Environmental
performance and climate
Climate and emissions
Global concerns about a warming climate have put the spotlight on private companies to play their part in reducing emissions. At stc, we are dedicated to addressing the challenges posed by extreme weather events linked to high levels of GHG emissions. We have established ambitious goals, including a comprehensive target for the entire organization to reach net zero emissions by 2050, a commitment that was validated by the Science-Based Targets initiative (SBTi) in 2023, with backing from UNGC and GSMA climate policies.
To track our carbon reduction efforts, we adhere to the guidelines established by the Task Force for Climate-related Financial Disclosures (TCFD), which have been integrated into the ISSB Standards and SBTi. Our climate action roadmap outlines our guide to meet near-term targets, including a 50% reduction in absolute Scope 1 and 2 emissions and a 46.2% reduction in Scope 3 emissions by 2030 versus our 2019 baseline.
- Joined the global movement of leading companies aligning their business with the Paris Agreement to reach net zero emissions by no later than 2050, in line with the United Nations’ Framework Convention on Climate Change (UNFCCC) 1.5° C scenario
- Committed to adopting science-based targets (SBTi)
- Identified carbon footprint and impact baselines
- Explored renewable energy options
- Signed first renewable energy pilot project contract for 17 sites across KSA
- Developed Scope 1 and Scope 2 emissions boundaries and baselines
- Developed a robust, detailed GHG inventory
- Achieved verified submission to the SBTi
- Improved Companywide emission data management procedure
- Committed to planting 1 million trees
- Validated and approved stc’s net zero and interim science-based 2030 targets by SBTi
- Participated in largestever voluntary carbon credit auction
- Participated in Saudi Green Initiative (SGI) Forum during COP28
- 5.6% and 3.6% reduction on Scope 1 emissions across stc KSA and Group, respectively
- 370 sites powered by renewable energy across TAWAL’s operations
- 14.6% reduction on Scope 3 GHG emissions
- Reduce Scope 1 and 2 emissions by 50% and Scope 3 emissions by 46.2% from 2019 baseline, in alignment with 1.5°C UNFCCC scenario
Achieve net
emissions
Climate strategy
Our climate strategy sets a strong vision with clear, measurable objectives, ensuring all Group departments and subsidiaries integrate sustainability into their business practices. Leveraging our strong reputation, proprietary technologies and market leadership, we are committed to driving sustainable transformation across the ICT sector. Our approach goes beyond operational efficiencies as we aim to influence, support and collaborate with customers, communities and partners across our value chain to maximize our collective climate impact.
| Pillars | Objectives | Programs | 2024 initiatives | Key metrics/indicators |
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Optimizing stc’s performance |
Promote continuity’ and quality of information, maintain carbon reduction commitments and provide metrics and targets for improvement and analysis’ |
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Developing eco-friendly products and solutions |
Reduce climate impact from materials, products and services used by stc and across the Group’s value chain |
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Managing climaterelated risks and financial impacts |
Manage climate-related risks so as to future-proof stc Group’s operations and uphold alignment with stakeholder expectations |
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Demonstrating climate leadership |
Empower employees and suppliers to influence climate action at local and global levels |
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Climate governance
At stc, we recognize effective climate governance is essential to driving meaningful action and long-term resilience. Our governance framework takes into consideration climate-related risks and opportunities in the decision-making at all levels, reinforcing accountability and strategic oversight.
Climate action is led by the Sustainability General Manager and endorsed by the Group Chief Strategy Officer (GCSO), climate considerations are increasingly being integrated into relevant operations and business units. The Sustainability Management Committee, chaired by the Group CEO (GCEO), is responsible for reviewing and approving climate action plans, aligning them with stc’s broader corporate strategy.
Climate risk framework
In 2024, we continued to improve our climate risk assessment in alignment with IFRS S2 recommendations, strengthening a more robust integration of climate-related risks into our business strategy. Our analysis continues to cover short, medium and long-term physical and transition risks, leveraging the latest climate data and industry developments to bolster the resilience of our framework.
