Sustainability Report 2023

Narrating Our Course

A Sustainable Legacy Continues

Welcome Message & Opening Comment

WELCOME

Welcome to this momentous occasion as we celebrate 14 years of sustainability reporting in our remarkable 44-year journey at GPIC. Today, we are proud to reveal our latest sustainability report for the years 2022-2023 titled, "Narrating Our Course: A Sustainable Legacy Continues", and meticulously prepared according to the latest GRI Standards. This report reflects our solid commitment to aligning with the latest local and international trends in sustainability and our dedication to contributing to a better future through the implementation of the Sustainable Development Goals, the UN Global Compact, the UN Framework for FAB and the UN Women's Empowerment Principles while proudly reporting our COP to all our stakeholders.

This achievement would not have been possible without the relentless efforts of our supportive shareholders, our wise leadership, our committed management and our dedicated workforce, who together form the GPIC family. A heartfelt thank you to everyone involved in this process. Together, we continue to narrate our sustainable course, a tale of a sustainable legacy that grows stronger and more impactful year after year.

02 Table Of Contents

Welcome Massage and Opening Comment

Table of Contents

Introduction

GPIC at a Glance: A Snapshot

Opening Letters: Statements from Our Leadership

Unveiling This Report: A Closer Aspect

Sustainability Insight: Company Overview

Performance Highlights

GPIC in Focus: An Overview

Sustainability Roadmap: Our Strategy

Accomplishments, Challenges and Goals for 2022-2023

Sustainability Leadership: Our Corporate Excellence

Making the SDGs a Reality at GPIC

GPIC’s ESG Goals - A Vision for the Near Future

Inside Our Company: A Closer Look Within our Structure

The Organization and its Reporting Practices Activities and Workers Governance Strategy, Policies and Practices

Stakeholders Engagement

Materiality Assessment and Topics

Our Ongoing Assessment Process

Identification of Material Topics

Unveiling the Economic Dynamics of Sustainability

Performance Highlights

Summary including our Management Approach

Economic Performance

Safeguarding Our Planet: A Collective Responsibility

Performance Highlights

Summary including our Management Approach

Environmental Performance

Elevating Workplace Satisfaction: Our Journey to Excellence

Performance Highlights

Summary including our Management Approach

Social Performance

Synergizing Our Efforts with UN Sustainable Development Goals (SDGs)

Commitment to Global Agenda-UN Global Compact

Integrating the UN Ten Principles into Strategic and Operations

Bridging Sustainability Frameworks: SDGs, UNGC, GRI Standards & GPIC’s Impact

Transparency in Action: Reporting on the UNGC FAB 6 Principles

Commitment to Food and Agriculture Business Principles

Implementation of the FAB-6-Principles

Championing Gender Equality: UN Women’s Empowerment

Reporting Principles

Commitment to UNGC Women's Empowerment Principles

Implementation of the 7 Women's Empowerment Principles

Voices of Others: Perspectives and Testimonials

Table of Abbreviations – Acronyms

GRI Content Index

Closing Remark

I. GPIC at A Glance: A Snapshot

Celebrating 14 years of Sustainability Reporting

GPIC stands as a prominent joint venture established by esteemed entities: the BAPCO Energies of the Kingdom of Bahrain, the SABIC Agri-Nutrients Investment Company of the Kingdom of Saudi Arabia, and the Petrochemical Industries Company (PIC) of Kuwait. Our primary focus lies in the manufacturing of fertilizers and petrochemicals, including Ammonia, Methanol, and Urea. As a significant player in Bahrain's industrial landscape, GPIC actively engages stakeholder both locally and regionally. Our contributions span various facets, from natural gas procurement to the empowerment of Bahraini nationals through training and employment opportunities. We prioritize the utilization of local contractors and suppliers, while also addressing energy consumption and engaging in financial, commercial, environmental, and social initiatives integral to our operations within the Kingdom.

BAPCO Energies is the energy investment and development arm of the Kingdom of Bahrain. As a progressive, future-ready energy company, BAPCO Energies actively invests in diversifying the national energy infrastructure, growing industry-leading expertise, and building strategic global partnerships.

BAPCO Energies’ portfolio encompasses key entities such as BAPCO refineries, Gulf Petrochemical Industries Company (GPIC), BAPCO Upstream, BAPCO Gas, Bahrain Aviation Fueling Company (BAFCO), and Arab Shipbuilding and Repair Yard (ASRY).

Since July 2010, GPIC has proudly held the Responsible Care Company certification for RC 14001, underscoring our unwavering commitment to the safe, ethical, and environmentally sustainable production and exportation of petrochemicals and fertilizers. At GPIC, safeguarding the well-being of all stakeholders is of utmost importance.

In 2012, Gulf Petrochemical Industries Company embraced the worldwide movement toward a more sustainable future by pledging adherence to the United Nations Global Compact’s principles across Human Rights, Labor, Environment, and AntiCorruption domains.

Since 2014, we’ve been proud members of the GRI Community, dedicated to advancing its mission of enabling global decisionmakers to drive sustainability forward. Through the GRI Sustainability Reporting Standards and its collaborative network, we actively contribute to fostering a more sustainable economy and world. The GRI community serves as a vibrant hub for learning and exchange, where experience and insights converge to support informed decision-making. It’s a forum where leaders, both locally and globally, showcase their successes, igniting collective action and propelling sustainable development efforts forward.

For the Purpose of Clarity throughout the Report

‘GPIC’, ’we’ ‘us’, and ‘our’ refer to the Gulf Petrochemical Industries Company.

‘SABIC’ refers to the Saudi Basic Industries Corporation.

‘PIC’ refers to the Petrochemical Industries Company, Kuwait.

‘BAPCO Energies’ refers to the energy investment and development arm of the Kingdom of Bahrain.

‘Board’ refers to our Board of Directors represented by a group formed by BAPCO Energies, SABIC and PIC.

Disclaimer:

Any observed or reported changes in numerical values, that belong to previous reporting years are primarily due to the use of different units and conversions, especially following auditing processes. These adjustments may reflect improved accuracy and consistency in data reporting rather than actual changes in performance or outcomes and don’t have any effect on the newly reported data.

II. Opening Letters: Statements From Our Leadership

Statement from the Chairman:

H.E. Eng. Kamal Bin Ahmed Mohammed

At GPIC, we firmly uphold the principle that businesses possess not only the opportunity but also the responsibility to contribute positively to society. This core belief has been the driving force behind our continual progress in enhancing our operations, investing in our business, and fostering community support throughout the years.

Dear Shareholders and Stakeholders,

I am honoured to present to you the Seventh Sustainability Report for the years 2022-2023, entitled “Narrating Our Course: A Sustainable Legacy Continues”. This is a testament of our continuous and relentless commitment to sustainability and corporate responsibility. As we navigate through the unprecedented challenges that have emerged in our post-Covid world, I am proud to say that GPIC remains persistent in its dedication to creating a better and more sustainable future for all.

This report marks yet another milestone in our sustainability journey, adhering to the GRI Sustainability Reporting Standards. Our commitment to sustainability goes beyond mere compliance; it is deep-rooted in every aspect of our operations and wholly guides our decision-making across our business.

Aligning with both the local and global sustainability agendas is a core value of GPIC. We not only consider ourselves key players and hold ourselves accountable to all that we commit to, but we also strive to be a role model for others to follow. We are fully committed to supporting Bahrain's national agenda while also contributing to the achievement of the United Nations Sustainable Development Goals (SDGs). Furthermore, our adherence to the UN Global Compact (UNGC), Food and Agriculture Business (FAB) Principles, and UNGC Women's Empowerment Principles underscores our dedication to ethical business practices; providing a nurturing environment to help reduce hunger; and promoting gender equality through empowering females. We have been diligently reporting our progress in these areas annually since 2012 as part of the United Nations Global Compact (UNGC) Communication on Progress (COP).

