(PJSC) 2023 G row Sustain ably with Continuous Quality in Products, Process and Peopl e
ABOUT THIS REPORT (02) HEALTH, SAFETY AND WELLBEING OF OUR PEOPLE (20) ABOUT US (06) ENVIRONMENTAL LEADERSHIP, VISION & MISSION (27) SUSTAINABILITY AT SCIDC (12) CORPORATE SOCIAL RESPONSIBILITY (31) RESPONSIBLE, ETHICAL & PROFITABLE GROWTH (16) SCIDC-Sustainability Report 2023 ABOUT THIS REPORT Scope of The Report Report Highlights 2023 Message from our Chairman ABOUT US Our Group Entities Quality & Product Compliance Our Value Chain SUSTAINABILITY AT SCIDC Putting Sustainability into Context Listening To Our Stakeholders Materiality Our Sustainability Framework & Goals RESPONSIBLE, ETHICAL & PROFITABLE GROWTH Our Economic Performance Production Performance & Efficiency Good Corporate Governance Organization Chart HEALTH, SAFETY AND WELLBEING OF OUR PEOPLE Human Rights Our Human Capital Diversity and Inclusion Employee Attraction & Retention Employee Training Employee Engagement Occupational Safety ENVIRONMENTAL LEADERSHIP, VISION & MISSION Our Environmental Vision Our Environmental Mission Our Environmental Goals Our Achievements CORPORATE SOCIAL RESPONSIBILITY Emiratization Local Procurement & Supplier Management Community Investment 3 4 5 7 10 11 12 13 14 15 16 18 19 19 20 20 20 22 23 23 25 27 27 27 27 31 31 31 1|P a g e
Sharjah Cement & Industrial Development Co. PJSC (SCIDC) has always remained committed to operating sustainably and setting high standards of Environmental, Social and Governance objectives to pioneer a sustainable future. With great pleasure, we present our sustainability report for 2023, which includes our key environmental, social, and governance performance. It highlights the initiatives we have put in place to help us establish credibility and better connect our sustainability efforts with our company's vision. The United Nations Sustainable Development Goals (SDGs), the United Nations Global Compact (UNGC) Principles, and Abu Dhabi Economic Vision 2030 have all been taken into consideration in the preparation of this report, which complies with GRI standards. SCIDC-Sustainability Report 2023 2|P a g e
YEAR The report covers our environmental, social and governance performance for the year 2023. ENTITIES All entities mentioned in this report refer to entities owned by SCIDC including Sharjah Cement Factory, Paper Sacks Factory, Gulf Rope and Plastic Products LLC and other Investment Operations. COUNTRIES The report covers our operations in the United Arab Emirates only, unless otherwise indicated. MONETARY VALUES All monetary values in this report are in Arab Emirates Dirhams (AED), unless otherwise indicated. FINANCIAL PERFORMANCE The financial performance and economic impact figures used in the report are drawn from all entities owned by SCIDC, including Sharjah Cement Factory, Paper Sacks Factory, Gulf Rope and Plastic Products LLC, and other Investment Operations. For further information regarding our financial performance, please refer to our annual report available on our website. TERMINOLOGY Use of the terms “SCIDC” or “Sharjah Cement” in this report refers to Sharjah Cement and Industrial Development Co. CONTACT POINT For more information about this report and our sustainability approach and performance, please contact: Name: Krishnakumar M.A. Designation: Finance Manager Email: scidcho@sharjahcementfactory.ae EXTERNAL ASSURANCE Our internal team created this sustainability report, which was further reviewed and approved by internal stakeholders and management to ensure the accuracy of the information reported. We chose not to appoint an external party to audit our sustainability report. However, it remains an option that we may consider in the future. The content presented in this report is the result of thorough stakeholder engagement and materiality analysis, which are covered in the chapter titled “Sustainability at SCIDC.” We believe that all the content and data provided throughout this report were represented with the utmost integrity, honesty, and transparency to provide our stakeholders with clear and accurate insights on all our business activities and footprint. SCIDC-Sustainability Report 2023 3|P a g e
