ADNEC Group Sustainability Strategy and ESG Framework (Environmental,

Social And Governance)

Snapshot of ADNEC’s Sustainability Journey

Adopting environmental best practices

ADNEC joins ADSG (Abu Dhabi Sustainability Group)

ADNEC launches initiatives on food waste management, material recycling, CSR and others

Summary of Key Achievements

Issuing its 1st Global Reporting Initiative report

ADNEC is part of ADQ

ADNEC won the EFQM Challenge for circular economy

Issuing its 1st ESG report ADNEC joins the global initiative

Net Zero Carbon Events

ADNEC is ranked 3rd among 32 ADQ entities in reference to ESG practices

Development and Launch of ADNEC Group’s 1st Sustainability Strategy and ESG framework

ADNEC plans to launch several initiatives aimed at enhancing its value creation model and ESG performance.

Certified Environmental Management ISO ADNEC & EXCEL London

Certified Sustainable events ISO

1. ESG strategy and sustainability framework

2. ESG report

3. Ranked 3rd among 32 ADQ entities (ESG adoption)

4. Key partner Netzero carbon events

5. Carbon emissions (measurement & reduction) project

Summary of Key Next Steps

ADNEC launches its carbon emissions strategy and plan.

1. Cascading and aligning the Group level ESG into each of the Clusters

2. Mapping scope 1/2/3 emissions

3. Updating the Group policies to incorporate ESG principles

4. Employee and community engagement survey(s)

5. (Re)launching a Group wellbeing framework

6. Group supply chain sustainability assessment ..and many others

Overview of ADNEC Integrated ESG Approach

In developing its ESG Strategy, the Group followed a comprehensive process of analyzing local and international trends, strategies, and methodologies, and developing a deeper understanding of its stakeholders in order to shape its priorities and direction

Overview of National and International Mandates

SECTOR SCOPE TITLE OVERVIEW

General International United Nations Sustainable Development Goals (UNSDG)

United Nations Global Compact (UNGC)

The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015 provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries - developed and developing - in a global partnership.

The United Nations Global Compact is a non-binding United Nations pact to encourage businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation It consists of Ten Principles of the United Nations Global Compact are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption.

National UAE’s Principles of the 50

UAE Net Zero 2050

Abu Dhabi Economic Vision 2030

Abu Dhabi Environment Vision 2030

ADQ ESG Guidelines

Related Sector International Net Zero Carbon Events (NZCE)

National ADNEC Group Strategy

The Principles of the 50 are 10 principles that act as guidelines for all institutions in the UAE as the country approaches a new phase of development over the next 50 years They are part of the ‘Projects of the 50’ campaign, to chart the strategic roadmap for the UAE’s new era of economic, political and social growth.

The UAE Net Zero by 2050 strategic initiative is a national drive to achieve net-zero emissions by 2050, making the Emirates the first Middle East and North Africa (MENA) nation to do so

The Government of Abu Dhabi announced a long-term plan for the transformation of the emirate's economy, including a reduced reliance on the oil sector as a source of economic activity over time and a greater focus on knowledge-based industries in the future Entitled 'Abu Dhabi Economic Vision 2030', it identifies the following as the Government's immediate economic priorities

The Environment Vision 2030 was developed to ensure integration among the three pillars of sustainability: environmental, economic and social vision. It aims to preserve and enhance Abu Dhabi's natural heritage in the efficient use of resources and contributing to a better quality of life for all

ADQ’s ESG guidelines is build around ensuring each organisation within its portfolio of assets is adhering to the guidelines that ADQ has set for ESG – whereby the organisation reviews and assess each organisation across pre-determined ESG topics

Participants from within our industry signed a pledge committing to support the goal of net zero greenhouse gas (GHG) emissions by 2050, in line with global efforts set out by the Paris Agreement to limit warming to 1.5°C and reduce total global GHG emissions by 50% by 2030 and to advocate for industry efforts throughout the value chain to achieve the same

ADNEC’s Group strategy represents the organisation’s overarching aspirations for growth and prosperity and outlines its aspirations towards sustainability

In developing its ESG framework and strategy, ADNEC aims to align with key local and international mandates that help it ensure its goals are contributing to a broader positive impact across all its stakeholders

Alignment to National Mandates

TITLE ADNEC Group’s Role and Contribution

Through its mandate as a key player in the events, tourism and hospitality industries, ADNEC plays a major role in promoting Abu Dhabi and the UAE’s positioning as a destination of business and various sector stakeholders.