We take immense pride in reporting and implementing best practices across the economic, environmental, and social pillars. Our excellence and achievements are evident in the indicators showcased in this report, reflecting our commitment to continuous improvement and emphasis on innovation to go above and beyond. However, these achievements have not been without challenges including those stemming from the COVID-19

pandemic as well as the many geopolitical conflicts that have disrupted transportation systems and negatively impacted the agricultural/food market. Yet, we have remained resilient. Indeed, the challenges have only strengthened our resolve to continue serving our local communities and the broader spectrum of stakeholders, with the aim to ensure a better future for generations to come.

In reflecting on our accomplishments, I am confident that the milestones attained by GPIC have created a solid foundation on which we can continue building. GPIC recently updated its vision, mission, and set of values as part of its longer-term strategic direction. Underpinned by an ambitious diversification and growth strategy, the future direction of the company emphasises environmental stewardship, social responsibility, and strong governance. GPIC has successfully increased production and sales while maintaining a high employee retention rate and boosting Bahrainisation levels. This demonstrates our commitment to developing and supporting the progress of the local workforce. In addition, environmental protection remains a top priority, underpinned by the zero reported incidents, zero waste diverted to landfills, as well as our comprehensive new decarbonisation strategy targeting 2060. Moreover, GPIC also achieved a lower injury rate and reduced sick leave, underscoring its commitment to employee well-being, health and safety. These accomplishments reflect GPIC's holistic approach to sustainable growth, operational excellence and striving to meet the environmental, social and governance (ESG) goals.

On behalf of GPIC, I sincerely thank Bahrain’s leadership, our shareholders and esteemed Board of Directors for their resolute commitment to ensuring a sustainable world. This has enabled us to prioritise ESG goals in all our endeavours and make sustainability a true organisation-wide goal and strategy. I also extend my deep appreciation to all our stakeholders for their faith in GPIC’s sustainability goals and supporting us to bring them to fruition.

Statement from the Chief Executive Officer:

A.Rahim Alabbasi

The best way to predict the future is to create it. This defines how we operate at GPIC as every initiative undertaken, no matter how modest, sets the course for a journey of innovation, responsibility, and progress. With each stride forward, we are determined to pave the way for a brighter, more sustainable future, one step at a time.

Yasser

Our Valued Stakeholders,

Our commitment to contributing to a more sustainable tomorrow is at the heart of our ambitions and a key element driving our company’s actions. In this latest chapter of our sustainability roadmap, I am proud to present our seventh Sustainability Report 2022 – 2023, entitled “Narrating Our Course: A Sustainable Legacy Continues”. This report reaffirms GPIC’s vision of relentlessly pursuing sustainability and corporate responsibility to achieve our goals. On this journey, we are continuously navigating change and new challenges while our determination to progress remains steadfast.

At GPIC, we believe that businesses have a dual role of doing well and doing good to drive positive change in the world. Beyond our revenues and profits, we are also very cognisant of our environmental and social impact. This has deepened our commitment to sustainability to go beyond just meeting standards by further embedding sustainable practices as a daily habit in our day-to-day activities and in the way of thinking for all our shareholders and stakeholders. Various new developments have also influenced the context of our sustainability activity during the reporting year including the fast-evolving global regulatory landscape, new regulations on protecting human rights, combatting the adverse effects of climate change, and preserving biodiversity, such as the European Union’s new deforestation law.

During the past year, we have refined our sustainability targets as part of our new strategic vision including aligning them with new policy commitments as well as new regulations and developments in the markets. We hold ourselves to the highest standards and continue to make great strides in reporting and implementing best practices across the economic, environmental, and social fronts. While the achievements showcased in this report exemplify our unwavering commitment to continuous improvement and innovation, this has not been without challenges. The dramatic changes brought by the COVID-19 pandemic coupled with the unsettling geopolitical strains that have emerged across the globe, have dramatically affected the full spectrum of our business from the oil and gas, agricultural, and food markets, to the logistics and transportation routes.

By cultivating resilience through a focus on strategic planning and pioneering innovative solutions, all with the support of our highly dedicated employees, we have been able to successfully navigate the hurdles that have come our way. We have also worked harder to deepen our bonds with key organizations such as the UN Global Compact, National Safety Council (NSC - USA), Royal Society for the Prevention of Accidents (RoSPA - UK), International Fertilizer Association (IFA), Arab Fertilizer Association (AFA), Gulf Petrochemicals and Chemicals Association (GPCA), and Global Reporting Initiative (GRI). This has fostered greater communication and collaboration in our common goal to build a better future.

Across all dimensions of our operations, the non-negotiable commitment to excellence in all that we do has played a defining role in our sustainability journey. This has translated into record achievements on several indicators including safety, security, health, well-being, environmental, business continuity, production, human capital development, women empowerment and youth engagement.

Moving forward, we are confident that the unveiling of our thoughtfully revised strategic growth strategy, will further strengthen the foundation of GPIC’s bright future and the integral role it will play in supporting and contributing to the global transition to a greener future. This dedication to excellence extends beyond the confines of our organisation as we actively nurture more sustainable and resilient value chains and communities. These efforts include our continuous engagement and implementation of pivotal initiatives that form part of the Paris Climate Agreement, the 17 Sustainable Development Goals (SDGs), the UN Global Compact (UNGC) 10 Principles, the Food and Agriculture Business (FAB) 6 Principles, and the Women Empowerment Principles. This is in addition to our disclosure and reporting commitments required as part of the annual Conference of Parties (COP) mandates.

We are working hard to continuously expand Environmental, Social, and Governance (ESG) principles across our business and make them the cornerstone of our company’s continued success. Our aim is to grow as a sustainable company by proactively working towards meeting and exceeding global standards and commitments on the sustainability journey. Our dedication to the environment and the broader welfare of society is therefore all-encompassing and is at the heart of our company’s mission. We strive to ensure that this commitment is also upheld by every individual within our organisation and championed both inside and outside the company. As part of the extended GPIC family, I take immense pride in the profound progress of all our sustainability initiatives and the devoted people that are driving them, as we shape a brighter tomorrow for generations to come. I extend my heartfelt gratitude to the insightful leadership of the Kingdom of Bahrain that guides our aspirations and ambitions. I am also very grateful for the wise and unwavering support of our Board of Directors that enables the company to push ahead on the sustainability agenda. Furthermore, I value the sincere support of our stakeholders and communities, and the tireless efforts of our employees. Together, we are forging a new era where sustainability is not just a goal but a way of life. It is through our collective determination that we are transforming sustainability from a distant aspiration into the very fabric of our existence, guiding our actions and aspirations every step of the way.

III. Unveiling This Report: A Closer Aspect

About the Report

At GPIC, sustainability isn't just a destination; it's an ongoing journey that shapes and enriches our strategies as we progress. Our focus extends beyond the mere reduction of our environmental impact and enhancement of efficiency; we view sustainability as a catalyst for growth and innovation.

Welcome to our seventh GRI Sustainability Report for the years 2022-2023, themed "Narrating Our Course: A Sustainable Legacy Continues." This report not only illustrates how GPIC operates but also how sustainability aligns with our vision for the company's future. Our core approach is centered on achieving operational excellence in a manner that prioritizes safety and sustainability.

Prepared per the GRI Standards 2021, this report also serves as GPIC's UN Global Compact 'Communication on Progress' (COP), demonstrating our commitment to various signature platforms such as the 'Food and Agriculture Business Principles' and the UN 'Women's Empowerment Principles.' Furthermore, it offers a comprehensive overview of our dedication, support, and contributions toward the United Nations' 17 Sustainable Development Goals (SDGs).