Sustainable Growth • Shareholder equity is AED 1,298.8 million. • Book value per share is AED 2.14. • No Incident of Non-compliance with External Laws and Regulations • No Incident of Non-compliance with the Code of Conduct Health, Safety and Wellbeing of our People • Diverse workforce of employees from more than 16 different nationalities at SCIDC. • Provided 4550 hours of training for our employees, Sponsored Students and Trainees including health seminars. • 5.4% Employee Turnover Rate. • No fatality or major accident at work. Environmental Leadership • Reduced 99,000 tons of annual Carbon emission reduction with Waste Heat Recovery System. • Zero waste to Landfill. • Ensured all wastewater is completely recycled and no fresh water is drawn for plant. • Planted 250 trees during 2023 and continue to do so in the foreseeable future. • Invested more than USD 15 million in technology to make use of alternative fuels to reduce coal consumption and replace it with recycled waste. Corporate Social Responsibility • 36% of employees with monthly salaries above AED 8,000 are UAE nationals. • More than 60% of the total production cost including payroll is procured from local suppliers. • Invested AED 806,000 invested in Community Development and Support. SCIDC-Sustainability Report 2023 4|P a g e
Mr. Othman Mohamed Sharif Abdulla Zaman Chairman Dear Shareholders, On behalf of the Board of Directors and myself, I am delighted to share SCIDC’s sustainability report for the year 2023. In this report, we share our efforts and performance in the arena of sustainable growth, environment, our people and our broader social responsibility. We recognize our responsibilities towards preservation of Environment and have worked actively to remain strategically aligned with the UAE Green Agenda and Abu Dhabi Economic Vision 2030. We contribute positively to these visions and directives by contributing to our local communities and embedding sustainability into everything we do. The company’s Sustainability Framework has been aligned with the United Nations Sustainable Development Goals, United Nations Global Compact and the Global Reporting Standards. This report highlights our environmental, social and governance performance and contribution to national and global sustainability targets. UAE Environment Law requires all cement companies in the UAE to use at least 10% alternative fuel in place of coal from 2021. We are pleased to announce that we had already achieved that goal in 2019. We have signed multiple agreement with various Waste Management Organizations for supply of more than 200,000 tons of Solid Recovered Fuel (SRF) generated from industrial and commercial waste in its landfill annually, allowing us to reduce our carbon emissions further. With these agreements and other ongoing arrangements, we have replaced more than 30% of fossil fuel with alternative fuels during 2023. We are also pleased to announce that we are investing in technology and actively partnering with Municipalities and other private players to enhance the use of alternative fuels further. We are working closely with Sharjah Municipality and the Ministry of Environment in keeping the dust and other emissions in and around the factory well below the statutory limits. We also help Sharjah Police to ensure safe and environment-friendly disposal of hazardous waste and other contraband materials. Our factory campus hosts more than 6250 trees, and we are proud to be one of the greenest factories in the UAE. We have partnered with Sharjah Municipality to recycle wastewater generated by their water treatment plant in Sharjah. We have used 24 million gallons of wastewater in our cement plant during 2023. We are proud to announce that we use zero fresh water in the plant and the entire plant now runs on recycled water. The company continues to support many charitable organizations and social institutions to fulfill its corporate social responsibilities. For the development of Emirati youth, the company organizes visits to the cement plant and provides regular training in association with various schools and universities. I would also like to thank the Fellow Board Members, Management and Employees of the company for their dedicated efforts and devotion in achieving the company’s sustainability objectives. ************** SCIDC-Sustainability Report 2023 5|P a g e
About Us Sharjah Cement and Industrial Development Co. (PJSC) (“the Company”) was incorporated in Sharjah, the United Arab Emirates, in 1977 under an Emiri Decree issued by H.H The Ruler of Sharjah and has since been registered as a public jointstock company. The registered office of the Company is P.O. Box 2083 Sharjah, United Arab Emirates. The shares of the company are listed on the Abu Dhabi Securities Market. SCIDC is engaged in the manufacturing and supply of cement, paper sacks and plastic ropes. The Group invests its surplus funds in investment securities, private equities, and properties. The Group operates from Sharjah, United Arab Emirates and sells its products within UAE and many other countries, including the Middle East, Africa, and Asia. SCIDC’s MOTTO is to “Grow Sustainably with Continuous Quality in Production, Process & People”. SCIDC-Sustainability Report 2023 6|P a g e
