Sustainability Report 2022-2023

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Sustainable Transformation To Power The Next Generation

Sustainability Report 2022-23

© Bapco Refining B.S.C. (Closed) 2024. All rights reserved.

His Royal Highness Prince Salman bin Hamad Al Khalifa

Crown Prince, Deputy Supreme Commander, and Prime Minister of the Kingdom of Bahrain

His Majesty King Hamad bin Isa Al Khalifa

King of the Kingdom of Bahrain

His Highness Shaikh Nasser bin Hamad Al Khalifa

His Majesty the King’s Representative for Humanitarian Works and Youth Affairs, and Chairman of Bapco Energies Board of Directors

His Excellency Chairman of the Bapco Refining Board of Directors

The Kingdom of Bahrain is fundamentally transforming to an economy that aligns with the principles of sustainable development

I am honoured to continue to serve as Chairman of the Board of Directors for Bapco Refining and to provide this foreword for our 2022-23 Sustainability Report.

In our journey towards Net Zero, the Kingdom of Bahrain is fundamentally transforming to an economy that aligns with the principles of sustainable development. The pace and scale of accomplishments achieved by the Kingdom since our last sustainability report was published are remarkable, and it has been a privilege especially to be able to support our new parent company Bapco Energies.

Our Bapco Modernisation Programme (BMP) project, a 7 billion dollar capital investment and the largest in the history of our company, is shortly being commissioned. The LC Fining Chevron Lummus Global (CLG) licensed technology incorporated into BMP places Bapco Refining amongst some of most technologically advanced operators in the world. What makes me especially proud are the highest standards of safety, contractor welfare and environmental protection that have been maintained throughout the project, a credit to Dr. Abdulrahman Jawahery, the Chief Executive Officer of Bapco Refining, and his Executive Management.

BMP is our stepping-stone to the future economy of the Kingdom of Bahrain, which will be built on the knowledge of generations of young Bahrainis. We contribute to the Kingdom’s human capital through the job opportunities provided to local high school and university graduates created by projects such as BMP. Both men and women benefit from these opportunities and you will read in this report about some of the highly-qualified young engineers who have elected to join Bapco Refining.

The Bapco Refining Board, Bapco Refining Executive Management and all our employees thank His Majesty King Hamad bin Isa Al Khalifa for his inspiring vision for the future and His Royal Highness the Crown Prince and Prime Minister Prince Salman bin Hamad Al Khalifa for his continuous support, guidance, and encouragement.

I would also like to thank His Highness Shaikh Nasser bin Hamad Al Khalifa, HM the King’s Representative for Humanitarian Works and Youth Affairs, and the Chairman of the Board of Directors of Bapco Energies for his wise guidance and strong support as we embark on this exciting transformational journey.

I thank the Board Members, Executive Management, our employees and our stakeholders for their dedication to the Kingdom of Bahrain and commitment to the Company. I would also like to reiterate the Board’s appreciation for the support and assistance given to Bapco Refining by our shareholder, Bapco Energies, the officials in government ministries and agencies, financial institutions, and the local and international contractors for the successful implementation of our plans and programmes.

I am confident that Bapco Refining stands ready to support the Kingdom of Bahrain in its journey to Net Zero and achieve “Sustainable Transformation To Power The Next Generation”.

Chief Executive Officer of Bapco Refining

We are building technological and human capital that will be the future currency of our sustainable transformation

Welcome to Bapco Refining’s 2022-23 Sustainability Report, being published in accordance with the Global Reporting Initiative (GRI), reflecting our continued commitment to transparency and accountability. I am also delighted to see this report published with our new Bapco Refining branding, representing a fresh vision and mission for the Kingdom of Bahrain and its journey to Net Zero. The theme of this report is therefore “Sustainable Transformation”.

The Kingdom of Bahrain is at the cusp of what will be a remarkable chapter in our history. The pace of change from a commodity to a knowledge-based economy is accelerating rapidly. Since our last Sustainability Report was published, the 27th and 28th United Nations climate change conferences have been held, both attended by delegations from the Kingdom of Bahrain that included participants from Bapco Refining. The Conferences of the Parties (COP) heard about the grave threats created by global warming. At COP28 Bapco Energies, our parent company, was one of the 29 nationally-owned oil and gas companies to sign the Oil and Gas Decarbonisatiion Charter (OGDC).

Addressing the challenges of climate change requires a generational transformation in our business and how we build a new sustainable economy. The revitalised mission and vision of Bapco Energies is designed to support that transformation. Numerous major initiatives led by Bapco Energies are already underway that will positively impact Bapco Refining in the forthcoming years. Under the chairmanship of H. E. Mr Abdulla Jehad Al Zain, our Board of Directors is translating that vision for my Executive Management team.

As the new technologies realised by BMP are commissioned, Bapco Refining will become a more

agile and capable energy company better placed to respond to global changes in market demand for our products. Just as importantly, BMP helps the Kingdom of Bahrain build lasting technological and human capital that will be the future currency of our sustainable transformation. I am delighted that, through BMP, we have been able to create so many highly-skilled jobs for young Bahrainis, both men and women, and this report profiles some of our newest young women operators.

Our Chairman commented on the very high standards that we set for safety, welfare and environmental protection. Bapco Refining continues to win numerous international awards for these achievements that I have been very proud to accept on behalf of the company. The efforts we have taken to look after the many thousands of contractors who have worked on BMP are especially noteworthy. As a lifelong advocate of human rights I am very proud of the high standards of worker welfare that we provide, and which we have documented in this report.

We are grateful for the continuous guidance and wise leadership of His Majesty King Hamad bin Isa Al Khalifa, and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander, and Prime Minister. Coupled with the direction provided by the Chairman of Bapco Energies, His Highness Shaikh Nasser bin Hamad Al Khalifa, and guidance of the Chairman of the Bapco Board of Directors, H.E. Mr Abdulla Jehad Al Zain, we are confident that we are building a company capable of “Sustainable Transformation”. Thank you for taking the time to read this report.

DR. ABDULRAHMAN JAWAHERY

The Chief Executive Officer

About Us

Bapco Refining B.S.C. (Closed), herein referred to as Bapco Refining, is wholly owned by Bapco Energies who, in turn, are wholly owned by the Government of Bahrain.

Bapco Refining has a proud 90 year history supporting the nation through technical innovation and environmental excellence, delivered by a professional and committed workforce of over 3000 employees.

Bapco Refining was established in 1929 by the Standard Oil Company of California. In 1932, Bahrain was the first country to discover oil in the Arabian Peninsula. Bapco Refining started exporting crude oil in 1934 and refining in 1936, with an initial capacity of 10,000 barrels of oil per day (BPD). Some 90 years later our refining capacity is 267,000 BPD. With the commissioning of Bapco Modernization Programme (BMP), our refining capacity will increase 42% to 380,000 BPD.

The company continues to shape the modern Kingdom of Bahrain through its many economic, social, and environmental initiatives in line with our Vision, Mission and Purpose, some of which are described in this report. These initiatives directly support sustainable development as defined by the United Nations Sustainable Development Goals and the Ten Principles of the United Nations Global Compact.

The company’s core business is the production of high-quality refined petroleum products. The company owns a Refinery, storage facilities for 14 Million barrels (MMbbl) of crude oil and products, a Local Marketing Terminal and a Wharf for the export of petroleum products.

About one-sixth of our refined crude oil originates from the Bahrain Field, with the remainder being pumped from Saudi Arabia by pipeline. About 90% of Bapco Refining refined products are exported. Our customers are regional, predominantly Gulf Cooperation Council (GCC) countries that account for almost half of export destinations, followed by South Asia with the balance to the Far East, Europe, South East Asia and other economic areas.

Training & Development Timeline

Opening of Bapco School Craft Training Centre

Bapco Refining begins offering secretarial training to Bahraini women

First Bapco Refining Apprenticeship Training Scheme

300 higher education scholarships granted to employees’ children since programme inception

Opening of the modern Training and Development Department

First intake of female operator trainees

Best Training, Learning and Development Practices Award received at the HRM Summit Awards

Opening of the LC Fining Centre of Excellence with augmented reality training on new process units

First cohort of 15 female apprenticeship trainees

Introduction

What is Sustainability Reporting?

This report describes how we at Bapco Refining are supporting the Kingdom of Bahrain’s sustainable development objectives, described in the Bahrain Economic Vision 2030.

Sustainability means achieving an environmental, economic and social status quo that meets the needs of future generations without compromising the needs of current generations. The concept of sustainable development was originally proposed in 1987 by the United Nations World Commission on Environment and Development. Since then, the concept has expanded to encompass a range of economic, environmental, technical and social objectives that collectively represent sustainable development.

A sustainability report transparently reports an organisation’s financial, social and environmental risks and obligations, and provides opportunities for others to understand those obligations.

Bapco Refining makes a very substantial contribution to sustainable development through technological innovation, investment in our workforce education and training, and our economic productivity. We are delighted to be documenting some of these contributions in this latest sustainability report.

What are Global Reporting Initiative (GRI) Standards?

The GRI Standards are internationally recognised as a leading framework for public sustainability reporting, allowing organisations to demonstrate how they contribute to national and international Sustainable Development Goals (SDG). The GRI standards are used by over 10,000 companies internationally as their framework for sustainability reporting.

The GRI Standards help companies identify material topics with the most significant impacts and influence on their stakeholders, in addition to reporting on general contextual information about the organisation, its reporting practices, and its approach to how material topics are being managed.

This report uses GRI as its reporting basis and has been fully updated against the latest standards applicable from 1st January 2023. Refer to the GRI Content Index for our statement of compliance.

Our Commitment

Sustainability has been a central, fundamental and guiding force throughout Bapco Refining’s transformation journey.

Speaking at the 26th United Nations Climate Change Conference of the Parties (COP26), His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander, and Prime Minister pledged to cut the Kingdom’s emissions by 30 per cent by 2035. The Kingdom further aims to reach Net Zero by 2060.

At COP28, Bapco Energies was one of 29 nationallyowned oil and gas companies to sign the Oil and Gas Decarbonisation Charter (OGDC), a voluntary commitment to reduce operational emissions to Net Zero on or before 2050; methane emissions to near zero by 2030; and to have no routine flaring by 2030.

Under the umbrella of our parent company, Bapco Energies, Bapco Refining will have a critical role to play in the aspirations of the Kingdom through the many projects already underway and those that have yet to start. For example, Bapco Refining’s commitment to increase solar energy generation through the Bapco Distributed Solar Energy Pilot Project (BDSEPP) and enhance blue carbon sinks through the transplanting of mangroves in coastal areas, supporting the Kingdom of Bahrain’s objective to quadruple mangrove coverage.

All of Bapco Refining’s sustainable development initiatives can be linked to the 17 SDGs through the GRI. This section provides a list of GRI disclosures for each SDG and a short summary of some of our initiatives that relate to the SDGs.

SDGs and UN Global Compact

Bapco Refining additionally commits to the United National Global Compact (UNGC). Dr. Abdulrahman Jawahery, the Chief Executive Officer of Bapco Refining, has written to the United Nations to give its commitment to adopt the Ten Principles of the United National Global Compact. The Principles provide a valuable framework that will guide the various transformation programme described in this report and due for completion in future years. There is an annual report submitted to UNGC on the progress of the 10 principles adopted by Bapco Refining.

Link between SDGs - UNGC Principles - GRI Standards - Bapco Refining’s initiatives

UNGC GRI Topic Specific Disclosures Bapco Refining’s initiatives

1, 2, 3, 4, 5, 6

202-01; 203-02; 207-01; 207-02; 207-03; 207-04; 413-02

1, 2, 7, 8, 9

1, 2, 3, 4, 5, 6, 10

201-01; 203-01; 203-02; 411-01; 413-02

The significant size of the BMP project provides both short and long term opportunities for the local labour market and local supply chain. BMP will create new skilled positions filled from positions advertised locally within the Kingdom.

203-02; 305-01; 305-02; 305-03; 305-06; 305-07; 306-01; 306-02; 306-03; 306-04; 305-05; 401-02; 403-06; 403-09; 403-10; OG13

Separately from the very significant contribution made by Bapco Refining to the local economy, Bapco Refining makes special provision for providing to the community during particular times of the year. During the holy month of Ramadan, Bapco Refining provides all operators with meals during Iftar and arranges food distribution campaigns to the community.

All employees have access to the Refinery clinic and health insurance provided to all employees and eligible dependents. Each month a specific health campaign is run on various topics such as breast and prostate cancer awareness. The Bapco Club is available to all employees (include various recreational facilities such as gyms, swimming pool, badminton courts, bowling and snooker rooms, fitness classes)

1, 2

404-01

1, 2, 3, 4, 5, 6

102-22; 102-24; 202-01; 203-01; 401-01; 401-02; 401-03; 404-01; 404-03; 405-01; 405-02; 406-01; 408-01; 409-01; 414-01; 414-02

Bapco Refining runs a scholarship programme for Bahraini students and employees’ children. Bapco Refining provides year-round industrial training internships. In addition, all employees have access to certified courses that encompass the breadth of Technical to Leadership disciplines.

Bapco Refining believes in equal opportunities irrespective of gender and promoted several women to senior levels. Bapco Refining created Bapco Ladies Committee to oversee the needs of female employees and review the policies and procedures that address female in the workplace

Link between SDGs - UNGC Principles - GRI Standards - Bapco Refining’s initiatives

GRI Topic Specific Disclosures Bapco Refining’s initiatives

1, 2, 7, 8, 9

303-01; 303-02; 303-03; 303-04; 303-05; 304-01; 304-02; 304-03; 304-04; 306-01; 306-02; 306-03; 306-05; OG13

1, 2, 7, 8, 9

302-01; 302-02; 302-03; 302-04; 302-05

Bapco Refining has invested in the latest technologies to minimise water abstraction required for refining. Bapco Refining’s Waste Water Treatment Plant and Sewage Treatment Plant (STP) uses state-of-the art advanced Membrane Bioreactor Technology for water and effluent treatment.

Bapco Refining has established an Energy Group and an Energy Committee that focus on energy conservation throughout the Refinery, leading to projects and initiatives focusing on energy reduction and efficiency improvement using the latest technologies and means of monitoring.

1, 2, 3, 4, 5, 6

102-08; 102-41; 201-01; 202-01; 202-02; 203-02; 204-01; 302-01; 302-02-03; 302-04; 302-05; 306-02; 401-01; 401-03; 404-01; 404-02; 404-03; 405-01; 405-02; 408-01; 409-01; 402-01; 403-01 to 04; 403-05; 403-09; 403-10; 406-01; 414-02; OG13

3, 4, 5, 6, 7, 8, 9 201-01; 203-01

1, 2, 3, 4, 5, 6, 10

102-08; 401-01; 404-03; 405-02; 207-01; 207-02; 207-03; 207-04

Bapco Refining continues to provide new opportunities through the BMP expansion, creating one of the most technologically advanced Refineries in the world. In partnership with CLG and NAPCON software solutions, we opened the LC-FINING Centre of Excellence in our Training and Development Department in 2019.

Bapco Refining has a strong track record for technological innovation. We have an Innovation Centre to nurture new ideas suggested by employees, and additionally participate in community initiatives designed to encourage innovation, such as the Green School Award Scheme launched in 2005, for local secondary schools to identify and pilot green ideas.

Bapco Refining has specific policies designed to tackle inequality, implemented by a dedicated team who work with contractors to monitor any potential breaches in policy. We have, for several years, inducted both men and women trainees into engineering disciplines. Bapco Refining’s merit-based International Scholarship Programme provides financial support for students studying subjects related to Bapco Refining core business disciplines.

Link between SDGs - UNGC Principles - GRI Standards - Bapco Refining’s initiatives

GRI Topic Specific Disclosures Bapco Refining’s initiatives

1, 2, 7, 8, 9

203-01; 306-01; 306-02; 306-03; 306-04; 306-05; OG13

7, 8, 9

302-01; 302-02; 302-03; 302-04; 302-05; 303-01; 305-01; 305-02; 305-03; 305-06; 305-07; 306-01; 306-02; 306-03; 306-04; 306-05; 417-01

We have created a Sustainability Committee and have undertaken many recent initiatives to improve social and environmental capital within the Kingdom of Bahrain. Representatives from Bapco Refining participate in a number of national committees including the Bapco Energies Climate Change Committee and Renewable Energy Committee.

BMP will contribute to an important reduction of energy use through its new technology. Additional initiatives are being taken by us, such as the use of innovative software to optimise steam and power generation and the replacement of heaters with the latest energy efficient technologies.

7, 8, 9

201-02; 302-01; 302-02; 302-03; 302-04; 302-05; 305-01; 305-02; 305-03; 305-04; 305-05

7, 8, 9

304-01; 304-02; 304-03; 304-04; 305-01; 305-02; 305-03; 305-04; 305-05; 305-07

Bapco Refining is committed to support the Bahrain National Target to combat Climate Change announced at COP26. We have been reporting our Greenhouse Gas (GHG) emissions since 2014 and have taken initiatives to reduce those emissions, such as the hydrogen plant CO2 recovery project that reduces 40,000 tonnes of CO2 emitted per year, solar benches installed across Bahrain, our BDSEPP and the maintenance of green spaces such as Princess Sabeeka Park.

We have been conducting regular marine assessments since 1981 around the Refinery and Sitra operating facilities to monitor marine ecosystems. Various environmental studies were conducted to support the protection of the environment and marine resources, this includes an environmental impact assessment for all new projects, groundwater monitoring and biodiversity studies.

7, 8 and 9

304-01; 304-02; 304-03; 304-04; 305-01; 305-02; 305-03; 305-04; 305-05; 305-07; 306-03; 306-05;

We closely follow the guidance provided by the Supreme Council for Environment on enhancements to the natural and built environments. The Princess Sabeeka Park in Awali and the Oasis initiative inside our Refinery are two of the many environmental projects implemented.

Link between SDGs - UNGC Principles -

GRI

Standards - Bapco Refining’s initiatives SDG

1, 2, 3, 4, 5, 6, 10

GRI Topic Specific Disclosures Bapco Refining’s initiatives

102-17; 102-21; 102-22; 102-23; 102-24; 102-25; 102-29; 102-37; 205-01; 205-02; 205-03; 403-4; 403-04; 403-09; 403-10; 410-01; 414-01; 414-02; 408-01; 102-16; 416-02; 417-02; 417-03

Bapco Refining is proud to follow all applicable national and international regulations for fair process. We have an established code of ethics that describes the behaviours expected from all employees, contractors and other third parties who work for Bapco Refining.

