Strategic pillars, focus areas and KPIs

Upon the formulation of the Roadmap statement, the Strategic Pillars, Focus Areas and KPIs were then developed in order to provide a clear Roadmap for implementation on both Holding and subsidiary levels.

Alturki’s Roadmap is comprised of three Pillars (represented by the outer circle), under which nine Focus Areas have emerged (represented by the inner circles):

To achieve its vision and mission, Alturki Holding aims to endorse sustainable investing and grow sustainable businesses through its commitments to managing its core activities; represented in investing and development, in a sustainable manner as illustrated in Alturki Holding’s sustainability framework above.

Deep dive into the strategic focus areas
Context

Companies are no longer evaluated based on their financial performance alone. The sustainability of a company is better assessed by evaluating its financial, environment, social, and governance potential, thus providing a holistic picture of where the company is headed. By expanding the evaluation process of potential investments to include ESG criteria, Alturki will be able to make even better investment decisions that create long-term shareholder value.

Commitment We are committed to creating sustainable value for all stakeholders. Our first step towards honouring this commitment is developing the company’s sustainable Roadmap in line with global best practices and Alturki’s values.
KPIs
  • A1. % of investment opportunities that went through ESG screening
  • A2. % of investing opportunities rejected for high ESG risks
Alignment with the UN SDGs No specific goals.
Alignment with the Saudi Vision 2030 Level 3 Objective (6.2.2): Enhance businesses' focus on the sustainability of the economy.
Context

Corporate governance is essential for ensuring legal and regulatory compliance, shareholder protection, and sustainable value of the company and its investments towards all stakeholders. To achieve this, it is crucial to integrate sustainability considerations and criteria at all levels of the governance structure at Alturki Holding and its subsidiaries, so that decision makers always prioritise sustainability.

Commitment We adopt strong corporate governance practices to improve our decision-making process towards creating sustainable value for stakeholders, improving compliance and risk management and instilling a culture of accountability and transparency.
KPIs
  • B1. % of operations that have developed ESG risk registers
  • B2. Ratio of negative to positive press/journalism
  • B3. Number of breaches of codes of conduct
Alignment with the UN SDGs No specific goals.
Alignment with the Saudi Vision 2030 No specific objectives.
Context

Operational excellence is imperative regardless of business industry and market conditions. It has financial and environmental benefits, such as maintaining the assets in good conditions, thus saving maintenance costs, costs of interruptions, and losing market share. Achieving environmental efficiencies and responsibilities lead to a reduction in the consumption of natural resources (e.g. input material, energy and water), which reduces the waste generated from the operations. Operational excellence practices should be supported by a productive workforce and data transparency.

Commitment We promote a performance culture based on passion, excellence, reliability, fun, openness and respect.
KPIs
  • C1. Actual vs. budgeted operational cost per project
  • C2. % of equipment downtime (out of total hours)
  • C3. % of labour downtime (account for employee's sick leave and time in which they are supposed to be working but are idle even though there is work to be done)
  • C4. Total cost of rework (SAR) (measured as a number out of total tickets)
Alignment with the UN SDGs No specific goals.
Alignment with the Saudi Vision 2030 Level 2 Objective (2.2): Promote a healthy lifestyle
Context

Corporate focus on client service and satisfaction isn’t only the ultimate result, but is becoming a requirement and even an investment for companies to ensure they promote innovation and brand value. This is more accurate with the current digital trends in the business world and on the customers’ side. Some businesses identify the digital transformation as a threat, but others count it as an opportunity to grow and excel. Investing in product and service innovation, personalized customer experience and the product and service delivery is the path to client satisfaction and loyalty.

Commitment We maintain communication with our customers to address their priorities. We collaborate with them to foster innovation, high quality standards and timely delivery.
KPIs
  • D1. Customer satisfaction (% or NPS)
  • D2. Brand value index
  • D3. Number of customer quality-related complaints
  • D4. Sales from new products and services
Alignment with the UN SDGs No specific goals.
Alignment with the Saudi Vision 2030 No specific objectives.
Context

Attracting the best talent is the first step to investing in an efficient workforce. This must be supported with continuous training and development to empower employees and hone their skills. In addition, providing a friendly work environment that is also safe and safeguards employees’ health and wellbeing contributes to maintaining talent.

Commitment We invest in a responsible, professional and competent workforce. We attract and develop talent, build an open and respectful work environment, promote employee wellbeing, and manage occupational health and safety risks.
KPIs
  • E1. % of employees who completed training needs analysis
  • E2. % of training programmes completion (average for all employees)
  • E3. Average training hours per employee
  • E4. % of employees with clear career plan
  • E5. % of employees receiving performance review
  • E6. % of employees that are represented by formal joint management-worker health and safety committees
  • E7. Average health and safety training hours per employee
  • E8. Lost Time to Injuries (LTI) Rate
  • E9. Worker accommodation & welfare index (%)
Alignment with the UN SDGs
  • Goal 3: Good Health & Wellbeing
  • Goal 8: Decent Work & Economic Growth
  • Goal 10: Reduced Inequalities
Alignment with the Saudi Vision 2030
  • Level 2 Objective (2.2): Promote a healthy lifestyle
  • Level 2 Objective (4.1): Develop Human Capital in line with labour market needs
  • Level 3 Objective (4.1.1): Build a life-long learning journey
  • Level 3 Objective (4.4.1): Improve living conditions for expats
Context

In competitive and complex industries where demands for the delivery of high-quality products and projects are at very competitive prices, a significant need for an effective management of the supply chain has emerged.