Through the issuance of sustainability reports and by encouraging our peers and business partners to embrace sustainability reporting, we actively contribute to SDG #12, which seeks to promote the adoption of sustainable practices and integration of sustainability information into reporting cycles, particularly among large and transnational companies.

What is the Global Reporting Initiative (GRI)?

GRI is an organization that has pioneered the standardization of sustainability reporting through the creation of the GRI framework. The 2021 GRI Standards refer to the latest version of the GRI Sustainability Reporting Standards, which are widely used by organizations around the world to report on their economic, environmental, and social performance. These standards provide guidelines and principles for organizations to follow when disclosing information about their sustainability efforts. The GRI Standards cover a range of topics, including governance, human rights, labor practices, environmental impacts, and more. Organizations can use these standards to ensure consistency and transparency in their sustainability reporting, allowing stakeholders to better understand their performance and impacts. The 2021 GRI Standards are considered the most updated and the most comprehensive ones with updated 8 principles: Accuracy-Balance-Clarity-Comparability-Completeness-Sustainability contextTimeliness and Verifiability. In addition to these updated principles, the 2021 GRI Standards mandate the use of Sector Standards, if applicable, for more accuracy and transparency. For more information, visit GRI’s website: www.globalreporting.org.

How does GPIC approach Sustainable Reporting?

The transparent and comprehensive use of the GRI Standards creates accountability for GPIC to report and improve reporting on the topics stakeholders may find important. In this report, GPIC has used GRI Standards-2021, transitioning from the old 2016 Standards.

What are GPIC’s ESG Goals?

GPIC adopts a holistic approach for long-term ESG goals, emphasizing the interconnectedness of environmental, social, and governance (ESG) pillars. The approach involves upgrading our efforts to adhere to the principles of the United Nations Global Compact (UNGC) while aligning our impact with the strategic vision outlined in Bahrain's Economic Vision 2030.

What is the United Nations Global Compact (UNGC) Communication on Progress (COP)?

UN Global Compact is the world’s largest voluntary corporate citizenship initiative. We report to convey our Communication on Progress (COP) for the UN Global Compact’s 10 principles. Submitting the annual COP, whether in the form of the yearly submitted report or through answering the recently introduced questionnaire format, is at the heart of the company’s commitment to the UN Global Compact and it provides valuable information to our stakeholders both internal and external. For more information on the UN Global Compact and its principles, please visit: www.unglobalcompact.org.

The ESG Goals cover the following areas:

What are the United Nations Global Compact (UNGC) Food and Agriculture Business Principles?

To advance the positive impact that business can have in the food and agriculture field, the United Nations Global Compact has facilitated the development of the voluntary Food and Agriculture Business Principles (FAB Principles) to serve as a framework for ‘principle-based’ collaboration of companies with the UN, governments, civil society and other stakeholders. For more information on the UN Global Compact FAB 6 principles, please visit: www.unglobalcompact.org.

What are the United Nations Global Compact (UNGC) Women’s Empowerment Principles?

The Women’s Empowerment Principles are a set of 7 Principles for business offering guidance on how to empower women in the workplace, marketplace, and community. They are the result of a collaboration between the United Nations’ entity for Gender Equality and the Empowerment of Women (UN Women) and the United Nations Global Compact and are adapted from the Calvert Women’s Principles®. The Women’s Empowerment Principles seek to point the way to best practice by elaborating the gender dimension of corporate responsibility, the UN Global Compact, and business’ role in sustainable development. For more information on the Women’s Empowerment principles, please visit www.weprinciples.org

What are the United Nations Global Sustainable Development Goals (SDGs)?

The Sustainable Development Goals (SDGs), often referred to as the Global Goals, were established by the United Nations in 2015 as a comprehensive and universal appeal to address some of the world’s most pressing challenges. These 17 goals serve as a blueprint for global efforts to eradicate poverty, safeguard the environment, and guarantee that all individuals experience peace and prosperity by 2030. The SDGs encompass a wide range of targets, from promoting health and education to reducing inequality and fostering sustainable economic growth, all while emphasizing the importance of partnerships and collaborative action among nations, organizations, and communities worldwide. The ambitious agenda aims to create a more equitable and sustainable future for all, leaving no one behind. For more information, visit https://www.un.org/sustainabledevelopment/.

Other company reports that may be of interest to readers and other publicly available information and references are available on our homepage - www.gpic.com:

• GPIC Annual Reports

• GPIC Company Magazine – Khaleejieh

• GPIC GRI Sustainability Reports

• GPIC UN Global Compact Communication on Progress (COP) Reports

Sustainability

Insight: Company Overview

Performance Highlights

GPIC in Focus: An Overview

Sustainability Roadmap: Our Strategy

Accomplishments, Challenges and Goals for 2022-2023

Sustainability Leadership: Our Corporate Excellence

Making the SDGs a Reality at GPIC

GPIC’s ESG Goals - A Vision for Near Future

Sustainability insight is the heartbeat of our company, guiding us toward practices that integrate environmental responsibility with long-term prosperity, ensuring a future where success is synonymous with ethical stewardship.

I. Performance Highlights

Today, we gather to reflect on our journey and celebrate the achievements that define our commitment to excellence. Our accomplishments are a testament to the dedication of our team and the persistent support of our stakeholders. Without further due, let us explore the key highlights that showcase our progress and achievements.

Without Lost Time Accident as of 31 December

of combined production of Ammonia, Methanol and Urea

Dividends paid to shareholders

Invested into Bahrain's economy since its inception Women employees at GPIC Profits in 2023 and US$ 303.16 Million in 2022

Students from 613 schools have attended environmental awareness lectures given by GPIC employees since 2001

Saved through in-house spare part manufacturing since 2001

II. GPIC in Focus: An Overview

Equal Partnership between the Government of the Kingdom of Bahrain, represented by BAPCO Energies, SABIC Agri-Nutrients Investment Company, Kingdom of Saudi Arabia and Petrochemical Industries Co. (PIC) of the State of Kuwait.

(as per Organizational Chart)

Key Markets:

Memberships in Key International Organisations

UN Global Compact

National Safety Council (NSC - USA)

The Royal Society for the Prevention of Accidents (RoSPA - UK)

International Fertilizer Association (IFA)

Arab Fertilizer Association (AFA)

Gulf Petrochemicals and Chemicals Association (GPCA)

Global Reporting Initiative (GRI)

China, Taiwan, South Korea, India, South Africa, USA, Thailand, Australia.

GPIC uses natural gas which is readily available in Bahrain as a feedstock for the production of ammonia, urea, and methanol. In addition to the production plants, the GPIC Complex, which was built in Sitra on a reclaimed area of 60 hectares, comprises utility plants, maintenance workshops, offices, stores, and laboratories.

GPIC considers itself a role model in the protection of the environment and was the first industrial company to use practical demonstration projects to verify the environmental credentials of its operations. A fish farm, bird sanctuary, mangrove trees, palm tree plantations, herbal garden, and many other gardens have been established at the GPIC site.

The challenges of regional and global climate change have always been at the forefront of GPIC’s strategies. With a key focus on managing greenhouse gas emissions, GPIC commissioned the Middle East’s first Carbon Dioxide Recovery (CDR) plant in 2009. This facility captures 450 metric tonnes of carbon dioxide daily from the reformer flue gases, significantly enhancing our carbon footprint.

GPIC has a robust and internationally recognized Safety, Health, and Environmental Management Systems. The company has been recognized with numerous awards, including the prestigious Sir George Earle Trophy from the Royal Society for the Prevention of Accidents (RoSPA) in the UK, and the esteemed R.W. Campbell Award from the National Safety Council in the USA, both acknowledging our excellence in Health, Safety, and Environmental (HSE) management systems.

