Sustainability Report

At Albaad, we recognize that our employees are central to our long-term success. We are committed to fostering an inclusive, respectful, and empowering workplace culture that supports both personal and professional growth. Our commitment extends beyond achieving business goals – we are focused on cultivating a workplace where every employee feels recognized, supported, and empowered to realize their full potential.

We invest in employee learning, encourage collaboration and innovation, and promote open communication across all levels of the organization. Our workplace culture is built on mutual respect, shared sense of purpose, and a strong commitment to excellence.

Health and safety remain a top priority, both within and beyond the workplace. We actively promote employee well-being through robust safety protocols, wellness initiatives, and a culture of care. By prioritizing the physical and mental health of our workforce, we aim to enhance not only organizational performance but also the overall quality of life for our employees.

Through these efforts, Albaad continues to uphold the highest standards of professional conduct and corporate responsibility, ensuring that our people remain at the heart of everything we do.

Albaad upholds compliance with all labor laws and is committed to fostering an environment of equal employment opportunity. The company adheres strictly to non-discriminatory practices in employment decisions, irrespective of factors such as race, religion, gender, sexual orientation, age, nationality, disability, seniority, employment status, or any other legally protected status.

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Our commitment extends beyond achieving business goals-we are focused on cultivating a workplace where every employee feels recognized, supported, and empowered to realize their full potential.

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Employee training and development contribute to more professional and engaged employees and managers. At Albad, our training program is divided into three interconnected circles that work together to form a positive learning process for all employees. The first is mandatory training such as safety training that is of utmost importance as it includes lifesaving skills in a manufacturing environment. The second circle is annual professional training to strengthen skills and capabilities of our human capital. Third, is managerial development training that provides skills to management level to become better role models for our employees.

Managers and employees meet regularly to discuss professional matters regarding company operations, working conditions and any issues employees wish to raise. Following each round table meeting, a detailed summary is issued, outlining the decisions made and the individuals responsible for their implementation, ensuring that all action items are properly addressed. Examples of decisions that emerged from factory round table meetings include:

• Changing the catering provider, and meal components. Adding a follow-up feature in the organization’s internal app for coordinating transportation to and from the factories in Israel.
• Conducting safety meetings with the transportation provider, followed by monitoring by the site safety manager.
• Salary increases for some employees.
• Expanding access to training courses.
• Improving work interfaces between departments to enhance cooperation and working relations.
• Expanding the “Stop Important” safety forms for technicians to include smaller tasks.
• Small maintenance fixes including improving lighting in offices.
• Activities for employees together with their families.

Managers and their employees meet annually for a performance evaluation, which also provides an opportunity to discuss future development opportunities. In 2024 88% of employees, both managers and non-managers, received such feedback. To enhance the efficiency of the evaluation process, the documentation was fully digitalized, making it significantly easier to complete evaluation forms and to analyze the results.

We value our employees’ input across all aspects of our operations. To gather meaningful feedback that supports continuous improvement we conduct organizational surveys every two years. This thorough survey assesses employee sentiment on a wide range of issues, including workplace experience and their sense of connection to Albad. In 2024, 1,080 employees participated in the survey, representing a 15% increase compared to 2022.

The results showed a continued upward trend in employee connectedness: 60% of respondents reported feeling connected to Albad, compared to 55% in 2022, and 32% stated they feel both connected and committed to the company. The overall workplace experience also improved, with 62% rating it as good or excellent, up from 56% in 2022. Employees also expressed satisfaction with improvements in the investment in employee development, wellbeing activities, training and personal growth opportunities, safety, transportation and the dining services in Israel. Approximately 70% indicated trust in the company’s leadership – a particularly strong figure in a complex year. In addition, 70% reported that their manager is open to new ideas, and 71% stated that they receive the necessary training to perform their role effectively.

Suggestions for improvement were thoroughly reviewed by all sites and integrated into the site manager’s annual plan. For example, the Caesarea plant implemented a structured program to publicly acknowledge and celebrate employees’ achievements.

In 2024 we launched Connecteam – a new app designed to centralize all intra-organizational communication. Management messages, company updates, events and news are now easily accessible to employees directly on their mobile. The app provides multiple advantages, including increased transparency across all employee levels, direct access to information regardless of manager availability, reduced paperwork and paper use, shortened response times to employee requests and improved overall service.

Connecteam also supports the creation of a shared organizational language, strengthens employees’ sense of partnership and organizational connection, and promotes a digital culture with unified communication processes. The rollout was highly successful, and achieved a 97% adoption rate within the first month.



Suggestion boxes – Anonymous suggestions and complaints boxes are available throughout our sites, as well as a designated email address for reporting potential ethical code violation.

