Leadership in Theory and Practice (MGMT 411)

Sustainability in Various Business Areas through Technical Concepts

By:
Member SID
Zeina serag el Din 202001110
Lama Morsy 202001204
Merna Adel 202001117
Leila el Taweel 202001260

Under the supervision of Dr. Lamia Marmouche and Dr. Norhan Younis

Semester 1

Fall 2023-2024

Table of contents

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Introduction ………………………………………………………………………………...……..3

Methodology…………………………………………………………………………....................3

Areas of selection

 Worker’s right …………………………………………………………………….4

 Corporate social responsibility (CSR) ……………………………………………7

 Waste management ……………………………………………………………….8

 Green infrastructure………………………………………...……………………11

Conclusion ……………………………………………………………………………………....14

Contribution parts ……………………………………………………………………………….15

References………………………………………………………………………………………..15

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 Introduction
The Berzi family founded Edita Food Industries in 1996, and now, with 7,000 workers and more
than 100 stock-keeping units (SKUs), it is one of the top FMCG (fast-moving consumer goods)
firms in Egypt and the Middle East. With 34 years of expertise in the food and beverage sector,
Engineer Hani Nabih Berzi serves as Edita's chairman and managing director. Edita brands are
widely used in everyday usage in Egypt and seventeen additional Middle Eastern and North
African countries. All five product categories including wafer, sweets, rusks, cake, and
croissants, are achieving success with Edita. Since it consistently upholds the high standards of
the powerful brands it manages, the company has a significant market share. Molto, Twinkies,
Hohos, Todo, Bake Rolz, Bake Stix, Freska, and Mimix are some of these brands. Edita is a
market leader in all categories because of its reputation for providing high quality products at
reasonable prices. In the cake, bakery, and candy categories, it is ranked #1; in the rusk sector, it
is placed #2 and third in the wafer sector. Furthermore, with 30 production lines, Edita has
several production facilities spread across many different locations. Three of the manufacturing
sites are located in the 6th Of October, one in Beni Suef, and one in 10th Of Ramadan City. Each
facility is supervised by a plant manager, who has full responsibility for ensuring that Edita's
high standards are upheld while production targets are fulfilled. Additionally, a quality manager
oversees the production of goods at the greatest level possible and of the highest quality
guaranteed in each of the manufacturing facilities.

Methodology
The methodology of this report is obtained from secondary resources from Edita’s main website
as well as primary data gathered by our colleague Merna Abou el Dahab. Since Merna joined
Edita as an intern in the summer, she has a wide scope of the roles of people as well as the
operations of the company. To begin with, the secondary resources have helped us in
understanding their sustainability reports and the practices they undergo on a broad level.
However, the primary data supported these data and made us have a full image of their strategies
and operations by analyzing different aspects. We have gathered data about their mission, vision,
CSR practices, worker’s rights, green infrastructure, and waste management. This was reliable
data since we were gathered through not only interviewing people, but also since Merna was part
of the crew for a consecutive month.

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 Worker’s Rights

Edita Food Industries places great emphasis on exerting efforts to always keep their employees
satisfied. Edita values its employees as they are one of the key aspects toward achieving the
company’s success and sustainable growth. Edita always prioritizes having long-term, healthy,
and trustworthy relationships with its employees. As this is one of its priorities, the company
offers a wide variety of communication channels to make sure that all the employees within the
organization stay connected and updated with the announcements. These communication
channels include emails, online and on ground team meetings, one-to-one meetings, bulletin
board notices in every department, induction sessions for new employees, CEO messages and
broadcasting.
As Edita prioritizes employee welfare and development, it provides its employees with full and
legal rights and fair compensation. Not only it follows the Egyptian labor law but also tries to
stand by the global best practices related to employees’ rights. Also, it does not participate in any
of the illegal practices that violate humanity and labor rights. These practices include unequal
pay, forced labor, exclusion of employees, discrimination, and child labor.