The company plays a substantial role in bolstering Bahrain’s national economy through its diverse activities. These include the procurement of natural gas, the employment and professional development of Bahraini nationals, the engagement of local contractors, power consumption, and various other financial and commercial operations. GPIC injects around US$ 271 Million annually into the economy.

Our Vision

To become a leader in chemicals and agri-nutrients that pursue excellence and sustainability.

Our Mission

Manufacture and deliver sustainable chemicals and agri-nutrients and continuously pursue profitable growth.

The company has a Board of Directors comprising representatives of the three shareholding companies. The Board of Directors is chaired by H.E. Eng. Kamal Bin Ahmed Mohammed. The company's Executive Management is led by Mr. Yasser Abdulrahim Alabbasi, Chief Executive Officer.

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The Board Of Directors Consists of:

o H.E. Eng. Kamal Bin Ahmed Mohammed – Chairman

o Mr. Abdulrahman A Shamsaddin - Deputy Chairman

o Mr. Hamad Dekheel Alsubaie - Board Member

o Shaikh Fahad Bin Salman Al Khalifa - Board Member

o Mr. Ahmed M. Alumar - Board Member

o Mr. Fahad M. Al-Battar - Board Member

o Mr. Ali Moosa Shafiee - Board Member

o Mr. Ahmed Alrashdan - Board Member

o Mr. Khalid AlAjmi - Board Member

For more information about our current BoD, please visit https://www.gpic.com/About/BOD/.

The Management Team Consists of:

o Yasser A.Rahim Alabbasi - Chief Executive Officer (CEO)

o Adnan A.Razaq ALMahmood -Deputy Chief Executive Officer - Support (DCEO-S)

o Fadhel Malalla Alansari - Executive Advisor

o Jassim Ahmed Darwish - Executive Technical Advisor

o Jehad Ali Khalfan - Executive Financial Advisor

o Najat Mohamed Sharif - Human Resources & Corporate Communications

o Khalid Yusuf Al Bin Ali - Safety, Security, Health & Environment Manager

o Bader Mohammed Almansoori - Plants Operation Manager

o Jamal Ali Alshawoosh - Technical Services Manager

o Nader A.Rahim Alabbasi - Maintenance Manager

o Abdulmunem Hubail Alnajar - Procurement & Warehousing Manager

o Tariq Hadi Albastaki - Information Technology Manager

o Dr. Omar Naser Al Bastaki - Finance & Marketing Manager & Secretary to the Board (SB)

For more information about our management team, please visit https://www.gpic.com/About/ Management/.

III. Sustainability Roadmap:

Our Strategy

GPIC’s commitment to sustainability is rooted in the core principles of the United Nations' sustainable development agenda, which encompasses People, Planet, Prosperity, Partnerships, and Peace. We continuously assess, monitor, and address our impact in terms of social responsibility, climate action, and inclusive prosperity. Recognizing that sustainable progress hinges on collaborative efforts in a peaceful setting, we prioritize building enduring partnerships.

Our sustainability strategy is crafted with a holistic approach that seamlessly integrates stakeholder interests, environmental priorities, and our core business objectives. At the heart of our business model lies a dedication to sustainable development, acknowledging the interconnectedness between our operations, stakeholder well-being, and the surrounding environment and community.

Business Continuity Digitization Strategy and Digital Transformation

We are firm believers that the key to sustainable profitability lies in our unwavering commitment to reliability and the continuation of our business operations despite changing market conditions. In pursuit of this goal, we have carefully crafted strategies, prioritized investments, safeguarded assets, and nurtured our workforce to cultivate a culture of trustworthiness and ensure the ongoing success of our operations.

Business Growth

We firmly believe that to enhance shareholder value, it is imperative for us to not only pursue growth but also to maintain our competitiveness and sustainability within the dynamic global market landscape. During 2023, we have engaged in comprehensive study to encapsulate our forward-looking aspirations and objectives until the year 2040. To ensure the effective execution of this comprehensive strategy, we have established the GPIC Strategy Growth Committee, a high-level body dedicated to driving the successful implementation of our corporate strategy and safeguarding our competitive edge in the market.

The pandemic period has acted as a catalyst for digital transformation across industries, necessitating the reimagining and restructuring of traditional face-to-face experiences, roles, and business processes. In response, GPIC has taken proactive steps to digitize its operations, investing in IT infrastructure and pioneering innovative solutions to automate workflows and applications. Embracing virtual platforms, we've introduced online training, Work-from-Home arrangements, and virtual meetings to replace in-person interactions. Even traditionally handson processes like External and Internal Audits and factory acceptance tests have transitioned to virtual platforms.

In the year 2023, we achieved a significant milestone with the successful completion of the “Manara Project”. This project was a comprehensive endeavor that involved the enhancement of our existing Enterprise Resource Planning (ERP) application to the more advanced SAP S/4 HANA. In addition to this, we also implemented several other crucial SAP tools.

This substantial technological upgrade of our company’s ERP system was not just an update; it was a strategic move designed to empower our team with the most cutting-edge solutions available in the market. The primary aim was to enable them to harness the power of data analytics effectively.

With the advent of Industry 4.0, the use of Artificial Intelligence (AI) has become increasingly important in improving business operations. Keeping this in mind, the upgrade was also geared towards integrating AI capabilities into our system. This integration is expected to bring about significant improvements in our business processes and overall performance.

Economic Vitality

At the forefront of our priorities, we identify ourselves as conscientious corporate members contributing to the well-being of the Kingdom of Bahrain. Consequently, our business framework is meticulously aligned with the economic requirements of the nation. By extending our focus beyond immediate stakeholders to encompass a broader community, we actively contribute to fulfilling the economic aspirations of the entire nation.

Engagement with Regional and International Organizations

Driven by a proactive ethos, GPIC actively engages in various national, regional, and global organizations to foster knowledge exchange and professional collaboration. At the helm, GPIC's leadership champions sustainable development and agricultural initiatives, advocating for them locally and globally.

Through active involvement with policy makers across diverse professional networks, GPIC endeavors to drive positive change and advance its commitment to sustainability and agriculture on a broad scale.

Environmental Sustainability and Climate Change

In an era of perpetual climatic shifts, companies must acknowledge and address the environmental impacts of their operations. We have dedicated ourselves to upholding the most rigorous environmental standards, recognizing that an organization's environmental stewardship is a fundamental gauge of its corporate social responsibility, competitiveness, and foresight. As part of our ongoing commitment to continual improvement and environmental responsibility, we have attained accreditation per ISO 14001 Environmental Management System, RC 14001 Responsible Care Management System, and ISO 50001 Energy Management System standards. In addition to that, GPIC has developed a decarbonization pathway.

GPIC and the Sustainable Development Goals

In September 2015, the United Nations witnessed the adoption of 17 new Sustainable Development Goals (SDGs) by 193 Member States, aimed at fostering prosperity, inclusivity, and sustainability worldwide. These SDGs offer a unique opportunity for companies like ours to align their sustainability objectives with broader societal aspirations. Consequently, we have meticulously integrated the SDGs into our Corporate Sustainability agenda and overarching purpose.

Through a series of ambitious initiatives spanning short-, medium-, and long-term goals, we are not only fostering awareness and driving action on the SDGs among our employees but also disseminating this understanding throughout the wider community and region. (Please refer to Section: Synergizing Our Efforts with UN Sustainable Development Goals).

Human Talent Development

At GPIC, we firmly believe that our successes are deeply rooted in our ability to attract, engage, and retain the best of the besttalented workforce. Our people are not just employees; they are the very foundation upon which our organization stands. They are the architects of our reputation and the driving force behind our accomplishments.