UAE’s Principles of the 50

Through this mandate, it directly contributes to the following principles – while respecting and supports the all the other principles:

The Fourth Principle related to human capital development

The Sixth Principle related to promoting the UAE as a destination for tourism, investment, and industry

The Eighth Principle: related to protection of human rights

The UAE Net Zero 2050 strategic initiative aligns with the Paris Agreement, which calls on countries to prepare long-term strategies to reduce greenhouse gas (GHG) emissions and limit the rise in global temperature to 1.5 C compared to preindustrial levels

UAE Net Zero 2050

Abu Dhabi Economic Vision 2030

Through its ESG strategy, ADNEC recognises the need for climate action in line with the Paris Agreement and other mandates, and has set goals and actions towards a Net Zero carbon footprint for its events as well as other areas of its supply chain throughout the group

ADNEC’s mission is “to maximise the social and economic benefits to Abu Dhabi’s tourism sector through synergistically Managing a group of business entities to provide and maintain world-class facilities and services that exceed shareholder and stakeholders’ expectations.”

As a group of companies operating across 6 business clusters venues, events, hotels, F&B, services, and tourism; ADNEC supports the economic diversity and stability of Abu Dhabi and the UAE – providing exception opportunity for local and international customers and stakeholders

ADNEC regularly communicates its economic and social impact through its annual report, in which it reports its gross value add (GVA), int’l visitors, deals’ value amongst other KPIs, and through its public announcements

TITLE ADNEC Group’s Role and Contribution

The Abu Dhabi Environment Vision outlines 5 priority areas that need to be addressed in order to tackle environmental concerns ADNEC, through its ESG strategy directly contributes to the some of these priority areas – while supporting the others through its normal course of business activities These priority areas include:

Abu Dhabi Environment Vision 2030

1. Climate Change

2. Clean air and noise pollution

3. Water resources

4. Biodiversity

5. Waste management

ADNEC participates regularly in ADQ’s ESG assessment process and provides performance reports and key updates on its ESG progress throughout the year

ADQ ESG Guidelines

ADNEC Group Strategy

ADNEC is currently ranked 4th (2022) amongst the 32 ADQ portfolio companies within the related sector, an improvement from 12th place a year prior (2021) ADQ assess the company’s performance across 17 ESG topics that include Environmental Management, Energy Consumption, Waste Management Customer Relations, Supply Chain Management, Training & Development Human Rights Violations, Equal Opportunity Community Initiatives Board of Directors, Anti-Competitive Practices, Nationalization

ADNEC’s core leadership philosophy is centered around sustainability, where its group level objective nr.6 is to “act as a responsible organisation” (in terms of ESG pillars) and where similar objectives are reflected in each of the business cluster’s strategies.

In line with this objective, ADNEC reports its specific clusters’ ESG scores and compliance metrics across specific priorities.

Alignment to International Mandates

TITLE ADNEC Group’s Role and Contribution

ADNEC has been long committed to improving its sustainability outcomes and impact and has used the UNSDG as a compass towards achieving this aspiration. Through the business activities carried out across the group, and in line with its ESG framework and strategy, ADNEC contributes to the following UNSDG Goals:

SDG 3. Good Health and Well-being

SDG 5. Gender Equality

SDG 7 Affordable and Clean Energy

United Nations Sustainable Development Goals (UNSDG)

SDG 8 Decent Work and Economic Growth

SDG 9 Industry, Innovation, and Infrastructure

SDG 10. Reduced Inequalities

SDG 11 Sustainable Cities and Communities

SDG 12 Responsible Consumption and Production

SDG 13 Climate Action

SDG 15. Life on Land

SDG 16. Peace, Justice and Strong Institutions

SDG 17 Partnerships for the Goals

ADNEC has taken into consideration each of the ten principles that form the UNGC and has reflected them as part of their material ESG topics The ten principles cover topics related to: human rights, labour, the environment, and anti-corruption

