ESG Strategy
ESG governance and strategy
stc has solidified itself as a catalyst for sustainable transformation throughout the Gulf region, revolutionizing industries and setting higher standards for environmental responsibility, positive social impacts, and ethical governance. stc’s commitment to sustainability is built on the pillars of environmental, social, and governance (ESG) excellence.
Our ultimate goal is to become a role model for sustainability and corporate governance in the MENA region and beyond – and we are well on our way to achieving this.
In 2023, we refreshed our sustainability strategy and roadmap after conducting thorough assessments and utilizing external benchmarking. As a result, three core sustainability focus areas emerged, all of which have been deemed vital for the success of our business and for the benefit of our stakeholders.
stc’s refreshed sustainability strategy embodies our ambition to further minimize our environmental impacts and maximize our positive, sustainable impacts in all areas where stc operates. In developing this framework, we strongly considered the interests of our key stakeholders, national and regional strategic visions, and the United Nations Sustainable Development Goals (UN SDGs).
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)
Our three core sustainability focus areas:
Environmental performance and climate
As a responsible corporate entity, stc has assumed a pioneering role in environmental stewardship by embracing sustainable technologies, working to conserve natural resources, and contributing to a positive ecological impacts in several areas throughout KSA and the greater MENA region. Our active transition towards implementing operational decarbonization is in line with the broader transition towards a low-carbon economy. This is solidified through our commitment to achieving net zero emissions company-wide by 2050.
Development of human capital through technological innovation
stc continually advances 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.
Solid governance and ethical excellence
We are dedicated to embodying a standard of ethical governance that upholds the utmost levels of integrity, transparency, and accountability. Through the promotion of responsible business practices, the upholding of human rights, and the cultivation of a culture rooted in trust, our goal is to establish a benchmark for ethical conduct within our industry.
stc adheres to Group-wide rigorous board performance standards, ethical audits, and increased disclosures and reporting to MSCI, CDP, Sustainalytics, DJSI and other relevant entities to ensure strong governance and ethical excellence.
Materiality and stakeholder engagement
stc’s materiality assessment approach allows for proper identification of the areas where our impact is most significant and resonate best with our stakeholders. In 2023, we yet again conducted a comprehensive materiality and stakeholder engagement exercise, as we did the previous year, assuring that our updated assessment aligns with GRI standards.
Framework Pillar 1 (Environment):
Environmental performance and climate
[GRI 3-1] [GRI 3-2]
Material topic
Framework Pillar 2 (Social):
Development of human capital through digital innovation
[GRI 3-1] [GRI 3-2]
Material topic
Framework Pillar 3 (Governance):
Strong governance and ethical excellence
[GRI 3-1] [GRI 3-2]
Material topic
Our stakeholders
Thoroughly engaging with stc stakeholders was a crucial part of determining our priority material topics. Ongoing and effective engagement with our stakeholders is crucial to not only identify these topics, but to adequately address them as well, and we strive to always provide transparent and timely information while actively encouraging feedback relating to any and all material topics.
- Career advancement.
- Recognition
- Local communities and rewards.
- Attractive benefits.
- Safe and healthy working environment.
- Empowerment and equal opportunity.
- Open communication channels with management.
- Timely payments.
- Open communication channels.
- Fair and transparent bidding procedures.
- Access information about stc.
- New opportunities for interaction and engagement.
- Strong balance sheet and healthy cash flow.
- Consistent history of success and delivering growth in key metrics.
- Solid market positioning.
- Dynamic risk analysis and management.
- Strong brand image.
- Reliable corporate governance.
- Friendly, personalized customer service.
- Clear, open and simplified communication.
- Competitive rates and fees.
- Convenient access points. Innovative products and services.
- Data and information security.
- Alignment to national strategies, and visions.
- Compliance with legal and regulatory requirements.
- Protecting the consumer.
- Employment opportunities.
- Advancing social development.
- Enriching local human resources.
- Partnerships on common social and environmental issues.
- Addressing environmental risks and opportunities, including climate change.
- Partnerships for innovative products› development.
- Collaborations for sustainable development.
- Partnerships for efficiency, productivity, and cost savings.
- Representation of stc›s sustainability efforts in international events. Partnerships for maximum positive impact.
- MOUs to solidify our commitments
- Raise awareness of students and faculty on various topics including sustainability.
- Alignment to national strategies and communications.
- Participate in job fairs.
- Succession planning
- Performance management and assessment
- Newsletters
- Training sessions and workshops
- stc Academy
- Website
- Intranet (stc Hub)
- Vendor Relationship
- Management System
- (VRMS)
- Vendor management team
- Annual meetings and sessions
- Rawafed program
- stc annual report
- Open transparent channels of communication with shareholders
- Quarterly presentations
- Governance, risk, and compliance
- Committee meetings
- Website
- Social media channels including
- Twitter and Facebook
- “Customer feedback from: Your opinion matters”
- Complaints handling unit,
- Customer service offices, myste app
- stc live chat
- mystc.com.sa
- Website
- Internal audit
- Risk and compliance committee
- Compliance unit
- External audit
- stc annual report
- Awareness social media campaigns
- Donations and sponsorships, including ‘Donating via SMS*
- Community outreach programs
- “Empowering entrepreneurs and digital innovation:”
- inspire
- Employee volunteering
- Partnerships and cooperation
- Impactful partnerships
- Knowledge sharing
- Training
- opportunities
- Joint sponsorships
- Sustainable products’ development
- Partnerships on the SDGs
- International representation
- Events and sponsorships
- Awareness sessions
- Digitization services and tools
- Career fairs
- Events and partnerships
- Alignment to national strategies, and communications.
ESG risk management
We are currently working on developing our ESG Risk Framework, through which we plan to address key risk considerations, including:
- Setting effective risk governance structures with clear responsibilities across the three lines of defense
- Improving ESG risk culture across the entire stc Group, namely through increased ESG risk awareness at all company-wide levels
- Identifying key ESG metrics and key performance indicators (KPIs) for monitoring and reporting
- Developing and deploying ESG risk assessment tools
Aligning with national and international priorities
In all of our business operations, we aim to ensure that stc’s sustainability efforts drive positive change and transition at each of the local, national, and international levels. With this in mind, we have ensured that our corporate strategy takes into consideration the most applicable national and international standards, including the Saudi Vision 2030, principles of the UN Global Compact (UNGC), and goals and targets within the UN SDGs, as well as other emerging sustainability standards.
Policies, positions and statements
We apply a range of policies throughout our operations and relationships with stakeholders to improve ESG performance. These are reviewed and updated periodically, with approval by the GCEO, to demonstrate how we operate in an open, transparent, and responsible manner. Following is a nonexhaustive list of publicly available stc policies that can be found online.
- Access to Communication position statement
- Anti-corruption position statement
- Anti-fraud corruption policy
- Code of ethics and business conduct
- Conflict of interest policy
- Nomination and renumeration policy
- Community Involvement position statement
- Data Privacy and Security position statement
- Environmental position statement
- Human Rights position statement
- Management commitment to Occupational Health and Safety
- Privacy statement
- Customer rights and responsibility policy
- Quality policy
- Responsible Supply Chain position statement
- Responsible Marketing position statement
- Sustainability policy
- Training and Career Development position statement
- Whistleblowing policy
