Advancing sustainability, together

Continuity, resilience and progress

Maha Alnuhait
Together, we are establishing stc as a regional leader in sustainability, delivering ethical value to our customers, shareholders and the wider community.

Maha Alnuhait

Sustainability General Manager

In 2025, stc demonstrated continuity, resilience and meaningful progress toward our sustainability goals. Our strategy this year remained focused on three core pillars: environmental performance and climate action, the development of human capital through digital innovation, and the maintenance of strong, ethical governance. We are proud to report significant achievements that reflect this focus, including winning the prestigious King Khalid Award, launching the GCC Sustainability Hackathon, completing the fifth phase of our smart truck project, spreading digital literacy across the entire Kingdom and strengthening our climate-related governance with the establishment of a new Climate Action Working Group (CAWG).

stc is committed to finding the right balance between rapid digital growth and environmental responsibility. We believe that responsible business practices are essential for long-term success and creating lasting value for our stakeholders.

On the environmental front, we reaffirm our commitment to achieving net zero emissions by 2050. The ICT sector is now vital for climate resilience across the GCC, and stc is leading this transformation. By leveraging digital technologies, we are reducing risks and specialising in adaptive solutions. This year, we utilised AI and big data to deploy predictive analytics for anticipating extreme weather events and we continued the rollout of renewable-powered data centers. Furthermore, through digital communication, cloud-based platforms, drones and robotics, stc supports disaster response and recovery, ensuring our infrastructure is as resilient as it is smart.

In terms of social progress and human capital, we successfully continued the implementation of our flagship initiatives. The smart truck project was crucial for bridging the digital divide and empowering underserved communities with essential digital skills. Our launch of the GCC Sustainability Hackathon underscored our dedication to fostering a regional ecosystem of creativity. These efforts, alongside our focus on STEM education, directly contribute to reducing inequality and improving quality of life.

Governance remains the bedrock of our strategy. In 2025, we elevated our governance maturity to reinforce accountability and decision-making across the stc group. The establishment of the CAWG was a significant milestone, enabling us to uphold the highest standards of transparency and ethical conduct while driving our climate agenda forward.

Our sustainability strategy is closely aligned with Saudi Vision 2030 and the UN Sustainable Development Goals (SDG). We view sustainability not as a cost, but as a catalyst for growth and innovation. By integrating these values into our corporate strategy, we are turning global risks into competitive opportunities. Whether through cross-sector collaboration, global alliances or strategic partnerships, stc continues to share knowledge and scale solutions that empower communities.

Looking ahead, we remain dedicated to embedding sustainability into our operations, innovation and partnerships. We are proud of our employees' enthusiasm for these initiatives, supported by strong management commitment. Together, we are establishing stc as a regional leader in sustainability, delivering ethical value to our customers, shareholders and the wider community.

stc’s sustainability strategy

Sustainability is embedded within stc group’s corporate strategy and is central to its role as a leading digital enabler. In 2025, stc refreshed its sustainability strategy, transitioning to a new three-year cycle that builds on the previous roadmap, while responding to evolving regulatory requirements, stakeholder expectations and emerging sustainability priorities. The refreshed strategy maintains its three core pillars, with refined objectives, updated targets and clearer performance indicators.

Sustainability strategic framework

stc group’s strategic framework translates its corporate ambition into a structured and measurable roadmap for responsible growth, integrating business priorities with sustainability imperatives to drive long-term value creation, operational excellence and resilience across markets.

Double materiality assessment

As stc advances its sustainability integration journey, it requires deeper and more sophisticated insights to inform decision-making. In 2025, stc conducted a detailed and comprehensive double materiality assessment (DMA) to provide deeper insight into its sustainability performance from both financial and impact perspectives, supporting decision-making and aligning with the company’s updated sustainability strategy and ambition. The assessment responds to evolving reporting landscapes and aims to refine focus beyond compliance by integrating sustainability with risk management and long-term business performance.

Methodology, criteria and evaluation

The DMA methodology consisted of several interrelated phases designed to ensure a comprehensive and defensible outcome.

  1. Topics identification
  2. Identification of impacts, risks and opportunities (IRO)
  3. Stakeholder engagement
  4. Impact assessment
  5. Financial assessment
  6. Scoring and validation

Material topics and matrix

stc’s 13 identified material topics were mapped using both financial and impact materiality assessments across all relevant ESRS-aligned topics. The following matrix illustrates the relative significance of each topic from both impact and financial materiality perspectives.