United Nations Global Compact (UNGC)

In addressing its material ESG issues, ADNEC has identified goals and initiatives that align with each of the applicable principles and in consideration of local laws and regulations

TITLE ADNEC Group’s Role and Contribution

ADNEC In year 2021, ADNEC announced its participation in the Net Zero Carbon Events initiative, a global initiative which aims to bring together a wide range of industry stakeholders to jointly tackle climate change and drive towards net zero by 2050

Net Zero Carbon Events (NZCE)

In pursuit of this aim, before end of 2023, ADNEC undertakes to publish its roadmap to achieve this goal. The Pledge was officially launched and announced in November 2021, as part of the UN Climate Change Conference (COP26) – and the roadmap for NZCE was announced during the subsequent COP27

Benchmark Approach Overview

A benchmark was conducted with the aim of understanding of what other organisations are doing with regards to their Sustainability strategy and ESG framework and to use this information as part of ADNEC’s own ESG journey

Overarching Criteria for Selection:

Portfolio Peers

Local Market Peers

International Peers

Type of organisation

Availability of information

ESG maturity

Disclaimer: This benchmark is not intended to provide a one-to-one comparison, nor intended to rank ADNEC against the selected organisations.

ADNEC Group’s Material ESG Topics

The Material Topics outline what issues mater most to the Group’s stakeholders and to the business itself – in surveying and engaging internal and external stakeholders; the Group was able to identify 17 material topics

The resulting material ESG topics for the ADNEC Group are:

GHG emissions/carbon footprint

Energy efficiency

Food waste

Non-food waste

Sustainable materials

Renewable Energy

Workforce wellbeing

Work-life balance

Gender Balance

Emiratisation

Customer relations

Community Initiatives

Ethical sourcing and supply chain oversight

Data security and integrity

Business ethics and values

Corporate Governance Business Continuity

ADNEC Group’s Top ESG Risks

Selected due to their link with the KPIs of our ESG Index

1) GHG emissions/carbon footprint

R1

Losing business to competition in the future –customers beginning to prefer greener venues/suppliers/services

• Assess scope emission and measure baseline.

• Develop a Net Zero Strategy and programme.

• FM

• Engineering

Change

Total reduction of absolute emissions (MTCO2eq)

2) Non-food waste and lack of sustainable materials usage

R2 Exposure to carbon tax or other penalties due to noncompliance with evolving regulations

Medium

• Align Group policies and procedures to Net Zero standards.

• Allocate needed resources and steer investment.

• Venue Ops

• Environmental teams

R3

Non-food waste that is landfilled directly contributes to the increase in ADNEC’s Scope 3 carbon emissions and would result in increased cost of carbon offsetting

Medium Medium

• Identify materials with the highest impact and priority for sustainable management.

• Work with partners to develop sustainable solutions to high priority materials.

• Production Kitchen

• Venue Ops

R5 Increased gender discrimination at work

• Develop and implement a sustainable materials management policy and align Group policies and procedures.

• Environmental teams

ESG Policies

Number of women in management positions

3) Gender balance

ESG policy

Level 1: Issuing ESG policy (internal or disclosed) that covers key ESG issues

4) Data security and integrity

5) Business ethics and values / Corporate governance

Medium Low

R4 Increasing cost of landfilling for ADNEC due to Tadweer’s evolving landfilling goals and policies Low Low Diversity & Equality

R6 Increased turnover rate amongst female employees Low Medium

R7 Lower confidence, productivity and creativity amongst female employees Low Medium

R8 Loss of sensitive data and intellectual property, carrying the potential for law-suits, ransom or fraud

Low High

R9 Damaging reputation due to increasing data breaches and weak cybersecurity Low High

R10 Added costs to recover lost data and business integrity in case of a significant event Low Medium

R11 Lack of accountability and transparency and increased potential for fraud and corruption

R12 Losing credibility or damaging reputation in cases of violations

Low Medium

• Conduct an engagement survey targeting women across the Group.

