Sustainability

Sustainability


As the region’s largest food and beverage company, Almarai plays an important social, environmental and economic role locally, regionally and globally.

Through the integrated management of our social, environmental and economic 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.


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For more information on how we are managing sustainability, please read our

Sustainability Report 2019

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Our Sustainability Strategy


We believe making a positive contribution to society and minimizing our impact on the environment is key to long -term profitable growth. Year-on-year, we continue to make progress every day towards becoming a more sustainable company.

We have 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


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.


Caring for people

Caring for people

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


Nutrition and wellbeing Health and safety Employee talent and diversity Community investment
We are working to make sure that our products and communications support healthy living every day.​ We are working to make sure we foster a health and safety culture among our people every day.​ We are working to make sure that our people are developed, valued and included every day.​ We are working to make sure that we are leveraging our resources to create a positive impact every day.​

Our strategic goals and targets


Nutrition and wellbeing Targets
As part of our mission to provide quality and nutritious food and beverages that enrich consumers’ lives every day, we have been supportive of growing consumers’ demands for more healthful and nutritious products. We are constantly investing in and developing new technologies and competencies to improve the nutritional profile of our products, and we are incorporating health and nutrition specific criteria into product innovation and development.​
  • Develop and implement a holistic plan to further enhance our nutrition and wellbeing offering by 2025



Health and safety Targets
Our greatest asset is our employees, their health and safety are extremely important to us. We protect our employees by applying international occupational health and safety standards, introducing policies to stimulate employee engagement, providing training and awareness, and encouraging communication between employees at all levels.
  • 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 and diversity Targets
We recognize that we are only as strong as our employees, and we are committed to attracting, developing, and retaining a motivated and diverse workforce.

  • Increase the number of female employees in our workforce year-on-year
  • 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 Targets
We strive to support our communities wherever possible. Through education, training and development, charitable donation, and other programs, we provide a greater positive impact for society. Whether in collaboration with organizations or direct engagement, we actively support various causes throughout the year.
  • 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

To read more about our efforts to deliver on our ambitions, read this section of the Sustainability Report 2019


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Caring for people

Protecting the planet

Our promise to minimize our impact on our shared natural resources every day.


Water management Packaging innovation Climate change Waste management Sustainable agriculture
We are working to make sure we are effectively using water resources every day. We are working to make sure we reduce the impact of our packaging on the environment every day. We are working to make sure we implement more sustainable solutions to reduce our emissions every day. We are working to make sure that we are moving towards zero to landfill every day. We are working to make sure that our agricultural practices are regenerative every day.

Our strategic goals and targets


Water management Targets
In line with Saudi Arabia’s Vision 2030, and considering Saudi Arabia’s current and impending water challenges, water management, conservation and stewardship are at the forefront of our environmental goals.


  • 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 Targets
Packaging waste is a global challenge that we are committed to help resolve. This requires a holistic approach to be taken by understanding how consumers use our products in conjunction with the requirements of our supply chain. By 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.​

  • 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 Targets
We continually work on reducing the environmental footprint of our business, in part, because we are conscious of the inherent risks from climate change. Rising fuel costs and the greenhouse gas emissions associated with fuel and electricity consumption have an impact not only on the environment but also on our financial bottom line. We are focusing on efficient energy consumption, generation from sustainable sources and driving an energy culture.








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 Targets
We are conscious of understanding where our waste goes and reviewing this against the waste hierarchy to see how we can prevent, recycle and recover where possible. In particular, we have a strong focus on food waste. One of the most effective ways of reducing food waste is prevention. To this end, we are working hard to ensure that our demand forecasting is highly accurate to avoid food waste generation and unnecessary cost to the business and the environment.


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





Sustainable agriculture Targets
Almarai owns Fondomonte, who operate our arable farms primarily located in Argentina and the United States. They ensure that we produce the highest quality feed for our dairy herds in Saudi Arabia, while respecting the communities and environments where our feed is grown.​

  • Enhance sustainable practices on our arable farms by 2025




To read more about our efforts to deliver on our ambitions, read this section of the Sustainability Report 2019


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Caring for people

Producing responsible products

Our promise to deliver “Quality you can trust” and enhance supply chain sustainability every day.


Quality and food safety Animal welfare Ethical sourcing
We are working to make sure our products are safe and satisfy consumers’ needs every day.

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

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

Our strategic goals and targets


Quality and food safety Targets
Our promise to all stakeholders is to deliver “Quality you can trust.” Since 1977, we have been committed to providing products and services that are manufactured to global best practice standards in food safety and quality.

  • 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 Targets
We are committed to safeguarding the health and wellbeing of all animals within our care, as this impacts not only the animal’s quality of life, but also the quality and safety of the food we produce. We ensure that the animals we raise to produce our products are properly and humanely treated 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.

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





Ethical sourcing Targets
Suppliers play an integral role in our ability to deliver on our commitments to sustainability. We believe that to become a more sustainable company, we must work with our suppliers to ensure they act ethically.

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





To read more about our efforts to deliver on our ambitions, read this section of the Sustainability Report 2019


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Our Stakeholders


Shareholders /
Investors

Our shareholders and investors provide the capital necessary for sustainable growth; therefore, Almarai’s future growth and success ultimately depends on its ability to attract investment domestically and internationally. We are committed to delivering long term sustainable returns for shareholders and investors in a growing range of diversified product lines.


Consumers

Our consumers are at the heart of our business. We want consumers across the region to think Almarai first when purchasing food and beverages. Building trust and ensuring that our products are the best is essential to our continued growth.


Employees

Our employees are paramount to our business success, as they hold the commitment, dedication, and intellectual capital to drive innovation within our organization and deliver on our strategy.


Governmental
regulatory bodies

We deeply value our relationships with our regulators and other government stakeholders, as they help us ensure that we effectively manage risks to our business and produce safe, quality products for consumers. We are committed to complying with all legal and regulatory requirements.


Civil society
organizations

As a people centric business, we believe that contributing to communities in the countries of our operations is important to building trust and bonds. We are committed to ensuring that access to quality and healthy food is not only a luxury, but a right.​



To read more about our efforts to deliver on our ambitions, read this section of the Sustainability Report 2019


Back to our sustainability strategy

Our Stakeholders


 

Employees


Paramount to our business success: by providing an inclusive work environment, with training and career development, we seek to promote employee commitment, dedication and innovation.
 

Consumers


At the heart of our business: we work to build the trust of our consumers by delivering top quality products that are nutritional, ethically produced and adhere to sound environmental practices.
 

Government regulatory bodies


A key partner in managing risk and compliance: we are committed to complying with all legal and regulatory requirements to ensure our business produces safe, quality products.
 

Civil society organizations


Helping us contribute to community development: through active engagement in projects and programmes, we build trust with the communities where we operate.
 

Short and Headlines are Best!


Supporting our future growth and success: through strong financial performance, we seek to deliver long-term sustainable returns for our investors.
 

Environmental Social and Governance rating agencies


Supporting our commitment to continuous improvement: by being transparent about our sustainability performance and goals, we can make sure that we are heading in the right direction.