Management messages

I am pleased to share with you Almarai's 2024 Sustainability Report. The report covers all the major highlights and the significant progress we have made in our sustainability initiatives in meeting the targets, objectives, and commitments outlined in our ‘Doing Better Every Day’ strategy. We believe sustainability is a strategic enabler for our current and future success and we expect our sustainability performance to improve day by day.

From an environmental perspective, we are committed to doing better every day, increasing our utilization of renewable energy, and improving our energy efficiency. Significant initiatives and transformations have been implemented across our operations, including biogas energy generation and irrigation improvements, while also achieving climate change targets such as water efficiency and waste reduction goals. Consequently, we remain first in Tadawul’s ESG ranking for the food and beverage sector. Our commitment to sustainability has also been amplified by our use of digital solutions, with cloud adoption enabling us to reduce waste and minimize our environmental footprint.

Throughout 2024, we maintained a strong commitment to social responsibility, both internally among our employees and through active engagement with our local communities. We prioritized employee’s health and wellbeing, local employment, youth empowerment, and diversity and inclusivity in line with global frameworks such as the United Nations Sustainable Development Goals (SDGs) and, nationally, the Saudi Vision 2030. Our initiatives included food donations, advocacy for health and wellbeing, and offering training and development opportunities. Moreover, our corporate social responsibility activities touched the lives of 50,000 individuals, helping us secure the Gold Award for Excellence in CSR and Community Impact at the inaugural CSR Awards 2024. This recognition acknowledges our efforts to positively impact the communities we serve.

Additionally, we have implemented measures aimed at ethical sourcing and sustainability within our supply chain. This includes developing an ethical sourcing process and an audit plan to verify our supplier’s adherence to our sustainability policies. Furthermore, we are dedicated to collaborating with our suppliers to reduce their environmental footprint and to ensure the provision of safe working conditions for their employees.

Moving forward, our goal is to invest in ensuring that our people are well-equipped with the skills they need to help Almarai achieve its ambitious business goals, while continuing to invest in environmental initiatives to reduce our environmental footprint. We will also strengthen our HR infrastructure, enhance our HR policies, and ensure a robust corporate culture that promotes performance-driven success. Additionally, we will increase our efforts in ensuring our communities also benefit from our success. Importantly, the year 2025 will serve as a pivotal moment in our sustainability journey. It will mark the conclusion of our 2019-2025 sustainability strategy, providing us with an opportunity to evaluate our progress and accomplishments. Following this evaluation, we will develop a new sustainability strategy that will guide our efforts moving forward.

This Sustainability Report sets out Almarai Group’s sustainability achievements in 2024, as well as the progress made towards reaching our 2025 sustainability goals. As the leading company in food and beverage industry, we are committed to driving progress and shaping sustainability in our sector.

Our dedication to the environment is evident in our “Protecting the Planet” pillar, which has guided us in implementing a series of impactful initiatives. Throughout the year, we have made substantial investments in renewable energy and energy-efficient technologies, which have reduced our carbon footprint. A key achievement as to that was the transition to 100% CFC-free cold storage across all our sales depots, thereby eliminating the use of substances that contribute to ozone depletion. Moreover, we have achieved our goal of increasing the fuel efficiency of our sales, distribution, and logistics vehicles by 10%, surpassing our target well before the 2025 deadline. Overall, we have made consistent progress in other critical areas, such as water conservation and waste reduction, as part of our 2025 sustainability roadmap.

On the social front, we have taken significant steps to support the wellbeing of our employees by continuing to invest in our workforce. This year, we have significantly expanded our development programs, offering nearly 75% more training hours compared to 2023 for our employees to grow professionally and excel in their roles. To strengthen our community engagement, we have implemented our strategic investment framework, which prioritizes Training and Development, Healthcare, Sports, and Donations. Looking ahead, we will continue to leverage this framework to assess the effectiveness and positive impact of our initiatives on the community. In our efforts to ensure the wellbeing of both our employees and consumers, we have rolled out a corporate nutrition strategy that meets international health standards. We have also achieved a significant health and safety milestone by attaining ISO 45001:2018 compliance across all our divisions, underscoring our commitment to maintaining the highest levels of a workplace safety.

