We strive to be a model for others to follow, setting the bar high for safe and reliable performance, sustainable procurement, responsible supply chain management, social responsibility programs, and financial performance.
Our commitment to ethical business practices is ingrained in every aspect of our operations, from the products and services we offer to the way we conduct ourselves in the market. We strive to be a model for others to follow, setting the bar high for safe and reliable performance, sustainable procurement, responsible supply chain management, social responsibility programs, and financial performance. Our targets are not just numbers on a page; they are reflection of our unwavering dedication to doing the right thing and ensuring that our business practices align with our values. As we navigate the complex world of governance, we remain steadfast in our pursuit of excellence, always seeking new and innovative ways to improve our performance and lead the way towards a brighter future for all.
Focus Pillars for Governance
Governance and Ethics
Petro Rabigh is realigning its governance, policies, and systems with the national vision 2030 and international ESG criteria and standards. We ensure that our business practices exceed the standards' expectations by continuously monitoring, measuring, and publishing ESG and sustainability management information. We strongly adhere to the applicable global reporting guidelines, disclosures, and transparency standards. Furthermore, Petro Rabigh establishes its strategic ESG and sustainability intent by aligning with international initiatives, including the UN Global Compact (UNGC), UN SDGs, and other global ESG projects.
Sustainable Procurement and Supply Chain
Our robust procurement system helps the Company avoid ESG business risks by maximizing beneficial opportunities of local sourcing, environmentally responsible goods, and socio-economic development. We aim to maximize positive environmental, social, and economic impacts over the entire life cycle of the goods and services provided by suppliers and our diverse supply chains.
Petro Rabigh integrates ESG factors alongside the typical price and quality considerations into the Company's procurement processes and procedures. Our procurement team undertakes effective and comprehensive ESG and quality due diligence during the procurement, tendering, and award phases. Our sustainable practices ensure that the organization only works with suppliers who are meeting ESG terms.
Improvement on local content
Developed local suppliers by signing over 50 long term agreements with an increase of 50% from the year 2020. Our local suppliers' database has increased from 2020 by 10% at the end of 2022.
Since the year 2018 Petro Rabigh has been focusing on local content by visiting peers in the industry to exchange knowledge and best practices, in addition to participation in IKTVA 2020 and 2021 and being up to date with regulations and initiatives Of related government entities such as the Local Content and Government Procurement Authority (LCGPA) and the Ministry of Energy (MoE).
|In Parallel, following the COVID-19 pandemic in 2020 and its effect on the global supply chain, Petro Rabigh exercised rigorous efforts. in addition to putting its current localization strategy in place and commitment toward economy, to increase the spend on local manufactures gradually to reach 34% in 2022 compared to 30% in 2020.|
|Year||Number of local manufacturers||Number of all local suppliers|
|Local Content KPI (%)||29||33||34||Petro Rabigh exerted efforts toward attaining 2020 local content score, which successfully yielded a 51% score audited by one of the auditing firms authorized by LCGPA. We are awaiting the official certificate to be issued by LCGPA.|
Moving forward in 2023, Petro Rabigh will continue the localization journey by participating in IKTVA through conducting a workshop to offer some supply opportunities to local manufacturers.
In addition to establishing Petro Rabigh local content program, we will continue to improve our local content score for the subsequent years.
Emergency Preparedness and Business Continuity
As part of our social license to operate, we are obliged to protect our employees, local communities, and natural environment from operational and crisis-related harms. We ensure our compliance with legislation, Civil Defense requirements, and international ESG standards by establishing, maintaining, monitoring, testing, and demonstrating our Emergency Preparedness and Business Continuity capacity and competence.