We understand that our employees are our most valuable asset, and as such, their professional development is a top priority for us. We are committed to fostering an environment that encourages growth and learning at every stage of their careers. We believe in nurturing their skills, enhancing their knowledge, and providing them with opportunities to excel.

Our focus is not just on attracting talent, but also on engaging them in meaningful ways and retaining them for the long term. We strive to create a work culture that values their contributions, recognizes their efforts, and rewards their achievements.

In essence, at GPIC, we don’t just hire employees; we build partnerships with professionals who are passionate about their careers. We are dedicated to supporting them in their journey towards achieving their full potential. This commitment to our people is what sets us apart and fuels our success.

GPIC recognizes that various stages throughout the life cycle of our products or services, from raw material sourcing to final disposal, can significantly impact the environment. By prioritizing transparency and providing accurate information, we aim to proactively prevent or minimize adverse environmental effects at each stage. Furthermore, GPIC evaluates the extent of control or influence it can exert over these activities, products, and services, taking a comprehensive life cycle perspective into account.

Social Progress

A crucial group of stakeholders within our network are the communities that host our business and our employees. We recognize that any negligence in our business practices can have direct or indirect negative impacts on these communities. Therefore, we are committed to addressing their needs and concerns. Ensuring the safety of our employees, contractors, and host communities is a key priority in our strategic and business planning.

At GPIC, corporate social responsibility involves managing our core business processes to generate a positive societal impact. Our social investment strategy reflects our belief that our stakeholders extend beyond our employees, shareholders, and financial investors. We are dedicated to supporting the social needs of our neighbouring communities and the entire Kingdom.

GPIC is committed to giving back to communities by addressing their immediate needs and enhancing their long-term well-being. This includes investing in education, technical and vocational training, and inclusive healthcare. We strive to ensure that our social investments benefit all segments of Bahraini society in need.

In our broad spectrum of stakeholders and as part of giving back to the people, GPIC is also dedicated to helping achieve Sustainable Development Goal 2—Zero Hunger. We implement the FAB 6 principles to support this goal, ensuring our efforts contribute to eliminating hunger and promoting food security in our communities. This commitment is integral to our overall strategy of fostering healthy and productive lives in the communities we serve. (Please refer to Section: Transparency in Action: Reporting on the UNGC FAB 6 Principles).

Women’s Empowerment

As an integral part of Bahrain's industrial landscape, GPIC holds a fundamental obligation to lead by example in empowering women and promoting equality in the workplace. This commitment is ingrained within our strategic priorities, driving us to actively seek opportunities to increase female representation across various roles within the organization, per Bahraini laws. To uphold this commitment and ensure gender equity, we have instituted an 'Equal Opportunity Council' tasked with overseeing and enforcing policies that safeguard women's rights and promote equality within our workforce. (Please refer to Section: Championing Gender Equality: UN Women's Empowerment Principles).

IV. Accomplishments, Challenges and Goals for 2022-2023

Accomplishments 2022-2023

Launching a new Vision, Mission and Corporate Values.

Issuing GPIC’s 2040 Growth Strategy in line with the revised Vision and Mission.

Achieving the highest ever cumulative production in 2023 of 1,674,227 MT.

Achieving the highest ever total exports in 2023 of 1,266,526 MT.

Achieving the highest ever urea production in 2023 of 751,199 MT.

Plants achieved 100% on-stream factor in 2023.

A remarkable safety record with over 39.9 Million man-hours without a lost time accident.

Successfully completing a major turnaround maintenance and reliabilities activities amidst the COVID-19 pandemic outbreak during year 2022.

Completion of the “Manara project” encompassing the upgrading of the existing Enterprise Resource Planning (ERP) Application to SAP S/4 HANA, alongside the implementation of other pivotal SAP tools.

Generating profits greater than anticipated due to continued operation and favourable product prices.

Receiving recognition for the relentless and driven attitude to sustainability, corporate social responsibility and beyond excellence results.

Receiving several global awards including prestigious local and regional awards.

Challenges 2022-2023

Dominating conditions such as market uncertainty, instability and unpredictability, financial crisis and escalating energy costs.

Escalating of the seawater temperature where the highest ever seawater intake temperatures reached 39.2°C, affecting plant performance.

Securing resources amidst the COVID-19 pandemic outbreak and carrying out major maintenance and reliability turnaround in 2022.

Goals of 2023 and Beyond

Executing GPIC’s 2040 Strategic Growth Plan.

Execution of GPIC Decarbonisation Roadmap & ESG goals.

Availability of feedstock at economically viable prices.

Embracing new technologies to enhance energy efficiency and the performance of our plants and reduce production costs.

Fluctuations in the prices of our products in the international market.

V. Sustainability Leadership: Our Corporate Excellence

"Our 44-Years Legacy of Excellence"

At GPIC, we take immense pride in celebrating our 44-year legacy of remarkable achievements and unwavering dedication to our goals. Over these decades, we have diligently implemented plans across the three pillars of sustainability—social, economic, and environmental—to serve our employees, stakeholders, and communities while protecting the environment. Our journey is a testament to the hard work and dedication of our team, who continually strive to make a positive difference. Over the past 44 years, our efforts have been recognized with numerous local, regional, and international awards, showcasing our dedication to excellence. We have cultivated strong bonds and affiliations with external stakeholders and key organizations, reinforcing our commitment to collaborative growth and innovation and further solidifying our reputation as a leader in sustainability and corporate responsibility. Our journey is a testament to the relentless hard work and dedication of our team, who continually strive to exceed expectations and make a positive impact on the world around us. For full reference to our achievements and awards, please visit: https://www.gpic.com/About/Achievements.

2022

Royal Society for the Prevention of Accidents (RoSPA) Award.

Al Bilad CSR Shield 2022.

Arabia Corporate Social Responsibilities Award- Large Category from UAE.

Arabia Corporate Social Responsibilities Award- Partnerships and Collaboration Category from UAE.

2023

Royal Society for the Prevention of Accidents (RoSPA) Award.

Arabia Corporate Social Responsibilities Award- Large Category from UAE.

GPCA Responsible Care Community Awareness Award.

Dubai CSR Label.

InJaz volunteer service award.

“Innovation in Employee Engagement" in the private sector, from the 11th GCC Government HR Summit.

Best CSR Practices Award, from Human Resources Management Summit.

Employer of Choice Award, from Human Resources Management Summit.

Minaei Award from the Kingdom of Bahrain Ministry of Transportation & Telecommunication.

VI. Making the SDGs a Reality at GPIC

Reflecting on GPIC’s dedication to integrating the UN's 17 Sustainable Development Goals (SDGs) into our business operations, we recognize the significant progress we’ve made. In September 2015, the UN General Assembly introduced these global goals, aiming to eradicate poverty, protect the planet, and ensure prosperity for all by 2030. GPIC has adopted a forward-thinking business strategy, transitioning from the traditional three pillars of Sustainable Development to the 5 P’s: People, Planet, Prosperity, Partnerships, and Peace. This shift aligns us with the global movement toward a sustainable future.

As proud advocates of the SDGs, GPIC has actively engaged in every phase, from the My World participatory process to developing meaningful indicators. We have shared best practices for SDG-aligned projects and programs through the UN Global Compact Principles. Our corporate goals, both short-term and long-term, are closely aligned with the relevant SDGs, embedding them into our business functions. We have linked the SDGs with our capital expenditure projects and modifications through our Management of Change (MOC) system. We openly share our sustainability performance via GRI sustainability reports, promoting transparency and encouraging others to do the same. As we continue to evolve our strategies to address the SDGs, We remain committed to regularly updating our stakeholders on our progress. This will be done through comprehensive updates in our sustainability reports, as well as in the Communication on Progress Reports submitted to the United Nations Global Compact.