- Scenario 1 – Business as usual
- Scenario 2 – Delayed transition (2.0°C scenario)
- Scenario 3 – Net zero carbon transition (1.5°C scenario)
| Category | Nature | Risk | Description | Assets | Financial impact | Time horizon |
|---|---|---|---|---|---|---|
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Physical
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Acute
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Extreme weather
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Severe storms, hurricanes, or flooding impacts the infrastructure and disrupts services
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Marine cables
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<2 years (Short term) |
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Physical
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Acute
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Changes in temperature and precipitation patterns
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Changes in temperature and precipitation patterns impact telecommunication towers
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Towers
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5-10 years (Medium/Long term) |
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Physical
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Chronic
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Water scarcity and quality
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Inefficient cooling systems and data centers leading to increased energy consumption and reduced cooling efficiency
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Data centers
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>10 years (Long term) |
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Physical
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Chronic
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Rising sea levels and storm surges
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Damage from rising sea levels on coastal areas infrastructure leading to service disruptions and costly repairs.
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Towers
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<2 years (Short term) |
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Transitional
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Policy and regulation
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Policy and regulatory changes related to climate change
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Increase of electricity price owing to requirements for emission reductions, renewable energy adoption and energy efficiency standards.
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Buildings
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2-5 years (Medium term) |
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Transitional
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Policy and regulation
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Liability risks associated with the transition to a low-carbon economy
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Requirements for minimum energy performance of buildings to ensure transition to net zero
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Buildings
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>10 years (Long term) |
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Transitional
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Technology
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Technological innovation and disruption
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Market moves away from reliance on fossil fuels for logistics and emergence of less carbonintensive practices
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Logistics/ supply chain
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<2 years (Short term) |
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Transitional
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Market
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Shifts in consumer preferences and behavior towards sustainable products and services
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Consumers adopt more sustainable behavior and switch to lower carbon products and services
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Channels
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>10 years (Long term) |
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Transitional
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Policy and regulation
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GHG emission cost
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Introduction of carbon pricing in Saudi on direct emissions to incentivize emission reductions
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Finance
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2-5 years (Medium term) |
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Transitional
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Policy and regulation
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GHG emission cost
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Introduction of carbon tax in suppliers’ country resulting on a higher cost of operations for supplier companies
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Logistics/ supply chain
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2-5 years (Medium term) |
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Transitional
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Market
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Supply chain disruption and increasing material costs
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Extreme weather events disrupt supply chain and procurement of materials
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Logistics/ supply chain
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2-5 years (Medium term) |
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Transitional
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Technology
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Renewable energy adoption
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Late adoption of renewable energy leads to higher energy cost for business activities
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Buildings
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>10 years (Long term) |
Metrics and targets
stc has pledged to achieve net zero emissions by 2050, covering Scope 1, 2 and 3 emissions as part of its comprehensive climate strategy. Our near-term emission reduction targets have been validated by the Sciencebased Targets initiative (SBTi), reinforcing our commitment to science-aligned climate action.
stc is making steady progress toward achieving its targets, with measurable achievements in emission reduction and reforestation. In 2024, we recorded an overall 3.6% decrease in our GHG emissions scope 1 This decrease was based on a 5.6% decrease in Scope 1 emissions for stc KSA, and a 3.6% reduction for stc Group, reflecting our ongoing efforts to improve energy efficiency and reduce direct emissions. Additionally, Scope 3 emissions saw a significant 14.6% decrease, demonstrating the impact of our sustainability initiatives across the value chain.
Scope 2 emissions have decreased by 2% across KSA with an overall increase across stc Group driven by business expansion and operational growth. As stc continues to scale its services and infrastructure, electricity consumption has risen accordingly. Although this rise was anticipated, we remain focused on improving energy efficiency, integrating renewable energy solutions and optimizing operations to mitigate Scope 2 emissions in the long term.
Our ongoing efforts reflect our commitment to sustainability and the updates below highlight our progress to date.
Energy efficiency
As stc continues to expand its operations and upgrade its digital infrastructure, managing energy consumption efficiently remains a key priority. With increasing demand for connectivity, data services and network expansion, energy use has naturally grown to support business growth. However, through targeted efficiency measures, operational optimizations and a shift toward cleaner energy sources, we are working to balance this growth with responsible energy management.