1 to 10

207-01; 207-02; 207-03; 207-04; 203-02

Bapco Refining conducts comprehensive social impact assessments for our major projects in accordance with applicable laws and regulations, with stakeholder engagement to facilitate community consultation. Bapco Refining supports the Eker Society, sponsors the professional fishermen’s society with safety equipment and is a long-standing partner of INJAZ, with wide participation in the programme by Bapco Refining employees to volunteer time for the benefit of the community.

Bapco Awards

King Hamad Youth Empowerment Award

This award recognises Bapco Refining for its efforts in supporting the roles of youth and enabling them to contribute effectively to the sustainable development goals

Royal Society for the Prevention of Accidents (RoSPA) Health and Safety Award

This award recognises Bapco Refining for the high safety standards, the wellbeing of individuals, and commitment to excellence

This award recognises Bapco Refining for supporting the advancement of women to senior levels in the large business category - private sector

Dr. Abdulrahman Jawahery, Bapco’s Chief Executive Officer, received the Leadership Excellence for Women Awards and Symposium (LEWAS) Award for the Male Champion category

HRH Princess Sabeeka bint Ibrahim Al Khalifa Award for Bahraini Women’s Advancement 2022
Male Champion Award at LEWAS Award 2022

Best Employee Experience Initiative at the HRM Summit Awards 2023

This award recognises Bapco Refining’s implementation of an effective, sustainable, and successful employee engagement programme

Best Training & Development Practices at the HRM Summit Awards 2023

This award recognises Bapco Refining for its exceptional training and development practices and state-of-the-art, high-tech training facilities for the Bapco Modernization Programme

Corporate Male Champion Award & Leading with Excellence Award at the LEWAS Awards 2023

Mr. Hafedh Al Qassab was awarded the prestigious Corporate Male Champion award, a testament to his exceptional leadership skills, commitment to gender diversity, and dedication to fostering an inclusive work environment

Ms. Jenan Al Askari was honoured with the Leading with Excellence Award. This recognition highlights her outstanding contributions to the company and her unwavering commitment to empowering women in the workplace

Prestigious British Safety Council International Safety Award

Bapco Refining won an International Safety Award with Distinction from the British Safety Council in recognition of its commitment to keeping its workforce and workplaces healthy and safe during the 2022 calendar year

Albilad Newspaper CSR Platinum Award

In line with Bapco Refining’s unwavering commitment to community support and contribution to the national economy, Bapco Refining was awarded the prestigious Albilad Newspaper Corporate Social Responsibility (CSR) Platinum Award

Prestigious ‘Volunteer Service Award at INJAZ Bahrain annual ceremony 2023

Bapco Refining was honoured with the prestigious ‘Volunteer Service Award’ for our outstanding commitment, collectively contributing over 1,688 hours of volunteer work to INJAZ

Gulf Petrochemicals and Chemicals Association Award

The Gulf Petrochemicals and Chemicals Association (GPCA) honoured Dr. Abdulrahman Jawahery for his vital role as one of the top-tier leading figures in the Association, paying tribute to his vast contribution to developing work systems, and his active participation in wide-ranging conferences, meetings and forums

Bapco

Cybersecurity award at the 6th Annual GCC Oil & Gas Cyber Threat Intelligence Sharing Committee

Bapco Refining Cyber Defence Centre Team was awarded first position at the GCC Oil & Gas Threat Intelligence Sharing Committee meeting hosted by Saudi Aramco in October 2023

WIAM Emerging Professional Award and Innovation Award at MaintCon 2022

Fatema Husain won the WIAM Emerging Professional Award at the 6th Middle East Maintenance & Reliability Conference (MaintCon 2022). Fatema co-founded the Bahrain Chemical Engineers (BChemE) team, where she organized and led youth events in regional conferences. She also served as the President of Bapco Toastmasters Club (BTMC), Chairman of the Youth Leadership Programme and continues to be a mentor for young engineers and students

Husain Haiman received an Innovation Award at the 6th Middle East Maintenance & Reliability Conference (MaintCon-2022). One of his innovative ideas saved over 2 million dollars through avoiding a total shutdown of 4A Crude Distillation Unit whilst undertaking heat exchanger repair

First runner up award under the ‘Large Business’ category at the Arabia CSR Award

Bapco Refining was honoured by the Arabia Corporate Social Responsibility Network (ACSRN) in the 16th cycle of the prestigious Arabia Corporate Social Responsibility (Arabia CSR) Awards. Bapco Refining received the first runner up award under the ‘Large Business’ category for its efforts in corporate social responsibility and environmental sustainability

Dr. Abdulrahman Jawahery, Bapco’s Chief Executive Officer, was listed among Albilad’s 20 most influential figures in the Bahraini economy

Dr. Abdulrahman Jawahery is a recognised for his valuable contribution to the economy of the Kingdom of Bahrain

Award by the Ministry of Labour for our Significant Drive towards Bahrainisation

Bapco Refining was awarded an honorary plaque from Mr. Jameel bin Muhammad Ali Humaidan, Minister of Labour. The company has received a prestigious recognition for its efforts to recruit and employ the highest number of Bahraini nationals

Afshan Akhtar Included in the GC Powerlist for the Middle East 2023

Afshan Akhtar, the Chief Legal Counsel and Board Secretary for Bapco Refining, has been recognised for her exceptional achievements. She has secured a spot in the highly esteemed GC Powerlist for the Middle East 2023, published by The Legal 500. This list celebrates the remarkable talents of the region’s top general counsel

General Federation of Bahrain Trade Union Award

Under the patronage of His Majesty King Hamad bin Isa Al Khalifa, the General Federation of Bahrain Trade Union organised its annual awarding ceremony to honour diligent workers in the public and private sectors on the occasion of International Labour Day. Ali Toorani, Counsel, was honoured as a diligent worker and received an award from H.E. Mr. Jameel Bin Mohammed Humaidan, Minister of Labour

Who We Are

3,070 Employees

Recruitment Continues - Page 36

Our Highest Priorities

New Material Topics - Page 48

Worker Welfare

Operational Insights - Page 58

Women Operators

First Cohort - Page 60

The water tower, a visible landmark in our Refinery.

Our Organisation

Our company structure, our business activities and our ownership, and our arrangements for sustainability reporting

2-1 Organisation details

Bapco Refining B.S.C. (Closed), i.e. company shares are not offered to the public for investment. The company is referred to as Bapco Refining throughout this document.

Bapco Refining is wholly owned by the Government of the Kingdom of Bahrain under Bapco Energies B.S.C. (Closed).

Bapco Refining is head quartered in Awali, Kingdom of Bahrain.

2-2 Entities included in the organisation’s sustainability reporting

Bapco Refining has a subsidiary and joint venture within its financial statements.

Bapco Refining holds 42.5% of the share capital of Bapco Gasoline Blending W.L.L. Bapco Refining additionally owns 27.5% of the share capital of Bapco Lube Base Oil Company B.S.C. (Closed), a manufacturer of high quality Group III lube base oil products. Awali Hospital Company W.L.L. is also a wholly owned subsidiary of Bapco Refining, established on 15 November 2022.

2-3 Reporting period, frequency and contact point

The reporting period is from 1st January 2022 to 31st December 2023. The reporting cycle is biennial.

This report was published on July 1st 2024 and all information contained is correct as of this date.

Please send any comments or feedback on this report to:

Aqeel Almuharraqi, Manager ESG

Email: aqeel.almuharraqi@bapcoenergies.com

Telephone: +973 1775 8938

2-4 Restatements of information

There have been no restatements made in this report from our previous sustainability report published for the period 1st January 2020 to 31st December 2021.

2-5 External assurance

We have commissioned an independent third party to provide assurance that this report meets the requirements of the GRI Standards. The report has been overseen by our Decision Review Board (DRB), chaired by the Deputy Chief Executive Human Capital and Corporate Services and comprising selected Bapco Refining General Managers. The DRB has met regularly during report development to approve report content and the selection of material topics.

2-7 Employees

The total number of employees has increased by around 10% since the 2020-21 reporting period, due to requirements related to BMP execution and post project operation. Bapco Refining remains committed to reaching 90% Bahrainisation post-commissioning of BMP.

2-8 Workers who are not employees

Bapco Refining employs full time contractors who support the base business activities and BMP project. The total number of contractors working full time on the BMP brownfield sites reached 5,075 in 2022 and 6,662 in 2023. Contractors working in the base business reached 7,368 in 2022 and 5,845 in 2023.

2-30 Collective bargaining agreements

The number of employees who were members of a Trade Union in 2022 and 2023 was 1,224 (40%) and 1,489 (48.5%) respectively.

2-6 Activities, value chain, and other business relationships

Bapco Refining is primarily a merchant export refinery, engaged in the refining of crude oil within the Kingdom of Bahrain. The company’s main products are Liquefied Petroleum Gas (LPG), naphtha, gasoline, kerosene, aviation turbine fuel, ultra-low sulphur diesel, heavy lube oil, fuel oil and asphalt.

90% of our production is exported. Our customers are regional, predominantly GCC countries that account for almost half of export destinations, followed by the Far East, with the balance to Europe, South East Asia and other economic areas.

During 2022-23 the total number of employees within Bapco Refining reached 3,070 divided between Operations, Awali Township support and the Awali hospital.

Bapco Refining has integrated operations in production, refining and marketing. We operate a 267,000 BPD Refinery producing finished products for sale and distribution. Crude oil is imported from two sources. Locally produced crude oil from the Bahrain

oil field is purchased from Bapco Upstream. Arab light crude oil is purchased from Saudi Aramco and transported to the Kingdom of Bahrain via the AB crude oil pipeline.

Raw material imports

The raw materials used by our Refinery are crude oil, natural gas and a smaller quantity of other semifinished raw materials used in the manufacture of our products, e.g. additives required for diesel and petrol sold at fuel service stations. Other semi-finished raw materials, i.e. materials that have already undergone some processing elsewhere, are purchased according to demand and include fuel oil cutter stock (lighter petroleum fractions used to adjust finished product specifications) and vacuum gas oil. Natural Gas from the Khuff Gas Reservoir, used in the operation of the Refinery, is purchased from Bapco Upstream.

Product exports

In 2023, more than 80 MMBBL of products were exported, with middle distillates (kerosene plus diesel) accounting for 57.8% of sales, followed by black oil products (fuel oil and asphalt) at 22%, naphtha at 15.4%, and base oil at 3.5%.

During the same period, Middle East countries (predominantly GCC) accounted for almost half of export destinations (43.4%), followed by South Asia (27.2%), with the balance to Far East (12.2%), Europe (8%), South East Asia (4.4%) and other countries (4.8%).

International diesel exports were all with an ultra-low sulphur content of 10 parts per million, consistent with the worldwide trend to promote environmental stewardship by adopting cleaner fuels. Bapco Refining also sold diesel grades with more stringent distillation requirements at additional premiums.

Within the local market, the total volume of refined product sales amounted to 1889 MML in 2023, slightly up by approximately 5% year-on-year.

During the report period the local market continued to favour the “fit for purpose” Jayyid gasoline grade (91 Research Octane Number - RON) over the higher octane Mumtaz (95 RON) gasoline. As a result, Jayyid gasoline accounted for almost half of the refined products sold domestically at 53% in 2022 and 2023. Mumtaz gasoline accounted for 16.0% of the domestic sales, while Super gasoline (98 RON), the premium gasoline grade, accounted for less than 1%. The remainder of local market sales were ultra-low sulphur diesel (18.5% in 2022 and 17.4% in 2023), LPG (7.5% in 2022 and 7.4% in 2023), kerosene (1% in 2022 and 0.9% in 2023), and Asphalt (1.8% in 2022 and 2.6% in 2023).

Our sales by product and region

Significant changes to the supply chain

During the reporting period no significant changes occurred within Bapco Refining’s supply chain.

Local Suppliers

Bapco Refining works with suppliers and contractors that share similar values. Our suppliers and contractors must pass a prequalification assessment to verify their commercial experience, organisation, financial stability and other management processes for quality, environment, and safety.

We strive to support an ethical and locally based supply chain that supports the Kingdom of Bahrain. During the reporting period there were a total of 613 active suppliers, of which 62% were local.

Dr. Abdulrahman Jawahery, the Chief Executive Officer of Bapco Refining, attending our Youth Forum.

Our Governance

The governing bodies that control our company and manage our business risks, and the assurance of our governing bodies

2-9 Governance structure and composition

We are committed to the highest standards of corporate governance, which we believe are critical to maintaining stakeholder and shareholder confidence. We apply high ethical standards to our operations to ensure that our governance structure complies with all laws and regulations that govern our business. Our corporate governance framework ensures that Bapco Refining operates within the guidelines and practices as set out in the Corporate Governance Code 2018 and its Articles of Association.

Bapco Energies is Bapco Refining’s sole shareholder. The oversight provided by Bapco Energies creates value through the successful management of governmental oil, gas and petrochemical assets. The Board of Directors comprises six members, including the Chairman. The Board of Directors reports to Bapco Energies and sets the company’s vision and policies that shape organisational strategy. There are three Board committees.

The Bapco Refining Audit and Risk Committee is responsible for oversight of the integrity and quality of financial reporting process, the effectiveness of risk management and internal controls, the review of legal and regulatory compliance and the performance and independence of company auditors.

The Bapco Refining Executive Committee is responsible for assisting the Board in its responsibilities for medium and long-term strategy, including any strategic initiatives.

The Bapco Refining Nomination, Remuneration and Governance Committee is responsible for assisting the Board on matters relating to nomination, compensation and remuneration of the Directors, senior executives, and general managers, corporate governance matters and Human Capital (HC).

The listed Board Committees have been established as of 1 November 2021 following the appointment of the new Board of Directors, replacing the previous committees. Refer to the infographics overleaf.

2-10 Nomination and selection of the highest governance body

Bapco Energies, Bapco Refining’s sole shareholder, is the highest governing authority for Bapco Refining. The Board of Directors is appointed by Bapco Energies. Board members are typically appointed for a period of three years, renewable for subsequent periods as per Article 12 of the Articles of Association. The Board is composed of individuals who have the competence and independence to provide stewardship of Bapco Refining's affairs. The Board approves the corporate governance statement, which is reviewed annually.

2-11

Chair of the highest governance authority

The highest governance body for Bapco Refining is the Board of Directors. The Board Chairman is not an Executive Officer for Bapco Refining and the Board comprises non-executive Directors.

2-12 Role of the highest governance body in overseeing the management of impacts

Bapco Refining has an extensive programme of stakeholder engagement to support its major initiatives. Interested third parties may otherwise contact senior members of Bapco Refining via methods that include email, committee meetings and public or town hall meetings.

H.E. Mr Abdulla Jehad Al Zain, Chairman of the Board of Directors, regularly leads a review of vision and strategy, supported by the Executive Management. Bapco Refining has a medium and long-term strategy derived from elements that include but are not limited to: the Kingdom of Bahrain’s commitments to the concept of Net Zero; the Economic Vision 2030; medium and long-term forecast demand for petroleum products; and anticipated technical innovation in refining.

Precautionary principle or approach

A ‘precautionary principle’ refers to the strategy for managing potential harm in the absence of extensive scientific knowledge. This concept is widely considered within our risk management strategies, the strength of which have been validated by their application throughout the COVID-19 pandemic.

For the purposes of sustainability reporting, The GRI Standards only consider environmental harm, as introduced by United Nations Principle 15 of ‘The Rio Declaration on Environment and Development’.

We have clearly defined risk management processes for key business risks. Each risk is assigned a score that is regularly reviewed by our Senior Management to understand the portfolio of risks managed by the organisation. Our corporate risk matrix includes environmental risks associated with major incidents involving oil spills, release of hydrocarbons and other losses of containment.

We have a comprehensive environmental monitoring programme to verify compliance with the local laws and regulations of the Kingdom of Bahrain, e.g. for our air emissions and effluent discharges. The emissions limits stipulated by law are ‘precautionary’, with statutory limits reflecting the level of uncertainty in cause and effect attributed to a given type of emission. We work in close coordination with the Supreme Council for Environment (SCE), the environmental authority within the Kingdom of Bahrain, whose representatives routinely inspect our emissions and effluent monitoring procedures. All new units comply with applicable local environmental regulations as well as international lender standards; including International Finance Corporation (IFC) standards and World Bank guidelines.

We have adopted some of the international best available technologies for BMP, which will significantly increase the energy efficiency index of our refining operations and allow us to produce higher-value products for supply to our domestic and international customers. There is growing evidence of the harm caused by global warming. A precautionary approach to GHG emissions is therefore considered international best practice. We are reducing CO2 emissions per barrel of crude oil processed and improving energy efficiency, and hence increasing energy conservation as part of our sustainability journey.

We help the Kingdom gather data on the potential impacts associated with GHG emissions by publishing our emissions data in accordance with relevant international reporting guidelines. We have further offset our GHG emissions by investing in renewable

energy production through our BDSEPP and initiatives such as the community solar bench project, and mangroves, and creating green spaces in the Refinery and Awali.

Our Crisis and Emergency Response Plan (CERP), which is based on the internationally recognised Incident Command System (ICS), includes a comprehensive precautionary oil spill response capability to safeguard the environment in the event of an incident.

Managing corporate risks

Our corporate risk management process is aligned to ISO 31000:2018 and certified to ISO 22301:2019. We have an established framework for business resilience management implemented throughout the company. Significant risks with potential business impact are captured in our Corporate Risk Register.

The risks cover a wide category of internal and external risks representing aspects of our activities that include safety, health and environment, reputation, cyber security, marketing, material availability, market volatility, human competency, and recruitment and retention. We regularly evaluate these risks to ensure the effectiveness of the risk controls, to ensure effective reporting, and to ensure effective engagement in their control. Initial risk assessment is conducted with subject matter experts (SME) by workshop to identify each risk and its risk controls. The Board of Directors is ultimately accountable for enterprise risk, business continuity and other control frameworks established for Bapco Refining.

Management of Bapco Refining’s Corporate Risk Register is delegated to the Executive Management. Bapco Refining has independent Committees at both Board and Executive Management level designed to strengthen the governance processes.

2-13 Delegation of responsibility for managing impacts

The expectation of Bapco Energies is that Bapco Refining provides a leading contribution to the Kingdom of Bahrain’s Economic Vision 2030, for example through the technical innovation and value creation of BMP. The Executive Management is responsible for aligning our initiatives with the principles of sustainable development. Items related to sustainability are directly reported to Dr. Abdulrahman Jawahery, the Bapco Refining CEO, who takes overall accountability for our contribution to sustainable development.

2-14 Role of the highest governance body in sustainability reporting

Bapco Refining has a Decision Review Board responsible for formal review of our sustainability reporting. The DRB is chaired by the Deputy Chief Executive Human Capital and Corporate Services and comprises selected Bapco Refining General Managers and the Chairman of the Environment, Health and Safety (EHS) Committee. The DRB seeks final approval from Dr. Abdulrahman Jawahery, the Bapco Refining CEO. Our sustainability report includes performance statements from H.E. Mr Abdulla Jehad Al Zain, the Bapco Refining Chairman and Dr. Abdulrahman Jawahery, the Bapco Refining CEO.