SCIDC group is composed of five main business units operating across the UAE. SHARJAH CEMENT FACTORY - (SCF) SCF has been the market leader in the production of its Portland cement and GGBS products since the company commenced production in 1977. The company prides itself in moving forward by fully understanding the aspects, including the technical and engineering principles of both its products and its processes. We specialize primarily in producing and processing Portland cement and Iron Blast furnace slags into ground granulated Blast furnace slag for the construction industry. Furthermore, we also produce Oil-well Cement conforming to API Specifications 10 A, Class A and G. All our products are manufactured strictly in compliance with the relevant European and American standards and are manufactured carefully and precisely by aptly using selected raw materials. We undertake strict quality control throughout each stage of the manufacturing process to ensure that a consistent final product is achieved. The factory capacity ensures to meet the market requirements and to offer a premier service to our suppliers and customers we operate a dedicated fleet of bulk delivery tankers. SCF Operates under ISO 9001-2015 Quality management System. We have also been awarded ISO 14001-2015 for Environmental Management Systems, ISO 45001-2018 for Occupational Health & Safety Management Systems and ISO 50001-2018 for Energy management Systems. SCF is committed to promote the highest standards in health, safety and environmental preservation and protection. SCIDC-Sustainability Report 2023 7|P a g e
Sharjah Cement Factory has been the market leader in the manufacture of various types of high-quality Cementitious products since the company commenced production in 1977. The company prides itself on moving forward by development of the complete understanding of the technical and engineering principles both of its products and its processes. It specializes principally in the production and processing of Cements and Cementitious materials viz Premix Plaster, Tile Fix, Grouts etc. All products are manufactured strictly in compliance with the relevant European and American standards. Our products are manufactured using carefully selected high quality raw materials. We have a strict quality control system throughout each stage of the manufacturing process which ensures that a consistent final product is achieved. Our capacity can easily cope with the requirements of the market area served and we operate a dedicated fleet of trucks to offer a premier service. SCF dry mortar plant is a fully automated German technology plant having production capacity of 1000 Mt per day. SCF dry mix mortars are transported in dry form to the construction sites, where only water is to be added to the dry mortar in recommended quantity just before application. We are offering our dry mortar products in 20 kg, 25 kg, 50 kg bags, jumbo bags and bulk as per customer requirement. GULF ROPE AND PLASTIC PRODUCTS CO. LLC - (GRPP) Established in 1994, GRPP is the largest synthetic rope and baler twine manufacturer in UAE. GRPP manufactures synthetic ropes under the brand name FALCON at its modern plant in Sharjah, UAE. While incorporating state-of-the-art technology, all types of equipment are of European origin. It is the first ISO 9001-2015 certified synthetic rope factory in the Middle East. GRPP has a proactive approach towards the Health and Safety of its employees. Additionally, the products are exported to more than 25 countries worldwide in the Middle East, Europe and Africa. PAPER SACKS FACTORY – (PSF) PSF was established in the year 1975 for the promotion of industries in Sharjah, UAE. PSF is ISO 9001:2015 certified and a leading manufacturer of multiwall, glued/pasted valve type empty paper sacks for packing cement, fertilizers, chemicals, flavors, sugar, minerals and many more. PSF has the most modern equipment of European make with an installed capacity of 120 million sacks per annum with up to 6 piles and colored print as per customer specifications. We export our high-quality paper sacks across the Middle East, Africa, Asia and other overseas markets. SCIDC-Sustainability Report 2023 8|P a g e
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