Jeddah: Saudia Dairy & Foodstuff Company (SADAFCO) has officially released its 2024 Sustainability Report, reaffirming its long-term commitment to environmental, social, and governance (ESG) principles. Themed “Empowering Sustainable Change for a Healthier Future,” the report highlights how SADAFCO is delivering on ambitious sustainability goals in line with Saudi Vision 2030.
“Sustainability is not a side initiative — it’s the core of how we lead and grow at SADAFCO,” said Patrick Stillhart, CEO of SADAFCO.
“In 2024, we delivered real results: saving 113 million liters of water in factories, established clean energy tests for EV’s and hydrogen-powered truck pilots, accelerating developments for additional solar sites from the current 3 solar rooftop plants, and introducing 9 healthier products using natural ingredients. These milestones reflect our belief that sustainable progress creates long-term value for our business, our communities, and the Kingdom.”
In line with the Kingdom of Saudi Arabia’s Vision and its commitment to sustainability, SADAFCO is also advancing its clean energy transition through a renewable energy Power Purchase Agreement (PPA) under Scope 2. This strategic move supports national climate goals by offsetting the companies carbon footprint and accelerates the company’s shift toward a more sustainable and resilient energy mix for the future.
Key Highlights from the 2024 Sustainability Report:
Environmental Action
Guided by KSA’s Net Zero emissions by 2060 ambitions, SADAFCO has adopted a three-pillar Climate Strategy for 2035; Transportation Decarbonization, Renewable Energy, and Water Management
- With 90% of SADAFCO’s logistics fleet to powered by clean energy, non-ICE (Non-Internal Combustion Engines) by 2035. SADAFCO will continue to test alternative non-ICE vehicles up to the end of 2027, before replacing ICE engines on a larger scale.
- Hydrogen-powered truck pilot for long haul distribution to be launched with HyperView in 2025.
- More than 800 tons of CO₂e saved through Maersk’s ECO Delivery ocean freight initiative
- SADAFCO aims to increase clean energy usage to represent 20% of total energy consumed across all factories and depots by 2035
- Three solar power plants currently in operation, with seven additional sites planned for 2025
- SADAFCO targets saving an equivalent of 6 billion liters of potable water by 2035 across all factories, building on its baseline water optimization journey launched at its UHT milk facility
- A 28.37% reduction in Water Conversion Ratio in UHT factory over the past three years
Social Responsibility
- An investment of SAR 1.5 million in developing playgrounds and a park in MODON, Jeddah.
- As part of its commitment to environmental sustainability, SADAFCO contributed to the “Green MODON” initiative by planting over 120,000 trees, aiming to reach 200,000 trees by the end of 2025.
- More than 1,000 volunteer hours completed by SADAFCO employees across the Kingdom.
- Reaching 1.45 million students through school-based nutrition awareness programs.
- Launching an internship program to support youth empowerment, in alignment with the “Quality of Life” goals of Vision 2030.
- Strengthening the partnership with the Social Responsibility Association and supporting its initiatives in 2024.
- Continuing support for the Distinguished Initiatives Association (Future Industrialists) for the second consecutive year to empower Saudi youth professionally and industrially.
Governance and Transparency
- Three-tier ESG governance model with Board-level oversight and a Sustainability Steering Committee
- Ranked among the top 20 non-financial companies in Tadawul’s Corporate Governance Index
- No instances of non-compliance or penalties recorded from the Capital Market Authority in 2024.
“Sustainability is not just an aspiration; it is the cornerstone of our evolution,” states Patrick Stillhart, CEO of SADAFCO. “We are proud of our progress and remain committed to driving sustainable change across our operations and value chain.”
The SADAFCO 2024 Sustainability Report provides a comprehensive overview of the company’s sustainability performance, initiatives, and future goals.