of employee volunteering NIA 800

Water management11

Water withdrawal (m3)12 12,966,868 13,643,999

GCC 11,685,518 12,247,436

Egypt 1,117,040 1,221,571

Jordan 164,310 174,992

USA NIA NIA

Argentina NIA NIA

Water recycling and reuse (m3)13 1,751,894 1,859,214

GCC 1,643,355 1,665,798

Egypt 739 73,000

Jordan14 107,800 120,416

USA NIA NIA

Argentina NIA NIA

Percentage of water recycled and/or reused (%)15 13.5% 13.6%

GCC 14.1% 13.6%

Egypt 0.1% 6.0%

Jordan 65.6% 68.8%

USA NIA NIA

Argentina NIA NIA

Total water consumption (m3) 14,718,762 15,503,213

GCC 13,328,873 13,913,234

Egypt 1,117,779 1,294,571

Jordan 272,110 295,408

USA NIA NIA

Argentina NIA NIA

11
Water data excludes dairy, poultry and arable farming.
12
2018 figures for total, GCC and Jordan have been restated due to better data availability. Data is not available for Jordan sales depots. 2018 data not available for Egypt
head office and sales depots. Water withdrawal refers to groundwater and purchased water.
13
2018 figures for total, GCC and Jordan have been restated due to better data availability.
14
Water is reused for irrigation.
15
2018 figures for total, GCC and Jordan have been restated due to better data availability.

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Water discharge (m ) 3 16
8,922,905 9,081,252

GCC 8,142,212 8,946,156

Egypt 657,706 NIA

Jordan 122,987 135,096

USA NIA NIA

Argentina NIA NIA

Manufacturing water intensity (m3/metric ton of finished product) 4.8 5.3

GCC17 5.0 5.5

Egypt 3.1 3.7

Jordan 6.0 6.3

USA N/A N/A

Argentina N/A N/A

Packaging innovation

Percentage of card board coming from recycled materials used as an input material (%)

GCC 65% 65%

Egypt NIA NIA

Jordan 57% 70%

USA N/A N/A

Argentina N/A N/A

Plastics removed from packaging (tons) 283 2,945

GCC 283 2,945

Egypt NIA NIA

Jordan NIA NIA

USA N/A N/A

Argentina N/A N/A

Paper removed from packaging (tons) 128 902

GCC 128 902

Egypt NIA NIA

Jordan NIA NIA

USA N/A N/A

Argentina N/A N/A

16
2018 figures for GCC and Jordan have been restated due to better data availability. Data is not available for GCC head offices and Egypt head office and sales depots.
Water is discharged to land (lagoons), sewer, irrigation and/or canal.
17
2018 figure has been restated due to better data availability.

94 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Total packaging removed from the consumer waste stream (tons) 411 3,847

GCC 411 3,847

Egypt NIA NIA

Jordan NIA NIA

USA N/A N/A

Argentina N/A N/A

Climate change18

Direct stationary energy usage (in thousands kWh) 863,669 892,896

GCC 801,850 836,570

Egypt 53,690 54,192

Jordan 8,105 2,127

USA 0 0

Argentina 24 7

Indirect stationary energy usage (in thousands kWh) 973,407 1,090,750

GCC 845,531 936,070

Egypt 53,079 66,436

Jordan 9,439 9,349

USA 55,359 67,300

Argentina 9,999 11,595

Total stationary energy usage (direct and indirect, in thousands kWh) 1,837,076 1,983,646

GCC 1,647,382 1,772,640

Egypt 106,768 120,627

Jordan 17,545 11,476

USA 55,359 67,300

Argentina 10,022 11,602

Solar energy usage (in thousand kWh) 2,421 22,393

GCC 2,421 22,095

Egypt 0 0

Jordan 0 298

USA 0 0

Argentina 0 0

18
Figures for 2018 have been restated in some instances due to better data availability and the use of updated emission factors.