Governance remains a crucial pillar for our operations, with strong leadership from our Board of Directors and executive team driving our agenda of producing responsible products. We have maintained rigorous compliance standards and have invested in building a strong team that upholds our values and mission. This year we achieved multiple milestones, with all 14 of our manufacturing facilities achieved Global Food Safety Initiative (GFSI) certification, reinforcing our commitment to world-class food safety standards. We also take pride in maintaining our record of zero product recalls and zero incidents of non-compliance with product safety standards. We are also continuing to honor our 2023 animal welfare certifications from National Sanitation Foundation (NSF) International for our farms and operations, which distinguished us as a leader in dairy and the first in Saudi Arabia for poultry to achieve such recognition. These accomplishments serve as a testament to our customers and consumers, ensuring that Almarai's food products are not only subject to rigorous quality and food safety testing but are also produced in adherence to the highest standards of animal welfare.

While we are proud of our achievements so far, we recognize that the journey towards sustainable business practices is an ongoing one. With the continued dedication and enthusiasm of our employees, I am confident that we will propel ourselves forward in the years ahead, enabling us to reach our 2025 sustainability goals and set more ambitious targets for the years ahead. I encourage you to explore this report, provide your feedback, and join us in our mission to create a better and more sustainable future.

As the Executive Vice President of Quality and Support Services at Almarai, I recognize the critical importance of sustainability in our operations and the broader impact it has on our stakeholders and the environment. Our leadership team is dedicated to integrating sustainability into our business strategies, driving initiatives that enhance our operational efficiency while minimizing our environmental footprint. In this report, we will outline our progress, share our challenges, and celebrate our successes as we work together to create a more sustainable and resilient future for Almarai and the regions we operate in. The year 2024 has been pivotal for Almarai, marking a period where we have achieved most of our sustainability commitments. It has been a year dedicated to building up and reinforcing both existing and new policies and processes. This foundational work sets the stage for the next year, which will be a year where we establish new strategy, goals, and targets.

We extend our heartfelt gratitude to our leaders, partners and suppliers for their unwavering collaboration and commitment to our shared sustainability endeavors. A special appreciation also goes out to our dedicated team at Almarai and subsidiaries whose tireless efforts form the backbone of our sustainability accomplishments.

As the Head of Sustainability at Almarai, I am proud to present our Sustainability Report, which underscores our commitment to achieving strategic sustainability objectives. Since launching our sustainability strategy in 2019, we have established measurable goals, implemented robust tracking mechanisms, and formed dedicated committees to ensure accountability and transparency. This year marks a significant milestone as we have successfully achieved most of our goals for 2025 across all three pillars of our strategy: Caring for People, Protecting the Planet, and Producing Responsible Products.

We take pride in our participation in COP16 where we showcased our initiatives to reduce carbon emissions, minimize waste, and lower energy consumption. Additionally, we signed the Net Positive Water Initiative, reinforcing our commitment to responsible water management. We also participated in KSA’s flagship Sustainability Champions Program, as a mentor, reinforcing our commitment to promoting sustainable practices within our industry and beyond. Through this mentorship role, we were able to guide and support three partners from our supply chain in implementing effective strategies that align with KSA’s sustainability goals.

It is important to note that our commitment to sustainability extends beyond environmental initiatives; it encompasses social responsibility and governance as well. We have made substantial progress in animal welfare, product quality, employee development, and health and safety compliance, achieving ISO 45001:2018 certification across all divisions. While we celebrate these accomplishments, we recognize that our journey is ongoing. With the dedication of our employees and stakeholders, I am confident we will achieve our 2025 sustainability goals and set even more ambitious targets for the future. I invite you to explore this report, share your feedback, and join us in our mission for a sustainable future.