Our commitment to our employees’ well-being is reflected in our efforts to support a healthy work-life balance. This includes offering flexible working hours for non-shift workers, promoting the utilization of vacation days, and organizing transportation to and from work. Additionally, each facility within our organization provides tailored wellbeing activities and services. These include team building days, holiday events with thoughtful gifts, wellness-focused health days, and ceremonies to honor retirees. Such initiatives aim to enhance employee satisfaction and foster a positive workplace culture.

Albaad provides its employees with all social benefits required by local laws, including maternity leave and pension funds, as well as additional benefits suitable to the specific characteristics and needs in each country:

• Israel: some employees in Israel receive payments to a dedicated future study saving and performance-related remuneration, in accordance with employee contracts and company policy.


• Germany: Albaad Germany offers its employees occupational disability insurance and a company pension plan. In addition, there is additional health insurance for heads of departments, which covers costs not covered by the national health insurance. Also, we pay capital savings allowances, which can be used for life insurance and savings contracts in construction funds.

To strengthen company connectedness and create shared experiences, all of Albaad’s Israel employees went on a company-sponsored 3-day vacation at a hotel in Eilat. During the retreat, we held an event honoring outstanding employees, enjoyed the performance of a well-known comedy act and hosted a big company party.

We also held a Hanukkah family event for employees and their children, held throughout the holiday in movie theatre complexes across Israel, featuring activities for children and movie screenings. Furthermore, for the first time, in 2024 we gave out a special gift in honor of Israeli Independence Day.

Albaad operates under a comprehensive global health and safety policy framework that ensures consistency and alignment with international standards across all its operations. This global policy is complemented by local policies implemented in Israel and throughout the company’s European sites, tailored to meet regional regulatory requirements and industry best practices. Together, these policies guide Albaad’s commitment to safety, embedding these principles into every aspect of its organizational culture and operational processes. Our health and safety policies are the foundation of our local health and safety management systems, majority of them are certified with the leading ISO 45001 standard.



New production facilities are established in accordance with the best available technology, ensuring alignment with industry-leading standards. Existing facilities are progressively upgraded with appropriate systems and technologies to enhance their performance in accordance with applicable requirements. To achieve these objectives, Albaad defines clear and measurable targets annually, assigns responsibilities and authorities for implementation, and allocates the necessary human and financial resources.

This policy is communicated to all Albaad employees, contractors, service providers, and relevant stakeholders. It is publicly available and embedded throughout the organization via formal procedures, training programs, and awareness initiatives.

Each site implements a structured safety management system, led by designated safety officers who are supported by department managers and trained safety trustees. Trustees’ roles include identifying safety hazards on the production floor and reporting them, guiding employees and advising them on improving safety and hygiene and working with external safety inspectors.

In our Germany site, safety responsibilities are clearly defined under DGUV (German Social Accident Insurance) regulations, with oversight by an external safety specialist and seven internal safety officers. Our Spain and Poland sites also maintain dedicated safety personnel and committees, ensuring implementation of our safety protocols.

Monthly safety reports that include incidents and preventive actions are submitted to the CEO. While each site maintains localized safety protocols, Albaad ensures global consistency through centralized policy oversight, shared reporting templates, and cross-site audits.

 

Safety Committees and Engagement

We maintain active safety committees and forums that meet regularly to review incidents, share insights, and promote awareness, fostering a culture of shared responsibility and open dialogue between management and employees. These committees typically convene 8–11 times per year, exceeding minimum legal requirements, and are complemented by additional practices such as daily safety briefings and weekly cross-functional safety tours.

Meeting agendas include incident reviews and investigations, risk assessments and compliance checks, planning of training activities and tracking participation, as well as follow-up on corrective and preventive actions to ensure timely closure. Each meeting produces formal minutes, which are documented and shared internally. In addition, consolidated safety reports are prepared for senior management to maintain transparency and accountability.

Through these processes, employees are encouraged to raise concerns and suggestions, which are addressed collaboratively with management-appointed safety representatives, reinforcing employee engagement and driving continuous improvement in occupational health and safety across the organization. Weekly safety forums allow team leaders to present near-miss events and suggest preventive measures, to help us learn and adapt in real time.

Our commitment to occupational health and safety is reflected in our proactive strategy to prevent workplace accidents. We encourage employees to report “near miss” events—incidents in which an accident almost occurred and we are committed to learning from each case to prevent future occurrence. In case of an accident, an investigation is carried out with documented findings and corrective measures, shared internally to raise awareness.

These goals are pursued through a comprehensive approach that emphasize leadership involvement, employee engagement, risk communication, and structured safety procedures.