• Review and enhance policies and programmes to foster gender balance.

• Assess the Group’s data and information security and align security and BCM policies and procedures accordingly.

• Implement the highest standards of security across the Group.

• Implement change management improve compliance towards these standards and policies.

• Group human capital

Low Medium

• (Re)Define a code of ethics for the Group aligned with best practice standards and local regulation. Review and enhance corporate policies and procedures.

• Implement change management improve compliance towards these standards and policies.

• Group digital transformation

• Group legal

• Group business excellence

ADNEC Group’s Top ESG Opportunities

Diversity & Equality

Total reduction of absolute emissions (MTCO2eq)

1) GHG emissions/carbon footprint

2) Non-food waste and lack of sustainable materials usage

O1 Leverage price premiums on customer preferences towards green solutions

O2 Obtaining higher and cheaper access to green capital

O3

Increase in food waste treatment solutions (e.g. Liquid Food Composting) would result in lower costs in procurement of biofuel, while also reducing waste to landfill

O4 Add credibility and trust across ADNEC’s supply chain by adopting sustainable materials use policies

O5 Attracting the best female talent and increase female employee retention

• Publishing ADNEC’s CO2e reduction.

• New commercial offers to new segments of customers (environment enthusiastic).

• Explore green capital opportunities.

• Develop food waste practices.

• Increase % of recycled material.

• Review relevant policies to support above.

• Group sustainability team

• Clusters Commercial teams

• Group investment team

ESG Policies

Number of women in management positions

3) Gender balance

O6 Better staff retention and ability to attract best talent

O7 Increased productivity and morale

O8 Improving job satisfaction for female employees by removing the perception of a ‘glass ceiling’

O9 Higher employee engagement

O10

ESG policy Level 1: Issuing ESG policy (internal or disclosed) that covers key ESG issues

4) Data security and integrity

Enhanced data security systems to increase trust and transparency on ADNEC in terms of information sharing from customers, suppliers and partners

O11 Moving beyond cybersecurity and developing a group wide digital transformation strategy to make ADNEC more competitive, efficient and responsive

• Review and develop relevant Human Capital policies.

• Direct recruitment process towards this objective.

• Adopt relevant international best practices.

• Group sustainability team

• Clusters operation teams

5) Business ethics and values / Corporate governance

O12 Achieving higher valuations during fund raising activities, translating into higher share prices

O13

Improving management oversight and control across all levels, resulting in better efficiency

• Develop data security systems and practices

• Issue a robust digital transformation strategy

• Group human capital team

• Continuously improve ADNEC’s corporate governance practices.

• Group digital transformation team

• Group legal team

Our Sustainability Strategy

Our Pledge

“Create long-term value for all

stakeholders through consciously ethical and sustainable practices across our group activities”

Contributions to UAE Strategies

UAE Energy Strategy 2050

UAE Net Zero 2050

UAE Centennial 2071

National Climate Change Plan

Environment Vision 2030

National Employment Strategy 2031

UAE Green Agenda

National Innovation Strategy

Abu Dhabi Economic Vision 2030

Contributions to UN SDGs

1. Address global and local climate emission concerns.

2.Support the preservation and efficient use of energy resources across the Group's business areas.

3.Maximise use of sustainablee materials and adoption of Circular Economy throughout the Group's value chain.

1. Ensure fair and equitable representation of women and men on all levels.

2.Create a safe, productive, and happy workplace for employees that respects the diversity and cultural backgrounds of all.

3.Support employees in balancing work and personal life.

4.Ensure the attraction, development, and retention of high calibre Emiratis.

1. Adopt transparent and sustainable procurement practices that align with and support the Group’s ESG aspiration.

2.Collaborate with stakeholders to innovate and create new business value with mutual benefits.

3.Positively support and impact the local economy and community to address social challenges and opportunities.

1. Apply best practices in security and risk management to ensure the efficacy and resilience of the Group.

2.Ensure Group values and behaviours are aligned with ethical practices, and that these are reflected in all business activities

3.Create responsive and transparent governance protocols that support decision making at all levels.

