The theme of this report, Toward a Circular Future, shows how important the circular economy – one where renewables, resource conservation, and waste reduction can, in combination, benefit businesses while simultaneously protecting the environment – is for SABIC.
We are driven by concern for plastics in the environment, the search for new ways to reuse and re-purpose materials, and a desire for effective regulations, especially in packaging.
These priorities have led to investments in circular product-solutions and our ability to accept chemically recycled feedstock.
We are delighted to be a founding member of the Alliance to End Plastic Waste, a new, non-profit organization, consisting of global chemicals and plastics companies dedicated to this matter.
We have taken a lead in addressing the impact of plastic waste, both through corporate investments and through the ingenuity of our people.
At SABIC, sustainability guides growth and aids alignment with mega-trends in society, the environment, and the economy.
This year, we made a strategic decision to move our Sustainability department into our Technology and Innovation function.
The move will accelerate innovation for process technologies and product development and will help meet customer demands and society’s expectations for sustainability solutions.
The year was characterized by rapidly changing regulations, technology disruption, market volatility, and evolving customer demands.
We continued to approach these challenges with an open and critical mind, confident in the knowledge that uncertainties can lead to innovative thinking and eventually opportunities in the long term.
Financially, a slowdown in global growth, rising economic uncertainty, global market shifts, volatile prices, and geopolitics made the latter part of the year challenging and we expect that these trends will continue to impact our bottom line into 2020.
At the same time, our transformation strategy has helped us be prepared to meet these challenges in 2020 and beyond.
In Saudi Arabia, we streamlined our operations, merging Sadaf and Petrokemya to create additional value and enhance competitiveness.
The need for more ambitious targets to realize climate action goals are constantly being underlined.
Accordingly, the circular economy is receiving more global attention and support.
At SABIC, we see
the circular economy as a business opportunity that strengthens our sustainability commitment.
Business impacts from climate-related regulations were most significant in Saudi Arabia and Europe.
In Saudi Arabia, progress was driven by an industrial energy-efficiency program, whereas in Europe, regulations were the key driver. We will continue
to expand resources and expertise to meet our operational-efficiency targets, but making progress is becoming increasingly challenging due to project complexity and rising costs.
In the long term, the global chemicals industry will need to adjust to an environment increasingly affected by climate and a public that constantly demands higher environmental standards, greater accountability and stricter enforcement of regulations.
While this is a challenge for the industry, it is also an exciting opportunity for new innovations, efficiencies and lower emissions.
We will need to transition to a higher percent of renewables in our energy mix, which could also bring the benefit of reducing operating costs.
The most effective opportunities for progress in these areas may be with new mega-projects – where the newest innovative technology can be integrated from the earliest stages of design.
As we prepare for the future, SABIC will never lose sight of the foundations of our culture that have brought us so far: safety, integrity, and governance.
At SABIC, the safety of our people and communities always comes first – this is a consistent rule that can never be changed.
EHSS is central to everything we do.
Our EHSS Executive Council meets biannually to monitor performance, establish milestones, and review strategic programs and company initiatives. Over the course of 2019,
we invested in a number of strategic initiatives to improve our EHSS performance, as we have outlined in this report.
We are committed to investing in the communities where we operate and developing innovative programs to meet community needs and better people’s lives.
We have invested around US$ 900 million in CSR initiatives, developing long-term mutually beneficial partnerships with local communities.
We are fully aware that we would not be where we are today without the hard work and vision of our people.
We will only be able to fulfil our vision of becoming the preferred world leader in chemicals by creating a performance culture that encourages continuous learning, open dialogue, and career development.
Throughout the year, we remained focused on developing our people into outstanding performers to help us excel as a world-class manufacturer delivering innovative solutions for our customers.
sustainability is needed more than ever in companies, governments, and the not-for-profit sector…
at saBic, sustainability guides growth and aids alignment with mega-trends in society, the environment, and the economy.
Looking forward, while growing populations support our long-term growth, they also put more pressure on finite global resources.
Fortunately, our products and solutions bring energy savings and higher performance to virtually every other industry and,
in doing so, increase standards of living. Globally, our tireless employees are the driving force behind this immensely important work, and I would like to thank you all for bringing ‘Chemistry that MattersTM’ to our diverse stakeholders.
While this report covers the year 2019, COVID-19 has changed the world in dramatic and unprecedented ways since then.
This publication comes at a moment when it is important for us all to pause and be reminded of the interconnectedness of all people on this planet. COVID-19 respects no borders and it will undoubtedly change the way companies do business and interact with each other, our stakeholders and our environment.
At SABIC, we are committed to standing in solidarity with the business community and world leaders to heed the call to action.
While much is uncertain, we will remain steadfast in continuing our leadership and commitment to the stakeholders and communities
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