Senior management plays a key role in promoting safety by leading internal safety inspection tours, participating in incident investigations, and integrating safety discussions into weekly and monthly meetings. Their active involvement set a strong example and reinforced safety as a core organizational value. Employees are equally engaged through participation in safety committees, inspections, and the development of safety protocols, fostering a culture of shared responsibility.

To support safe operations, Albaad ensures that all employees are informed of workplace risks and trained in protective measures. Clear safety procedures and work instructions have been developed for every task involving potential hazards. Regular safety audits are conducted to identify and correct deficiencies and all employees are equipped with certified personal protective equipment and safe work tools.

Incident reporting and investigation are central to Albaad’s safety management system. All safety incidents are documented, investigated, and analyzed to prevent recurrence. In 2024 we introduced a new platform for reporting safety issues hazards or incidents through the “Connecteam” enabling employees to submit reports directly and allowing safety managers to access information quickly and implement corrective actions more efficiently. Corrective actions are carried out within 3 months of reporting and are subsequently communicated to all relevant departments. In Germany, incidents are reported to the statutory accident insurance authorities and followed by updated risk assessments. In Israel, incidents are shared via internal communication channels to raise awareness and reinforce preventive measures across all sites.

Albaad invests considerably in safety education and training. Annual training programs cover mandatory safety training for all employees, role-specific sessions for specific roles, and managerial involvement with safety leadership training and participation in emergency drills.

In 2024, employees received targeted training on workstation hazard awareness, safe work practices, and the proper use of personal protective equipment (PPE), including rubber boots.

As part of the CEO’s project in 2024, and to make safety issues more easily accessible, we’ve added stickers with scannable QR codes throughout the Israeli sites. These QR codes link employees directly to safety regulations and to a dedicated page for reporting safety hazards.

Specialized courses also covered confined space entry protocols, chemical handling and spill response, and pump shutdown procedures to prevent hazardous material exposure.

These workshops are regularly adapted based on real incidents, fostering a culture of learning from experience. Recognition ceremonies and departmental competitions that reward proactive safety behaviors further incentivize safe conduct and reinforce a shared commitment to workplace safety.

For contractors and subcontractors, site entry is permitted only after completing a sitespecific safety induction aligned to the work area and task, including the issuance of relevant work permits prior to starting work. Typical contractor training topics include working at height, cranes, first aid, and forklift safety; contractors receive a tailored briefing and sign taskspecific forms. Depending on the site, this induction is delivered either by Albaad personnel or by the subcontractor before work begins; one site reported that no contractor safety workshops were conducted during the period, indicating that practices may vary and are being aligned to company standards.

In 2024, Albaad demonstrated its strong commitment to occupational health and safety through a robust program of internal and external audits across all sites. External reviews included ISO 45001 and ISO 14001 certification audits, inspections by regional labor authorities, and multiple social compliance audits, all of which were successfully completed. Internally, weekly hazard surveys and safety inspections were carried out by dedicated Safety Officers, complemented by corporate-level safety reviews. European sites reinforced this approach through regular quality audits, annual external inspections, and structured ESH (Environment, Safety and Health) action plans with clear timelines. All audit findings were addressed promptly through documented corrective actions, followed by systematic follow-up to ensure timely closure. Quarterly reviews and continuous monitoring not only ensured compliance but also drove ongoing improvement, reflecting Albaad’s proactive approach to learning from audits and enhancing workplace safety standards year after year.

Employees are exposed to various occupational health risks depending on their roles, including noise, chemical exposure, physical strain, and ergonomic challenges. Albaad mitigates these risks through regular health screenings, personal protective equipment (PPE) distribution, and workplace adaptations designed to reduce exposure and strain. Risk assessments are continuously updated to reflect operational changes, new equipment and emerging hazards.

In 2024, particular attention was given to noise exposure in production areas. Employees in high-noise environments underwent periodic audiometric testing and occupational health examinations, supported by mandatory use of earplugs or earmuffs. These measures are complemented by ongoing training and awareness programs, ensuring that employees understand the importance of protective equipment and safe work practices.

Across all sites, Albaad applies robust regulatory frameworks—such as DGUV standards in Germany and national labor risk prevention laws in Spain and Poland—while maintaining internal policies aligned with ISO requirements. Through these proactive measures, Albaad fosters a strong culture of health and safety, aiming to prevent work-related illnesses and promote long-term employee well-being.

Looking ahead to 2025, Albaad aims to expand training to include mental health and stress management and implement predictive safety technologies. These efforts reflect our deep sense of responsibility and its ongoing commitment to creating a safe, healthy, and resilient work environment for all employees.