In 2024, total overall electricity consumption increased across stc KSA (including headquarters-based subsidiaries) and stc Group, mainly as a result of new building developments and network expansion, including the addition of 574 new base stations. However, with the implementation of energy efficiency initiatives, we were able to reduce our electricity consumption by 8.44% across our technical facilities (exchanges). At the same time, fuel consumption for petrol and diesel decreased, reflecting efforts to improve fleet efficiency and reduce reliance on fossil fuels. Additionally, although total energy use rose, energy intensity (GJ per petabyte of data) declined, demonstrating improvements in network efficiency and data processing capabilities.
Our data centers prioritize sustainability in policy, design and technology. Facilities built after 2018 must achieve an average annual PUE of no more than 1.6 at full IT load. Despite higher PUEs during low IT load and initial operations, we met the target in 2024 with PUEs between 1.4 and 1.6 during testing, aligning with the NEIDC benchmark.
Our approach includes smart system monitoring, optimized cooling, effective PUE management and TCOS certification to reduce environmental impact and maintain efficiency. Key measures include:
- Mechanical equipment optimization: Utilizing primary chilled water networks with variable frequency drives (VFD) to cut power use.
- Energy efficiency mandates: Enforcing strict energy criteria for ongoing monitoring and optimal equipment operation.
- Efficient design: Targeting a PUE of 1.5 through efficient electrical and mechanical solutions.
- Power and cooling efficiency: Improving cooling systems by segregating hot and cold aisles.
- Local sourcing: Using locally produced materials to lower transportation needs and carbon emissions.
stc towers in Saudi Arabia are managed by our subsidiary TAWAL, the region’s largest telecom tower company. With a portfolio of 16.2K towers —representing over 40% of the Kingdom’s total— TAWAL plays a critical role in providing integrated ICT infrastructure across the country.
In 2024, 370 TAWAL tower sites in KSA and abroad operated primarily on renewable energy marking a significant increase from 164 towers in 2023, contributing an additional 4,630 MWh of renewable energy. In addition, 959 sites use a hybrid energy source, and over 19,000 towers are connected to the power grid. In Bahrain, we commenced our path toward more sustainable operation through the implementation of the first site operated fully though renewable energy.
powered by RE
370
production (MWh)
5,474 MWh
reduction
3,096 tons
saving
% 574,618
Optimizing energy efficiency at our HQ
Our approach to energy efficiency is guided by a strong focus on smart technologies and sustainable operational practices. This is mainly built on the Smart Campus centralized building management system (BMS), which plays a key role in optimizing energy consumption across our facilities. This system enables us to monitor, control and efficiently manage energy use, making sure every building operates at its highest performance level.
Since 2017, and continuing through 2024, we have implemented a wide range of initiatives to reduce energy consumption across both administrative and technical facilities at our HQ, this includes:
- Optimizing HVAC systems
- Turning off split and package AC units during nonworking hours
- Reducing central water heating system temperature
- Ensuring regular operation and maintenance routines
- Enhancing lighting efficiency
- Upgrading older facilities with double-glazed windows and automatic double doors
- Replacing outdated chillers and pumps
Performance metrics
In 2024, total electricity consumption increased across both stc KSA (including headquarters-based subsidiaries) and stc Group. This rise was primarily driven by network expansion, the commissioning of new buildings and the addition of 574 new base stations, all of which required additional energy to support growing operational needs. Specifically, electricity consumption in stc KSA increased by 2%, meanwhile at the Group level, it increased by 12% between 2023 and 2024.
Despite the increase in total energy use, stc achieved reductions in fuel consumption, demonstrating progress in reducing reliance on fossil fuels. Petrol consumption at stc KSA decreased by 5.4%; at the Group level, it declined by 4.7%. Additionally, diesel consumption at stc KSA fell by 11.5%, and at the Group level, it decreased by 7%. These reductions reflect improvements in fleet efficiency and operational optimizations.
Sustainable waste solutions in action
A circular economy promotes the efficient use of resources by emphasizing recycling, reusing and reducing waste. This thinking applies to all the resources that we draw on to generate value for customers and stakeholders. We are therefore committed to reducing our waste, from water through to paper and used devices, and to ongoing improvements in making our operations more circular.