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Percentage of electricity consumption from solar (%) 0.2% 1.5%

GCC 0.2% 1.6%

Egypt 0% 0%

Jordan 0% 3.2%

USA 0% 0%

Argentina 0% 0%

Almarai owned refrigerators in stores (in thousands kWh) 906,305 961,093

GCC 906,305 961,093

Egypt NIA NIA

Jordan NIA NIA

USA NIA NIA

Argentina NIA NIA

Manufacturing energy intensity (kWh/metric ton of finished product) 478.7 521.7

GCC19 512.3 549.8

Egypt 283.1 365.9

Jordan 519.2 297.2

USA N/A N/A

Argentina N/A N/A

Total vehicle fuel consumption (thousands of liters) 427,402 366,362

GCC 410,512 357,485

Egypt 6,434 2,781

Jordan 1,983 215

USA 7,609 4,428

Argentina 864 1,454

Scope 1 (direct) emissions (metric tons CO2e) 20 1,151,718 1,032,452

GCC 1,113,639 1,005,862

Egypt 21,118 17,959

Jordan 5,744 858

USA 10,093 5,974

Argentina 1,125 1,800

19
2018 figure has been restated due to better data availability.
20
2018 figures have been restated due to better data availability and updating emission factors in certain cases.

96 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Scope 2 (indirect) emissions (metric tons CO2e) 21
776,463 865,146

GCC 718,292 795,419

Egypt 23,188 29,022

Jordan 7,344 7,273

USA 23,721 28,886

Argentina 3,919 4,545

Scope 3 emissions from Almarai refrigerators in stores (metric tons CO2e) 780,088 827,246

GCC 780,088 827,246

Egypt NIA NIA

Jordan NIA NIA

USA NIA NIA

Argentina NIA NIA

Total emissions (metric tons CO2e)22 2,708,270 2,724,844

GCC 2,612,019 2,628,528

Egypt 44,305 46,981

Jordan 13,088 8,131

USA 33,814 34,860

Argentina 5,044 6,344

Manufacturing emissions intensity (metric tons CO2e/metric ton of finished product) 0.27 0.29

GCC23 0.30 0.32

Egypt 0.10 0.13

Jordan 0.26 0.20

USA N/A N/A

Argentina N/A N/A

Emissions from refrigerant leakage and replacement (metric tons CO2e)24 167,729 200,380

GCC 167,686 200,036

Egypt 23 286

Jordan 20 NIA

USA NIA NIA

Argentina NIA 58

21
2018 figures have been restated for GCC, Jordan and USA due to better data availability and updating emission factors in certain cases.
22
2018 figures have been restated due to better data availability and updating emission factors in certain cases.
23
2018 figure has been restated due to better data availability and updating emission factors in certain cases.
24
2018 figures for total, GCC and Egypt have been restated due to better data availability. No data available for in-store refrigerators, wall units or Jordan sales depots.

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Waste management 25

Food waste resold for animal feed (Store returns and operational) (metric tons) 32,375 40,086

GCC 32,375 40,086

Egypt 0 0

Jordan 0 0

USA N/A N/A

Argentina N/A N/A

Recycled waste (metric tons) 31,840 22,309

GCC 16,577 22,071

Egypt 15,040 NIA

Jordan 0 0

USA 183 178

Argentina 40 60

Total waste generated (metric tons) 216,172 209,439

GCC 184,512 202,738

Egypt 24,240 NIA

Jordan 7,420 6,701

USA NIA NIA

Argentina NIA NIA

Waste sent to landfill (metric tons) 152,574 152,887

GCC 135,954 141,292

Egypt26 9,200 4,894

Jordan 7,420 6,701

USA NIA NIA

Argentina NIA NIA

Percentage of waste sent to landfill (%) 71% 73%

GCC 74% 70%

Egypt 38% NIA

Jordan 100% 100%

USA NIA NIA

Argentina NIA NIA

25
2018 figures have been restated due to better data availability and/or recategorization.
26
No data available for Egypt head office and sales depots.

98 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Sustainable agriculture

Number of incidents of non-compliance with environmental laws and regulations 0 0

USA 0 0

Argentina 0 0

Arable farming land under production (hectares) 32,154 32,367

USA 7,840 8,269

Argentina 24,314 24,098

Quality and food safety


Percentage of production volume manufactured in sites certified by an independent third party according to internationally
recognized food safety management system standard (%)
GCC 100% 100%

Egypt27 85% 85%

Jordan 100% 100%

USA N/A N/A

Argentina N/A N/A


Number of incidents of non-compliance with regulations and/or voluntary codes
0 0
concerning the health and safety impacts of products and services
GCC 0 0

Egypt 0 0

Jordan 0 0

USA N/A N/A

Argentina N/A N/A

Number of recalls 0 0

GCC 0 0

Egypt 0 0

Jordan 0 0

USA N/A N/A

Argentina N/A N/A


Percentage of significant product categories covered by and assessed for compliance
100% 100%
with product information and labeling procedures (%)
GCC 100% 100%

Egypt 100% 100%

Jordan 100% 100%

USA N/A N/A

Argentina N/A N/A

27
2018 figure has been restated.