We take pride in presenting the eleven essential measures that have played a crucial role in actualizing the SDGs at GPIC, highlighting our dedication to fostering a sustainable and prosperous future for everyone.

GPIC has undertaken 11 initiatives to support the realization of the SDGs as follows:

Step 1: Leadership commitment towards Sustainability and SDGs.

“The SDGs are a beacon of hope. Properly addressed, they will be the transformation required for development to take hold and benefit all. Ensuring progress that positively impacts people, planet and prosperity across the world while fostering peace and partnerships that ensure that no one is left behind. Delivering on the SDGs requires transformational and inclusive leadership, greater engagement, and accelerated action towards concrete results. We trust that through our passionate commitment, sincere actions and greater collaboration we can contribute towards ensuring that the promises of the 2030 Sustainable Development Agenda translates into a reality in people’s lives.”

Yasser Abdulrahim Alabbasi, GPIC CEO

Step 2: GPIC employees took part in the participatory process through the "My World Survey" in 2013.

GPIC’s employees were involved in the participatory process for the SDGs through the UN’s global ‘My World’ survey that received more than 7 Million votes from around the world, with approximately 75% of participants under 30 years of age.

Step 3: GPIC promotes awareness of SDGs within the organization and beyond.

GPIC’s sustainability reporting committee are committed to delivering presentations to all our employees periodically to ensure we are enhancing their awareness and knowledge on the SDG’s while also educating them on their responsibilities beyond the workplace within their communities.

Step 4: GPIC compares its business practices with the SDGs and the associated targets to understand their organizational alignment to SDGs.

GPIC’s sustainability reporting committee compared the organization’s prevalent business practices to understand how they are aligned with the 17 SDGs. It was encouraging to see the results indicate that the organization’s practices were in fact aligned and were contributing towards the SDGs in one aspect or more.

Step 5: GPIC aligned its corporate sustainability goals with the SDGs and the associated targets.

GPIC has embedded the SDGs in its business and has demonstrated alignment with its Corporate Goals since 2017.

Step 6: GPIC aligned its department sustainability goals with the SDGs and the associated targets.

GPIC has embedded the SDGs within its core business processes and has demonstrated alignment within its Departmental Goals since 2017.

Step 7: GPIC linked the GRI disclosures to the SDGs in its GRI sustainability report.

GPIC has aligned the SDGs to the relevant GRI standards and disclosures, the UNGC principles and to the organization’s s contribution. These links are based on a more detailed analysis available on the SDG Compass website (www.sdgcompass.org).

Step 8: GPIC provided its SDGs related industry matrix best practice to the UNGC based on the UNGC survey.

To contribute towards the solicitation of best practices of how companies are positively contributing towards the SDGs through their core business operations and to capture ideas on future opportunities for shared value, GPIC has provided a number of examples including their carbon dioxide recovery project that addresses SDG #12 and #13.

Step 9: GPIC promotes awareness of SDGs within the community.

GPIC Sustainability committee and the Youth committee are conducting periodic presentations to enhance the awareness and knowledge of school children across the Kingdom of Bahrain.

Step 10: GPIC has started to link its initiatives and technical reports with the SDGs.

GPIC has initiated a process of alignment to highlight the linkage between their initiatives to the SDGs in their technical reports. For example, the Company’s waste recycling report was linked to target 12.5 of SDG 12 “Responsible Consumption and Production”.

Step 11: GPIC has linked its technical and non-technical projects with the SDGs.

At GPIC, the SDGs are now a part of the workflow for all the Capex and modifications as part of the management of change (MOC) system.

VII. GPIC’s ESG Goals - A Vision for Near Future

In our journey so far, we've diligently set and achieved goals aimed at enhancing our environmental, health, safety, economic, and social performance, along with governance standards. However, we're now turning our gaze towards the horizon, aiming to incorporate more ambitious longterm objectives. These ESG goals are not only about sustainability but also about earning recognition for our organization and stakeholders. They involve scaling up our efforts to adhere to the principles of the United Nations Global Compact (UNGC) and aligning our impact with the strategic vision outlined in Bahrain's Economic Vision 2030. Furthermore, we're committed to demonstrating our alignment with the UN's Sustainable Development Goals (SDGs) as we continue to evolve and make a positive impact on a global scale. The upcoming table summarizes our recently adopted vision for the long-term goals in the three pillars of sustainability as of 2023:

Environmental

Greenhouse Gas Emissions

To improve the overall carbon foot print of the complex.

Reduce Scope 1 &2 Emissions by 20% by 2030.

Installation of Heat Recovery Steam Generator (HRSG) on Gas Turbine.

Installation of new Desal Plant with RO technology.

Provide MP stripper and recover steam to utilize for B-0301 steam.

Installation of 600 kw solar panels by 2024.

Installation of additional 2.4 MW solar panels by 2030.

Establish a monitoring, review and verification (MRV) mechanism of key metrics for continued progress tracking and improvement.

Explore GHG digitalization aimed at enhanced GHG transparency, data monitoring, verification and reporting.

Air Quality Emissions

To improve Energy consumption per saleable tonne of product (Ammonia, Methanol and Urea) In reference to 2015 consumption.

Explore and embrace latest technology to further decrease emissions.

Reduction in energy consumption per saleable product tonne (Gcal/MT) by 8% in 2030.

Installation of Heat Recovery Steam Generator (HRSG) on Gas Turbine.

Installation of new Desal Plant with RO technology.

Provide MP stripper and recover steam to utilize for B-0301 steam.

Installation of 600 kw solar panels.

Installation of 2.4 MW solar panels by 2030.

Utilize excess steam in CDR to stop CDR auxiliary boiler.

Reduction in air emissions (SOx, NOx & Urea Dust) 5% by 2030 compared to 2015.

Explore technology of reformer and boiler burners to further decrease emissions.

Installation of Heat Recovery Steam Generator (HRSG) on Gas Turbine.

Ensure boilers and plants running at optimum and efficient loads.

Online monitoring of boiler and reformer stack emissions.

Conducting fugitive emissions study.

Ambient air quality monitoring mobile stations.

Installation of enhanced type of urea granulator nozzles to reduce dust emissions and CO2 emissions.

1. Zero Hazardous waste to landfill.

Reducing waste to Landfill by exploring other hazardous.

Waste treatment options and reducing waste generation at source.

Establish a monitoring, review and verification (MRV) mechanism of key metrics for continued progress tracking and improvement. Waste Management Minimize hazardous & non-hazardous waste to landfill.

2. Minimize non-hazardous waste to landfill by 25% by 2030.

3. Zero Non Hazardous waste to landfill by 2040.

To ensure efficient utilization of natural gas feed stock in our processes.

Feed stock utilization percentage: 100% (target will be 100% for the next 5 Years).

Enhancing recycling through proper waste segregation at source and also through better awareness and monitoring.

Explore waste to energy project in coordination with local authority.

Explore technology in transferring waste to energy in coordination with local municipality.

Maintain plant’s reliability through continuous PM & CM TA 10 years rolling plans.

Occupational Health & Safety

To maintain a high level of health & safety at GPIC site at all times.

TRIR- Total Recordable Injury.

Frequency Rate: < 0.5 by 2028 and 0.3 by 2033.

LTIR- Lost Time Injury Incident Rate: Zero.

SHE/Employees/Year: 4hrs. Employees participation in SHE meetings: 70%.

Safety mock drills to assess emergency response: 12/Year.

Health awareness among employees.

Periodic Medical checkup programme.

Periodic Audit and assessments.

Implementation of international Health & safety Management System ISO 45001 & RC 14001 and best practices. Health & safety Culture Survey.

Participate in HSE Performance benchmarking periodically.

Association with international HSE bodies to increase contribution and learning with respect to health & safety management.