2-15 Conflicts of interest

The Bapco Refining Code of Conduct applies to both Directors and employees of Bapco Refining, and is therefore equally applicable to the Board of Directors. All are expected to be familiar with the Code of Conduct and to uphold it to the highest standard. The Code of Conduct is designed to help all those who work with us to make informed ethical decisions, and provide mechanisms to report unethical conduct. Conflict of Interest is articulated in the Bapco Refining Code of Conduct, emphasising the importance of bringing suspected conflicts to the attention of an appropriate higher authority.

2-16 Communication of critical concerns

As a Closed Bahraini Shareholding Company, the exact nature and total number of our critical concerns are not published. However, Dr. Abdulrahman Jawahery, the Bapco Refining CEO has presented on several critical concerns to the company during the reporting period. These include, for example, changes in market conditions encountered during the reporting period.

2-17 Collective knowledge of the highest governance body

The Board of Directors are uniquely qualified in the functional areas of corporate finance, audit and risk management, refining technologies, major projects delivery, and human capital management. The Board of Directors additionally offers us insights in business and risk management from their other

non-executive oversight of organisations within the Kingdom of Bahrain. Mr. Mark Thomas, Deputy Chairman, is also Group CEO for Bapco Energies, Chairman of the Board of Bapco Gas and Member of the Board of Bapco Upstream. Mr Yusuf Abdulla Mohammed Taqi is also a Member of the Board of Aluminium Bahrain (Alba).

2-18 Evaluation of the performance of the highest governance body

Our three Board Committees report annually against their remit, in addition to their more regular reporting to the Board of Directors and their independent oversight of company governance arrangements. The performance of Dr. Abdulrahman Jawahery, the Bapco Refining CEO, is reviewed annually by the Board of Directors.

2-19 Remuneration policies

As a Closed Bahraini Shareholding Company, we do not report on our remuneration policies.

2-20 Process to determine remuneration

Our Board of Directors sets the company strategy that is used by the Executive Management to determine employee compensation. Dr. Abdulrahman Jawahery, the Bapco Refining CEO, has actively sought to make appointments reflective of our sustainability strategyfor example the continued appointment of women to senior positions within our company.

All new graduates joining the company are assigned a Graduate Development Programme (GDP) with performance metrics as part of their training programme. Annual performance appraisals evaluate individual performance and are used to guide changes to remuneration. The Human Capital business processes used to set remuneration are, as expected, fully aligned with the Kingdom of Bahrain’s labour laws.

2-21 Annual total compensation ratio

As a Closed Bahraini Shareholding Company, we do not report on our compensation ratios.

VISION

Bapco Energies aspires to contribute to Bahrain’s economic diversification and growth by achieving sustained performance excellence from a portfolio of domestic and international investments

MISSION

To build, develop and manage the Government’s portfolio of oil and gas companies by investing effectively and promoting excellence in operations

ROLES

• Governance

• Portfolio Management

• Promotion of Operation Excellence (OE) and Best Practice

• Provision of Professional Service

• Develop Intellectual Capital

• Integrity

• Ingenuity

• Commitment

• Accountability

• Entrepreneurship

Board of Directors

Mr. Mark Thomas Deputy Chairman

Mr. Ahmed Yusuf Taleb Abdulghani Director

Mr. Yusuf Abdulla Mohamed Taqi Director

Mr. Saeed Husain Abdulrahman Director

H.E. Yusuf Abdulla Ali Humood Director

H.E. Mr Abdulla Jehad Al Zain Chairman

Executive Management

Mrs. Afaf Zainalabedin Deputy Chief Executive Human Capital and Corporate Services

Mr. Firdaus Panthaki General ManagerMarketing, Sales and Supply

Mr. Luc Smets General ManagerRefining

Mr. Gaetano De Santis General Manager - Reliability and Maintenance

Dr. Thomas Schaffers Chief Commercial Officer

Dr. Abdulrahman Jawahery Chief Executive Officer

Mr. Robert Achleitner General ManagerEngineering

Ms. Afshan Akhtar Chief Legal Counsel

The Family Walk, our employees and their families are a valued stakeholder of our company.

Stakeholders & Materiality

How we identify our stakeholders and the material topics important to them, and the changes in our material topics that have occurred since our last report was published

Reporting principles

GRI describes eight principles governing report quality and content which collectively ensure that the information provided is both reasonable and appropriate. These principles have been achieved through the involvement of SMEs providing information from across the organisation, and rigorous review by the DRB. Each report principle is considered in more detail below.

Report accuracy has been achieved by describing how data have been calculated. Raw (measured) data have been used wherever possible and in the majority of disclosures; where an estimate is used this is indicated in the supporting description. If there is a margin of error in the data provided, then this is also described.

Report balance has been achieved by presenting information factually and without unreasonable exclusion. Trends comparing data with the previous sustainability report have been included where relevant.

Report clarity has been achieved through clear descriptions of technical terms used in the report supported by a glossary. The report complies with corporate branding guidelines, which are designed for clear communication of information to stakeholders and other third parties.

Report comparability has been achieved by carefully following GRI guidelines on how data should be presented within each disclosure.

Completeness was ensured by commissioning an independent consultant to assist with the development of this report; the consultant reviewed the available data provided by us for each topicspecific disclosure, identified any gaps in the data and noted these as exceptions in the completed report.

Sustainability context was ensured by review of key regional sustainability concerns. Topics have been reviewed to confirm that the context for each item is understood and can be related to the topic-specific disclosures required by GRI. The relevance of each topic area to sustainability is further described in each section within this report to communicate its importance to the reader.

Report timeliness has been achieved by retrieving the latest available data and, where this is not available, providing a full explanation within the disclosure.

Report verifiability has been achieved by careful independent review of the information presented. Much of the information reported here is already made available to third parties who may have undertaken separate verification of that information.

3-1 Process to determine material topics & 3-2 List of material topics

Bapco Refining identified sustainability topic areas representing the range of concerns identified by regional peers, our internal and external stakeholders and the downstream oil and gas sector. GRI 11 Sector Standard provides augmented guidance for our industry sector that confirmed the list of material topics identified. Topic areas were assigned to environment, people, society or business continuity categories and scored using a four step methodology to determine the relative importance of each topic to us and our stakeholders.

• Step 1: Review previous topic scoring, identify changes in our impact on stakeholders;

• Step 2: Stakeholder workshops to score topics (using a 1-5 scale);

• Step 3: Present completed materiality matrix to our stakeholders, update scores based on feedback; and

• Step 4: Present results to DRB for approval, final selection of sustainability topics to report on. Our 2022-23 materiality matrix is shown below.

Impact

2022-23 Materiality Matrix
Impact on Bapco Refining

Our highest priorities

All topics shown on the chart are regarded as material topics for the purposes of reporting. Five areas were identified as highest priority to us and our stakeholders, i.e. the top right hand quadrant of the materiality matrix.

• Health, safety and wellbeing: Occupational safety, promotion of worker health, and work-related injuries;

• Emergency preparedness: Emergency planning, crisis management and community engagement;

• Asset integrity: Process safety, asset integrity management and operational excellence;

• Cybersecurity: Protection of assets, operations, data, and reputation; and

• Training and development: Worker education and career professional development.

Changes in materiality

Since the previous reporting period “Asset integrity & security” topic has been divided into two separate topics “Asset integrity” and “Cybersecurity”. Both topics are assessed as high importance to Bapco Refining and our stakeholders as they play a critical role for our operations.

In addition, three topics have been assessed as of increased importance to both Bapco Refining and our stakeholders. These are:

• Energy and climate change and air emissions, given the commitment by the Kingdom of Bahrain to reach Net Zero; and

• Equal Opportunities, recognising the diversity present in our workforce and trusting the young generation to build a sustainable future.

Scores assigned to other topics were also revised but the changes were less significant.

2-29 Approach to stakeholder engagement

We define stakeholders as entities or individuals that can be affected by our activities, products, or services; or whose actions can affect our strategies or objectives. Our key stakeholder groups have been identified from the extensive list of parties that we interact with, in line with implementing our company management systems.

Bapco Refining has identified its key stakeholder groups:

• Government and regulatory authorities

• Financiers and insurers

• Suppliers and contractors

• Customers (both local and international)

• Non-Governmental Organisations (NGO) and academia

• Local communities

• Local industries

• Employees

We have undertaken an internal and external stakeholder engagement workshop to identify specific topics of interest for stakeholders. The feedback received from stakeholders was used to determine selection of the relevant sustainability topics presented in this report.

We recognise that open and transparent engagement with all stakeholders is key to understanding the materiality of different sustainability topics. We aim to build long-term relationships with stakeholders that impact, or are impacted by, our projects and activities. We achieve this by:

• Disclosing relevant project information;

• Providing opportunities for stakeholder consultation;

• Creating opportunities for stakeholder feedback through varied media, e.g. written correspondence or social media platforms; and

• Reviewing the effectiveness of stakeholder dialogue.

We have applied similar principles to the internal stakeholder consultation completed in support of this report, which included:

• Refresher training courses on sustainability and the GRI Standards were held in November 2023 for Bapco employees, and managers;

• Consultation workshops, which included a presentation on the methodology used to determine the materiality matrix and topic materiality; and

• Sharing of draft outputs from the workshops for comments, and incorporating feedback into the revised matrix.

A table of key topics by stakeholder group is provided overleaf.

Methods of

Stakeholder Group Engagement mechanisms

Government and regulatory authorities

Financiers and insurers

Suppliers and contractors

• Formal review of company strategy and plan with third parties, including reporting on the outputs of internal governance activities where appropriate

• Regular coordination meetings

• Direct meetings and consultation with regards to compliance and planning of new projects

• Bapco Refining website, emails and letters

• Conferences, forums and workshops

• Events and other outreach campaigns regularly coordinated with relevant government authorities

• Written communication through letters and emails

• Site visits and inspections when possible due to the COVID-19 pandemic

• Formal joint venture arrangements for projects

• Virtual meetings with suppliers, as mandated in relevant procurement management procedures

• Audits and other formal feedback mechanisms on contractor performance

• Established supplier agreements

• Formal feedback from vendors and suppliers

Customers (both local and international)

NonGovernmental Organisations (NGO) and academia

Local communities

• Meetings when possible and regional sector meetings

• Daily communications, including emails and telephone calls

• Customer feedback

• Joint research projects and Memoranda of Understanding, including collaboration with Ph.D. students to develop innovative solutions

• Direct meetings, company events and campaigns

• Focus group meetings with local community representatives, specifically for BMP, including special interest groups such as the elderly and the disabled

• Emails, telephone calls and social media (including WhatsApp and Instagram)

• Visual material presentation, e.g. billboards

• Media outreach through TV and Radio

• Targeted campaigns

Local industries

Employees

• Direct face-to-face and regional meetings, including regular established networking committee meetings

• Conferences, forums and workshops

• Forums and events which run throughout the year

• Regular meetings at all levels of the organisation

• Communication using a variety of media, including the Bapco intranet portal, the large electronic screen placed at the Refinery main entrance, desktop screensavers, departmental posters, and various Company electronic notifications and information boards

Key topics identified by each stakeholders group

Stakeholder Group Key Topics

Government and regulatory authorities

Financiers and insurers

• Compliance with governmental policies and regulations

• Maintenance of good financial performance

• High operational efficiency for product import and export

• Meeting Environment, Health and Safety (EHS) performance and expectations

• Sponsoring various projects as part of the Company’s Corporate Social Responsibility serving the wider public/community

• Compliance with RECSO 2012 Agreement

• Provide mutual aid to all member companies in the event of an oil spill

• Compliance with all standards and requirements as applicable (including international finance corporation and World Bank environmental and social guidelines)

• Compliance audits and site visits

• Secure external financing/loans (specifically with regards to BMP) and ability to pay back loans

• Financial, environmental and social performance

• Good financial performance

• Reliability on financial matters

• Good control systems to measure performance, evaluate processes, and limit risks

Suppliers and contractors

Customers (both local and international)

NonGovernmental Organisations (NGO) and academia

Local communities

• Prompt payment of contractual commitments

• Potential social impacts from contractors’ labourer accommodation (specifically for BMP)

• Legal compliance, including EHS and the Ministry of Labour and Social Development regulations

• Provision of medical surveillance of workers

• Regular and comprehensive communication process regarding Bapco requirements and expectations

• Uninterrupted supply of finished products

• Availability of the Bapco Wharf for product supply

• Prompt and efficient services

• Legal compliance with EHS requirements

• Use of social media to share information

• Importance of prioritising local employment

• Active involvement in the community, including the construction and refurbishment of services such as public parks and infrastructure (specifically applicable for BMP)

• Research opportunities and knowledge sharing

• Technical training programmes for Bahraini youth

• Environmental monitoring, including air emissions and water effluent, to safeguard public health and protect marine life and fisheries, and effective management of hazardous and non-hazardous waste

• Future employment opportunities, especially for graduates and women

• Sponsoring various programmes as part of community outreach

• EHS awareness programmes

Local industries

• Traffic management, specifically that associated with the Refinery expansion activities

• Optimising services to meet multiple companies’ needs

• Emergency preparedness and mutual aid

• Local employment opportunities

Employees

• A productive and supportive work environment

• Robust non-discrimination policy

• Competitive employee benefits

• Efficient Human Capital services

• Attractive professional development opportunities

• Employee wellbeing programme and routine medical check ups

• Provision of medical facilities, including a fully equipped hospital in Awali

• Consultation on company plans and initiatives

The beautification project enhanced our green spaces, and was extended into our main Refinery complex.

Our Policies

Our key policy commitments, how we ensure compliance with laws and regulations, and our membership associations

2-22 Statement on sustainable development strategy

Refer to the statement made by our most senior decision-makers; H.E. Mr Abdulla Jehad Al Zain, Chairman of Board of Directors, and Dr. Abdulrahman Jawahery, the Bapco Refining CEO on pages 9 and 11.

2-23 Policy commitments

We have a Code of Conduct for all employees, whom we expect to work to the highest ethical standards. Our Code of Conduct also applies to all workers at the BMP site, it is supplied through induction, written instructions and regular/refresher training which help workers to understand and respect the cultural norms in the Kingdom of Bahrain.

Our guiding principles are expected to be followed by all employees and business partners, they go above and beyond compliance with all laws and regulations of the Kingdom of Bahrain that we expect all business partners to adhere to. Our Code of Conduct provides detailed guidance to all employees on avoiding potential conflicts of interest. This includes:

• Conflict of financial or other interests, such as personal interests in organisations with which we have an existing business relationship;

• Political conflicts of interest, which may conflict with activities related to work in Bapco Refining;

• Solicitation or fundraising, which could be perceived as coercive or be potentially unlawful;

• Misuse of position, separating personal interests from work;

• Guidance on gifts and hospitality arrangements in line with applicable laws and regulations and reflecting international good practice; and

• Management of confidential information to respect employee privacy and protect our assets.

The Code of Conduct is published in Arabic and English as both e-copy and hard copy. Employees are required to sign that they have read and understood Code of Conduct with records kept by HC.

2-24 Embedding policy commitments

Our delegated authority cascades from the Board of Directors to the Executive Management, who are responsible for implementing the company vision set by the Board of Directors. Department Managers hold functional accountability across Bapco Refining, each with a team of Superintendents with management responsibility.

The strategy is implemented by the Executive Management, who commission changes in strategic direction through organisational transformation programmes, each with defined objectives and identified accountable senior leader, and sets the Bapco Refining mission statements. The alignment of our mission, vision and values with this strategy are reviewed annually to confirm their adequacy to deliver company strategy. Dr. Abdulrahman Jawahery, the Bapco Refining CEO, signs copies of mission, vision and values to indicate his approval for their communication to the wider workforce.

Each individual is additionally committed to respecting human rights through our Code of Conduct.

Above: Our Code of Conduct

2-25 Processes to remediate negative impacts

We have a documented grievance procedure, which provides a framework to facilitate resolution of any grievances raised by employees and ensures that complainants are free from restraint, interference, coercion or reprisal. Our BMP project also has a dedicated grievance mechanism and communication channels for the public to communicate any feedback and concerns, which include a hotline, email address and an online grievance form.

2-26 Mechanisms for seeking advice and raising concerns

Employees can consult with their supervisor or line manager for additional advice and clarification on ethical behaviours presented in our Code of Conduct. We highly encourage and advise employees, in case of any doubt of breaching one of the principles of the Code of Conduct, to report immediately any concerns to HC.

2-27 Compliance with laws and regulations

We did not have any reported breaches of environmental, social or economic compliance during the current reporting period. We are additionally certified to ISO14001:2015 to ensure rigorous management of environmental compliance tracking.

2-28 Membership associations

We are an active member of several local, regional and international associations that promoted sustainable development. We are pleased to have active role in the following associations:

• Bahrain Health & Safety Society

• British Safety Council

• Campbell Institute

• Centre for Chemical Process Safety

• Energy Institute

• GCC Health and Safety Committee for Oil Refineries & Joint Ventures for Refinery Operating Companies (JVROC)

• Founding Member of Gulf Downstream Association (GDA)

• Gulf Petrochemicals and Chemicals Association (GPCA)

• INJAZ

• Board member of Oil Spill Response Ltd (OSRL)

• Regional Clean Sea Organisation (RECSO)

• Supreme Safety and Health Committee, Ministry of Labour and Social Development

• United Nations Global Compact (UNGC)

• United States National Safety Council

Logos of membership and associations

Bapco Energies Horseracing Cup

Bapco Energies Horseracing Cup was held at Rashid Equestrian and Horseracing Club in Sakhir. The event, consisted of 8 rounds, was attended by H.H. Shaikh Faisal bin Rashid Al Khalifa, Deputy President of the Supreme Council for the Environment, Rashid Equestrian and Horseracing Committee Vice Chairman, Mr. Mark Thomas GCEO of Bapco Energies and CEOs of the Operational Companies.

Bapco Refining Chief Executive Officer Dr. Abdulrahman Jawahery presented the trophy of the third-round to H.H. Shaikh Hisham bin Mohamed bin Salman Al Khalifa and the trophy of the seventhround to H.H. Shaikh Salman bin Mohammed bin Isa Al Khalifa. The third round was won by Vegas Jack, ridden by Neil Callan. The seventh round was won by The Boy Wonder, ridden by Jockey Mia Childs.

Through this support, we showcase our resolute commitment to promoting sports and fostering active women’s participation within the vibrant and culturally significant sporting landscape of the Kingdom of Bahrain.

