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Sustainability at Almarai

How We Manage Sustainability

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Sustainability Strategy

Almarai’s sustainability strategy “Doing Better Every Day,” launched in 2019, is structured around three pillars and includes goals and targets through 2025. This reporting year represents a transition point in the evolution of the strategy, as we build on the progress to date, reassess priorities, and begin shaping the next phase of our long-term sustainability agenda. During the year, Almarai updated several ESG policies and position statements, and these updates are reflected within the relevant topic chapters.

Almarai’s sustainability priorities continue to align with national and international development frameworks, including Saudi Vision 2030, the National Transformation Program, and the UN Sustainable Development Goals.

Our Commitments

Caring for People

Our promise to improve the livelihoods that are integral to our business success every day.

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.

Protecting the Planet

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

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.

Producing Responsible Products

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

Quality and Food Safety: We are working to make sure our products are safe and satisfy consumer 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.

Our Targets

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Caring for People

Topic

Target/Commitment

Progress

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.

Health and Safety

Institute an occupational health and wellbeing program accessible to all employees by 2025.

Employee Talent and Diversity

Ensure gender equality in our workforce, with focus on talent development, capabilities building, and opportunities.

Employee Talent and Diversity

Reduce voluntary employee turnover to achieve an average of 12% over the period 2020–2024.

Employee Talent and Diversity

90% of managers engage in at least 40 hours of professional development per year by 2025.

Community Investment

Donate 25 million healthy servings by 2025.

Community Investment

Educate 250,000 people through our site visit program by 2025.

Community Investment

Improve the employability of at least 1,400 young people through the Food Industries Polytechnic (FIP) program by 2025.

Achieved
To be carried forward to next Sustainability Strategy Cycle (2026-2030)

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Protecting the Planet

Topic

Target/Commitment

Progress

Water Management

Increase water efficiency across our Manufacturing, Sales, Distribution and Logistics Divisions by 15% by 2025 (against a 2018 intensity baseline).

Water Management

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 2018 baseline).

Packaging Innovation

Actively support the transformation of the packaging economy in Saudi Arabia by 2025.

Climate Change – Transport and Refrigeration

Explore and trial alternative fuel vehicles for our sales transport fleet on an ongoing basis.

Climate Change – Transport and Refrigeration

Increase the fuel efficiency of our sales, distribution and logistics vehicles by 10% by 2025 (against a 2018 baseline).

Climate Change – Transport and Refrigeration

100% of our sales depot cold stores will be CFC free by 2025.

Climate Change – Energy

Reduce energy consumption across our Manufacturing, Sales, Distribution and Logistics Divisions by 15% from efficiency measures by 2025
(against a 2018 intensity baseline).

Climate Change – Energy

Increase the share of electricity from clean energy sources across our Administration, Manufacturing, Sales, Distribution and
Logistics Divisions to 20% by 2025.

Climate Change – Energy

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.**

* Does not include animal manure.

** Includes Fondomonte USA and Argentina only.

Achieved
To be carried forward to next Sustainability Strategy Cycle (2026-2030)

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Producing Responsible Products

Topic

Target/Commitment

Progress

Quality and Food Safety

All manufacturing sites will have Global Food Safety Initiative (GFSI) recognized certification by 2025.

Quality and Food Safety

All high-risk ingredient suppliers will have Global Food Safety Initiative (GFSI) recognized certification 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.

Achieved
To be carried forward to next Sustainability Strategy Cycle (2026-2030)

External Benchmarks and ESG Positioning

Almarai’s sustainability performance is assessed through a range of external ESG frameworks, including S&P Global/DJSI, Tadawul’s ESG Invest platform, and MSCI. These assessments provide an independent lens on how our governance practices, environmental management, and social performance compare with regional and global peers. They also offer structured feedback on the maturity of our systems, policies, and disclosures across key ESG dimensions. Almarai uses these benchmarks as reference points to strengthen internal performance management, enhance transparency, and prioritize areas for further development. Insights from these assessments inform strategic planning, risk management, and reporting practices, supporting a more consistent, comparable, and decision-useful representation of our sustainability performance over time.

Looking Ahead

During 2025, Almarai’s integrated sustainability framework supported both the delivery of current commitments and a disciplined review of what must evolve. Insights drawn from performance tracking, stakeholder engagement, and external assessments sharpened our understanding of where value is being created, where risks are emerging, and where greater focus is required. This learning now informs the design of the next phase of our sustainability agenda, one that builds on proven foundations while responding to a changing operating, regulatory, and societal context. In conclusion, 2025 served as a strategic transition point, strengthening our readiness for the next phase of delivery and long-term value creation.