Stakeholder engagement

Approach

stc’s approach to stakeholder engagement is structured, proactive and outcome-focused. The stakeholder engagement function serves as the central interface between the sustainability organization and external stakeholders, managing partnerships, knowledge exchange and collaboration requests. It ensures all engagements are aligned with stc group’s sustainability priorities while positioning the company as a trusted reference in sustainability strategy and governance.

Our stakeholders

stc group

Alignment with national and international priorities

PillarMaterial topicsSDGsUNGCSaudi Vision 2030
Environmental performance and climateEnergy and climate change
SDG 7: Affordable and clean energySDG 13: Climate action
Principles 5, 7, 9

Ensure environmental sustainability

An Ambitious Nation
Waste and circular economy
SDG 12: Responsible consumption and production
Principle 8

Ensure environmental sustainability

An Ambitious Nation
Development of human capital through digital innovationHealth, safety and well-being
SDG 8: Decent work and economic growth
Principles 3, 4, 5, 6

Advance equity and fair work

A Vibrant Society
Diversity, equity and inclusion
SDG 5: Gender equalitySDG 10: Reduced inequalities
Principle 6

Advance equity and fair work

A Vibrant Society
Talent management
SDG 4: Quality educationSDG 8: Decent work and economic growth
Principle 6

Enable social contribution of businesses

A Thriving economy
Accessibility and digital inclusion
SDG 9: Industry, innovation and infrastructureSDG 10: Reduced inequalities
Principle 6

Enable social contribution of businesses

A Vibrant Society
Customer relations and satisfaction
SDG 9: Industry, innovation and infrastructureSDG 12: Responsible consumption and production
Principle 6

Grow contribution of the private sector to the economy

A Vibrant Society
Community contribution and development
SDG 1: No povertySDG 5: Gender equalitySDG 10: Reduced inequalitiesSDG 16: Peace, justice and strong institutions
Principles 1, 2, 6

Enable social contribution of businesses

A Vibrant Society
Strong governance and ethical excellenceGovernance and business ethics
SDG 8: Decent work and economic growthSDG 16: Peace, justice and strong institutions
Principles 6, 10
  1. Justice and strong governance
  2. Enable social contribution of businesses
  3. Ensuring a healthy work environment
A Vibrant Society
Data privacy, security and protection
SDG 9: Industry, innovation and infrastructureSDG 16: Peace, justice and strong institutions
Principles 1, 2

Enable social contribution of businesses

A Thriving economy
Digital innovation and experience
SDG 9: Industry, innovation and infrastructure
Principles 9, 10

Unlock potential of non-oil sectors

A Thriving economy
Supply chain management
SDG 8: Decent work and economic growthSDG 12: Responsible consumption and production
Principles 2, 8

Enable social contribution of businesses

A Thriving economy
Human rights
SDG 10: Reduced inequalitiesSDG 16: Peace, justice and strong institutions
Principle 1

Enable social contribution of businesses

An Ambitious Nation

Sustainability standards and frameworks

stc complies with recognised national and international reporting standards in line with the company’s dedication to ESG excellence.

GRI Sustainability Reporting Standards

stc group’s non-financial reports follow the GRI Standards, providing a comprehensive, globally recognized framework for voluntary sustainability disclosure, focusing on material issues identified through a thorough assessment process.

IFRS S1 and S2

To align with international best practices, stc is continuously integrating elements of IFRS S1 and S2 standards. As a sector leader, adopting these standards helps stakeholders better understand stc group’s sustainability impacts, risks and opportunities.

United Nations Global Compact (UNGC)

As a signatory since December 2021, stc commits to implementing UNGC’s principles and addressing several UN SDGs. stc reports annually on progress through the UNGC Communication on Progress. stc’s Sustainability General Manager also serves on the board of the Global Compact Network in Saudi Arabia.

SASB Standards

stc aligns with the Sustainability Accounting Standards Board (SASB) to identify industry specific sustainability topics that may have financial relevance to the telecommunications sector.

GSMA ESG Metrics for Mobile

Launched by the GSMA, the ESG Metrics for Mobile is a mobile sector ESG reporting framework that covers a range of key material topics for the sector, designed to harmonise ESG disclosures and complement universal reporting by adding a crucial industry-specific lens.

Saudi Exchange ESG Guideline

In its ESG reporting, stc is guided by the Saudi Exchange’s guidelines, supporting the development of regional ESG standards across Saudi Arabia and the MENA region.