By integrating the pillars of health, youth, equal opportunities, culture, and the environment into its CSR framework, we ensure a comprehensive approach to sustainability.

Our initiatives underscore the unwavering commitment to being a responsible corporate citizen, generating significant value for the nation, and leaving a profound and positive impact on society as a whole.

Worker Welfare & Living Standards

This

is one of the best that I have visited with respect to the facilities, the way the workers are looked after by management

Throughout the BMP construction phase many thousands of contractors have been accommodated by Bapco Refining in purpose-built facilities close to the Refinery.

Although contractors are housed at several sites across the Kingdom of Bahrain, the majority are accommodated at a purpose-built site close to the Refinery. Subject to regular audit by Bapco Refining stakeholders throughout the BMP construction phase and meeting the highest welfare standards, we are very proud of our ‘engine room’ that has powered the BMP project.

This Special Topic provides insights into our Worker Welfare and Living Standards, and the complex logistical operation that sustains our worker accommodation.

Size and Facilities

Covering an area of 324,000m2 (80 acres), the camp is designed to accommodate just over 8,000 workers in air-conditioned multi-occupancy bunk rooms. Whilst the majority of the camp area is devoted to the accommodation, it also includes: a mosque, camp clinic, money transfer branch, convenience store, gym and recreation area, cafeteria and laundry.

campaigns and screening of potential health problems. An ambulance stationed on-site provides rapid emergency response and transport to nearby hospitals if the need arises.

The money transfer branch, also inaugurated in 2022, was opened at a ceremony attended by the Assistant Undersecretary for Labour Affairs Mr. Ahmed J. Al Haiki along with representatives from the Bahrain Financing Company (BFC), contractor companies and the TTSJV engineering consortia responsible for the BMP project. BFC is a leading money transfer and foreign exchange company licensed by the Central Bank of Bahrain. For the great majority of contractors who are foreign nationals, the ability to quickly share salaries with families abroad is an important facility and so the money transfer branch is often one of the busiest locations in the camp.

For downtime between shifts the gym and recreation area provide open space within the worker accommodation. Three large outdoor screens are used to televise events such as national sporting fixtures.

The extensive facilities co-located with the accommodation give the worker accommodation the feel of a small town and help those working for several months at a time to maintain a good standard of living.

Dining facilities

With four large mess halls and a total seating capacity of 6,000, the camp kitchens sit at the heart of the worker accommodation and serve approximately 40,000 meals per day. A variety of high-quality dishes are produced on an industrial scale with strictlycontrolled hygiene standards and separate food preparation areas to cater for different religious and dietary requirements. Large temperature-controlled

buildings store the several tonnes of fresh produce that are used daily in the rotating menu of dining options prepared by the camp chefs. Food is also available for separate purchase and takeaway outside of main dining hours.

Greenery and planting

Extensive planting of vegetation has been undertaken to improve the visual amenity of the camp. The main thoroughfare has hedgerows and grassy verges. Trees have been planted at locations throughout the camp.

Worker welfare

Many alternative communication channels are provided for contractors to raise any concerns with the camp management team. There is an initial HC induction process and employee service centre that oversees personnel administration. Weekly welfare meetings are held with contractor representatives and there is a larger monthly welfare committee meeting held to discuss matters arising and resolve grievances, if any. The camp management instigate a monthly employee feedback survey using several metrics. We are delighted to receive consistently positive feedback overall with over 90% of respondents indicating 'good' or 'satisfied' overall feedback on the survey outcomes. We are transparent with our stakeholders on the completed survey as an aspect of the camp oversight that is subject to regular audit.

VIP Visits

We have been honoured to have many dignitaries visit the worker accommodation. The Minister of Labour H.E. Jameel bin Mohammed Ali Himaidan has visited to tour the camp and interact with some of the contractors.

Ambassador Piyush Srivastava from the Embassy of India accompanied by Mr Ahmed AlHaiki, Assistant Under Secretary, Ministry of Labour & Social Development visited the worker accommodation to express their satisfaction at the various facilities for welfare of staff and workers. A delegation from the Embassy of Nepal has similarly visited to thank the Government of Bahrain for their support and the high standards of welfare provided to contractors.

Women Operators

Operators work on our 'front line' to oversee the day-today operation of our Refinery, from in-field monitoring of gauges, to taking of samples for checks of product quality, and to supervision of the refining process from the control room. The work can be demanding and requires in-depth knowledge of the equipment located on the many gantries and walkways across the Refinery. Hours can be antisocial (we operate three shifts each 24 hours) and continued vigilance is needed to ensure that the highest standards of safety are maintained.

We are therefore delighted to welcome our first cohort of qualified female operators who will be working on different process units across the Refinery. Aysha Alahmed, Fatema Ali, Munira Almalood, Zainab Alghars and Zahraa Aleskafi (below, left to right) all studied either Electrical or Chemical Engineering at the University of Bahrain and were selected to join Bapco Refining after passing our rigorous selection process. Before setting foot inside the Refinery there were English-language examinations, engineering aptitude tests and physical tests to pass (climbing ladders to work on equipment at height is demanding). All potential operators must also pass our four hour COBRA test, which simulates plant control and requires the candidate to respond under pressure maintaining productivity by operating simulated plant equipment in a multitasking environment.

As a demanding role that has been traditionally male-dominated, the women operators have had a certain satisfaction in proving to their male colleagues that they are more than capable of handling any tasks given to them. During their initial months as

Assistant Operators prior to qualifying as Area Outside Operators (the junior position in a career path with eventual promotion to Head Operator) they have worked all three shifts, including working at night. They work to a schedule with tasks that include valve isolation, nitrogen purging of lines (a task undertaken prior to maintenance to flush any flammable vapours that may remain after a line has been drained) and sample collection. Activities are completed throughout the day and night - for example sampling may be conducted during the night shift to be ready for our laboratory to complete their product quality testing during the day.

Our operator training is continuous and thorough. During the initial months of working on a process unit the trainees are expected to build a comprehensive understanding of the various systems that they will eventually be expected to monitor - perhaps 30 separate control systems. At the end of each month the Assistant Operator is tested by a senior qualified operator to understand their knowledge and competence in their assigned process unit.

Many wonder why women apply for such a tough role when there are a wide variety of other opportunities for women across Bapco Refining? The women commented that, as an operator, you are privileged to understand the many details that allow you to build a complete picture of the technologies used by Bapco Refining. This creates strong job satisfaction and provides an excellent foundation for future careers. It has been a pleasure to speak to our first cohort of women operators and we are sure, with their success, that many other women engineers will be following in their footsteps in the future.

As a woman engineer, grab the opportunities presented to you because you will succeed

Our Business

Customer Standards

Ensuring Quality - Page 67

Be Prepared

Emergency Preparedness - Page 71

EHS Week 2023/24

EHS Events - Page 74

Cybersecurity

New material topic - Page 79

Governance & Ethics

The systems, rules, practices, and processes by which we ensure the interests of our business stakeholders are in balance

3-3 Management of material topics

We have a Code of Conduct that describes the company policies that employees must adhere to.

We have a dedicated internal audit team that uses procedures based on the requirement of the “Standards for the Professional Practice of Internal Auditing” and the “Code of Professional Ethics of the Institute of Internal Auditors”. Internal audit processes verify the effectiveness of risk management, control and governance processes. The internal audit team reports functionally to the Bapco Refining Audit and Risk Committee of the Board of Directors and administratively to Dr. Abdulrahman Jawahery, the Bapco Refining CEO.

Compliance with Business Continuity, ISO 22301:2019, is verified by the Integrated Management System audit team, who are responsible for the internal auditors and for annual review of the Business Continuity Management process. In addition we have an external oversight on annual basis to ensure maintaining the ISO 22301:2019 certificate.

205-01 Operations assessed for risks related to corruption

Risks related to corruption are within Bapco Refining’s audit protocol for their evaluation of operational activities. All of Bapco Refining’s operational activities are assessed for this risk.

205-02 Communication and training about anticorruption policies and procedures

Bapco Refining’s employees adhere to our Code of Conduct. Induction training is completed for all employees on the Code of Conduct. All employees receive a copy of this booklet as part of the onboarding process.

205-03 Confirmed incidents of corruption and actions taken

There have been no confirmed incidents of corruption during the current reporting period.

206-01 Legal actions for anti-competitive behaviour, anti-trust and monopoly practices

There have been no reported incidents of the above legal actions during the current reporting period.

Customer Standards

Assurance of legal compliance with relevant legislation governing product quality standards, including the mechanisms by which EHS-related standards are addressed across the product life cycle

3-3 Management of material topics

Ongoing review of conformity to product requirements ensures that customer requirements for supply of products to agreed specifications are met in a timely and efficient manner.

Bapco Refining has defined mutually acceptable processes for communicating effectively and efficiently with its customers and other interested parties. The processes ensure adequate understanding of the needs and expectations of its interested parties, and for translation into requirements for the organisation. These processes include identification and review of relevant information, and are required to actively involve customers and other interested parties.

Examples of relevant process information include:

• Requirements of the customer or other interested parties;

• Market research;

• Contract requirements;

• Competitor analysis; and

• Statutory or regulatory requirements.

Bapco Refining requires its management to have full understanding of customer requirements, or other interested party, before initiating any action to comply. This understanding and its impact should be mutually acceptable to the participants.

The potentially hazardous nature of our hydrocarbon products requires strict adherence to the relevant national laws and international guidelines on safe production, storage, local distribution and export. We test for product quality at our onsite Refinery Laboratory to ensure that our products meet the required customer specifications and comply with applicable regulations.

We issue a Safety Data Sheet (SDS) for all our international products conforming to the European Commission Regulation (EC) No. 1907/2006 for the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), Annex II.

We maintain a comprehensive suite of standards governing product quality and safety which include:

• Risk assessment and hazard identification;

• Evaluation of product environmental impact;

• Occupational health and safety;

• Safety signs and signals and chemical classification and labelling;

• Medical surveillance for occupationally exposed workers; and

• Individual safety standards for hazardous compounds, such as for hydrogen sulphide (H²S).

Where applicable, our company standards use the United Nations Globally Harmonised System for the Classification, Labelling and Packaging of Chemicals (Amendments to Secondary Legislation) Regulations 2015.

416-02 Incidents of health and safety non-compliance

There were no non-compliances with regulations and voluntary codes during the reporting period.

417-01 Requirements for product and service information and labelling

All Bapco Refining products that are considered hazardous under national and international laws are subject to labelling using SDS, detailing the composition, safety measures, handling and storage, physical and chemical properties, stability and reactivity characteristics, toxicological and ecological properties, disposal considerations, transportation and other regulatory information.

416-01 Assessment of the health and safety impacts of product and service categories

We provide systematic and rigorous control of environment, health and safety across the life cycle of our products (refer to table below).

417-02 Incidents of non-compliance concerning product and service information and labelling

There have been no recorded incidents of noncompliance during the reporting period.

Life cycle of our products by activity

Product concept

417-03 Incidents of non-compliance concerning marketing communications

There have been no recorded incidents of noncompliance during the reporting period.

Research

Bapco Refining produces various hydrocarbon products from the refining of crude oil. New products are selected based on market demand but with careful consideration of the environmental, health and safety impacts associated with their production and use.

This includes evaluation of product environmental impact associated with refining activities during normal, abnormal and emergency situations and identification of control measures to prevent or mitigate identified impacts. It would not be possible to obtain the relevant licenses to supply our products without the rigorous environment, occupational health and safety and process safety management systems which are implemented by Bapco Refining.

Once the required product specifications have been agreed with customers, developed products are not subject to additional research and development.

Certification Additional product certification is not required. However, Bapco Refining is certified to ISO 9001:2015, ISO 14001:2015, ISO 22301:2019, ISO 45001:2018, and ISO 55001:2014.

Production

Marketing & distribution

Disposal & recycling

Refining activities are tightly controlled through the identification of Fire, Lightning, Explosion, and Act of God risks and the associated safety critical elements that mitigate loss of containment or other accident scenarios. Our process safety management system helps mitigate loss of containment events that can lead to employee injury, environmental damage or asset damage.

Our ISO 45001 Occupational Health and Safety Management System is used to prevent or mitigate hazards leading to employee harm.

Our product EHS risks are communicated to our customers through SDS conforming to the requirements of Annex II of the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulations.

Our SDS include relevant information on safe disposal and recycling, where applicable.

Emergency Preparedness

Our ability to effectively mitigate potential consequences of an incident to people (community and employees), the environment and company assets and reputation, and enables an efficient resumption of normal operations

G4 Disclosure Management Approach (DMA)

Emergency preparedness planning and response

Crisis and Emergency Response Plan (CERP)

The CERP delivers an Incident Management System (IMS) based on the incident command system framework that is widely used worldwide. ICS is a standardised all-hazards incident management concept that incorporates a set of proven organisational and management structure, terminology, processes and procedures. The CERP incorporates guidance issued by various organisations such as the International Petroleum Industry Environmental Conservation Association (IPIECA) and Oil and Gas Producers Joint Industry Project (2014), to learn from previous incidents and improve our emergency response plans.

The purpose of the CERP is to:

• Describe the expectations, scope and content of our IMS;

• Provide guidance to Emergency Response Teams, Incident Management Team (IMT), Crisis Management Team and those supporting them for the response to, and control of an emergency, incident or crisis associated with our facilities or personnel;

• Explain the response organisational structure, its functions and the roles and responsibilities of key personnel;

• Define response team notification and activation procedures; and

• Describe the planning processes for, and implementation of, emergency, incident and crisis management.

CERP has a scalable response depending on incident type and severity, comprising:

• Level 1: On Scene Commander and Emergency Response Teams ‘Operational Response’;

• Level 2: IMT ‘Tactical Response’; and

• Level 3: CMT ‘Strategic Response’.

The three response levels are designed to ensure a standardised approach to CERP between organisations. They have the capability of expanding, contracting or substituting expertise within the response organisation to match the complexities and demands of single, multiple or complex incidents.

Our Integrated ‘All Hazards’ Approach

A key component of our ‘All-Hazards’ approach to incident management is to provide an effective organisation with the necessary functionality and connectivity to deal with any potential emergency that endangers people, the environment, company assets or business reputation. It is a commitment made in the best interests of our employees, customers, shareholders and the wider society.

Fire Drill Preparedness

Bapco Refining conducts building and industrial fire drills to prepare for incidents. Our building fire drills check preparedness of employees to respond in the event of an alarm. Our industrial fire drills are carried out in process units within the Refinery, Sitra Tank Farm, Marketing Terminal and Wharf. The drills are used to test firefighting equipment and the capabilities of fire teams to cope with the varied scenarios that might be encountered within Bapco Refining facilities.

Oil Spill Contingency Plan (OSCP)

The OSCP incorporates tiered preparedness and response in accordance with international best practice, consistent with the 1990 International Convention on Oil Pollution Preparedness, Response and Cooperation. The tiered approach based on ICS offers structure to oil spill response arrangements. The OSCP supplies our Oil Spill Response Team with the response strategies required during an oil spill response.

For small (Tier 1) spills we have a dedicated oil spill response team and an oil spill response equipment warehouse located at the Refinery and Wharf, which contains specialised oil spill clean-up equipment, such as absorbent pads, booms, skimmers, etc. For larger (Tier 2 and Tier 3) spills, we are members of OSRL, the largest international industry funded cooperative for effective response to oil spills. Bapco Refining is also a founding member of RECSO, established in 1972 with the concept of mutual aid. RECSO is one of the oldest environmental cooperatives in the world and its members include all the major oil companies in the GCC.

The IMT uses the ICS for the command, control and coordination of the emergency response to an oil spill. ICS has been widely adopted and is recommended by IPIECA guidelines.

We maintain preparedness for oil spills through an extensive training programme, including both operational and strategic elements involving practical deployments and table top exercises. Our personnel also receive internationally recognised training, such as the International Maritime Organisation accredited Oil Preparedness, Response and Co-operation Levels 1, 2 and 3 training courses.

EHS Week

SDG Impact

Bapco Refining organised the Environment, Health, and Safety (EHS) Week activities from August 2023 to January 2024. During this period, several activities and events took place around the Kingdom of Bahrain on the theme of corporate social responsibility and sustainability.

During August 2023, 4 EHS summer camps were held for Bapco Refining employees. The camps are designed to create a spirit of leadership and selfreliance in conditions different from normal working environments.

The EHS event at City Centre Bahrain occurred in November 2023 and was aimed to raise public EHS awareness. Interactive activities were planned covering topics such as beach clean-up and hazardous chemicals.

During the EHS Week 2023, 3 rounds of booklets were distributed to Bapco Refining employees which cover different topics related to safety, health, wellbeing and environment. The booklets are geared to both children and adults, providing relevant information.

A Family Walk Day event promoting a healthy lifestyle was organised as part of EHS Week. The event was held in January 2024 in Awali and involved a 1 km walk, which started from the Bapco Club and ended at Princess Sabeeka Park with interactive fun activities.

Several other activities and outreach were held as part of the EHS Week 2023 roadmap calendar such as school visits, social outreach, ladies Refinery & BMP tour, EHS Angel, Taqat event, etc.

The EHS Week 2023 ended with the EHS Family day event featuring educational booths and exciting games. The event was attended by employees, their families, Bapco Energies Group CEO, Mark Thomas and Bapco Refining CEO, Dr. Abdulrahman Jawahery.

Asset Integrity

Asset Integrity supports sustainable development by reducing the risk of harm to personnel and the environment

G4 Disclosure Management Approach (DMA) Asset Integrity and Process Safety

Our asset integrity management framework is documented in Bapco Refining’s Mechanical Integrity Programme Overview Standard, which describes the programme scope and departmental responsibilities. We have a risk-based inspection standard for fixed assets, which provides Bapco Refining-wide guidelines to ensure that the risk-based inspection processes are consistently conducted to the required standard. The basic premise of risk-based inspection is to prioritise assets whose failure leads to highest risk of loss of containment events.

We have further specific standards for various subdisciplines requiring asset integrity processes. These include standards for equipment scheduling and inspection, maintenance workflows for workshop activities, repair of relief valves and rotating equipment, and the provision of equipment and tools.

We conduct two types of maintenance for asset integrity:

Preventative maintenance is conducted at a predetermined interval to address age related failures. Preventative maintenance includes lubrication, inspection of wearing parts and identification of damaged or poorly adjusted components. Repair work that is identified as being necessary during preventative maintenance can range from adjustment to complete overhaul of an asset that will normally be carried out within our workshops.

Predictive maintenance is the application of measurement or testing techniques designed to detect likely future failures, to allow planned repairs before equipment failure. This provides information on the current condition of one item of equipment or a whole system to allow the timing and extent of preventative or corrective maintenance to be decided. We select predictive maintenance intervals based on engineering analysis of the probability of failure ondemand and likely time to failure.