Sustainable waste solutions
Effective waste management is essential to our sustainability strategy. Given the significant use of electronic equipment, it is crucial for us to implement suitable waste management practices. One of our most substantial initiatives is a comprehensive recycling program that operates across all stc buildings and sites, encouraging individuals to actively partake in waste-reduction efforts.
In 2024, our network operations through TAWAL generated 1,517 metric tons of waste from its core activities, with an impressive 67% being recycled.
Promoting a circular economy across our supply chain
At stc, we are committed to reducing waste and making our supply chain more sustainable. By shifting away from the traditional “take-makedispose” model, we focus on reusing, recycling and responsibly managing resources. Through initiatives like biodegradable packaging, expanded recycling programs and e-waste management, we are working toward a more circular economy that minimizes environmental impact.
In 2024, our end-of-life asset recycling program throughout the value chain successfully collected 4,236 tons of waste, with almost 48% of this amount being reused and 40% recycled; the remaining portion was disposed of responsibly.
Paperless work environment
At stc, we are committed to reducing our environmental footprint through digital transformation and paperless operations. In 2023, we introduced a comprehensive paperless office policy, reinforcing our commitment to sustainability. The policy’s implementation is closely monitored through a quarterly reporting system, tracking paper consumption metrics and supporting continuous progress. To emphasize the significance of this initiative, we have integrated it into our quality index, reinforcing its impact across our operations.
Accelerating digital adoption in 2024
As part of our ongoing efforts to embrace digitization and automation, we have significantly expanded digital processes across stc Group. In 2024, we successfully increased the number of Group-wide processes and services on our internal intranet platform (stc Hub) to over 3,000. This strategic shift has optimized operations and led to reduction in costs, improving both efficiency and sustainability.
Trade-in program
At stc, we believe old devices should not go to waste. Our trade-in program makes it easy for customers to exchange or recycle their used smartphones and electronics, reducing clutter and environmental impact and earning credit toward new devices. Instead of letting old phones sit in drawers or contribute to e-waste, we refurbish, clean and resell them at an affordable price, making technology more accessible and sustainable.
Big step forward in 2024
Building on the success of 2023, stc surpassed its 2024 target, demonstrating a growing commitment to circular economy:
- Total devices collected and recycled: 52,818 (up from 44,000 in 2023) – a 20% increase, achieving 106% of our target.
- Devices given a second life: 97% of recovered devices were successfully reused, maintaining our commitment to circularity.
By continuously developing the program and prioritizing customer experience, affordability and sustainability, stc remains committed to reducing e-waste, optimizing resource efficiency and driving a more circular economy in the ICT sector.
Performance metrics
In 2024, stc KSA’s (including headquarters-based subsidiaries) general waste increased mainly as a consequence of expanded construction activities. However, the end-of-life assets waste declined significantly by 40.6% between 2023 and 2024. Additionally, the percentage of waste recycled improved from 16% to 40%, demonstrating improved waste management practices.
At the stc Group level, general waste generation decreased substantially by 60.3%, from 6,337 tons in 2023 to 2,516 tons in 2024, marking a significant reduction in overall waste output. Meanwhile, paper consumption continued to decline, with stc KSA reducing usage from 1.25 tons in 2023 to 1.05 tons in 2024.
Optimizing water consumption
Water savings are crucial for companies operating in the Middle East, where water scarcity is a challenge owing to arid climates and limited freshwater resources. For stc, implementing effective water conservation strategies aligns with both environmental responsibility and corporate sustainability objectives, contributing to the preservation of this vital resource, which is essential not only for the ecosystem, but also for the well-being of communities in the region.
Moreover, reducing water usage can lead to significant cost savings through decreased utility expenses and improved operational efficiency. As stc leverages innovative practices, such as water recycling and rainwater harvesting, it will strengthen its reputation as an environmentally conscious leader in the region.
stc acknowledges the risks of water shortages and other resource constraints, wholeheartedly supporting the aims of Saudi Vision 2030 in this regard. Saudi Vision 2030 prioritizes water conservation and sustainable management as vital to the Kingdom’s development strategy. It promotes innovative water management practices, including desalination and wastewater treatment facilities, and raising public awareness about responsible water use.