Conduct campaigns for health, safety and wellbeing, such as, awareness weeks on topics such as, heat awareness, working at heights, ergonomics ,and volunteering (has a direct impact on social and community initiatives), physical fitness, etc.

Conduct programs focused on promoting safety culture of employees at work and at home.

Promote mental health through monthly newsletters.

Implementation of OSHA PSM elements.

Conducting annual internal audits and periodic external audits to assess the system implementation and effectiveness at GPIC.

Regular review of the accident/ incident data base to ensure compliance.

Enhance process safety knowledge across the organization through sharing process safety lessons learned from PSM near misses and incidents.

Monitor and follow up any PSM incidents.

Governance

Human Rights & Labor Rights

To comply with Bahrain labor law and UN global compact’s principals in relation to human & labor rights.

Labor grievance and human rights investigations shall be completed within 2 weeks. 100% contracted security providers to follow human rights policy by 2025.

Evaluate 100% high and 50% medium risk supply chains by 2030 (Zero incident reported).

Commitment UN Global Compact Principles and reporting COP.

Commitments and compliance on human rights with international conventions, national labor laws and human rights policies.

Reporting and investigation mechanism has been established to ensure such grievance incidents are dealt with high confidentiality.

Periodic Human Rights training.

Conduct supplier’s assessment for risk of child labor, incidents of forced or compulsory labor.

Training of security personnel in human rights policies/procedures.

Incidents of violations involving rights of indigenous people’s communities captured and investigated timely.

Periodic audits to ensure grievances are effectively addressed.

Integrating aspects of Human Rights within Code of Conduct and Professional Ethics and Supply Chain Policy.

Awareness in the established channel to report human rights violations and related grievances.

Human rights aspects are integrated within employee learning plan including for new hires onboarding or orientation pack.

Sensitize employees and contractors on respecting human rights.

Conduct periodic human rights workshops to empower employees and workers to voice concerns and provide solutions.

Promote and foster a culture of respect, anti-discrimination, equal opportunity, etc.

Incorporating Human rights clauses into new contract templates where private security services are included.

Develop a system to Integrate aspects of Human Rights within Supply Chain Protocol covering contractors and suppliers as well. Diversity &

Gender equality is part of GPIC's corporate governance policy.

GPIC committed to UN Global Compact's ten principles since 2012.

GPIC committed to UN Global Compact's Women Empowerment Principles (WEPs) since 2014.

GPIC is part of the Bahrain Government's equal opportunity council.

Female representation in GPIC's Labour union, Various cross functional committee's at GPIC have a fair representation of women employees.

Promote and foster a culture of respect, anti-discrimination, equal opportunity, etc.

Conducting internal audits covering all GPIC functions.

GPIC Segregation of Duties Guideline and Matrix. Whistleblowing hotline.

GPIC Declaration of Conflicts of Interest Policy. Code of Conduct & Ethics awareness & Training Programme.

Annual internal audits to evaluate the effectiveness of the existing corporate governance frameworks and identify areas for improvement.

Code of Conduct and Professional Ethics.

Number of corruption incidents recorded: Zero.

Conduct comprehensive training program for the executive leadership team to enhance their knowledge on ESG matters.

An anonymous 24-hour hotline (our “General Auditor Hotline”) that is open to all our stakeholders (ranging from our employees to our suppliers) to report any suspected misconduct, including allegations related to bribery or corruption. All employees and suppliers are required to comply with our Code of Conduct and Professional Ethics and must confirm every year that they have read, understood and will comply with the Code.

Inclusion To ensure gender equality within the organization.

Inside Our Company: A Closer Look Within our Structure

Delving deep into the organizational structure unveils the intricate framework that shapes our collective capabilities, revealing pathways to enhance efficiency, foster innovation, and drive sustainable growth from within.

I. The Organization and its Repor ting Practices:

Disclosure 2-1: Organizational details

Legal name: Gulf Petrochemical Industries Company.

Nature of ownership and legal form: Gulf Petrochemical Industries Company (GPIC)is a joint venture equally owned by BAPCO Energies, SABIC Agri-Nutrients Investment Company and the Petrochemical Industries Company.

Location of the headquarters: Kingdom of Bahrain.

Countries of operation: Kingdom of Bahrain.

Disclosure 2-2: Entities included in the organization’s sustainability reporting

GPIC does not have any subsidiaries.

Disclosure 2-3: Reporting period, frequency and contact point

The reporting period for, and the frequency of, its sustainability reporting: Based on 20222023 corporate data for the year ended December 31, 2023 – Reporting Frequency: biennial. The reporting period for financial reporting: GPIC prepares its financial statements on an annual basis (calendar year).

The contact point for questions about the report: Adnan A. Al-Mahmood.

Deputy Chief Executive Officer - Support. Gulf Petrochemical Industries Co. (GPIC). Kingdom of Bahrain.

Tel: +973-177 33 773.

Mobile: +973- 394 19 945.

e-mail: almahmood@gpic.net

Disclosure 2-4: Restatements of information

There are no restatements of information.

Disclosure 2-5: External assurance

External assurance: We believe that external assurance significantly enhances the credibility of any report. Therefore, for this report we have evidence of external assurance from credible international partners for some of the indicators listed below. For instance, our financial performance is audited by financial auditors from Ernst & Young and their audit statement is part of our Annual Financial Report.

Most of our business functions are also certified by relevant bodies, for example GPIC is certified for 14 Management System Certifications. Our laboratory, inspection and instrument maintenance functions are certified through ISO 17025 and ISO 17020.

Our environmental monitoring (emissions and effluents) is verified by the environmental inspectors from Supreme Council for Environment, Bahrain. Our urea storage and export facilities and processes are assured by The Australian Government’s Department of Agriculture, Water and the Environment. The assessment is to ensure meeting the requirements for Level One Gold system status as set out in the department’s Imported Inorganic Bulk Cargo Fertilizer Assessment and Management Policy. GPIC has demonstrated its commitment to ensuring the biosecurity integrity of their fertilizer product across the supply chain, from manufacture to loading during the audit of 20 May 2021. This status will be maintained until 20 May 2027 subject to a satisfactory result in the annual third-party audits.

Our production and export quantities and quality are verified by third party surveyors such as SGS. Our year end production and inventories are verified by a third party as well. Our plant equipment is guaranteed by insurance bodies including statutory requirements.

All our external assurance providers are assisted by our internal control processes that report to our Board of Directors through the Audit, Finance and Risk Committee.

No external assurance will be made for this report.

II. Activities and Workers

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

The sector in which we are active: Oil and Gas (Applicable Sector Standard - GRI 11: Oil and Gas Sector 2021).

Value chain including activities, products services: Refer to: "GPIC in Focus: An Overview"

Markets Served: GPIC meets the global demand for fertilizers and petrochemicals by producing and exporting ammonia, methanol and granular urea. Key markets include USA, Brazil, China, Thailand, Singapore, South Korea, Taiwan, Africa, India and Australia.

Supply Chain: GPIC being a Responsible Care certified Company and IFA protect and Sustain product stewardship certified company puts great emphasis on maintaining safety, health, security and environmental excellence throughout the product lifecycle. GPIC operates in an integrated manufacturing environment. Basic raw materials are processed through many stages to produce ammonia, methanol and granular urea.

The main raw material that feeds the integrated production of the Company’s three products is natural gas. The Company purchases natural gas from BAPCO Upstream, mainly to produce ammonia and methanol and also to generate electricity and steam. GPIC also purchases electric power to supplement the internal generation. The products from the ammonia production process which are mainly liquid ammonia and gaseous carbon dioxide are used as raw materials for the manufacturing of granular urea.