We undertake regular active monitoring of maintenance activities to confirm performance standards, with any deviation from the standard rectified by actions assigned to relevant staff. Internal audits periodically monitor this process against the agreed risk based inspection and maintenance schedule.

Asset

Integrity Defined Key Performance Indicators (KPI)

We have defined KPIs for monitoring the effectiveness of our asset integrity programme. KPI targets are reviewed periodically. The KPIs include the monitoring of safety device failures, mean time between failure of rotating equipment (pumps, compressors, etc.) and losses of containment. Each KPI has an annualised target and overall objective to achieve the required performance.

OG13 Number of process safety events by business activity

Our process safety metrics are based on accepted global industry practice such as American Petroleum Institute (API) 754 ‘Process Safety Performance Indicators for the Refining and Petrochemical Industries’. API proposes a range of indicators for loss of containment, generally designated as Tier 1 to Tier 4, with Tiers 1 and 2 representing the most severe indicators. The GRI G4 Standard requires us to report the number of Tier 1 and Tier 2 process safety events that occurred during the reporting period. Refer to the Data Supplement D-9 on Page 161 for the number of Tier 1 and 2 process safety events.

Cybersecurity

Cybersecurity is a critical aspect of our sustainability strategy, as we strive to protect our assets, operations, data, and reputation. Keeping Bapco Refining free of security vulnerabilities and potential security risks is essential for the whole business

3-3 Management of material topics

Integrated Cybersecurity Governance

We have established an integrated governance framework that aligns our cybersecurity strategy with our business objectives and risk appetite across all our operations. Our framework consists of the following elements:

• A cybersecurity steering committee that oversees and approves the cybersecurity strategy, budget and initiatives, and reports to the board of directors;

• A cybersecurity function that develops and implements the cybersecurity policies, standards and controls, and coordinates the cybersecurity activities across the organisation;

• A cybersecurity operations centre that monitors and responds to the cybersecurity incidents and threats, and provides the cybersecurity awareness and training to the users and executives; and

• A cybersecurity risk management process that identifies, assesses, and mitigates the cybersecurity risks, and reports on the cybersecurity performance and compliance.

Policies and Commitments

Our internal IT Security Framework of standards and policies is continuously aligned and managed. It consists of approximately 40 regulatory documents in total and is harmonized with the NIST-CSF and ISO 27000 series of recommendations for IT controls and domains, and the cybersecurity baselines issued by the Bahrain National Cyber Security Centre (NCSC).

Cybersecurity Programme

Preventative, Technical, Detective, and Reactive Capabilities

We lower the risk of security breaches by leveraging available tool sets, individual detection strategies, and response plans to maintain a strong perimeter for our physical and our cloud environment.

Technical housekeeping measures ensure a solid foundation with up-to-date hardware and software, as well as adequate information security processes. We implement security patches and guidelines to provide consistent hardware and software life cycles. Detective and reactive measures are designed and executed on an ongoing basis to create transparency around existing risks, security gaps, and vulnerabilities.

Training and Awareness

We recognise that our employees and executives are the first line of defence against cyberattacks, and that they need to be aware of the cyber threats and best practices to protect themselves and the organisation. Our DEFEND cybersecurity training and awareness programme includes mandatory e-learning sessions including knowledge check, topic-based videos, classroom and online training sessions, anti-phishing email campaigns, a “Cybersecurity Portal” platform to share cybersecurity news via the intranet and internal blog posts.

By following the “DEFEND” principles, we aim to enhance our cybersecurity awareness and resilience, and reduce our cybersecurity risks and impacts.

Business Continuity Plans and Incident Response Procedures

Bapco Refining tests its business continuity plans and incident response procedures annually through cyber emergency exercises. The cyber emergency exercises focus on specific, realistic threat scenarios and test related mitigation procedures and processes.

Key actions during the reporting period

• We have continued to operate the cybersecurity training awareness programme DEFEND for our employees.

• We have continued to run a consistent cybersecurity programme that bundles all projects related to IT and OT security, which lead to an increased level of resilience and preparedness against cybersecurity threats.

• We ran comprehensive IT/OT security assessments and penetration tests on our networks and platforms.

• We started implementing a data classification and data labeling tool that will enable us to apply relevant security policies and controls to protect data according to its confidentiality level.

• We continued to invest in the future generation of cybersecurity experts by supporting the education, training, and development of our employees, as well as collaborating with academic institutions and industry associations.

Outlook

Bapco Refining is dedicated to continuously improve its cybersecurity posture, increase the information technology and digital maturity level, to further enhance cyber defence capabilities and cyberthreat resilience, and to be certified according to the ISO 27001 standard.

We believe that cybersecurity is a shared responsibility and a key enabler of our sustainability, and we will continue to invest and innovate in our cybersecurity capabilities and solutions, and work with our stakeholders and partners to create a secure and sustainable future for our industry and society.

418-01 Substantiated complaints concerning breaches of customer privacy and losses of customer data

We are committed to respecting the privacy and protecting the personal data of our employees, customers, suppliers, partners, and other stakeholders. We follow the data privacy and data protection laws and regulations applicable to our operations, such as the Bahrain Personal Data Protection Law (PDPL) or the General Data Protection Regulation in the European Union. We have implemented a data compliance model that defines our data privacy principles, policies, and procedures, and we also conduct data privacy assessments and audits to monitor and improve our compliance level and address any gaps or issues.

There have been no recorded incidents during the reporting period.

Our Environment

25.7TJ Saved

Electricity reduction - Page 86

CFC-11 Reductions

0.021 tonnes since 2020 - Page 93

Water Consumption

Revised data & trends - Page 95

10,804 Mangroves

Planted in 2022/23 - Page 103

Energy & Climate Change

We continually improve our energy efficiency through technical upgrade of our facilities and optimising the way in which those facilities are operated. Some of these initiatives are outlined in this section

3-3 Management of material topics

Our Energy Conservation Policy aims to reduce overall energy consumption to conserve natural resources. Bapco Refining has established an Energy Committee with dedicated Energy Champions to focus on energy conservation through monitoring energy use, raising awareness and implementing energy efficient programmes. We use solar energy to offset our consumption of fossil fuels. Solar energy generated onsite by us supplies our Waste Water Treatment Plant (WWTP) and the buildings in the Awali township.

It is our responsibility to:

• Develop energy management programmes with the objective of improving energy efficiency;

• Emphasise energy conservation as a factor in the design of new facilities and during operation of all assets; and

• Encourage employee awareness of energy consumption within the home and workplace.

To improve our energy efficiency we:

• Operate existing facilities efficiently until such time that there is an economic justification for capital investment to reduce the energy consumption;

• Adopt initiatives that reduce the environmental impact of energy production within the Kingdom of Bahrain;

• Participate in various committees at the national level focused on energy conservation and development of renewable energy to meet Bahrain’s national target of 5% Renewable Energy by 2025 and 10% by 2035;

• Develop and coordinate energy conservation and optimisation strategies within the company;

• Use innovative and efficient technologies that are economically justifiable; and

• Ensure that all employees are aware of the importance of energy conservation through focused campaigns and programmes.

To fulfil our responsibilities under the Energy Policy, Bapco Refining established an Energy Group, as part of the Technical Services Department, and an Energy Committee which is formed by a multidisciplinary team with members from diverse departments. The

Energy Group and the Energy Committee focus on energy conservation throughout the Refinery via projects and initiatives considering energy reduction, efficiency improvement, raising awareness throughout energy campaigns. We hold broad technical competency reflecting disciplines from across the Refinery.

We have procured and use the latest software applications that allow us to conduct Refinery-wide energy balances, providing Bapco Refining with the optimum solutions to minimize energy consumption (and hence operating cost) for the same refining capacity.

Energy Champions work directly with day-to-day field activities to promote and enhance energy conservation culture. Our energy conservation awareness is not just limited to within the company, but also extended to our community. We participate in safety weeks targeted to the public, visiting schools and making presentations.

201-02 Financial implications and other risks and opportunities due to climate change

Bapco Refining is potentially impacted by climate change both through the physical risks for our industrial processes and the changing regulatory conditions under which we operate.

Physical risks

Climate change increases the potential physical risks of operation. We must consider the impact of potentially severe weather on both the design of our process units and the training of personnel who may encounter more extreme weather. Operational constraints such as wind loading are routinely considered within the design and operation of our facilities. We have invested in augmented reality training for personnel who have to work exposed to weather conditions, for example those working at height. Work would additionally not be undertaken if environmental conditions were unsafe.

Climate change also leads to increased ambient sea water temperature. Bapco Refining requires water as the cooling medium to the various Refinery units, for utilities requiring a supply of water, and to make up (or replace) water lost during evaporative cooling. Both seawater and groundwater are used by Bapco Refining in our refining activities. We have comprehensively redesigned our cooling water processes to support BMP and have considered projected seawater temperature rises within our design criteria. These considerations include the return water temperature to ensure that we will continue to meet the statutory requirements for water discharge set by SCE.

Regulatory risks

The world economy is fundamentally shifting in its view of fossil fuel consumption as nations seek to limit the impacts of climate change. We are initiating several transformation programmes to better align Bapco Refining to meet all future challenges. BMP is our medium-term response to changing economic need, improving both our product slate (i.e. the range and commercial value of our petroleum products) and the energy efficiency with which these products can be produced.

302-01 Energy consumption within the organisation

Bapco Refining facilities require fuel gas and electricity to function. Bapco Refining purchases fuel gas and a portion of its electricity. Also, it has the ability to generate its own electricity and process gas. Refer to Data Supplement D-2 for our data trends. The engineering basis for power consumption is thermal for fuel gas and electrical for electrical power. The fuel gas flowrates are converted into thermal energy equivalents using the calculated Lower Heating Value of the fuel gas. Gas flaring (except for purge and pilot gas) is not included in the total fuel consumption. Refer to Data Supplement D-2 on Page 154.

302-02 Energy consumption outside of the organisation

For the current reporting period, data covering the energy consumption outside the organisation is not available.

302-03 Energy intensity

Bapco Refining calculates energy intensity using the proprietary Solomon Energy Intensity Index®, and therefore cannot publish these data.

302-04 Reduction of energy consumption

Throughout the year 2022 and 2023 Bapco Refining has taken several initiatives to reduce its energy consumption that include:

• Optimising Refinery mass loss performance which led to 28.33 TJ of energy saving;

• Optimising of excess oxygen at process heaters resulted in reducing energy loss by 11.08 TJ in 2022 and 22.82 TJ in 2023;

• LED bulbs replacement in Unifiner / Platformer unit leading to a 61.6% reduction in energy consumption compared to the previous Mercury Vapor Lighting system; and

• Managing steam traps to reduce steam losses, the estimated CO2 Emissions post all steam trap repaired due to reduction steam losses is equivalent to 140.32 TJ

The output of these initiatives are reflected by the data reported in Data Supplement D-2 on Page 154.

302-05 Reduction in energy requirements of products and services

This Disclosure concerns the reduction in energy requirements of sold products and services and therefore does not apply to Bapco Refining.

Energy Conservation Campaign

SDG Impact

The Energy Conservation Campaign was launched on 19 November 2023 and it ran for 4 weeks of activities. More than 900 employees participated in this campaign which covered 4 energy themes:

• Week 1 - Lighting Energy Conservation

• Week 2 - Indoor Thermal Control

• Week 3 - Office Equipment

• Week 4 - Water Conservation

The campaign aimed to raise awareness among the employees and to learn the importance of their individual actions on energy conservation. The campaign resulted in decrease of energy consumption which is highlighted in this report.

Lighting Energy Conservation

Annual Consumption of Lighting is about of Non-Process Electricity Consumption

LED Bulbs

• Consumes 90% less energy compared to conventional bulbs.

• Less heat loss compared to conventional bulbs.

• Average lifespan 30,000 to 50,000 hours.

• Easily recyclable (no Mercury, no Lead).

CFL Bulbs

• Uses 75% less energy than a traditional incandescent bulb.

• Contain trace amounts of mercury and should be properly recycled.

• Average Lifespan 8,000 to 10,000 hours.

Incandescent Bulbs

• Gives off 90% of energy as heat, not light.

• Average Lifespan 750 to 2,000 hours.

Lamps Usage Optimization

• Maximize utilization of natural sunlight during daytime.

• Use higher efficiency LED lamps.

• Switch off lights while leaving a room.

• Use light colored interior to reduce energy consumption.

• Minimize usage of exterior lamps.

• Install motion sensing lights in common areas.

• Use daylight sensing lights.

Air Emissions

Through our energy efficiency initiatives and renewable energy generation we aim to reduce our greenhouse gas emissions, therefore lower our impact on global warming

3-3 Management of material topics

We prepare an annual GHG inventory report to determine our carbon footprint. Our Refinery includes many important energy saving technologies that help to further reduce our GHG emissions. We have improved the energy efficiency of our Refinery heaters, replacing three old heaters with a single higher efficiency heater at a cost of US $26.5 million. Our Low Sulphur Fuel Oil complex captures up to 200 tonnes per day of CO2, from the No. 1 Hydrogen Plant waste gases, and routes it to a plant operated and owned by a third party for reuse. Our solar project makes a significant contribution to renewable energy and is the first of its type in Bahrain. We also contribute to carbon emissions offset through our Mangrove Nursery and planting project, and by maintaining the Princess Sabeeka Park at Awali.

305-01 Direct (Scope 1) GHG emissions

Bapco Refining has been recording its Scope 1 and Scope 2 GHG emissions since 2014 to support the compilation of the Bapco Refining annual GHG inventory report. Scope 1 emissions refers to direct emissions from assets owned by or controlled by the company, such as process units and company vehicles. The methodology used to prepare the Scope 1 and 2 GHG emission data is based on the 2006 IPCC guidelines, the IPCC inventory software (version 2.691, January 2020), IPIECA petroleum industry guidelines for reporting greenhouse gas emissions (2011) and the API compendium of greenhouse gas emissions methodologies for the oil and natural gas industry. Refer to the Data Supplement D-3 on Page 155 for the Scope 1 CO2 equivalent emissions by source and year.

305-02 Direct (Scope 2) GHG emissions

Scope 2 GHG emissions refer to indirect emissions from energy consumption that are a consequence of asset activities, but which occur at companies outside of the organisational boundary, e.g. emissions attributed to electricity imported for operation of the Refinery and other facilities. Refer to the Data Supplement D-3 on Page 155 for the Scope 2 CO2 equivalent emissions by source and year.

305-03:

Other indirect (Scope 3) GHG emissions

Scope 3 GHG emissions refer to all other indirect emissions that result from a company’s activities that are not Scope 2 emissions (e.g. contracted transport). Bapco Refining currently retains Scope 3 records for sold products in both local and export markets. Bapco Refining does not currently report on Scope 3 emissions but will keep under review for future reports.

305-04:

GHG emissions intensity

Bapco Refining estimates its emissions intensity in tonnes of CO2 equivalent (CO2e) per unit of Utilised Distillation Equivalent Capacity (UDEC), the latter a standardised measure of throughput. Refer to the Data Supplement D-3 on Page 155 for GHG emissions intensity.

305-05: Reduction of GHG emissions

Bapco Refining’s initiatives for energy reduction listed under 302-04 will be the main driver for GHG emissions reduction. In addition, Bapco Refining’s community projects have had a positive impact on the GHG emissions reduction:

• 2,504 tonnes CO2/year calculated from Princess Sabeeka Park;

• 7.7 tonnes CO2/year from the Eker garden rehabilitation; and

• 3000 tonnes CO2/year from the 5 MWp BDSEPP.

305-06: Emissions of ozone-depleting substances (ODS)

Since 2020, Bapco Refining has recharged or replaced all refrigeration and air conditioning equipment containing R-12, substituting with refrigerants that have a low ozone depletion potential (R-22) or no ozone depletion potential (R-410a and R-407C). Refer to the Data Supplement D-3 on Page 155 for the emissions of ODS by year.

305-07: Nitrogen oxides (NOx), sulphur oxides (SOx), and other significant air emissions

Refer to the Data Supplement D-3 on Page 155 for the total quantity of SOx/NOx emissions by year.

A substantial reduction in our Scope 1, Scope 2 and ODS emissions has been achieved since 2020

Water Withdrawal & Consumption

Water Withdrawal and Consumption refers to the quantity of and sources of the water used in our operations

3-3, 303-01 Management of material topics

We use water as a coolant throughput for Refinery processes to achieve the desired temperature for process operations. We monitor the return water temperature to meet the statutory requirements for water discharge. We try to minimise our groundwater abstraction, limiting its use to the Refinery cooling towers make-up where seawater would otherwise potentially cause corrosion.

303-03 Water withdrawal

The GRI Standards define ‘fresh water’ as water with Total Dissolved Solids (TDS) of less than 1,000 mg/l. Other sources of water with TDS greater than 1,000 mg/l are referred to by the GRI Standards as ‘other water’.

by source during 2023

Groundwater is referred to as ‘well water’, which is supplied to the Refinery cooling towers as make-up water. The withdrawal flowrate is calculated based on the approximate circulation rates, considering evaporation and windage losses within the cooling towers. No changes have occurred for the estimated cooling tower circulation rates, therefore the calculated reported numbers are constant from 2018 to 2023.

Sea water withdrawal rates are based on the pump capacities in the High Lift Pump House, which supplies sea water as the cooling medium to the various Refinery units and also as feed to the desalination units in the Utilities Plant. Refer to the Data Supplement D-4 on Page 156 for the total water withdrawal by source.

303-05 Water consumption

Groundwater consumption is assumed to be equal to the groundwater withdrawal due to the absence of flowmeters. As indicated in disclosure 303-03, the calculation is based on the approximate circulation rates, considering evaporation and windage losses within the cooling towers.

Sea water is fed to the desalination units and a reverse osmosis plant to produce flash evaporated distillate, which serves as boiler feed water to the steam generators/boilers and as feed to the Drinking Water Plant. The data is based on the daily and monthly average flowmeter readings. Refer to the Data Supplement D-4 on Page 156 for the total water consumption by source.

Withdrawal
Consumption by source during 2023

Effluent Management

The water we use may become contaminated as it passes through our processes. Through the correct treatment and disposal of our waste water we can prevent pollution of our environment

3-3, 303-02 Management of material topics

Bapco Refining has developed company standards for its effluent management that comply with Ministerial Order No. 3 of 2021 with respect to Environmental Standards (Air and Water). The existing Refinery discharges comprise cooling water, process waste water, site drainage and domestic type effluent (from offices). We use a state-of-the-art advanced membrane bioreactor technology for the treatment of its effluent, combining membrane ultra-filtration of solids with biological waste water treatment. The technology is recognised internationally as offering superior energy efficiency compared to other treatment processes. The membrane bioreactor technology is used within our WWTP and Sewage Treatment Plant (STP).

