The results of this assessment will be published in the next report and incorporated into SABIC's sustainability strategy in the coming year. To ensure this outcome, we will use the best available technology to build plants that maximize efficiency to remain competitive over the long term. This approach has continued to guide our sustainability decision-making and enabled us to emerge as a sustainability leader in the Middle East.
I am pleased to report that SABIC has had another strong year in sustainability. Driven by the need to build value and manage impacts on economic, social, human and natural capital, SABIC is evolving our business today so we can continue to thrive in the world of tomorrow. At SABIC, we reduce supply chain risk by requiring our suppliers to demonstrate that they embrace the same strong compliance culture on which our business is built.
In addition to our regional efforts with the Pearl Initiative, SABIC also continued to be active in the B20's anti-corruption efforts and the World Economic Forum's Partnering Against Corruption Initiative. With specific regard to human rights, in 2016 we made our most significant progress through the implementation of our Global Supplier Due Diligence program, which is described in more detail in the Supply Chain section. Our new due diligence program includes a rigorous, ongoing process to identify, prevent, mitigate and account for negative human rights impacts in the supply chain.
All our global suppliers are subject to a risk model, which includes an assessment of the human rights situation in the region.
ACCOUNTABILITY FOR GOALS
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INNOVATION AND SUSTAINABILITY
SOLUTIONS
Innovation and sustainability are at the core of SABIC's strategy to create economic value and growth and form the basis of our extensive engagement with customers and stakeholders. Through investment and collaboration in research and innovation, we can create value and realize our ambition to become a leader in chemicals. Innovation based on chemistry and engineering is a key part of SABIC's strategy to make our operations more energy and resource efficient – and produce less waste and emissions.
This year we highlight collaborative solutions for raw material diversification, automotive design and downstream industry development in Saudi Arabia. By investing in the success of our customers, SABIC can deepen relationships across the value chain, become more agile and respond to market trends and the dynamic needs of our customers. Some of these solutions in our top seven markets are featured in this report, but they represent just a fraction of our innovation successes over the past year.
Through innovation, we can deliver solutions to some of the world's biggest challenges and seize growth opportunities. By investing in innovation, we secure SABIC's competitive advantage today and lay the foundation for sustainable growth in a rapidly changing, competitive market.
2016 HIGHLIGHTS
The world today faces a number of growing challenges, such as pollution, population growth, the rise of the middle class and concerns about climate change – these require resource efficiency, action to mitigate climate change, waste minimization and lower impacts through circular economy solutions. .
KEY METRICS AND TRENDS
UWAIDH AL-HARETHI
INVENTING AND
IMPROVING PROCESSES COLLABORATION
SABIC INNOVATION AWARD: FOSTERING INNOVATION IN SAUDI ARABIA
CUSTOMER COLLABORATION CASE STUDY
HDPE PIPES FOR GAS TRANSPORTATION
KEY MARKETS
TRANSPORTATION
PACKAGING
AGRI-NUTRIENTS
ELECTRICAL AND ELECTRONICS ENABLING DESIGN OF SLIMMER AND
CONSTRUCTION
MEDICAL DEVICES
CLEAN ENERGY
LOOKING FORWARD
GOING FORWARD Our priorities are the following
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RESOURCE
AND ENERGY EFFICIENCY
WATER 37
OUR PERFORMANCEOUR APPROACH
OPERATIONAL EXCELLENCE
KEY RESULTS
MILLION t
GREENHOUSE GAS
IMPROVING SUSTAINABILITY PERFORMANCE AT MT. VERNON
SABIC's freshwater intensity performance, measured in cubic meters per metric ton of product sales, was 0.4 percent higher than 2015 and 10.4 percent lower than our 2010 baseline. Some of our sites took steps to reduce water, such as less steam aeration at our SAFCO subsidiary, which reduced fresh water consumption by 180,000 million cubic meters. Our site in Baroda, India, reduced freshwater consumption by 22 percent – or 16,500 cubic meters – from 2015, identifying new opportunities to recycle water in blending operations and improving the quality of recycled water.
Our Sharq affiliate replaced part of the fresh water consumed for steam production with condensate recycled from production facilities, reducing fresh water volume by 320,000 cubic meters, improving water intensity by 4 percent. As mentioned in the Innovations section of this report, our Hadeed affiliate conducted successful pilot projects for recycling water with large amounts of dissolved gases – this is expected to reduce the water intensity of the plant by 2 percent without negative environmental health and safety impacts.
