Climate change

Environmental performance and climate

Climate change

stc group supports Saudi Vision 2030 and the Saudi Green Initiative (SGI), and is dedicated to a sustainable and resilient future for the Kingdom and for the region. With its Science Based Targets initiative (SBTi) validated target of achieving net-zero emissions by 2050, stc is at the forefront of environmental innovation leveraging renewable energy, enhancing operational efficiency and implementing energy saving technologies.

This approach is supported by alignment with recognized international frameworks including the recommendations of IFRS S2, regional commitments such as the Middle East Green Initiative (MGI) and related strategic environmental programs. Through these efforts, stc continues to improve energy efficiency, reduce emissions and advance circular economy practices while supporting community awareness and environmental stewardship.

Our journey toward
net-zero emissions

  • Established the baseline for greenhouse gas (GHG) emissions
  • Began aligning climate ambitions with the Paris Agreement
2019
2020
  • Identified carbon footprint and emission sources across operations
  • Explored renewable energy opportunities across the network
  • Signed renewable energy pilot agreements for telecommunication sites
  • Developed a comprehensive GHG inventory
2021
2022
  • Climate targets validated by the SBTi
  • Strengthened climate governance and emissions monitoring across operations
  • Expanded renewable energy integration and energy efficiency initiatives across network infrastructure
  • Continued progress in reducing operational emissions
2023

Achieved

5.6% reduction

in Scope 1 emissions and

3.6% reduction

in Scope 2 emissions


Continued energy efficiency improvements across network infrastructure and data centers

2024
2025

Achieved

3.9% reduction

in total Scope 1 and 2 emissions for stc KSA

Established Climate Action Task Force and Working Group


Enhance cooling efficiency at stc headquarters, through the replacement of outdated chillers and air conditioning systems with high-efficiency equipment

Improved building energy performance, through infrastructure upgrades including double-glazed windows and Smart Building Management Systems (BMS) for better energy control and monitoring

Reduce Scope 1 and Scope 2 emissions by

50%

vs 2019 baseline


Reduce Scope 3 emissions by

46.2%

vs 2019 baseline

2030

Achieve

net-zero

carbon emissions

2050

Climate strategy and transition planning

Global concern about climate change continues to increase expectations for companies to reduce emissions and strengthen climate resilience. stc is committed to achieving net-zero emissions by 2050, which requires a long-term transformation in how the group powers its networks, designs infrastructure and delivers digital services.

stc’s climate strategy focuses on reducing GHG emissions across its operations and value chain while integrating sustainability considerations into infrastructure development and digital solutions. The strategy prioritizes managing operational emissions, optimizing energy consumption across network infrastructure and data centers, engaging suppliers and partners to address value-chain emissions and enabling customers through digital solutions that support lower-carbon outcomes.

Pillars Objectives Programs 2025 initiatives Key metrics
Optimizing stc’s performance To deliver progress toward stc’s net-zero target by 2050 by reducing GHG emissions across Scopes 1–3 and improving operational energy efficiency across network infrastructure and operations.
  • Decarbonization roadmap
  • Scope 1 emissions management
  • Scope 2 emissions management
  • Established a Climate Action Working Group (CAWG) to ensure proper implementation and tracking of decarbonization initiatives
  • Expanded energy efficiency initiatives across network infrastructure, data centers and facilities
  • Expanded the trade-in program to promote device reuse and recycling, encouraging customers to return used devices for refurbishment, resale or responsible recycling
  • 3.9% reduction in total scope 1 and 2 for stc KSA
  • 3.96% reduction in Scope 2 emissions for stc KSA
  • 4.96% reduction in energy intensity across stc group
Developing eco-friendly products and solutions To reduce the climate impact of materials, products and services across the value chain while promoting circular economy practices and enabling customers to lower their environmental footprint through sustainable digital solutions.
  • Carbon enablement solutions
  • Engaged supply chain
  • Sustainable customer solutions
  • Scaled sustainable products and services through stc Cloud and digital solutions
  • Expanded device takeback and trade-in initiatives
  • Strengthened end-of-life asset recycling
  • Advanced supply chain engagement on sustainability
  • Supported low-carbon mobility through the Jahez e-bike delivery project
  • Revenue from sustainable products and services
  • 97% greater efficiency of e-bikes compared to motorcycles, approximately 0.23 kgCO2e avoided per delivery
Managing climate-related risks and financial impacts To identify and manage climate-related risks and opportunities while strengthening the resilience of operations and infrastructure and aligning risk management with evolving climate disclosure frameworks.
  • Climate risk evaluation
  • Climate-resilient assets and services
  • Conducted a double materiality assessment covering identification of climate-related risks and opportunities
  • Enhanced efforts to align with IFRS S2 recommendations
  • Updated stc ESG material topics focusing on material and financial impacts
  • Progress toward alignment with IFRS S2 recommendations
Demonstrating climate leadership To empower employees and partners to support climate action while strengthening sustainability culture and enabling collaboration across the telecommunication ecosystem.
  • Internal and external empowerment programs
  • ESG training and awareness initiatives
  • Circular economy considerations across supply chain
  • Delivered ESG training and internal capacity-building programs
  • Strengthened employee engagement in climate initiatives
  • Expanded collaboration through regional platforms such as the GCC Sustainability Telco Alliance and GCC Innovation Hub
  • Number of materials recycled
  • Number of collaborations through GCC initiatives