1) Compensation and benefits

Edita offers fair and reasonable compensations and benefits for its employees relative to the
market and laws of employees’ rights. Aside from these benefits, it uses additional bonuses and
incentives to reward the outstanding employees for their recognizable efforts contributing to the
company’s success. According to Edita’s sustainability report on 2022, It increased the average
salary scale by 10% to compensate for the negative effects of inflation on employees.
Throughout the year, Edita managed to apply merit increases in different times in order to
support its employees in hard times, devaluation of the Egyptian currency. In October 2022,
early merit increases for the year 2023 took place. This increase included a 15% flat rate for blue
collars and 10% flat rate for white collars. Moreover, in December 2022, a half-month bonus was
given out as a reward to the whole company due to the recognizable achievements and increase
in the number of Edita’s sales in 2022. Lastly, in the sales department, there is always
competition every month on a specific target and employee of the month reward. Therefore, sales

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representatives always try to push their limits in order to win these competitions and to get
bonuses.

2) Safety, health, and environment management (SHE Management)

Edita is dedicated to protecting the environment and upholding the health and safety of its
workers through the development of a Safety, Health, and Environment (SHE) management
system. Edita's safety, health, and environmental management system is compliant with all
applicable laws and regulations, as well as ISO international standards, to ensure safe operations
throughout the company.
The company developed several actions that should be considered by Edita’s top management
providing a safe, healthy, and environmentally conscious workplace. To ensure the safety in the
working environment, the company installed new firefighting systems in the distribution centers
and updated the existing firefighting systems and alarm systems in their plants including E06 and
E10. Moreover, the company gives full support of knowledge to the employees,
bluecollars, throughout the training sessions. To ensure that the employees understand the
sessions and have sufficient information, every employee gets tested and should score well after
taking the training sessions. Also, the company provides suitable working uniforms and tools for
the employees to help them in their working hours and to achieve their tasks smoothly.
3) Workplace culture
Edita fosters a workplace culture that values diversity and prohibits discrimination in any form.
The company has established comprehensive policies to prevent and address discrimination
based on age, gender, race, religion, and disability. To ensure that all employees are aware of
these policies, new hires receive sessions about this during onboarding and induction session.
Also, this information is available on Edita's SharePoint. Additionally, Edita has come
up with IVoiceUp and In Touch, to encourage employees to report any issues of discrimination
anonymously. These reporting systems ensure that appropriate actions, strict penalties and
investigations will take place after reporting any violations. Moreover, Edita always values
female’s effort in the workplace and prohibits any discrimination against them. According to
sustainability report by Edita, 40% of the employees in management positions are females and
6 females out of 15 new hires. The company always celebrates international women’s day

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and hosts an event celebrating efforts done by the women working especially those outstanding
females.

Edita promotes a fair hiring process, ensuring that candidates from all backgrounds are evaluated
based on their qualifications and work experience. The company strives to foster a diverse and
inclusive workplace by promoting equal representation across all departments and pursuing a
positive internal culture.

Edita prioritizes employee satisfaction and strives for continuous improvement by providing
multiple ways for employees to share their feedback, concerns, and suggestions. The company
conducts regular Organizational Climate Surveys to ensure the satisfaction of white-collar
employees, while its In Touch program facilitates feedback collection from blue-collar workers.
Additionally, Edita utilizes IVoiceUp, a reporting platform that empowers employees and
suppliers to raise concerns, report complaints, and propose new ideas.
Recommendations
As I got the opportunity to join the summer internship program at Edita Food Industries, I got to
talk to many employees from different departments. One of the issues I recognized is the long
working hours of the sales representatives. The salespeople are assigned specific targets that are
challenging and require a lot of effort. Some of them work until 11 pm to achieve these difficult
targets, for example to sell products up to 30k- 40k. Therefore, I recommend that these targets
should be realistic and attainable to make it easier for the employees and balance between the
work life and social life. Also, it is recommended that Edita should use a Democratic leadership
style that emphasizes the participation of team members in the decision-making process. In a
democratic leadership style, leaders encourage open communication, collaboration, and the
sharing of ideas and opinions among team members. This approach values inclusivity,
transparency, and collective decision-making. As Edita always focuses on fostering an open
culture that encourages every employee to speak up, this could be the best leadership style to be
implemented. Evidence for this is the In-Touchprogram, the company held five meetings with
key findings, actions, and monitoring techniques to engage and keep everyone on track. Also, it
allows employees to share feedback with the top management for them to assess the
company’s employees’ satisfaction. Another evidence that this is applicable is

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the IVoiceUp program to prove that the company is willing to enhance any complaints and open
to new suggestions.