WATER
ENERGY
PLANS INCLUDE
LOOKING FORWARDMATERIAL LOSS
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EHSS AND
PRODUCT SAFETY
OUR PERFORMANCE
OUR APPROACH
MAINTAINING OUR INDUSTRY-LEADING EHSS CERTIFICATIONS
MANAGING EHSS
BUILDING AN EHSS
CULTURE: OPERATIONS
SELF-SCHEDULING SUCCESSES IN THE NETHERLANDS
ENVIRONMENTAL RELEASES
AND EMISSIONS MANAGEMENT
PRODUCT STEWARDSHIP
ENHANCE PRODUCT SAFETY THROUGHOUT THE VALUE CHAIN
SUPPORT SABIC GROWTH AND COMPLIANCE INITIATIVES
ESTABLISH FULLY DEVELOPED
PRODUCT-SAFETY SYSTEMS AND TOOLS We have steadily increased our ability to manage
ENSURE ORGANIZATIONAL EXCELLENCE The best way to understand and incorporate
CONTINUED PERFORMANCE
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DEVELOPING
HUMAN CAPITAL
AND PERFORMANCE
OUR WORKFORCE
DIVERSITY, INCLUSION, AND COLLABORATION
FEMALE LEADERSHIP PROFILE NAVEENA SHASTRI
In Shanghai, the Global Leadership Challenge partnered with the SABIC Women's Network to launch the 'Diversity and Inclusion as a Competitive Advantage' module, which provides insight into how diverse teams drive more effective and innovative solutions.
CONTINUOUS LEARNING
TALENT DEVELOPMENT
YOUNG SABIC PROFESSIONALS
Experienced SABIC leaders participated in an open panel to share their experiences of growing as leaders within the organization. Feedback has been overwhelmingly positive, particularly for the one-stop planning and learning resource recommendations. Public sector leaders participated in the inaugural SABIC Academy Leadership Program for Ministries, where participants benefited from our hands-on experience and.
To invest in our children, who are the future of the country, SABIC organized our annual Summer Innovation Program for the sons and daughters of employees in Saudi Arabia. Our organization-wide commitment to learning at SABIC is strong, and we offer high-quality programs that support individual professional development goals and improve organizational performance.
ACCELERATING PERFORMANCE
MANAGING MATERIAL MOVEMENT
EXPANDING THE SUPPLY CHAIN AND PROCUREMENT
SUPPLY CHAIN PERFORMANCE MANAGEMENT PROGRAM
ENSURING OPERATIONAL EFFICIENCY WORKING CAPITAL EFFICIENCY
REDUCING OUR CARBON FOOTPRINT TRANSPORTATION CARBON FOOTPRINT
ENSURING SAFE OPERATIONS
SAFETY AND QUALITY ASSESSMENT SYSTEM
SUPPLY CHAIN INCIDENT REPORTING
IMPROVING OPERATIONS THROUGH TRAINING
FUNCTIONAL COMPETENCY INDEX In order to improve SABIC staff’s skills and
SUSTAINABLE PROCUREMENT
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SOCIAL IMPACTS
AND COMMUNITY RELATIONSHIPS
2016 COMMUNITY GIVING HIGHLIGHTS
FOUR RAISE PRIORITY FOCUS AREAS In 2015, we began our global CSR strategy, RAISE,
RAISE IMPLEMENTATION
CSR PRIORITY AREAS HIGHLIGHTS – Science and Technology Education
US$46.4 MILLION (1)
US$800 MILLION
DEVELOPMENT GOALS
In the United States, our employees implemented the Discover Science program at two local elementary schools in Mt. In the Netherlands, we continued the work we started in 2008 with JetNet, offering guest lectures on technology and chemistry to inspire high school students to pursue a technical degree.
ENVIRONMENTAL PROTECTION
IMPROVING OUR COMMUNITIES
HEALTH AND WELLNESS
IMPROVING OUR
WATER AND SUSTAINABLE AGRICULTURE To meet the demands of a growing population and
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ABOUT THIS REPORT ASSURANCE REPORT
OF THE INDEPENDENT AUDITOR
REPORTING PERIOD, SCOPE, AND BOUNDARIES
REPORTING FRAMEWORKS
BASIS FOR OUR CONCLUSION
RESPONSIBILITIES OF MANAGEMENT FOR THE INDICATORS
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OUR RESPONSIBILITIES FOR THE REVIEW OF THE INDICATORS
Any brands, products, or services of other companies referenced in this document are the trademarks, service marks, and/or trade names of their respective owners. Sani-Cloth is a trademark of PDI, Responsible Care is a trademark of the American Chemistry Council, Operation Clean Sweep is a trademark of the World Plastics Council.