Climate governance

stc continues to strengthen its climate governance approach to ensure effective oversight, coordination and accountability in addressing climate-related challenges and opportunities across stc group.

Through its governance structure, climate considerations are integrated into strategic decision-making and operational planning, supporting the group’s efforts to reduce emissions, manage climate-related risks and advance its sustainability priorities.

In 2025, stc further strengthened its climate governance through the establishment of a Climate Action Task Force and a CAWG, creating a coordinated mechanism to oversee and implement climate initiatives across the organization.

The Climate Action Task Force, chaired by the GCSO, provides strategic oversight of climate action initiatives and reports to the Sustainability Management Committee, which is chaired by the GCEO. It is responsible for overseeing climate strategy implementation, monitoring climate targets and key performance indicators (KPI), coordinating climate-related inputs for sustainability reporting and informing strategic decisions.

Metrics and targets

stc group has established a long-term ambition to achieve net-zero emissions by 2050, covering Scope 1, 2 and relevant Scope 3 emissions as part of its comprehensive climate strategy. The company's near-term emissions reduction targets are aligned with science-based methodologies, reinforcing its commitment to credible, measurable and transparent climate action.

stc’s climate-related targets

By 2030
  • Reduce Scope 1 and Scope 2 emissions by 50% compared to the 2019 baseline

  • Reduce Scope 3 emissions by 46.2% compared to the 2019 baseline

  • Contribute to the planting of one million trees in support of national environmental initiatives

By 2050
  • Achieve net-zero carbon emissions

GHG emissions data

stc KSA continues to advance its climate strategy by focusing on operational optimization and emissions reduction across its activities. The year-on-year performance reflects ongoing efforts to decouple emissions from operational growth.

At the group level, changes in reported emissions in 2025 are influenced by a revision in organizational boundaries, aligned with 2025 financial disclosures boundaries, which limits direct comparability with prior years.

In 2025, the total GHG emissions (Scopes 1 and 2) decreased by 3.9% for stc KSA, demonstrating steady progress in overall emissions reduction. This improvement is primarily driven by a 3.96% decrease in Scope 2 emissions, reflecting stc’s efforts in enhancing energy efficiency and optimization of energy consumption across its network.

In addition, total Scope 3 emissions maintained similar levels with slight increase due to business expansion compared to 2024, reflecting continued progress in emissions intensity management across the value chain. Purchased goods and services remained the largest contributor, accounting for the majority of Scope 3 emissions, with a slight increase during the year highlighting the importance of ongoing supplier engagement and sustainable procurement initiatives.

stc square

Pioneering sustainable urban living in Riyadh

75%

Construction waste recycled

38%

Reduction in indoor water consumption

40%

Of the development dedicated to open and outdoor spaces

stc square, a landmark 120,000 m² mixed-use development at the headquarters, is a flagship achievement in sustainable urban excellence. Developed by AQALAT, stc group's real estate arm, the project integrates advanced smart technologies with rigorous environmental design to deliver a high-quality, low-impact community that includes residential, office, commercial, mixed-use spaces and a mosque.

The development was guided by a strong commitment to sustainability, targeting LEED v4 certification. This internationally recognized framework integrates planning, design and implementation to achieve consistent environmental performance, reduced resource consumption and enhanced well-being for residents.

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