The WWTP is a 19,108 m3 per day facility for treating process waste water to meet discharge limits prescribed by the SCE. Process effluents and drainage water that may contain oil or other contaminants are routed, through a dedicated oily water sewer network, to a primary treatment system comprising oily water separation and induced air flotation. The effluent then passes through the WWTP that uses membrane bioreactor technology, which in turn reduces the organic loading and nitrogen content and removes the dissolved contaminants from the process effluents before discharge to sea via the main outfall.

The STP is a 1,000 m3 per day facility for treating effluent from offices and accommodation blocks. The STP uses dissolved air flotation, the membrane bioreactor biological treatment and a sludge treatment system before discharge to the sea via the main outfall.

303-04 Water discharge

Treated effluent is returned to the sea via the discharge flume in compliance with discharge limits as prescribed by the SCE. Cooling water and ‘reject water’ from the desalination plants is returned to the sea at a controlled temperature and salinity that does not exceed the parameters set by SCE.

Groundwater discharge volume is calculated based on the approximate circulation rates, considering evaporation and windage losses within the cooling towers. Seawater discharge volume is calculated by deducting the sea water consumption volume from the withdrawal. Refer to the Data Supplement D-4 on Page 156 for the total water discharge by source.

Waste Management

Sustainable waste management involves not only reducing and reusing our waste products, but also ensuring appropriate waste re-use, recycling, treatment and disposal. Waste management refers to the methods we use to correctly dispose of our waste

3-3, 306-01, 306-02 Management of material topics

Our management approach prioritises waste elimination, minimisation and re-use followed by recycling, treatment and safe final disposal. Our Hazardous Waste Management Facility (HWMF) was completed in 2006 and was built to US Environmental Protection Agency standards at a cost of US $5.2 million. The HWMF includes a Class 1 Hazardous Waste Landfill with a capacity of 68,000 m3 and a Stabilisation Unit for stabilising leaded legacy waste. The facility is currently being operated by a specialised third-party contractor. This project uses best available technology for the treatment of hazardous waste and significantly improves our ability to recycle this difficult-to-treat waste class, reducing our reliance on disposal of waste that cannot be recycled. We classify the waste generated from our activities into four categories:

• Hazardous waste;

• Non-hazardous industrial waste;

• Domestic and municipal waste; and

• Medical waste.

We have adopted a waste management strategy based on Crittenden (1995) and the UK Environmental Protection Agency (2008), which suggests a hierarchy of waste management: the highest priority will be source reduction, followed by recycling, then treatment and the lowest priority will be waste disposal. All our new projects follow the waste management hierarchy and are supported by a waste management plan. Where relevant and as required by the SCE, we conduct Environmental Impact Assessments for new major projects, to evaluate waste elimination/ reduction options in accordance with our ‘Standard for Environmental Assessment of Engineered Projects’.

We continuously monitor the amount of waste generated by our existing operations and identify opportunities for further waste minimisation. All approved waste reduction proposals are considered within our EMS ISO 14001 programme.

306-03 Waste generated

Refer to disclosures 306-04 and 306-05 for further information on disposal methods. Over the last 5 years, the quantity of hazardous waste generated has increased for reasons associated with BMP excavation, periodic disposal of WWTP membranes, and tank cleaning that generated oily waste during shutdown. Increased oily sludge treatment required for stabilisation in 2023 resulted in a greater quantity of hazardous waste. Refer to the Data Supplement D-5 on Page 157 for the total weight of hazardous and nonhazardous waste by year.

306-04 Waste diverted from disposal

In February 2017, we launched our Waste Segregation and Recycling Programme using colour coded bins for plastics, empty metal cans and paper/cardboard collection. Colour coded cages and recycling boxes are used within the Refinery, Sitra Tank Farm, Marketing Terminal and Wharf. The programme has also been rolled out throughout our Awali offices and Township and BMP offices. Small office paper bins have been purchased and distributed in offices for the collection of paper only. In July 2021, steel recycling boxes were also distributed to offices in Awali including Awali Hospital, which increased the total of deployed bins from 186 to 232. This programme has helped conserve resources and reduce the amount of waste going to landfill on daily basis. Waste diverted from disposal is ultimately less likely to pollute the natural environment. In addition to reduction of greenhouse gases and pollution resulting from sending such waste to landfill, other benefits of this programme include conservation of resources and cost savings.

A total of 264 tonnes of recyclable materials have been collected since the launching of the programme in February 2017. Corresponding savings to date are estimated to be approximately US $15,397 on disposal costs, 235 tonnes of CO2 equivalent and a saving of 5,637 trees. The initiative supports sustainable development through reducing energy and resource use. The programme has helped to challenge existing behaviours around waste segregation and disposal. We believe achieving this change in behaviour is beneficial within the wider community where recycling has not previously taken place.

Waste treatment is the next priority and is carried out to minimise the impact on the receiving environment. We follow SCE regulations to decide on the most appropriate treatment methods and we ensure that the treated waste passes relevant acceptance criteria before disposal. A trial was conducted by a third-party approved recycler and removed approximately 451 MT of oily sludge from our facility, as part of agreeing a contract to remove additional sludge in 2022.

Green School Award

The Bapco Green School Award is a national competition that has been organized by us since 2005. This award scheme encourages Government Secondary School students in Bahrain to come up with innovative environmental projects based on sustainable development principles.

Bapco Refining held the annual Green School Award Ceremony at the winning schools in late March 2023 to honour the winners of the competition for the academic year 2021-2022.

The event was attended by members of Bapco Refining and representatives from the Ministry of Education. The winners were:

• Al Hidd Secondary Girls School won first place for its project “Production of bioplastic from shrimp skin”.

• Isa Town Secondary Girls School won second place for its project “Production of biodiesel from waste cooking oil”.

• Third place went to Saar Secondary Girls School with a project titled “Production of fast compost from organic waste”.

Refer to the Data Supplement D-5 on Page 157 for the total weight of waste diverted from disposable by type, recovery method and year.

306-05 Waste directed to disposal

Waste disposal is our least preferred option. All wastes generated at Bapco Refining intended for disposal are collected, transported, and disposed of in accordance with relevant regulations. Domestic and municipal wastes are stored in waste skips and collected by a third-party contractor for disposal to Askar Municipal Landfill site. Medical waste generated from the Refinery Clinic and Awali Hospital is collected by a third-party contractor for off-site incineration as a final disposal route.

Refer to the Data Supplement D-5 on Page 157 for the total weight of waste directed to disposable by type, disposal method and year.

Biodiversity

Maintenance of the health of an ecosystem is a component of sustainable development, which underpins economic development and prosperity, and helps develop locally distinctive and sustainable communities

3-3 Management of material topics

We thoroughly assess the impact of our projects to evaluate any biodiversity impact. For instance, prior to the start of BMP two assessments were conducted on biodiversity: an Environmental and Social Impact Assessment (ESIA) that focused on the broader potential environmental impact of BMP, and a Critical Habitats Assessment (CHA) which focused specifically on the potential impact of BMP on the biodiversity of the surrounding areas and identified appropriate mitigation measures. In addition, and specifically for BMP, a Biodiversity Strategy Document and Biodiversity Action Plan were produced to ensure the prevention of any adverse impacts on biodiversity that might result from the construction work.

304-01: Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

In 2021 Bapco Refining conducted an ecological baseline study of the Arad Bay lagoon. This baseline study will serve to understand improvements in ecological habitats after Bapco Refining’s efforts in transplanting mangroves in the area. In 2022, Bapco Refining transplanted 485 mangroves across multiple locations: 51 in Ras Sanad; 384 in Arad Bay; and 50 in Ma’ameer Channel. The reason for the low number during this year was due to some nutritional issues with the mangroves seedlings as the seeds initially planted were smaller in size and the seedlings were not growing well. In 2023, we managed to transplant 10,319 mangroves: 7,000 in Ma’ameer Channel east side, 2,350 in Ma’ameer Channel west side, 930 in Refinery Lagoon, and 39 in Ras Sanad. Once the mangrove stands reach maturity, another ecological study will be conducted to assess the changes to the local habitat. Not only will this study serve Bapco Refining but will provide insight to suitable environments for mangrove transplantation, which aligns with the national plan to quadruple mangrove coverage and reach net-zero by 2060.

304-02 Significant impacts of activities, products, and services on biodiversity

With the development of BMP came the requirement to construct a new pipe bridge crossing the Ma’ameer Channel, a protected seawater canal to the East of Bapco Refining’s Refinery, connecting Tubli Bay to the sea South of Bapco Refining’s Refinery. Removal of some 30 mature mangrove trees was a requirement to construct the new pipe bridge crossing. The Ma’ameer Channel is frequented by migratory birds during the winter breeding season in Bahrain. Bapco Refining has pledged to offset the removal of these mangroves and recreate a similar habitat in nearby Ras Sanad Mangrove Reserve in Tubli Bay as well as Arad Bay Reserve in Muharraq.

The marine ecosystem South of Bapco Refining has seen degradation over the past 40 years. Our marine assessment studies which have been ongoing for 40 years indicate that lead and other petrochemical pollutants used in our refining process and which might have contributed to this impact, have decreased significantly. Coral and sea grass loss continues due to the increasing land reclamation and dredging activities outside of Bapco Refining’s direct control. Bapco Refining, however, is an active stakeholder in elevated governmental discussions and continues to raise sustainable, science-based alternatives in discussions of major projects.

304-03: Habitats protected or restored

In coordination with the SCE, Bapco Refining is conducting regular clean-up activities along the shorelines of the Ras Sanad Mangrove Stands. Bapco Refining is also engaged in restoring degraded mangrove stands within Ras Sanad by transplanting new mangrove seedlings grown in Bapco Refining’s dedicated mangrove nursery.

We conducted an Environmental Baseline Study in Arad Bay Reserve prior to commencement of its mangrove transplantation project in the same area. The study aims to assess the ecological baseline in Arad Bay, which will later enable the detection of changes potentially induced by the mangrove transplanting process through examining specific indicator taxa and standard biodiversity indices. The results of this study shall be incorporated in the longterm monitoring programmes to assess the effects of the mangrove transplantation project on marine biodiversity.

Following the baseline study, Bapco Refining undertook a major mangrove transplantation project in Arad Bay Reserve to offset mangrove loss due to the construction of the new BMP pipe bridge in Ma’ameer Channel. The baseline monitoring programme is expected to continue for the next 15 years.

In recent governmental decisions to widen the Ma’ameer Channel, Bapco Refining successfully lobbied to place mitigation measures which ensure construction activities have minimal effect on mature mangrove stands which were planted by Bapco Refining in the past. The mangrove stands are in an intertidal zone close to Bapco Refining’s Outfall area and frequented by sea birds. The widening activities of the Channel will now include culvert pipes to ensure hydrodynamic flow surrounding the intertidal zone and reduce the risk of habitat degradation.

In coordination with the SCE, Bapco Refining is conducting regular clean-up activities along the high level security fence installed at Ma’ameer Channel. The clean-up activities started in January 2021 and have been continuing since then. The clean-up includes the removal of excess algae, debris, general waste and any other material which accumulates along the fence and potentially obstructs the flow of water through the channel. Bapco Refining additionally participates in clean-up activities for the area that are organised by third parties, such as RECSO. These activities align with BMP stakeholder engagement efforts to ensure that the surrounded communities, including the Ma’ameer area, can live in a clean environment with a good quality of life.

304-04 IUCN Red List species and national conservation list species with habitats in areas affected by operations

We have classified the IUCN red list species and national conservation list species with habitats in areas affected by our operations under two level of extinction risk: near threatened and least concern. Refer to the below table which lists all species by level of threat.

Near threatened Species

Bar-tailed Godwit Curlew Sandpiper

Eurasian Curlew

Least concern : Water bird species

Great Cormorant Whimbrel

Western Reef Heron Spotted Redshank

Great White Egret Common Redshank

Grey Heron Marsh Sandpiper

Greater Flamingo Common Greenshank

Black-winged Stilt Terek Sandpiper

Common Ringed Plover Common Sandpiper

Kentish Plover Ruddy Turnstone

Lesser Sand Plover Black-headed Gull

Greater Sand Plover Slender-billed Gull

Pacific Golden Plover Lesser Black-backed Gull

Grey Plover Yellow-legged Gull

Little Stint Caspian Tern

Temminck’s Stint Lesser Crested Tern

Dunlin White-cheeked Tern

Broad-billed Sandpiper Saunders’s Tern

Least concern: Non-water bird species

House Sparrow Collared Pratincole

White-eared Bulbul Bee-eater

Crested Lark Barn Swallow

Collared Dove Common Kestrel

Common Myna Cattle Egret

House Crow Yellow Wagtail

A Journey to Antarctica

Proudly raising the Kingdom of Bahrain’s flag represented a connection between her homeland and the vast expanses of the seventh continent

Dr. Noor Janahi, a Specialist Podiatrist at Awali Hospital, recently embarked on a remarkable adventure to Antarctica, the seventh continent from 26 November till 11 December 2023. This journey allowed her to embrace unique challenges and acquire invaluable experiences in one of the most remote and aweinspiring regions of the world.

Throughout her expedition, Dr. Noor had the privilege of immersing herself in the breathtaking landscapes that Antarctica has to offer. The pristine beauty of the icy terrain and vast stretches of untouched wilderness left an indelible impression on her. The journey allowed her to witness nature’s magnificence in a way that few people have the opportunity to experience.

One notable highlight of Dr. Noor’s journey was the opportunity to proudly raise the Kingdom of Bahrain’s flag in Antarctica. This symbolic gesture represented a connection between her homeland and the vast expanses of the seventh continent. It showcased the spirit of exploration, adventure, and national pride.

Beyond the physical challenges and the acquisition of scientific knowledge, Dr. Noor Janahi’s expedition to Antarctica provided a rare chance for personal growth. The experience fostered resilience, adaptability, and an appreciation for the wonders of nature. It undoubtedly expanded her horizons, both personally and professionally, leaving a lasting impact on her life.

As Dr. Noor Janahi returns from her expedition, she carries with her a treasure trove of memories, knowledge, and a deep sense of appreciation for the natural wonders of Antarctica. Her journey serves as a testament to the power of exploration, the resilience of the human spirit, and the importance of preserving the Earth’s most remarkable and fragile environments.

Our Community

Record 1,688 Hours

INJAZ volunteering - Page 114

Toastmasters Club

Future leaders - Page 115

62% Local Suppliers

Local content - Page 121

New Suppliers

Screened suppliers - Page 125

Community Impacts

We manage our community impacts through a variety of measures that include social impact assessment and local community development

3-3 Management of material topics

We continue to work closely with our community via our CSR programme that includes:

• Creation of job opportunities at all levels for Bahrainis;

• A structured training and development programme for all employees;

• Empowering women and promotion of senior job opportunities for women;

• An active wellbeing programme encompassing a range of public health issues;

• EHS community awareness programmes through school and home visits;

• Close cooperation with non-governmental organisations to understand their needs; and

• Sponsorships for various events/programmes relating to sustainability.

BMP, as an internationally funded project of national importance, closely monitors social issues and actively manages any emerging community impacts. We have a dedicated project team that includes a Social Performance Officer and Community Liaison Officers.

413-01 Operations with local community engagement, impact assessments and development programmes

All our major projects are subject to social impact assessment. We publish the latest social, environment and cumulative impact assessments on our website.

As part of the BMP social impact assessment, we have developed a stakeholder engagement plan, which provides for events and activities to be shared via social media. Our plan complies with international financing performance standards on environmental and social responsibility.

We have a local community development programme that encompasses comprehensive job creation and training. We have continued to hire and train technicians and operators throughout the reporting period.

We have put in a place a social grievance mechanism for BMP with an online form and communication channels for contacting us that includes a ‘hotline’, e-mail address and provision for face-to-face meetings.

413-02 Operations with significant actual and potential negative impacts on local communities

BMP creates potential negative impacts on local communities. To mitigate, we conduct a social impact assessment to identify any negative impacts that might exist and to develop mitigation actions. Some example mitigation actions are described in the section below.

Degree of physical or economic isolation of the local community

Bahrain is largely dependent on oil and gas for its national income. Bahrain has had a petroleum-based economy since 1937; the industry accounts for 11% of GDP and approximately 70% of government revenue. 10% of the oil is consumed locally and the rest is exported. Commissioning of BMP will significantly contribute to these future revenues and therefore the project can be considered to have a strong positive impact on reducing physical or economic isolation.

Level of socioeconomic development, including the degree of gender equality within the community

We are encouraging women’s participation throughout our organisation. We have a strategic goal for complying with the stated national plan of empowering women, led by Her Royal Highness Princess Sabeeka Bint Ibrahim Al-Khalifa and the Supreme Council for Women.

One of the strategic visions of Bapco Refining is to develop the local community. For example, building the capacity of the local individuals by providing scholarships for the internal employees and public individuals. The Training and Development Department admits both genders of school graduates for the study of an oil and gas diploma.

We conduct various campaigns to provide for the needs of local communities, and support the local authorities to serve the community. We have converted Ma’ameer Park into a sustainable park which required rehabilitation of the boundary wall surrounding the garden and all existing buildings. Bapco Refining has additionally installed 30 Sustainable Solar Benches serving different areas of the Kingdom of Bahrain.

State of socioeconomic infrastructure, including health and education infrastructure

We have written to the relevant authorities requesting confirmation that all dwellings within the BMP project area of influence have access to electricity and water, and coverage has been confirmed verbally by the Bahrain’s Electricity and Water Authority. We have also conducted a socio-economic survey of surrounding communities impacted by the BMP project site, to provide baseline socio-economic data for Bapco Refining to incorporate into its social impact assessment and stakeholder engagement plan.

We have created a welfare programme that contractors are required to adhere to, for the protection of workers’ rights. Contractors are required to provide all the necessary services and infrastructure for worker welfare, including sources of drinking water, and sanitary and washing facilities. They must provide induction training, including training on worker rights, project policies and procedures and cultural awareness. We conduct regular inspections to ensure compliance. We have built dedicated accommodation for our contractors that meets the highest welfare standards. Refer to the Special Topic “Worker Welfare & Living Standards”.

Proximity to operations

Our facilities are located to the East of Bahrain on the Arabian Gulf coast, to the south of Sitra Island and approximately 10 km south of Manama. The Refinery first operated in 1936, and so there is a long history of Refinery operations across multiple generations that we are aware of when considering Refinery impact on the community.