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is a business approach that emphasizes a company's

responsibility to operate in a manner that not only maximizes profits but also considers the
broader impact of its activities on society and the environment. CSR goes beyond the traditional
focus on economic performance and encourages businesses to integrate ethical, social, and
environmental considerations into their decision-making processes and daily operations. The
concept of CSR reflects a recognition that businesses are not only accountable to their
shareholders but also to a wider range of stakeholders, including employees, customers,
communities, and the environment. It involves a commitment to conducting business in a way
that contributes positively to society, promotes sustainable development, and aligns with ethical
values. Speaking of Edita, The Edita Foundation for Social Development has
cooperated with Baserty Foundation to sponsor a two-year Higher National Diploma Scholarship
offered to a minimum of 20 graduates from technical schools chosen based on a thorough joint
selection process. Each student received EGP 330,000 per year as fees for two years, amounting
to a total of EGP 660,000, in addition to a three-month training program at one of Edita’s plants
each summer. At the end of the two years, Edita planned to hire up to 15 of the top graduates.
Another initiative that Edita Foundation has done is that it partnered with Educate Me to sponsor
their one-year blended learning program, offered to public school educators and principals.
Through this collaboration, the target was to benefit over 5,000 individuals across the program’s
footprint. In 2022, 100 teachers were selected to receive the course, which focuses on arming
educators with essential skills that help them manage on-site and virtual learning tools to build
active, collaborative, and constructive learning environments. The program included two-level
training and digital literacy team training, as well as coaching and follow-up. The foundation
kicked off the School Transformation Journey program in 2019 for government schools, seeking
to improve the student’s learning outcomes academically and socially by developing the different
pillars of the educational process and building a support system in schools. Over the span of
three years, the program trained teachers, counselors, school administrators, and educational

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leaders from the Ministry of Education on means to enhance students’ self-learning capabilities,
as well as cognitive and psychological development. Its goal was to transform schools into
independent learning entities by 2022. The second phase was launched in 2020, where both in-
person and virtual trainings were held in compliance with pandemic restrictions. The program
came to an end with its third phase, executed in 2022, which focused on implementing activities
that ensure the program’s sustainability beyond Edita’s presence, as well as make sure that
parents continue to constitute a foundational pillar of the educational process.

Moreover, there may be other suggestions to improve their CSR activities. Edita can also address
environmental concerns by promoting sustainable practices, reducing carbon footprints, and
supporting conservation efforts. They may adopt eco-friendly technologies, implement waste
reduction programs, or participate in reforestation projects. For example, designing and
manufacturing their products with a reduced environmental impact. This might involve using
eco-friendly materials, minimizing packaging waste, and creating products that are easily
recyclable or biodegradable. This would not only aim to make a positive impact on the world but
also recognize the long-term benefits of building trust, enhancing their brand reputation, and
fostering stronger relationships with stakeholders. Additionally, Edita can encourage employees
to participate in volunteer activities during work hours. As a company, they can support and
facilitate employee volunteering for local community projects or charitable organizations such as
Food Bank in Egypt as Egypt struggles with hunger. As well as Resala or Orman’s Charity
Organizations, this could contribute positively to society, uphold ethical standards, and address
various social challenges. Companies that prioritize CSR are not only better positioned to
address the challenges of the modern business landscape but also contribute to creating a more
sustainable and equitable world.

