Ma’aden is committed to delivering on our commercial mandate while also fulfilling our broader responsibility as a national champion and leading corporation in Saudi Arabia. The organization is founded on strong governance principles, which extend from the central role of the Board of Directors down to the everyday practices of our employees and contractors. As such, we manage our business activities each day in line with our sustainability commitments and corporate values through our Sustainability Framework.

Ma’aden Sustainability Framework

The baseline of our sustainability footprint is 2020, and our future goals are:

SCOPE 1 AND 2 GHG EMISSIONS INTENSITY REDUCTION – by 37% by 2030, and 60% by 2040

GROUNDWATER USAGE INTENSITY REDUCTION – by 46% by 2030, and 65% by 2040

RENEWABLE ENERGY USAGE INCREASE – to 10% of energy mix by 2030, and 20% by 2040

FEMALE EMPLOYMENT INCREASE – to 6% of all full-time employees by 2030, and 25% by 2040

INCREASE ESG SCREENING OF SUPPLIERS to 75% by 2040

ENVIRONMENTAL

Environmental protection is at the heart of every decision we make. Ma’aden manages environmental concerns by timely identifying and proactively mitigating significant environmental risks.

Highlights in 2023

Ma’aden signed a deal to use the Kingdom’s first hydrogen- powered trucks for its logistic operations. The firm has reached an agreement with Dammam-based Almajdouie Logistics Co. to deploy the heavy goods vehicles. The vehicle was unveiled by the Saudi Transport General Authority, and runs on hydrogen fuel, with a capacity of 35 kg and a gas pressure of up to 350 bar.

We will use the hydrogen- powered vehicle to transport aluminium products from Jubail and Ras Al-Khair. The initiative aims to build an ecosystem for hydrogen- powered vehicles within Saudi Arabia, offer integrated solutions to interested parties, and enhance hydrogen transportation within the Kingdom.

The agreement is part of a larger feasibility study that aims to operate in line with the Kingdom’s Vision 2030 and the Saudi Green Initiative, which aims to reduce carbon emissions.

In 2023, we made significant strides and efforts to combat climate change. Ma’aden launched an afforestation initiative that aims to protect the environment, improve the vegetation cover, enhance biodiversity and generate carbon credits to offset its carbon footprint. Ma’aden’s ambitious target is to plant 10 million native trees and 10 million mangroves by 2040. This is in alignment with the Kingdom’s Saudi Green Initiative (SGI).

At the COP28 Conference and during the Saudi Green Initiative Forum in the UAE, we solidified our commitment to environmental sustainability by signing a Memorandum of Understanding (MoU) with the Royal Commission for Jubail and Yanbu. This partnership is aimed at raising awareness within the community and promoting biodiversity conservation initiatives across the Kingdom in addition to the establishment of Ma’aden Mangrove Park at Gurmah Island within Jubail Industrial City.

Moreover, Ma’aden signed an MoU with the National Center for Wildlife, which reflects our dedication to contributing to the protection of Saudi Arabia’s natural landscape. Furthermore, we will launch initiatives to preserve wildlife and biodiversity, build community activities, and collaborate for solutions to environmental challenges.

At Ma’aden, we recognize that environmental sustainability is not just a commitment but a fundamental aspect of our corporate principles. Through our collective efforts, we are forming a path towards a greener, more resilient future, where environmental conservation and economic prosperity go hand in hand.

Spotlight on: Blue ammonia

The production of ammonia, one of the key materials of fertilizer manufacturing and a widely used industrial gas, consumes hydrogen, which is often gathered from fossil- fuels-based methodologies. Therefore, technologies to reduce or even avoid carbon emissions in ammonia production are globally researched.

Ma’aden has made strides in the use of blue ammonia, which is a low-carbon, sustainable energy solution. We are currently the world’s largest exporter of blue ammonia, having received certification to export 138,000 tons as per last year’s report.

This year, we signed agreements with various partners to supply blue ammonia:

Taiwan Fertilizer Co. Ltd. – Completed first commercial shipment to Taiwan.
Mitsui & Co. Ltd. – Chosen to be the first commercial supplier to Japan.
Shenghong Petrochemicals – Exported 25,000 metric tons to China.
Coromandel International Limited – Signed joint agreement to provide supply to India.
Agropolychim – Provided first shipment to Europe, enabling ambitions of low-carbon production for the European market.