Level of social organisation

Social organisation (i.e. the strength of relationships between individuals and communities) has also given great attention by us. We have a CSR annual plan for our community events. For BMP, there is a dedicated team for welfare and social issues. This dedication and effort reflects the importance that the company places on these social issues.

Strength and quality of the governance of local and national institutions around local communities

We are proud of our continued compliance with the local regulations for the environment, culture and labour. Bapco Refining has recently also achieved compliance with International Standards of World Bank. The integration between local and international standards has enabled us to pioneer best practices that minimise our community impacts across the Kingdom of Bahrain.

Some examples of our initiatives are given below.

Use of hazardous substances that impact the environment and human health in general, and specifically impact reproductive health. Refining operations use chemicals and catalysts. All undergo risk assessment prior to use in order to identify if there are any risks to the environment or human health. We maintain an EHS legal risks register to evaluate our compliance.

Volume and Type of pollution released. Our EHS policy includes a commitment to the protection of the environment. All external releases to the environment are monitored and reported as per local regulations.

Status as major employer in the local community. We are proud of our positive employment track record within the region. We are very pleased to contribute to Bahrainisation through providing local opportunities for training and academic scholarships.

Land conversion and resettlement. Our operations and related projects do not result in resettlement or land conversion. All our activities and projects are confined to existing company or government property.

Natural resource consumption. We invest heavily in reducing our natural resource consumption, for example our use of both extracted groundwater and sea water and the use of solar power to supplement the use of conventional fuels.

INJAZ Bahrain

SDG Impact

INJAZ Bahrain is a non-profit organisation that was established in 2005 by Her Highness Shaikha Hessa bint Khalifa AlKhalifa, INJAZ Bahrain chairperson, as part of Junior Achievement Worldwide with the aim of empowering young people to own their economic success and be prepared for today’s business challenges. INJAZ Bahrain delivers hands on, immersive learning in work readiness, financial literacy, entrepreneurship, sustainability, digital literacy, and more.

Bapco Refining INJAZ Bahrain Committee was formed in 2021 to support the INJAZ Bahrain volunteering process. The committee is formed by 6 Bahraini Bapco Refining employees to facilitate all related INJAZ Bahrain activities with Bapco Refining. More than 90 volunteers from the company joined, all of whom contributed to providing many INJAZ programmes. The aim is to give back to the community by empowering and inspiring the youth of Bahrain and providing learning and development to Bapco Refining employees.

Activities & Achievements 2022-23

Bapco Refining INJAZ Bahrain attended the 2nd Edition of INJAZ Bahrain Youth Festival on 17 and 18 March 2023, which is aimed at enhancing the entrepreneurial skills of Bahraini youth while reflecting on the growth and outstanding success of students throughout the year.

At the INJAZ Bahrain Annual Appreciation Ceremony on 11th September 2023, Bapco Refining received the ‘Volunteer Service Award’ for volunteering more than 200 hours. Bapco Refining came second place for completing a total of 440 hours of volunteering service.

Bapco Refining recognises “Bapco Refining INJAZ Bahrain” Volunteers at Annual Appreciation Ceremony on 30th October 2023. Dr. Abdulrahman Jawahery praised the outstanding efforts made by the Bapco Refining INJAZ Bahrain Committee.

We are delighted to far exceed the INJAZ Bahrain initial target by contributing 1668 volunteering hours with 227 enrollments and 153 volunteers

Toastmasters Club

Bapco Refining Toastmasters club is dedicated to help members build their communication, public speaking, and leadership skills in a warm, supportive environment. We have helped hundreds of professionals gain real-world experiences through our interactive meetings and feedback-focused culture. Members of all levels are welcome to join us as we work together to become better speakers, leaders, and communicators.

Activities & Achievements

We have joined force with T&D department to create Bapco Refining Talent Toastmaster Club to provide mentoring support and sponsorship for young Bahraini employees. We have also teamed up with INJAZ Bahrain to create INJAZ Bahrain Toastmasters Club which provides mentorship to young Bahrainis.

For Bapco Refining Summer Camp, we established the Youth Leadership Programme for young leaders. 150 young leaders were trained over 2 terms.

During the District 20 Toastmasters Annual Conference (DTAC) 2023, Dr. Abdulrahman Jawahery was recognised as CEO Hero. District 20 includes Bahrain, Kuwait, Egypt and Iraq.

At the Toastmasters International Convention, Bapco Refining Toastmasters District 20 Director - DTM Khalil Abdulla was awarded the Excellence in Programme Quality Award.

The club members also participates in international conferences as speakers to share their knowledge, expand their network and collaborate on common goals.

Value Generation

Initiatives undertaken by us supporting the wider principles of sustainable development that are not directly related to our core business activities

3-3 Management of material topics

Bapco Refining is a significant contributor to Bahrain’s economic development, playing a central role in improving the quality of life and prosperity of the Kingdom of Bahrain.

We share our technical expertise for the benefit of the wider community through a range of activities and outreach initiatives.

We make a substantial commitment to further education and student sponsorship, allowing Bahrainis to attend some of the top universities within the Kingdom of Bahrain and overseas.

We support our community in maintaining a healthy lifestyle by sponsoring a range of sports clubs and sporting events, promoted through our publications. Many of our clubs compete successfully at national level and have won numerous competition awards.

We undertake many community focused events throughout the year. We hold an annual beach cleanup in association with RECSO. We also hold numerous events designed to promote community wellbeing on a wide range of topics such as diabetes, heart disease, and heat stress.

203-01 Infrastructure investments and services supported

We conduct activities that create an important positive impact on the community as well as the local economy. Bapco Refining encourages employees to provide support for education by volunteering to education programmes such as INJAZ, and to give lectures to school and university students.

Bapco Refining is proud to have established the Training and Development Department which trains and prepares our highly skilled workforce. Bapco Refining also runs a scholarships programme for undergraduate students to continue their education locally and abroad.

BMP’s CSR group has completed several projects which had a positive impact on the community such as the rehabilitation of Ma’ameer Park and installing solar power benches around the Kingdom. Bapco Refining sponsoring events and activities is also a way of giving back to the community.

203-02 Significant indirect economic impacts

The Training and Development (T&D) Department has been offering apprenticeship programmes since 1955. The T&D Department was established in 2017 and continues to provide the industry with the a highly skilled workforce necessary for our future.

The T&D Department is a strategic business partner delivering value to the business and to society through its core values:

• Satisfying customers through its activities as a recognised centre of excellence for world class learning;

• Promoting a spirit of enterprise amongst our teams, which are committed to growth through learning and trusted by all stakeholders; and

• Empowering team members to create a dynamic performance-oriented environment to meet changing business needs.

Overview of the T&D Department

The T&D team provides internal and external learning solutions addressing Bapco Refining’s training needs and requirements. These encompass technical training, leadership and management development, personal effectiveness and workplace skills. Those learning solutions are either delivered in-house by our SMEs team members or through partnership with external training providers.

The team provides training, support and guidance in mechanical and electrical engineering, instrumentation, project management, and EHS. The team also provides company-wide training support with technologically advanced training solutions across electronic, mobile, microlearning and innovative future virtual reality and augmented reality media.

In addition to providing T&D opportunities to Bapco Refining’s employees, the T&D team offer a number of programmes. Our Scholarship Programme was introduced to meet the current and future manpower requirements for the company and the Kingdom of Bahrain. We not only sponsor students financially, but also maintain a close relationship with them throughout their studies to ensure they achieve their full potential.

We additionally provide other scholarships for our employees and the children of Bapco Refining employees. These scholarships assist students studying at Universities and Colleges in Bahrain and overseas. Refer to Data Supplement D-1 on Page 152.

The Innovation Centre, that was previously part of the T&D team, offers services to employees from all departments to help them build a culture of innovation and adopt new technologies, which will provide opportunities to develop innovative products.

Talent Management Services

T&D identifies high potential employees and manages their development journey by:

• Designing learning pathways across the various functions and job levels (individual contributor versus a people management career);

• Supervising the development plans of identified individuals; and

• Delivering learning solutions/interventions for leadership and management capabilities improvement.

Industrial Training Programme

Our industrial training programme offers high school and university students the opportunity to gain valuable work experience which forms part of their academic curriculum and is required in order to fulfil the requirements of a degree. The purpose of the programme is to support students to achieve desired qualifications and to help fulfil their career aspirations. We support students for the entire duration required by their institutions, a service that helps students gain valuable industrial insight as well as to prepare them for their eventual entry into the Kingdom of Bahrain’s job market. Refer to Data Supplement D-1 on Page 152.

List of Bapco Refining Sponsorships

During 2022 - 2023 we sponsored several events that occurred in the Kingdom of Bahrain. This includes the following:

• World Youth Programme

• Bahrain Management Leadership Talk

• Middle East Bottom of the Barrel & Catalyst Technology Conference & Middle East Energy & Sustainability Forum

• Middle East Excellence in Safety & OperationsOPEX MENA

• Gulf Downstream Association (GDA)

• Bahrain Royal Night Half Marathon Championship

• National Campaign to Support Earthquake victims in Turkey and Syria

• H.H. Shaikh Nasser bin Hamad Horse Racing Cup

• INJAZ BAHRAIN - 2023 NCC Award - Best Technology Award

• National Programme (Lamea) organized by Ministry of Youth Affairs

• District 20 Toastmasters Annual Conference 2023

Local Content

Our approach to investment in the Kingdom of Bahrain through local suppliers, as well as local hiring, which contributes to the broader socio-economic standing of the nation

3-3 Management of material topics

We are committed to supporting our local supply chain and, by doing so, helping to strengthen development of the local economy. Most suppliers to Bapco Refining are local and we regularly monitor these data as part of our supplier social assessment procedures.

Our Procurement Department supports contracting services and materials supply, and maintains the Refinery inventory and warehousing services. Consequently, procurement activities play a major strategic role within the organisation. We are proud to treat all our suppliers with courtesy, honesty, and fairness, fostering good relations and a positive work culture.

We are strongly committed to equal opportunities, with all recruitment, promotions, and career development being based on merit. We actively monitor the proportion of senior managers hired from the local community.

202-01 Ratios of standard entry level wage by gender compared to local minimum wage

Bapco Refining is proud to offer remuneration that typically significantly exceeds the defined local minimum wage. An attractive benefits package is additionally offered to employees. Both salary and benefits are offered irrespective of gender. Bapco Refining is proud of its compliance with and support of the Kingdom of Bahrain labour laws.

202-02 Proportion of senior management hired from the local community

For the purpose of this disclosure against the GRI Standards, ‘local’ refers to any Bahraini nationals, ‘senior management’ refers to executives that are General Managers and above, and ‘significant locations of operation’ includes our national operations in their entirety. Refer to Data Supplement D-6 on Page 158.

204-01 Proportion of spending on local suppliers

We try to support the local supply chain wherever possible within our procurement decisions. During the reporting period 2022-2023, 62% of all suppliers were classified as local to Bapco Refining, i.e. had their main business premises in Bahrain.

Human Rights

An organisation can impact human rights directly through its own actions and operations, but also indirectly through its positive influence on suppliers and the local community

3-3 Management of material topics

We fully comply with the Bahrain Labour laws that protect the rights of employees from discrimination and prohibit child and forced labour.

Our Code of Conduct governs the standards of behaviour and mutual respect expected of all Bapco Refining employees. Within Bapco Refining, our robust management systems and continued innovation in health, safety and wellbeing ensure that all enjoy a positive and safe working environment.

We provide equal employment opportunities for those wishing to join us and particularly encourage women to seek advancement to senior positions within the company.

We have a documented grievance procedure, which provides a framework to facilitate resolution of any grievances raised by employees and ensures that complainants are free from restraint, interference, coercion or reprisal. Our BMP also has a dedicated grievance mechanism and communication channels for the public to communicate any feedback and concerns, which include a hotline, email address and an online grievance form.

407-01: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

We have not identified any operations or suppliers associated with Bapco Refining where there is either a violation or significant risk that workers would not be able to exercise these rights.

408-01: Operations and suppliers at significant risk for incidents of child labour

We monitor our contractor operations and have determined that none have a risk of child labour. Bapco Refining fully complies with Bahrain labour laws and uses robust contracting procedures to protect migrant workers.

409-01: Operations and suppliers at significant risk for incidents of forced or compulsory labour

We monitor our contractor operations and have determined that none have a risk of forced or compulsory labour. Bapco Refining fully complies with Bahrain labour laws and uses robust contracting procedures to protect migrant workers.

410-01: Security personnel trained in human rights policies or procedures

Bapco Refining has professionally trained security personnel employed on a permanent basis. The personnel provide a range of security functions for their operating areas and facilities, including guarding of entrance points, personnel and vehicle searches, monitoring of security cameras, patrol of facility perimeter fencing and other facilities, and monitoring of personnel working on its sites.

Bapco Refining works in close collaboration with the Ministry of Interior’s Guards Training School on matters of training and security requirements.

All our security personnel receive appropriate ‘human rights’ training in accordance with the laws of the Kingdom of Bahrain. Some training modules, such as vehicle stop-and-search procedures, and customer service, are specific to security personnel, with others, such as training in the Bapco Refining Code of Conduct, being common training for all personnel. Security personnel are subject to professional development systems overseen by Bapco Refining HC and used for other personnel.

411-01: Incidents of violations involving rights of indigenous peoples

Bapco Refining fully supports Bahrainisation, which concerns support to Bahraini talent irrespective of racial background. We have not recorded any incidents that violate the rights of indigenous people.

Supply Chains

Suppliers may need guidance and encouragement to implement suitable policies for managing their potential environmental and social impacts. We conduct due diligence to identify suppliers with higher social and environmental risk profiles to mitigate the negative impacts on our supply chain

3-3 Management of material topics

Bapco Refining uses a prequalification procedure to screen suppliers, ensuring compliance with established Bapco Refining EHS procedures and all relevant laws. The scope of the procedure covers all requirements necessary for prequalification prior to admission onto the Approved Vendor List maintained by Bapco Refining. The procedure includes questions on commercial experience, organisation, financial stability and other management processes for quality, environment, healthcare and safety. Suppliers are subject to audit by Bapco Refining to ensure compliance with the prequalification criteria and other technical and commercial criteria as decided by Bapco Refining. Appropriate support and advice is provided by Bapco Refining to local suppliers wishing to be prequalified.

308-01: New suppliers that were screened using environmental criteria

Refer to 414-01 for the proportion of new suppliers that were screened; this screening procedure also includes environmental assessment.

308-02: Negative environmental impacts in the supply chain and actions taken

During the reporting period 2022-2023, there were no cases of contract termination caused by negative environmental impact.

414-01: New suppliers that were screened using social criteria

The graph below gives the number of new suppliers that were approved by year. Bapco Refining screens 100% of its suppliers to determine local content. We additionally screen a small proportion of suppliers based on their business activities against environmental and occupational health and safety criteria (refer to the Data Supplement D-8 on Page 161). In 2022, 31% of new approved suppliers were classified as ‘local’ to Bapco Refining and the proportion increased to 44% in 2023.

414-02: Negative social impacts in the supply chain and actions taken

During the reporting period 2022 -2023 there were no cases of negative social impact identified for suppliers.

Number

Our Employees

Safety Excellence

Our statistics - Page 132

Health Promotion Unit

Events and campaigns - Page 134

Bapco Refining Youth Committee

Our initiatives - Page 148

Employee Diversity

Investing in tomorrow - Page 141

Fatema Hussain Creates History

Holding Bahrain’s flag at the finish line for the first time in this race’s history was worth all the hard work over the past few years

Fatema Hussain, Senior Process Engineer from Technical Services Department, became the first ever Bahraini and first ever GCC female athlete to complete the most prestigious ultra-trail running race in the World, the Ultra-Trail du Mont Blanc (UTMB). The qualification to enter this race is earned only after successful completion of other endurance races over a period.

UTMB is a 172 kilometre mountain race, circumnavigating Mont Blanc Massif in the Alps, passing through three countries: France, Italy, and Switzerland. The race includes over 10,000 m of cumulative elevation gain, which is more than the equivalent of climbing and descending Mount Everest from sea level, all to be completed in less than 2 days. Around 2,700 runners started the race but only 65% completed it due to its difficulty. Fatema completed the race in 47 hours, becoming the first Bahraini, as well as the first female from the GCC, to complete this race.

Commenting on her experience, Fatema said “It was a challenging race indeed, with the steep and technical climbs and descents, and tight cut-off times, I had to work hard to reach each check point within the allocated time. This left no time for any sleep or extended rest during these 47 hours. However, being surrounded by majestic mountains with its breathtaking scenery helped in enduring the pain”.

“Training for a steep mountain race in flat Bahrain was by far the most difficult part. We simply don’t have the right terrain to train on. I adapted through integrating long desert trail runs, strength work, plyometrics, stair workouts, and steep treadmill workouts in my training. I also completed two shorter training races in Europe in the months leading up to this one”.

“Finishing this tough race and holding Bahrain’s flag at the finish line for the first time in this race’s history was worth all the hard work over the past few years”.

Health, Safety & Wellbeing

Health and Safety refers to the avoidance of harm that may be caused through exposure to fire, or to toxic or asphyxiant atmospheres. Employee wellbeing refers to the maintenance of physical and mental health in areas such as nutrition, fitness, medical screening and work-life balance

3-3, 403-01 to 403-07 Management of material topics

Health, Safety and Wellbeing collectively represent some of the fundamental rights of workers, and are widely monitored and recognised internationally. Prevention of harm and promotion of wellbeing requires concerted and sustained commitment to process safety, occupational health and safety, the supporting management systems and the monitoring of safety-related performance indicators, commensurate with an organisation’s size and activities. We have ten principles called Osool (Arabic for principles) that guide our behaviours.

We believe that EHS is integral to our business and we are committed to achieving continual improvement in our EHS performance. In the absence of relevant local rules and regulations, internationally accepted standards have been adopted as appropriate, e.g. our Process Safety Management framework for guiding safety-related activities across relevant departments and EHS Policy for achieving continual improvement in EHS performance.

Our hazard and risk identification programme applies to all our employees and contractors to ensure a safe working environment. All hazardous activities are evaluated by a competent person trained in our risk assessment processes. Contractor Safety Officers involved with the preparation of risk assessments for high risk work are trade tested by the HSE department and possess a recognised health and safety qualification, e.g. a National Examination Board in Occupational Safety and Health (NEBOSH), International General Certificate or equivalent. Having identified the hazards, we do everything reasonably practicable to protect people from harm. We follow relevant international standards and industry association guidelines, which we adopt within our company standards. When creating controls or considering changes to existing controls, we follow a risk control hierarchy (each control may use more than one barrier):

• Elimination;

• Substitution;

• Engineering controls;

• Administrative controls and/or barriers and signs;

• Personal protective equipment.