Waste management
A waste management system is an organized process used by enterprises to avoid, minimize, and
repurpose waste. It's a strategy where businesses put comprehensive plans into place to
effectively manage waste from the point of origin to the point of disposal. Recycling,
composting, landfills, bioremediation, waste-to-energy, and waste minimization are examples of
potential waste management approaches. In any company, supply chain management plays a

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crucial role in waste management strategy implementation as it avoids having to deal with a vast
amount of waste at the end of the production process which helps the company run its operations
smoothly and sustainably. The supply chain department at Edita is focused on attaining effective
and sustainable performance across the whole value chain. This includes selecting the most
dependable and environmentally conscious suppliers, improving raw material purchases, and
guaranteeing sustainable production, packaging, and delivery methods. Therefore, Edita is
devoted to decrease its impact on the environment and implement sustainability throughout its
production process. The first factor in their sustainable supply is responsible material sourcing.
Edita is devoted to sustainability and understands the value of sourcing raw materials responsibly
and using them efficiently. The company is very keen on making sure that all the food-grade
resources and ingredients that are used in its manufacturing processes are of the best achievable
quality and are sourced ethically. To accomplish this, Edita carefully chooses and enters
contracts with suppliers who are in line with its internal policies and share its commitment to
ESG standards which considers all stakeholders involved and has a long-term position. The
company regularly monitors and audit supplier to make sure that suppliers continue to meet their
high standards over time. Also, Edita is aware of how critical it is to establish a solid and
trustworthy supplier network. To accomplish this, it has created a well-established framework for
material acquisition and supplier selection that guarantees its suppliers adhere to high ethical and
quality standards. To assist in achieving these goals, the company has created tools such as the
Edita Vendor Assurance Program (EVAP). The EVAP is intended to monitor the performance of
Edita's vendors, guaranteeing their continued adherence to relevant international standards, like
ISO and FSSC, as well as local laws that control the activities of individual vendors. The
company can assess and keep an eye on the practices of its suppliers with the aid of EVAP,
which provides explicit goals and action plans. For new suppliers, this process entails document
reviews, self-auditing, and on-site inspections; for current suppliers, audits are conducted
annually, and the results are integrated into the total assessment of the supplier score. In addition,
Edita's purchasing department supports the supply chain team by evaluating each supplier's
overall performance, allowing them to identify strategic alliances that work well and terminate
insufficient deals. By taking these steps, Edita can keep a dependable and sustainable supply
chain, which helps the company continue to adhere to its commitment to ethical business
practices while providing its customers with high-quality products. Lastly, Edita understands

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how critical it is to cut waste and lessen its negative effects on the environment. The creation of
environmentally friendly packaging materials is one area of focus. To accomplish this, Edita has
put in place several strategies, such as using secondary and tertiary packaging made of paper and
display boxes and cartons that are 100 percent recyclable. For its Molto Sandwich products, the
company also uses reusable plastic crates, which will save a substantial amount of carton waste
in 2022 alone. Apart from these initiatives, Edita has also improved the packaging of its best-
selling items in the Bakery, Cakes, and Rusks categories which have the greatest share of Edita’s
impact on the environment as they are the most sold items. In addition to these management
efforts, Edita has started a post-production recycling program that provides incentives for dealers
to return and recycle product cartons, thereby lowering the quantity of waste generated by the
business's activities.
Another crucial factor for waste management is having a regulatory framework which Edita
implements to guarantee effective tracking and monitoring of waste from its various production
lines. To enhance its waste control management, Edita finds weak points and inefficiencies using
both its System Monitoring Application (SAP) and its scorecard program. Every production line
and product category have an annual target set by the company, and it monitors performance at
each stage to regulate stages with the highest rates of waste production. Despite an overall
increase in production, Edita was able to lower the percentage of waste from its total production
capacity by 0.01% from the previous year. Also, a cap on the maximum quantity of waste
permitted per category for each facility led to the achievement of the annual goal of each of
Edita's plants. Edita has implemented a variety of statistical techniques to troubleshoot cases of
deviations and uncertainties to protect its waste minimization strategy. Building on this strong
foundation, the business is pushing even more ambitious plans for its next waste management
targets, including an annual percentage improvement for every production line. Edita's
advancements in this area led to conversations about integrating waste management into its
recently established sustainability forum. This will give people a forum to voice their opinions
on how to allocate resources most effectively to guarantee long-term waste control.
Lastly, Edita follows the waste management standard operating procedures (SOPs), which
offer a framework for the steps, records, and disposal techniques needed to raise sustainability
levels. With the use of this waste disposal management technique, the business can keep an eye
on the whereabouts of all its waste materials, such as paper and cardboard, outdated goods,

