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 Ethical sourcing

Ethical sourcing

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

Our approach

60% of our suppliers having attained GFSI certification.

At Almarai, we believe that the integrity of our supply chain is integral to the quality of our products and the trust our consumers place in us. To safeguard and nurture this trust, we have developed policies such as ethical sourcing policy and code of conduct that ensure our sourcing practices meet the highest ethical standards. To ensure we engage in ethical sourcing, our suppliers are screened and reviewed through our ESG focused Supplier Questionnaire, where details of their business, performance and supply quality are evaluated. The questionnaire also addressing key issues such as environmental stewardship, social responsibility and ethical governance. All our potential suppliers are expected to meet the following criteria as part of our onboarding process. To further solidify our ethical sourcing process, we promoted adherence to the Global Food Safety Initiative (GFSI) standards among our suppliers. Our efforts have been fruitful, with 60% of our suppliers having attained GFSI certification. This process not only aligns our suppliers with our ethical standards but also ensures they are integral contributors to a more sustainable food system. Moreover, in our effort towards ethical sourcing, we also place a strong emphasis on promoting local suppliers, recognizing the value they bring to our business and community through their unique contributions and the reduction of our overall carbon footprint.

2024 Performance and Initiatives

100% of purchased volume from suppliers is compliant with company's sourcing policy.

100% of purchased volume is verified as being in accordance with credible, internationally recognized responsible production standards.

64% of all suppliers engaged are locally based.

Zero instances of negative social and/or environmental impacts in the supply chain.

77% of new suppliers that were screened using social and/or environmental criteria.

45% of budget spent on locally based suppliers in GCC.

1,768 local suppliers engaged.

Our Highlight Stories

Our Ethical Sourcing Process and Audit Plan
Our Ethical Sourcing Process and Audit Plan

To safeguard the integrity of our supply chain and uphold our commitment to ethical business practices, we have developed an ethical sourcing process and an audit plan for onboarded suppliers. This includes regular and systematic evaluations conducted by trained professionals to verify ongoing compliance with the agreed-upon ethical standards. These standards encompass the treatment of workers, the impact on local communities and the sustainability of environmental practices. The results of these audits will serve as a foundation for continuous improvement. Suppliers will be encouraged to take corrective actions where necessary and to strive for higher standards of ethical practice. Through this process, Almarai not only would hold its suppliers accountable, but also support them in identifying and addressing areas for development, ensuring that the entire supply chain operates with integrity and in accordance with the best practices for sustainability and ethical conduct.

Supplier Adherence to Our Ethical Standards
Supplier Adherence to Our Ethical Standards

Throughout 2024, we continued our efforts to collaborate with our suppliers, ensuring that they not only signed our code of conduct, but also understood the ethical standards we expect within our supply chain. Moreover, we also introduced our self-assessment questionnaire for our suppliers, a tool that would allow them to evaluate their own practices against our ethical benchmarks. This self-assessment is a critical component of our strategy, as it empowers suppliers to take ownership of their role in our supply chain.

Progress on our strategic goals and targets

Goal/Target

Progress

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

2024 Performance and Initiatives

100% of purchased volume from suppliers is compliant with company's sourcing policy.

100% of purchased volume is verified as being in accordance with credible, internationally recognized responsible production standards.

64% of all suppliers engaged are locally based.

Zero instances of negative social and/or environmental impacts in the supply chain.

77% of new suppliers that were screened using social and/or environmental criteria.

45% of budget spent on locally based suppliers in GCC.

1,768 local suppliers engaged.

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