These achievements are in line with our efforts to supply global markets with blue ammonia, as we drive the adoption of greener energy sources on a global scale. We will continue our efforts to reduce carbon emissions from supply chains across the globe.

SOCIAL

Our aim is to establish a “zero-harm” work environment and bolster the safety culture among our employees, contractors, customers and host communities.

Highlights in 2023

Highlights from 2023 underscore our dedication to the health and safety of our workforce. Thanks to our ongoing efforts, we achieved significant improvements in our health and safety performance indicators. Our all injury/illness frequency rate (AIFR) and lost time injury rate (LTIR) for both employees and contractors decreased compared to the previous year, reflecting our commitment to continuous improvement in HSS practices.

Spotlight on: Tharwah Local Content program

Key Local Content achievements in 2023:

Obtained first Local Content certificate with a Local Content score of 50.39% for the year 2022.
Increased on-shore spend percentage to 76% (this is a 3% increase from the previous year) and our off-shore percentage decreased by 2.2% to 23%.
Launched the Supplier Development Program (SDP), a long-term partnership between Ma’aden and its suppliers, with the purpose of enhancing the business performance of both parties.
Increased work with national partners to provide support for Ma’aden’s suppliers in areas of industrial consultation and land facilitation, funding arms, regulatory and enablers, and workforce.
Fostered relationships with promising private sector players to localize valuable opportunities and increase local content.

MoUs signed in 2023:

SME Bank and Arar Chamber of Commerce to fund and enable our suppliers.
Italmatch and NAMI to explore localization opportunities in chemicals and 3D printing.

Our people in numbers

5,691

Employees attended different training programs

1,363

Mine workers

776

Engineers and geologists

262

Corporate management

422

Security officers

Mine supervisors/ superintendents

1,524

Administrative staff

815

Contractors

Gender distribution

371

Number of female employees

3.56%

Leadership positions

6,504

Number of male employees

GOVERNANCE

Corporate Governance Framework

Ma’aden established the Corporate Governance Framework by adopting the Corporate Governance Regulations issued by the Capital Market Authority (CMA) of Saudi Arabia. The framework provides Ma’aden’s Board, management and stakeholders with a structure along with clear policies and guidelines to make certain the Company’s objectives are realized, its stakeholder expectations are managed, and the requirements are met. Our commitment to strong corporate governance is also critical to our future and our growth plans. As we grow, our corporate governance structures must adapt with us and provide the necessary checks and balances to protect our business, our people and the communities we work with. At Ma’aden, sustainability topics – including our business excellence, environmental footprint and social impact – are among the highest priority and are overseen by the Board.

Key partnerships in 2023

UN Global Compact Initiative

Ma’aden joined the United Nations Global Compact Initiative, which is the largest corporate sustainability initiative in the world. In line with this commitment, we will continue to implement responsible practices, promote transparency and help achieve the UNSDGs.

Elessent Clean Technologies

Signed an agreement with Elessent Clean Technologies, a Dussur company, that aims to drive innovation and sustainability in Ma’aden’s phosphate operations.

Manara Mineral’s partnership with Vale Base Metals Ltd.

The partnership is a pivotal step to create a profound impact on the growth and sustainability of the mining industry. The agreement will help expand the global production of critical minerals including nickel, copper and cobalt, powering a sustainable future.

Bangladesh Agricultural Development Corporation (BADC)

Renewed our partnership to supply BADC with 600,000 tons of phosphate fertilizers, reaffirming Ma’aden’s leadership in the field of agricultural fertilizers and our commitment to enhance global food security.

CNTXT

Signed a partnership with CNTXT. With the help of AI and machine learning solutions, this will reduce emissions and boost access to resources, thereby strengthening the Kingdom’s mining sector. The collaboration also signifies our commitment to new technologies that support Ma’aden’s growth.

WAVE

Signed an agreement with WAVE at FII7, an innovative initiative launched by HRH Reema Bandar Al Saud with FII Institute and the Ministry of Energy, to help ocean regeneration.

Saudi Food Bank

Three-year partnership with Saudi Food Bank delivering safe and sustainable food in the Kingdom.

Monsha’at

Signed an agreement with Monsha’at during the Biban23 Forum to join the Jadeer portal, supporting SMEs. This is an extension of the Tharwah initiative to support local content, which was launched within the framework of the strategy to improve the local product.

Children with Disabilities Association

Signed two MoUs, investing over SAR 3 million in physiotherapy clinics to provide medical equipment, supplies and care for children with disabilities.