Bapco Refining has established a comprehensive set of leading and lagging indicators for the monitoring of health, safety and wellbeing. We collect data on safety related incidents, sickness, absenteeism and occupational illnesses and use these to identify trends to senior management. In common with widely recognised good practice, if an incident occurs, e.g. a ‘near miss’, an incident with the potential to cause harm, a description of these events are shared in ‘toolbox talks’ to raise awareness. We hold Safety, Health, Environment and Quality (SHEQ) moments at the beginning of all meetings to include one of Environment, Health, Safety or Quality as an item within meeting agendas. We have qualified onsite health practitioners who provide background screening for aspects of employee health, such as diabetes and women’s health, with data incorporated into leading occupational health indicators, and a fully equipped hospital at Awali.

403-08 Workers covered by an occupational health and safety management system

All employees and contractors are required to follow our occupational health and safety management system. The level of audit differs by worker status. In 2023, out of the 134 contractors employed, 30 are regarded as ‘core’ to the business. Audits, inspections and KPIs are completed for ‘core’ contractors only. However, we reconfirm our commitment to a safe working environment for all those working for Bapco Refining, including those not regarded as ‘core’ contractors, and the strict enforcement of health and safety management across all our sites and operations. Our contractor EHS committee meets monthly to oversee these activities.

403-09 Work-related injuries

Bapco Refining’s Incident Investigation and Reporting standard has three injury classifications as follows:

• Lost Time Injury (LTI): An injury arising from or in association with work which results in the injured person being absent from work on his/her next scheduled working day or shift;

• Non-LTI: An injury in which an employee sustains an injury in association with work which does not result in absence from work on the next scheduled working day or shift; and

• First Aid Injury (FAI): Any one-time treatment of minor injuries, which does not ordinarily require medical care. Follow up visits for checking or observation only do not change the FAI classification.

Number of Lost Time Injuries

Injury rates for employees and contractors is the number of injuries per 200,000 employee-hours worked. The injury frequency rate is calculated according to ANSI Z16.4-1977 (American National Standards Institute for uniform record keeping of occupational injuries and illnesses) calculated as number of injuries multiplied by 200,000, divided by the number of employee hours worked.

Refer to the Data Supplement D-7 on Page 160 for the total number and injury rates for Employees and Contractors by year.

403-10

Work-related ill health

The Kingdom of Bahrain has high ambient summer temperatures. During these months, we provide extensive onsite support and run campaigns and initiatives to prevent illnesses related to the hot conditions, such as our Summer Heat Campaign.

Refer to the Data Supplement D-7 on Page 160 for the total number and type of work-related ill health by year.

Health Promotion Unit

SDG Impact

Summer Heat Campaign

During summer time, several campaign were launched to raise awareness on the effects of heat and importance of hydration. Refreshments were distributed.

World Blood Donor Day

The Health Promotion Unit (HPU) at Bapco Refining continues to make significant positive impact through events and campaigns to ensure a healthy and safe work environment. The effort is aimed to raise awareness, provide education, and encourage healthy lifestyles. Throughout the year, the HPU implemented a wide range of initiatives and campaigns focused on promoting health and wellbeing among employees:

• Thyroid Awareness

• Bahrain Sports Day

• Mental Health Awareness

• International Women’s Day

• Ramadan Light Challenge

• World Health Day and First Aid courses

• Hand Hygiene Awareness

• World Blood Donor Day

• Summer Heat Campaign

• World Heart Day and AED

• Breast Cancer Awareness

• Men’s Health Month

• Diabetes Awareness

• International Person With Disabilities Day

Bahrain Sports Day

The event was attended by 300 participants where they competed in various activities and sports. The Health Promotion zone demonstrated CPR and how to use the AED affectively to save lives.

A total of approximately 200 bags of blood were obtained from the Refinery and Awali area. The blood drive in the Refinery was conducted on the 7th of June 2023, while the blood drive at Awali was conducted 11th, June 2023.

World Heart Day

The event was attended by approximately 70 employees and was held at Awali Bapco club ballroom on 29 th September 2023. The aim was to emphasise the importance of maintaining a healthy lifestyle, including proper diet, regular exercise, and regular medical check-ups, to promote cardiovascular health.

World Mental Health Day

Every year, we commemorate World Mental Health Day by raising awareness amongst our employees via workshops led by specialists, meditation sessions and health talks. The aim is to create a culture of acceptance and compassion, where mental wellbeing is valued as much as physical health.

Training and Development

We develop a skilled and capable workforce that meets the needs of Bapco Refining’s existing and future operations. Training and development is measured through performance evaluation and career development reviews to provide clear feedback on career performance

3-3 Management of material topics

Our Training and Development (T&D) Department offers a wide range of internal and external training programmes to Bapco Refining’s employees. We report on a yearly basis the total number of employees trained, the total number of training programmes and the total learning hours. We continue to add new training programmes in support of the business requirements that will help personnel and support the professional development of our employees.

Our Innovation Department created a programme under which employees who propose an innovative idea receive an award if their idea is adopted.

404-01 Average hours of training per year per employee

In 2022 the average training hours per year per employee was 77 hours with 73 hours in 2023.

Refer to the Data Supplement D-1 on Page 152 for the total number of training hours by department per year.

Total number of training hours for Bapco Refining per Year

404-02 Programmes for upgrading employee skills and transition assistance programmes

The Graduate Development Programme (GDP) which is currently undergoing a redesign, is intended for all fresh graduates joining the workforce. The GDP allows fresh graduates to build an understanding of our operations and develop the requisite professional and technical skills required for their career at Bapco Refining. At the end of the period review, we have 123 total graduates and 65 Engineers on the GDP.

Bapco Refining recruited 19 Graduate/Diploma Bahrainis in June 2023 (Batch 1) and 22 Graduate/ Diploma Bahrainis in December 2023 (Batch 2) with the objective to increase their employability and train them to become Area Outside Operators who are following the structured Youth Energy Programme.

As part of the upskilling of people managers and improving their leadership capabilities, several leadership and management programmes were conducted internally that include Situational Leadership (SLII®), Emotional Intelligence EQi®,  The 7 Habits of Highly Effective People®, Project Management Essentials (PME®), Crucial Conversations for Mastering Dialogue®, Crucial Conversations for Accountability®, and Negotiation Skills. Internationally acclaimed external learning solutions were identified and sourced from prestigious Business Schools.

Leaders attended several programmes including: Leadership in Management Programme by the Leadership Trust, Developing Strategy for Value Creation Programme by London Business School, Leading in a Technology–Driven World Programme by Imperial College Business School, Senior & Junior Leaders Programmes by Baker Hughes University & Executive Communications by Voice Ltd London.

404-03 Percentage of employees receiving regular performance and career development

As part of the HC transformation programme, Bapco Refining has implemented a Goal and Performance Management System, a process that helps management and the individual employee to plan, manage, document, and evaluate their performance. One of the key elements of the system is the goal setting, which is a ‘smart’ goal statement aligned with the department and company objectives. All Bapco Refining employees receive an annual performance review at the end of year.

Bapco Refining is sponsoring employees from across the Departments including (Procurement, Finance, Risk & Compliance, Audit, Legal, Reliability & Integrity, Human Capital and Marketing Operations) to complete different Professional Certificates.

With the aim of gaining Chartered Engineer status for Bapco Refining engineers, T&D has completed registration with the following institutions:

• IMechE - Institution of Mechanical Engineers

• IChemE - Institution of Chemical Engineers

• ICE - Institution of Civil Engineers

• IET - Institution of Engineering and Technology

• ISE - Institution of Safety Engineers

We have also begun to engage with The Institution of Occupational Health and Safety, and the Energy Institute with the same objective.

Bapco Refining Training and Development sponsored the City and Guilds Diploma holders to further their education towards a BSc degree in their discipline.

Equal Opportunities

Equal opportunities refers to the diversity demographic of our employees. We promote equal opportunities at work to realise the mutual benefits of a diverse workforce

3-3 Management of material topics

For us, equal opportunities mean embracing differences and promoting an inclusive organisation that values the diversity of our employees, customers, suppliers and community partners. We are strongly committed to equal opportunities. We do not discriminate for recruitment and selection, career development, promotion, or fair remuneration.

We believe in the promotion and development of women in the workplace. During 2022-2023 we recruited around 100 women to various areas of the organisation. We have also promoted 6 women to senior level positions. We attach great importance to respect and tolerance for all religions and their practice. We see mutual trust, tolerance and understanding as the basis of harmonious and peaceful relationships. Any hindering by employees of the practice of religion as provided by law (Article 22 of the Constitution of Bahrain) is not tolerated.

Our approach to diversity and equal opportunity is formalised and defined within our Code of Conduct. We fully comply with all the laws and regulations of the Kingdom of Bahrain with respect to equal opportunities. As of 2023 there were 41 nationalities employed by Bapco Refining.

405-02 Ratio of basic salary and remuneration of women to men

Bapco Refining does not publish these data. However, Bapco Refining is proud to confirm that the level of salary and benefits are determined irrespective of gender making Bapco Refining an attractive employer, evidenced by the number of senior women appointments throughout the company.

406-01: Incidents of discrimination and corrective actions taken

During 2022-2023, there were no cases of discrimination. Bapco Refining fully complies with Article 39 of Bahrain’s Labour Law.

Bapco Refining employee nationalities

Algeria

Australia

Austria

Bahrain

Belgium

Bulgaria

Canada

Colombia

Egypt

Finland

France

Germany

India

Ireland

Italy

Jordan

Kazakhstan

Kenya

Korea, Republic of

Myanmar

Nepal

Netherlands

New Zealand

Nigeria

Pakistan

Peru

Philippines

Portugal

Romania

Saudi Arabia

Serbia

Singapore

South Africa

South Korea

Spain

Sri Lanka

Turkey

United Kingdom

United States

Venezuela

Yemen

405-01: Diversity of governance bodies and employees

Bapco Refining has selected “Gender”, “Age” and, “Region” as diversity categories. For each category, we have reported the total number of employees per job role which is represented by 5 categories:

• Executive - Represent Bapco Refining’s governance body;

• Supervisors;

• Management;

• Admin / Technical / Trainees; and

• Superintendent.

Refer to the Data Supplement D-6 on Page 158 for the total number of employees by “Gender”, “Region” and, “Age”.

Employee Relations

Employee Relations refers to our approach to ensuring the wellbeing and happiness of our employees. We maintain positive employee relations to benefit the business through reduced turnover and hence the retention of more experienced employees

3-3 Management of material topics

A merit increase is awarded in recognition of performance and as an incentive for continued good future performance. The company’s goal management system evaluates each employee’s yearend performance and identifies how close they are to achieving their goals. This process determines the annual merit increase and proportion received of any bonus if awarded.

We provide different types of social allowances that supplement employees’ standard of living, and transportation allowances that support those employees without a company vehicle. We also provide employees with primary medical care within our hospital, which includes a dental clinic at Awali Hospital, and the Refinery Clinic.

Our Home Ownership Plan for employees with four consecutive years of service is designed to support those intending to purchase or build a home.

A savings plan is also available for Bahraini employees with three consecutive months of service.

We believe in the recognition of our most outstanding employees. We host an annual ceremony under the patronage of His Majesty the King of Bahrain in which we honour those who have excelled.

Our employees are continuously supported in their professional growth through our on-the-job and off-the-job development opportunities. These development opportunities ensure our employees have a fulfilling career in line with their strengths and ambitions.

We also support the children of employees through our academic scholarships which are awarded annually.

401-01: New employee hires and employee turnover

Refer to the Data Supplement D-6 on Page 158 for the total number of new employees by “Gender”, “Region” and, “Age”.

401-03

Parental leave

All our employees are entitled to parental leave regardless of their position and gender. During 2022, 106 employees went on parental leave (11 maternity leave and 95 paternity leave). In 2023, the total number of employees who had a parental leave was 94 (14 maternity leave and 80 paternity leave). In addition, Bapco Refining implemented a 2 week “Back to School” Flexi Time for all employees who are parents. The initiative aimed to support employees both professionally and personally as it allows sufficient drop off and/or pick up time to support the children’s transition into the academic year.

402-01 Minimum notice periods regarding operational changes

For employees, notice periods vary by labour contract and consider the important operational needs that arise within the Refinery. We are respectful of employee needs and maintain open dialogue through meetings between labour unions and Bapco Refining management. Union representation is included within EHS committees to provide a forum for discussion of all issues arising. Bapco Refining has a robust management of change process in place that includes process, equipment, operational and organisational changes. All aspects and risks are assessed and communicated to relevant staff.

Bapco Refining Youth Committee

Bapco Refining Youth Committee is a dynamic force, actively engaging in initiatives to support and empower the younger generation. The committee organized and attended several events with the objective to empower the youth of Bahrain.

Bapco Refining Youth Forum: The first ever forum was held under the theme of ‘Connecting the Youth’, the aim was to bridge the gap within the youth workforce to accelerate cooperation, learning, and development across the Company by widening their network and building positive relationships with the management. A guided workshop was held as part of the forum to develop practical solutions, and present recommendations to any identified gaps in the experience of the youth workforce. The event also featured a panel discussion on Leaders’ View on Connecting Youth including inspirational success stories and learning lessons from experienced young leaders in the company.

Bahrain Youth Day. The event included speed mentoring by executive management, interactive sessions on innovation, time management, energy management and mental health. It was an opportunity for the younger generations to learn from the executive management experience and charter their future career path.

The Youth Exchange Programme between Bapco Refining and Gulf Petrochemical Industries Company (GPIC) is an initiative proposed by the Youth as an outcome of the Forum conducted by the Youth committee, the programme allowed assigned teams from both companies to explore the operations and culture of other national industry leaders to share knowledge and implement best industry practices.

Bapco Refining Youth Café. The committee has organized a series of interactive sessions that provide a platform for skilled youth within the company to share personal and professional knowledge with other youth to encourage discussion and motivate Bapco Refining’s youth to think outside the box and advance their professional and personal ambitions.

D-3 Air Emissions

SO x and NO x quantities are estimated from heater duties and assume excess oxygen. Empirical formulas are used in the calculation.

D-4 Water Management

D-5 Waste Management

(in Tonnes) for the

* Hazardous and non hazardous waste diverted from disposal are recycled and re-used off site at external facilities

* Hazardous waste directed to disposal are incinerated at an external facility or sent to Bapco landfill at the HWMF

** Increased oily sludge treatment required for stabilisation in 2023 resulted in a greater quantity of hazardous waste

* Non-hazardous waste directed to disposal is sent to Askar Municipal Landfill site

D-6 Employment and diversity

D-7 Health, Safety and Wellbeing

All recorded cases are due to either heat stress or chemical exposure

D-8 New supplier screening

D-9 Process Safety Events

Tier 1 and 2 process safety events

Glossary

Acronym Abbreviation

API American Petroleum Institute

BBL Barrel (42 US gallons or 159 litres)

BDSEPP Bapco Distributed Solar Energy Pilot Project

BMP Bapco Modernisation Programme

CEO Chief Executive Officer

CERP Crisis and Emergency Response Plan

CHA Critical Habitats Assessment

CLG Chevron Lummus Global

CMT Crisis Management Team

CO Carbon monoxide

CO2 Carbon dioxide

CSR Corporate Social Responsibility

DMA Disclosure Management Approach

DRB Decision Review Board

EHS Environment, Health and Safety

EPC Engineering, Procurement and Construction

ESIA Environmental and Social Impact Assessment

FAI First Aid Injury

GCC Gulf Cooperation Council

GDA Gulf Downstream Association

GDP Graduate Development Programme

Gg Gigagram (1 Gg = 1 billion grams)

GHG Greenhouse Gas

GPIC Gulf Petrochemical Industries Company

GRI Global Reporting Initiative

H2S Hydrogen sulphide

H.E. His Excellency

H.H. His Highness

HC Human Capital

HPU Health Promotion Unit

HSE Health, Safety and Environment

HWMF Hazardous Waste Management Facility

ICS Incident Command System

Acronym Abbreviation

IFC International Finance Corporation

IMS Incident Management System

IMT Incident Management Team

IPCC Intergovernmental Panel on Climate Change

IPIECA International Petroleum Industry Environmental Conservation Association

ISO International Standards Organisation

JVROC Joint Venture for Refinery Operating Companies

KJO Al Khafji Joint Operations

KPI Key Performance Indicators

LEWAS Leadership Excellence for Women Awards

LPG Liquefied Petroleum Gas

LTI Lost Time Injuries

MMbbl Million barrels

MML Million litres

MW Megawatt (1MW = 1000 kW)

MWp Megawatt Peak, a maximum power output

NCSC Bahrain National Cyber Security Centre

NEBOSH National Examination Board in Occupational Safety and Health

NGO Non-Governmental Organisation

NLTI Non-Lost Time Injury

NO2 Nitrogen dioxide

NOx Nitrogen oxides

ODS Ozone Depleting Substances

OGDC Oil and Gas Decarbonisation Charter

OSCP Oil Spill Contingency Plan

OSRL Oil Spill Response Limited

PCR Polymerase Chain Reaction

PDO Petroleum Development Oman

PDPL Personal Data Protection Law

Acronym Abbreviation

REACH Registration, Evaluation, Authorisation and Restriction of Chemicals

RECSO Regional Clean Sea Organisation

RHCU Residue Hydrocracking Unit

RON Research Octane Number

SCE Supreme Council for Environment

SCW Supreme Council for Women

SDGs Sustainable Development Goals

SDS Safety Data Sheet

SHEQ Safety, Health, Environment and Quality

SME Subject Matter Expert

STP Sewage Treatment Plant

TDS Total Dissolved Solids

TTSJV Technip FMC (Italy), Tecnicas Reunidas (TR) (Spain) and Samsung Engineering (South Korea)

UDEC Utilised Distillation Equivalent Capacity

UNFCCC United Nations Framework Convention on Climate Change

UNGC United National Global Compact

WJO Wafra Joint Operations

WWTP Waste Water Treatment Plant

Content Index

Bapco Refining has reported in accordance with the GRI Standards for the period 1st January 2022 to 31st December 2023.

The GRI Content Index provides a reference to the publication year for each GRI Standard used and the location of each topic specific disclosure in the report.

Some topics are not reported, the reasons in each case are given in the table below. Refer to the note number against the relevant standard given in the table. Note

1 As a Closed company, this Disclosure is confidential.

2 Bapco Refining is a wholly owned government entity and is therefore not subject to corporate tax payable to government.

3 Bapco Refining’s main products are shipped by pipeline and tanker, and are not packaged. Some production processes use catalyst and small quantities of chemical additive. Bapco Refining does not otherwise use significant quantities of material in the production and packaging of its primary products.

4 Bapco Refining is a wholly owned government entity and, further to the Disclosure on Public Policy, does not make any political contributions.

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