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manufacturing waste, leftover materials, and consumables. The company only hires waste
disposal companies that comply with this system's requirements and have a registered license to
collect and recycle waste because all waste must go through the recycling process. Edita gathers
production and plant waste in a specialized area under strict control that is suitable for handling
hazardous materials. The following waste groups are divided into categories: organic, cardboard,
paper, plastic, chemical, wood, metal, and others. Waste is also sorted according to the degree of
hazardousness. After collection is finished, hazardous materials are shipped by government-
approved businesses to a specified location that manages them in accordance with guidelines
established by the Ministry of Environment. To avoid human reuse, additional production waste
is chopped and salted before being sold to approved dealers in accordance with agreements made
with Edita. There are three contractors—one for each region— that pick up and deliver any
leftover waste to specific waste locations outside the plant they include: Beni Swief, 10th of
Ramadan City, and 6th of October City.
Edita’s overall production was 124,370 tons Edita’s overall production in 2022, 1,168 tons of
those were the waste produced which is 0.87% out of overall production. Waste produced in
2022 was higher than 2021 by 7.3% which could be associated with the increase in overall
production. Nevertheless, Edita can implement more waste management techniques to further
reduce waste produced as much as possible. One of these techniques could be management of
post-consumer waste by using biodegradable material in their product packaging which is
decomposed on its own to cut waste at its source. Another technique is incineration which is
used to burn waste material to reduce its volume and generate energy or heat from it. However, it
is important to ensure that incineration facilities have proper regulations and are equipped with
appropriate pollution control technologies to decrease environmental impacts. Lastly, as
mentioned before there are conversations about integrating waste management into Edita’s
recently established sustainability forum. They should go through with this plan to shed light on
waste management importance and implement the most recent techniques to further improve
their sustainability forum.

Green Infrastructure
Green infrastructure is a network of natural features that are implemented by companies to
mitigate climate change, manage stormwater, and improve biodiversity and quality of air. The

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concept of green infrastructure recognizes the importance of nature in creating
sustainable communities. By incorporating natural elements into urban design and development,
green infrastructure aims to create healthier and more sustainable environments, promote
ecological connectivity, and enhance the well-being of both humans and wildlife. Not only does
green infrastructure benefit the environment but can also have a direct impact on the economy.
These benefits include increasing property values, attracting business and tourism as well as
creating jobs. On the most basic level, Edita ensures the preservation of the environment by
placing all plants in industrial zones that are distant from residential areas. The company upholds
strict Safety, Health, and Environmental (SHE) policies and has recently implemented
the Edita Risk and Environmental Management System (eREMS) to guarantee that all operations
and procedures minimize environmental risks and include the safe disposal of waste. The SHE
policies guarantees that all facilities comply with environmental practices in Egypt as well as
worldwide. Edita has accomplished the ISO 14001 certification which reflects
that Edita implements a system that aims to reduce waste and increase resource
efficiency. Edita can limit their water usage throughout the company by implementing water
gauges and internal awareness campaigns. Dita succeeded in determining and
controlling their water usage and as a result, their water consumption dropped from
3.79 m3 to 3.38 m3 per production ton from 2019 to 2021. In addition, the company places
significant emphasis on its efforts to improve utilization rates through wastewater treatment
initiatives. Speaking of monitoring energy consumption, Edita’s electricity and gas consumption
have also been lowered per tonnage from 0.49 and 85.16 to 0.47 and 82.9, respectively, in
2021.Furthermore, Edita is committed to the preservation of natural resources through the
monitoring of resource consumption and the establishment and execution of conservation
strategies. The company highlights conserving energy resources as a key aspect of its
optimization plan. This involves actively reducing the negative environmental impact of its
operations, including the reduction of greenhouse gas emissions and the prevention of resource
depletion. While Edita's current measures of placing plants in industrial zones and implementing
strict Safety, Health, and Environmental (SHE) policies are commendable, there might
be additional recommendations to enhance their commitment to green infrastructure. To begin
with, Edita can further reduce its carbon footprint by transitioning to renewable energy sources
such as solar, wind, or geothermal power. Installing solar panels on plant rooftops or