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Percentage of products for which health and safety impacts are assessed for
100% 100%
improvement (%)
GCC 100% 100%

Egypt 100% 100%

Jordan 100% 100%

USA N/A N/A

Argentina N/A N/A

Total number of manufacturing plants 12 13

GCC 10 10

Egypt 1 2

Jordan 1 1

USA N/A N/A

Argentina N/A N/A

Number of Food Safety System Certification (FSSC) 22000 certified plants 2 3

GCC 1 2

Egypt 1 1

Jordan 0 0

USA N/A N/A

Argentina N/A N/A

Number of Global Food Safety Initiative (GFSI) certified plants 2 3

GCC 1 2

Egypt 1 1

Jordan 0 0

USA N/A N/A

Argentina N/A N/A

Percentage of plants that are GFSI certified (%) 17% 23%

GCC 10% 20%

Egypt 100% 100%

Jordan 0% 0%

USA N/A N/A

Argentina N/A N/A

100 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Number of food safety and quality assurance employees 659 561

GCC 585 487

Egypt 72 72

Jordan 2 2

USA N/A N/A

Argentina N/A N/A

Animal welfare

Number of cows 190,444 183,345

GCC 188,071 180,504

Egypt N/A N/A

Jordan 2,373 2,841

USA N/A N/A

Argentina N/A N/A

Number of chickens processed 157,372,110 191,103,518

GCC 157,372,110 191,103,518

Egypt N/A N/A

Jordan N/A N/A

USA N/A N/A

Argentina N/A N/A


Number of incidents of non-compliance with laws and regulations, and adherence with 0 0
voluntary standards related to transportation, handling, and slaughter practices for live
terrestrial and aquatic mammals
GCC 0 0

Egypt N/A N/A

Jordan 0 0

USA N/A N/A

Argentina N/A N/A

Percentage of cows in enclosed housing with resting areas (%) 100% 100%

GCC 100% 100%

Egypt N/A N/A

Jordan 100% 100%

USA N/A N/A

Argentina N/A N/A

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Appendices / GRI Content Index

Our sustainability performance 2018 2019


Percentage of chickens in enclosed cage free housing (%) 100% 100%

GCC 100% 100%

Egypt N/A N/A

Jordan N/A N/A

USA N/A N/A

Argentina N/A N/A

Ethical sourcing

Percentage of locally based suppliers engaged (%) 69% 68%

GCC 50% 51%

Egypt 81% 69%

Jordan 91% 97%

USA NIA 73%

Argentina 99% 99%

Percentage of spending on locally based suppliers (%)

GCC 45% 41%

Egypt 40% 69%

Jordan 57% 88%

USA NIA 85%

Argentina 98% 97%

Number of suppliers engaged 3,298 2,939

GCC 1,717 1,672

Egypt 588 111

Jordan 349 330

USA NIA 233

Argentina 644 593

Number of local suppliers engaged 2,292 2,007

GCC 858 854

Egypt 478 77

Jordan 319 320

USA NIA 171

Argentina 637 585

102 Almarai Sustainability Report 2019


Our sustainability performance 2018 2019
Percentage of purchased volume from suppliers compliant with company’s sourcing policy (%)

GCC NIA NIA

Egypt NIA 100%

Jordan 100% 100%

USA NIA 100%

Argentina NIA NIA


Percentage of purchased volume which is verified as being in accordance with credible,
internationally recognized responsible production standards (%)
GCC NIA NIA

Egypt NIA 100%

Jordan NIA 40%

USA NIA 100%

Argentina NIA NIA

New suppliers that were screened using social and/or environmental criteria 0 48

GCC 0 0

Egypt 0 0

Jordan 0 3

USA NIA 45

Argentina NIA NIA


Number of negative social and/or environmental impacts in the supply chain and
NIA NIA
actions taken
GCC NIA NIA

Egypt NIA NIA

Jordan NIA NIA

USA NIA NIA

Argentina NIA NIA

www.almarai.com 103
Almarai Company
Exit 7, North Ring Road
Al Izdihar District
PO Box 8524
Riyadh, 11492
Saudi Arabia

sustainability@almarai.com
www.almarai.com

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