Commitment We collaborate with our suppliers to achieve mutual sustainability and ethical standards.
KPIs
  • F1. % of suppliers and subcontractors evaluated based on sustainability criteria
  • F2. % of procurement contracts that include shared sustainability targets and commitments
  • F3. Number of suppliers and subcontractors rejected based on sustainability criteria
  • F4. % of suppliers that went through sustainability awareness sessions and trainings across the supply chain
  • F5. Number of SMEs created and/or supported through the supply chain
  • F6. Total spending on sustainability incentives through the supply chain (SAR)
Alignment with the UN SDGs No specific goals.
Alignment with the Saudi Vision 2030
  • Level 2 Objective (2.4): Ensure environmental sustainability
  • Level 3 Objective (3.7.2): Develop promising local companies into regional and global leaders
  • Level 3 Objective (4.3.3): Grow SME contribution to the economy
  • Level 3 Objective (6.2.1): Enhance businesses' focus on their social responsibilities
  • Level 3 Objective (6.2.2): Enhance businesses' focus on the sustainability of the economy
Context

Environmental responsibility is a moral responsibility, as natural resources are being overconsumed and threatened. The construction and building industry, a significant chunk of Alturki Holding’s portfolio, is the single largest global consumer of resources and raw materials. It consumes about 50% of global steel production and each year, 3 billion tons of raw materials are used to manufacture building products worldwide.

Commitment We manage our environmental impact across the value chain and seek to achieve efficient use of natural resources, reduce emissions and waste and promote higher environmental awareness.
KPIs
  • G1. Volume of input material used - broken down by type (tons)
  • G2. Volume of waste generated - broken down by type (tons)
  • G3. Waste generated as percentage of input material - broken down by type of input material (%)
  • G4. % of waste recycled - broken down type of waste
  • G5. Volume of waste sent to landfill - broken down by type (tons)
  • G6. Total energy consumption (GJ)
  • G7. Energy intensity/efficiency (GJ/unit of output)
  • G8. Total GHG emissions (tons)
  • G9. GHG emissions intensity/efficiency (tonnes/unit of output)
  • G10. GHG emissions (scope 1 – Direct emissions) (tons) (related to fuel burned directly at company site and operations)
  • G11. GHG emissions (scope 2 – Indirect emissions) (tons) (relate to electricity purchased)
  • G12. GHG emissions (scope 3 – Other indirect emissions) (tons) (related to employees and supply chain logistics)
  • G13. Total water consumption (m3)
  • G14. Water intensity/efficiency (m3/unit of output)
  • G15. % of waste water that has been reused or recycled (as percentage of total waste water disposed)
  • G16. % of waste water that has been disposed to sewage system (as percentage of total waste water disposed)
Alignment with the UN SDGs
  • Goal 6: Clean Water and Sanitation
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
Alignment with the Saudi Vision 2030
  • Level 3 Objective (2.4.1): Reduce all types of pollution (e.g. air, sound, water, soil)
  • Level 3 Objective (2.4.3): Protect and rehabilitate natural landscapes
  • Level 3 Objective (5.4.2): Ensure sustainable use of water resources
  • Level 3 Objective (2.4.1): Reduce all types of pollution (e.g. air, sound, water, soil)
  • Level 3 Objective (5.4.2): Ensure sustainable use of water resources
Context

Achieving economic value is an essential task for the private sector, however, creating responsible and sustainable economic value is what shareholders should seek. Sustainable financial value creation is increasingly being considered as a growth opportunity, as laws and regulations, markets and customer behaviours are shifting towards sustainability and responsible practices. To achieve this, companies should implement robust financial management system, manage ESG risks and promote ESG innovation at strategic and operational levels.

Commitment We maintain a stable and profitable financial performance.
KPIs
  • H1. Net financial exposure (%)
  • H2. Revenue (SAR)
  • H3. Net Profit/Loss (SAR)
  • H4. Earnings Before Interest, Taxes, Depreciation, and Amortization
  • H5. Return on Capital Employed (ROCE)
Alignment with the UN SDGs No specific goals.
Alignment with the Saudi Vision 2030
  • Level 3 Objective (6.2.2): Enhance businesses' focus on the sustainability of the economy
Context

Alturki Holding’s subsidiaries work in sectors which are vital to socio-economic development. These sectors play additional roles in providing the basis upon which other sectors can operate and expand through constructing physical facilities required for production and distribution of products and services. Additionally, Alturki Holding and its subsidiaries contribute to job creation and have the potential for generating activity and employment in other sectors.

Commitment We inject economic value into the community – job creation and direct and indirect economic value. We are committed to societal development through social-impact programmes, pro-bono work, donations and employee volunteering.
KPIs
  • I1: Number and type of community impact/CSR programmes
  • I2. Number of community impact/CSR programmes that went through impact measurement and evaluation
  • I3. Number of volunteers activated from within the company
  • I4. Number of employee volunteering hours
  • I5. % of part-time employees participating in co-ops or internships
  • I6. Number of Saudi companies who Alturki played a key role in their existence (Alturki contributed to most of their revenue in the first 3-5 years)
Alignment with the UN SDGs No specific goals.
Alignment with the Saudi Vision 2030
  • Level 3 Objective (6.2.1): Enhance businesses' focus on their social responsibilities
  • Level 3 Objective (6.1.2): Encourage volunteering
  • Level 2 Objective (4.1): Develop Human Capital in line with labour market needs
  • Level 3 Objective (3.7.2): Develop promising local companies into regional and global leaders
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