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implementing wind turbines can help generate clean energy and reduce reliance on fossil
fuels. In addition, Edita can adopt green building practices when constructing or renovating their
facilities. Incorporating energy-efficient design elements, such as better insulation and LED
lighting can significantly reduce energy consumption and promote sustainability. Moreover,
since water is a valuable resource, Edita can optimize its usage by implementing water-efficient
technologies and practices such as the installation of water-saving fixtures, rainwater harvesting
systems, and implementing water recycling and reuse programs. By doing so, Edita will be
capable of doubling water conservation and hence, contribute to the environment.
Additionally, partnerships with local communities, environmental organizations, or educational
institutions can be established to collaborate on sustainability initiatives. One of the most
important contributors to the green infrastructure is suppliers. Collaborating with suppliers who
adhere to sustainable practices and prioritize environmentally friendly materials and
processes will lead to extreme efficiency. Encouraging suppliers to minimize waste generation,
reduce packaging, and adopt sustainable transportation methods can contribute to a more
sustainable supply chain. Green infrastructure can have a direct influence on the economy in
several ways. Job creation is the first and most important result of green infrastructure. For
example, constructing renewable energy facilities, such as wind farms or solar power
installations, requires a skilled workforce. Similarly, designing, building, and maintaining green
spaces and urban parks can generate employment opportunities in landscaping, horticulture, and
park management. Next, it can help reduce costs for businesses and governments. For example,
implementing energy-efficient technologies like green buildings or district energy systems can
lower energy consumption and operational expenses. Using green stormwater management
techniques, such as rain gardens and permeable pavements, can minimize the need for costly
conventional drainage systems. These cost savings can have a positive impact on the overall
economy. Investing in green infrastructure can drive innovation and stimulate entrepreneurial
activities. Developing renewable energy technologies and sustainable transportation systems, for
example, can create opportunities for new businesses and startups. The transition to a greener
economy often requires technological advancements, providing fertile ground for innovation and
economic growth. Additionally, green infrastructure has numerous health benefits, including
improved air quality, reduced heat island effects, and opportunities for physical activity. By
promoting healthier lifestyles, green infrastructure can contribute to lower healthcare costs and

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increased productivity. A healthier population can have a positive impact on the economy by
reducing the burden on healthcare systems and increasing workforce productivity.

Conclusion
To conclude, Edita is dedicated to sustainability and ethical practices across its operations.
The company prioritizes employee well-being, offering fair compensation, benefits, and a
diverse and inclusive work environment. It also demonstrates a strong commitment to corporate
social responsibility (CSR) through its initiatives supporting education, environmental
sustainability, and community development. Edita adheres to sustainable waste management
practices aimed at reducing waste, minimizing environmental impact, and promoting resource
efficiency. The company embraces green infrastructure principles by incorporating sustainable
practices into its operations to reduce environmental impact, promote resource efficiency, and
contribute to a sustainable future. By continuously enhancing its sustainability efforts in these
areas, Edita can solidify its position as a leader in corporate responsibility and contribute to a
more sustainable future. The company's commitment to sustainability extends beyond its own
operations, encompassing its suppliers, customers, and the communities it serves. Edita's
dedication to sustainability is evident in its comprehensive sustainability report, which provides
transparent and detailed information about the company's performance in environmental, social,
and governance (ESG) metrics.

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 Contribution

Member Contribution
Zeina serag el din Green Infrastructure & Methodology
Merna Abou el Dahab Worker’s right & Methodology
Leila el taweel Waste management & Conclusion
Lama Morsy CSR & Introduction

References

Devon County Council. (n.d.). Green Infrastructure. Retrieved from

https://www.devon.gov.uk/greeninfrastructure

Edita Food Industries. (2022). Sustainability. Retrieved from

https://edita.com.eg/sustainability/

Edita Food Industries. (n.d.). Investor Relations: Company Profile. Retrieved from
https://ir.edita.com.eg/en/company-profile

SafetyCulture. (n.d.). What is a Waste Management System? Retrieved from

https://www.waste360.com/business/wm%E2%80%99s-hummel-builds-safety-culture-
changing-behaviors

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