Sustainability
Our commitment to sustainability is embedded in our core business practices, our purpose, and our corporate strategy. Integrating sustainability into our business helps us deliver on our vision of enabling the society and economy to thrive in Saudi Arabia and beyond. We strongly believe that addressing sustainability-related current and emerging risks and opportunities allow us to be a consistent and innovative partner, able to respond to the needs of our customers, people and communities where we operate.
1. Our sustainability strategy
Upon conducting rigorous materiality assessments and external benchmarking, stc refreshed its sustainability strategy which has 3 core sustainability pillars, all of which are vital for the success of our business and for sustainable value creation for our stakeholders.
Our refreshed sustainability strategy embodies our ambition to go further to minimize our environmental impacts and to maximize our positive, sustainable impacts wherever we work.
In developing this strategy, we considered the interests of our key stakeholders, national and regional strategic visions, and the United Nations Sustainable Development Goals (UN SDG). We use this framework to guide our decision-making process and improve our operational performance.
Saudi Vision and
local context
(incl. Saudi Green
Initiative)
Corporate Vision
Digital and telco leader, enabling the society and economy to thrive, in KSA and beyond
Values
Dynamism, Devotion, Drive
Sustainability objective of DARE 2.0 be a role model for sustainability and corporate governance
Environment
Environmental performance and climate
Social
Development of human capital through digital innovation
Governance
Strong governance and ethical excellence
Delivered by timely, relevant reporting and optimal Stakeholder management and engagement
Global community
and international
standards (incl.
National Visions of
the countries where
we operate)
1.1 Material topics and alignment with national and international priorities
The telecom and ICT sector has an impact on society and the environment. To ensure we focus our sustainability efforts where they are most relevant, we regularly conduct materiality assessments and continue meaningful dialogues with our stakeholders. The most material topics and high impact actions are addressed in our sustainability strategy, framework and reporting.
We aim to ensure our sustainability efforts drive positive change and transition at the local, national and international level. To that end, we have ensured our corporate strategy is aligned with the national and international context by aligning with key components of the Saudi Vision 2030, principles of the UN Global Compact, and goals and targets within the Sustainable Development Goals and other sustainability standards.
Our Alignment with UNSDGs
1.2 Our sustainability pillars
1.2.1 Environmental performance and climate
As a responsible corporate entity, we aim to assume a pioneering role in environmental stewardship by embracing sustainable technologies, conserving natural resources, and contributing to a positive ecological impact. Our active transition to a low-carbon economy is aligned with our commitment to achieving Net Zero emissions by 2050.
Additionally, our commitment to planting one million trees aligns with Saudi Green Initiative (SGI) and encompasses educational and training efforts in field of Environmental performance with benchmarking as essential components.
Our efforts encompass thorough process evaluations, improvement initiatives and the implementation of solar pilot project. Further initiatives include reduced water intensity, a robust take-back program, and comprehensive recycling efforts – inclusive of our vendors and suppliers – will be central to our approach for the upcoming years.
We have also committed to carbon neutrality in line with the goals of the Paris Agreement by 2050. In addition to this, we have set ambitious climate targets against our 2019 baseline, which have been approved and validated by the Science Based Targets Initiative (SBTi) in September of 2023.
Finally, stc has made strides to mobilize efforts towards environmental responsibility and climate action such as committing to planting 1 million trees by 2030 and deploying the first solar pilot integrating solar energy to various stc infrastructure types across the Kingdom such as data centers, warehouses, office buildings, etc.
Long-term targets and commitments
50% reduction
Scope 1 and 2 (from 2019 baseline) 2030
46.2% reduction
In scope 3 (from 2019 baseline) 2030
Near-term goals by 2030 set in line with Science Based Targets
1 million trees
Across KSA 2030
Net zero
Carbon emissions by 2050
Upholding our environmental responsibility
stc is dedicated to environmental stewardship. In line with this commitment, we work to reduce both the direct environmental effects of our operational activities and the indirect impacts associated with our products and services. Our goal is to assist our customers in lowering their environmental footprint and to establish policies that will enable us to attain net-zero carbon emissions before the middle of this century.
We have developed a climate strategy, which establishes a clear, ambitious vision and objectives to direct all departments and subsidiaries towards our shared goal. stc recognizes the unique opportunity our reputation, technologies and market position provides to enable wider sustainable leadership in the ICT sector. stc’s ambition is not only to drive climate action through operational optimization and efficiencies but to influence, support and collaborate with companies within our value chain and our customers and communities.
stc’s climate strategy has 4 priority pillars for climate action:
1.2.2 Development of human capital through technological innovation
We continue to deliver on advancement of human capital by empowering individuals and communities through inclusive practices, diversity and inclusion initiatives, and strategic social investment programs. Our mission is to create opportunities for growth, bridge societal divides through technological innovation, and nurture a sense of belonging and well-being.
Advancements in human capital development through technological innovation continues to be realized through a focused approach on flagship programs, Initiatives like the Smart Truck, online safety, and digital literacy programs, coupled with employee development programs and a heightened focus on health and safety, and gender gap performance and disclosures, are central to our strategy.
Contributing to a thriving society
We constantly strive to keep our commitment of making the greatest possible positive impact by leveraging our key strengths as a leading telecom and ICT service provider, along with our incredible people and financial resources, to bolster support throughout the Gulf and MENA regions. We also aim to continue to create innovative digital opportunities, increase accessibility and digital inclusion through our social contributions making sure that no one is left behind.
We also believe that the best way to complement our strengths in achieving positive impacts is to join hands and leverage the strengths of dedicated, specialized partners in key areas. Community engagement is one of the ways in which we apply these collective efforts. Through our community engagement approach, we aim to support initiatives that address some of society’s greatest challenges and opportunities. In the process, we also aim to enhance the capacity and success of the third sector.
2. Rising ESG rating
In 2023, our commitment to sustainable practices and transparency resulted in significant progress in our ESG investor ratings. We have actively worked to increase the number of disclosures to provide a comprehensive overview of our sustainability efforts. Our focus on employee well-being is evident through detailed disclosures on the training hours our employees receive, furthering our dedication to personal and professional development. Additionally, our commitment to the health and safety of our workforce is reflected in the comprehensive reporting of health and safety numbers across our entire Group, which we are continuing to do.
We have also expanded our efforts in data security and privacy by enhancing our data protection and / or privacy programs, policies and extending these requirements to our suppliers, mandating third-party audited certifications. We have also achieved approval of the Science Based Targets as the first Saudi company to achieve this status in 2023. All these improvements have culminated in MSCI rating of BB by December 2023, reflecting our diligent efforts and tangible progress in sustainability initiatives. Quarterly updates and results are presented to the Sustainability Committee and the Board, demonstrating our ongoing commitment to transparency and accountability in our sustainability practices.
ESG data for year end 2023 can be found here: https://sustainability.stc.com.sa/2023-Year-End-ESGSupplement.pdf
3. 2023 Sustainability awards and recognitions