Our Sustainability Strategy

Our Pledge

“Create long-term value for all our stakeholders through consciously ethical and sustainable practices across our group activities”

Contributions to UAE Strategies

UAE Energy Strategy 2050

UAE Net Zero 2050

UAE Centennial 2071

National Climate Change Plan

Environment Vision 2030

National Employment Strategy 2031

UAE Green Agenda National Innovation Strategy

Abu Dhabi Economic Vision 2030

Contributions to UN SDGs

Priority 1

Priority 2

Priority 3

Protecting Our Land, Air, and Seas

Growing and Investing in Our Employees

Collaborating with Our Communities, Partners, and Suppliers

Safeguarding Our Assets and Values

Material Issues

GHG emissions

Energy efficiency

Food waste

Non-food waste

Sustainable materials

Renewable Energy

Key Metrics

1. GHG emissions reduced

2. Energy Consumption Reduction

3. Total waste reduced

Material Issues

Workforce wellbeing

Work-life balance

Gender Balance

Emiratisation

Material Issues

Customer relations

Community Initiatives

Material Issues

Ethical sourcing and supply chain oversight

Data security and integrity

Business ethics and values

Corporate Governance

Business Continuity

Key Metrics

1. Employee engagement level

2. Diversity ratio

3. Emiratisation ratio

Key Metrics

1. Economic impact (GVA)

2. Total social & community investment

Key Metrics

1. Number of major noncompliance incidents on corporate governance

2. Consolidated Group ESG Score

ESG Initiatives Plan Overview1

Employee Engagement / Discrimination Survey(s)

3

Net Zero Strategy Definition and Implementation

GHG / Carbon Emissions Monitoring and Reporting Tool

Female Engagement and Gender Balance Plan Youth Development Programme

HC Policy Review and Update

Wellbeing Framework

Wellbeing Programme

Emirati Engagement / Leadership Development Programme

Compensation and Benefits Package Review

Group Supply Chain Sustainability Assessment & Engagement

Career Development and Succession Planning

High-calibre Recruit Partnerships

Human Capital Awareness Campaigns

Innovation Ecosystem ‘Call to Action’

Community Survey and Engagement

Risk & Vulnerability Assessment

Group Code of Ethics Review

Group Sustainable Procurement Policy & Management System

Internal Innovation Programme

ERM & BCM Strategy

Cybersecurity Strategy

External Innovation Programme

Brand & Social Impact Enhancement Plan

Corporate Policy Review and Alignment to Code of Ethics

Group Governance Review

Sustainable Supplier Risk Management and Transition Plan

1 Timeframes are indicative only and may not represent the actual duration and start/end date of the programmes noted.

2 2025 and beyond activities primarily involve continuous monitoring and improvement of the preceding actions and programmes, and repeating surveys, assessments and engagements to further refine existing initiatives and identify new ones.

ADNEC’s Integrated ESG Approach for Value Creation

MATERIAL ISSUES

Environmental

VENUES

1. GHG emissions/carbon footprint

2. Energy efficiency

3. Food waste

4. Non-food waste

5. Sustainable materials

6. Renewable Energy Social

1. Workforce wellbeing

2. Work-life balance

3. Gender Balance

4. Emiratisation

5. Customer relations

6. Community Initiatives Governance

1. Data security and integrity

2. Ethical sourcing and supply chain oversight

3. Business ethics and values

4. Corporate Governance

5. Business Continuity

ENABLERS

Revenue Generation

VALUE CREATION MODEL

The more sustainability compliant we are, the more eligible we to compete on international beds and business opportunities. This increases our chances of business growth. Also, this help us to access green fund for investments purposes.

Being sustainability innovative, allows us to introduce new products and services and generate new revenue streams. These new products and services such as sustainable material in events, low CO2e emissions processes, technology enables and data driven services

PRIORITY AREAS & METRICS

Protecting Our Land, Air, and Seas

1. Economic impact (GVA)

2. GHG emissions reduced

3. Energy Consumption Reduction

4. Total waste reduced

Growing and Investing in Our Employees

CONTRIBUTIONS

UAE Energy Strategy 2050

Optimization and

Cost

Control

ADNEC venue building management system. AI driven to control the consumption of energy and water This improves our efficiencies and reduces our CO2e emissions Eventually, this will positively impact our P&L

Capital Catering Wastemaster is ADNEC Groups effort to adopt a world class Innovative waste management system that turns organic waste into a high-calorie residue and reduce 80% of waste volumes This reduces our waste management costs and positively impact our P&L

1. Employee engagement level

2. Diversity ratio

3. Emiratisation ratio

Collaborating with Our Communities, Partners, and Suppliers

1. Total social & community investment

UAE Net Zero 2050

UAE Centennial 2071

National Climate Change Plan

Intangible

Asset Creation

ADNEC innovations related collaboration programs such as Fikra labs, Plug and Play and StartAD We collaborated with Abu Dhabi NYU on their startup accelerator programme, Venture Launchpad (VL). The result was the identification of 6 relevant start-ups for ADNEC, with one start-up already contracted with ADNEC for a pilot test of recyclable smart bins

Our Tourism camps are focusing on preserving Emirati authenticity through providing UAE related products such as Emirati cuisine and desert experience In addition to reputation and image as one of preserving UAE authenticity, this generates and support jobs for Emirati

2. Supply Chain ESG Compliance Index

Safeguarding Our Assets and Values

1. Number of major noncompliance incidents on corporate governance

2. Consolidated Group ESG Score

Environment Vision 2030 Net Zero Carbon Events

National Employment Strategy 2031

Abu Dhabi Economic Vision 2030

National Innovation Strategy

UAE Green Agenda

Overarching ESG Value Chain for ADNEC Group

Level 1 Processes

In this phase, the Group conducts its materiality assessment, stakeholder engagement, and other research activities to identify material topics, risks and opportunities that will shape its ESG strategy. This also includes articulating the Group’s aspirations in ESG, and defines its goals, targets, and plans – and linking these to the Group’s policies and procedures.

Level 2 Sub-processes

In this phase, the Group carries out periodic maturity and performance analysis to identify areas of improvement and track progress against the strategy, across the Group. Moreover, this phase includes the on-going research and coordination conducted by the ESG team(s) to identify ESG best practices, guidelines and improvements that can benefit the Group. 1.

In this phase, the Group collects insights and data regarding its ESG performance in order to collate this information and disseminate it as part of its annual report and as required to its stakeholders, including shareholders, regulators and ratings agencies.

1. Maturity Analysis

4.

Key Roles & Responsibilities in ESG Governance

• This report is based on ADNEC Group’s responsibility to align with its shareholder‘s (ADQ) aspirations and strategy for adopting ESG practices. ADNEC Group on an annual basis must submit its updated ESG performance against the topics and criteria defined in ADQ’s ESG evaluation questionnaire. The information provided is based on: the strategy/targets the Group has defined, the measures (activities) deployed, and the results achived for each of the criteria identified by ADQ. Subsequently, ADQ shared its evaluation and feedback to ADNEC Group, and how it compares to its ADQ portfolio peers in terms of ESG performance.

• This consists of the reporting that ADNEC Group (or its specific business clusters / subsidiaries) submits to external stakeholders, in order to comply with the standards, guidelines, and mandates it has agreed to. Each external stakeholder represents its own specific reporting expectations.

• This report is prepared and published annually, as part of the Group’s Annual Report. In it, ADNEC shared its ESG and sustainability goals, strategy, programmes and results.

• This report consists of ADNEC Group’s internal performance reporting that tracks the progress against its ESG strategy, updates on any ESG activities and the programmes defined, and the maturity of the organisation’s ESG capabilities. These reports are submitted to the ESG Committee and Executive Management / Board on a regular basis.

• These reports are prepared and shared by each business cluster / subsidiary within the Group, in line with the Group’s reporting to its shareholders, the public, and any other external stakeholders as required. Additionally, on a regular basis, each business cluster prepares and shares its performance updates against the Group’s ESG strategy.

ESG Governance: ESG Index

The ESG Index is ADNEC’s way to ensure alignment with the ESG Strategy is achieved across the Group. Moreover,

has integrated the ESG Index from ADQ into its strategy to further strengthen its alignment and contribution with ADQ

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