The three products are exported globally by our marketers who are also our shareholders, i.e., SABIC Agri-Nutrients Investment Company, Kingdom of Saudi Arabia and Petrochemical Industries Co-Kuwait. These products are transported by sea. Proper handling of these products is critical to avoid harm to people’s health or to the environment and we are committed to quality, safety and sustainability throughout our operations. GPIC Purchasing collaborates with suppliers around the world to help our business to meet the objectives for profitability, growth, innovation, diversity and sustainability. GPIC Purchasing looks for suppliers that demonstrate a commitment to reliable, high-quality supply relationships embodying highly responsible, ethical business practices, including sustainable labor practices. As an enhancement, in 2014, Responsible Care aspects related to minimum Safety, Health and Environment requirements have been added in the pre-qualification criteria of services’ contractors. This criterion requires contractors to provide there SHE policies, training records, previous accident/ incident records, hazardous waste management license and certification etc.

Significant changes to the Organization and its Supply chain:

1. Diversifying into new products.

2. Studying, fostering and investing in downstream petrochemical industries.

3. Continuing to look at investment, growth opportunities abroad through mergers, acquisitions or green field projects where feedstock is competitive and available.

The following table shows the number of employees and a breakdown of this total by gender according to the years 2022 and 2023 (region is fixed as follows: permanent employees, temporary employees, non-guaranteed hours employees, full-time employees and part-time employees. Please note that data on joint ventures, contractors, suppliers and clients ,are not included unless specifically mentioned in line with any material impact or specific disclosures.

Number of temporary employees (head count / FTE)

Number of nonguaranteed hours employees (head count / FTE)

Number of full-time employees (head count / FTE)

Number of part-time employees (head count / FTE)

The data was compiled based on full-time equivalent (FTE) on a yearly basis. The change in the numbers of these employees as shown in the corresponding years is only due to, retirement, resignation and new recruitment processes, which are considered regular HR processes.

The total number of non-employee workers in 2022 was 118, and in 2023 was 110.

The primary contractual type of those workers is a contract with the contracting company. They are contractors who do maintenance, plant operation, office work, and security guard.

The data was compiled based on headcount at the end of the reporting period.

Disclosure 2-8: Workers who are not employees

III. Governance

Our Corporate Governance framework has been developed to establish a standard set of expectations and good governance practices that will assist the Board and its Committees perform their duties effectively.

Corporate governance is integral to GPIC’s core values, supporting our sustainable growth mission. GPIC is committed to having sound corporate governance principles and practices. We provide detailed information about the Company’s governance structure and processes in our Corporate Governance Policy.

Board of Directors (BoD)

Our governance structure starts with our Board of Directors. Our Board of Directors includes nine members, equally nominated by the three shareholders, who share the collective responsibility of ensuring that the affairs of our organization are managed competently and with integrity. As per the Memorandum and Articles of Association of GPIC, the duration of membership for the Board of Directors is three years, and members can be reappointed for the same duration or other durations. All nine members are non-executive directors, three of which are independent directors (the Chairman of the Board and two other directors). The Governance clearly states that the Chairman of the Board is to be elected from amongst the Bahraini Board Members, while the Deputy Chairman is to be elected from amongst the Saudi or Kuwaiti Board members. The Chairman and the Deputy Chairman are elected for three years.

The Key responsibility of the Chairman is to monitor and evaluate the performance of the Board and senior management to ensure compliance with the Company’s Code of Corporate Governance.

The Board of Directors appoints the CEO and determines his/ her authority, responsibility, and remuneration levels. Under the stewardship of the CEO, the Executive Management is responsible for the day-to-day operations and activities of the Company. These are based on the overview, guidelines, and directives provided by the Board of Directors.

The CEO is responsible for ensuring full implementation of the approved policies and strategies set by the Board through the Executive Management.

The CEO and the executive management authorities are defined in the Schedule of Authorities approved by the Board of Directors.

composition of the highest governance body and its committees: The highest

structure is the BoD. (please refer to GPIC Governance Framework) The committees of the highest governance bodies are:

Remuneration, Nomination, and Governance Committee:

The Committee is responsible for overseeing the overall remuneration and nomination process and ensuring the strength of the organization’s governance. The Committee’s main task is to ensure compliance with the Kingdom of Bahrain’s Corporate Governance Code regulations and mandates.

Audit, Finance and Risk Committee:

The purpose of the Committee is to assist the Board of Directors in independently ensuring and maintaining an overview of Gulf Petrochemical Industries Co. (“GPIC”) processes. The Committee is tasked with overseeing such responsibilities such as the integrity of the company’s financial statements and financial reporting, internal control and risk management process, internal audit function, independence and performance of the external auditors, compliance with ethics policies and legal and regulatory requirements, governance and other matters as enumerated in the Audit, Finance and Risk Committee Charter.

Strategic Growth Committee:

The purpose of the Committee is to conduct a full review and studies of all major projects as well as reviews and studies of all investment opportunities. The creation of this committee will help ensure no major projects or investment opportunities have been overlooked and that the company has an optimum investment portfolio.

The executive management team is responsible for decision-making on and overseeing the management of the organization’s impacts on the economy, environment, and people. GPIC has 34 councils and committees, of which:

Management Council.

Management & Union High Council.

Strategy Growth Committee.

Equal Opportunities Council.

Resilience Committee.

Recruitment & Staff Promotions Committee.

Training Committee.

Safety, Health & Environment Council.

Energy Management Committee.

Plants Operations Coordination Committee.

Safety and Responsible Care Committee.

Health Committee.

Environment Committee.

Sustainability and ESG Reporting Committee.

Youth Committee.

The General Assembly of the Company represents its shareholders and is considered to have the highest authority within the corporate governance of GPIC. The shareholders will appoint the Board of Directors, who will be entrusted with the responsibility and authority to act on behalf of the shareholders to fulfill their vision, aspiration, and protection of their interests as per the Articles of Association of the Company. The General Assembly will have the full power to consider and approve the appointment and termination of the Board of Directors in addition to several other issues.

The selection/appointment criteria as per the requirements of the Commercial Companies Law and Bahrain Corporate Governance Code.

Disclosure 2-11: Chair of the highest governance body

The Chairman of the Board will be elected by a secret ballot held amongst the Board of Directors. The Chairman will always be elected from amongst the Bahraini Board Members. and a Deputy Chairman to be elected from either the Saudi or Kuwaiti sides in rotation for the Board’s three-year term of office.

The chair of the Board of Directors is an independent and not an executive officer. All the board members are non-executive officers.

The BoD shapes the organization’s strategic direction, while the executives’ management team operationalizes these strategies and drives sustainable development efforts. Their collaboration ensures that the organization remains purpose-driven, values-oriented, and committed to positive impact. Their responsibilities include:

Developing and approving the organization’s purpose, value, or mission statements. These statements define the core objectives, values, and long-term vision.

Periodically, review and update these statements to align with changing circumstances, stakeholder expectations, and emerging sustainability trends.

Establishes high-level strategies that guide the organization’s actions toward sustainable development. These strategies cover environmental, social, and economic aspects.

Policy Formulation: They contribute to formulating policies related to sustainability, ethical conduct, and responsible business practices.

Goal Setting: Defines measurable goals for sustainable development, such as reducing environmental impact, promoting social equity, or enhancing governance transparency.

Executive Management Team

Executive management team ,including the CEO, works closely with the BoD. Their roles include:

Implementing Strategies: Executives execute the strategies set by the board. They translate high-level goals into actionable plans and initiatives.

Policy Execution: They ensure that organizational policies are effectively implemented across various functions and departments.

Monitoring Progress: Executives Management Team tracks progress toward sustainability goals, assesses performance, and reports back to the board.

Stakeholder Engagement: They engage with stakeholders to understand their perspectives and incorporate feedback into decision-making.

Risk Management: Executives Management Team identifies and manages risks related to sustainability, ensuring that the organization operates ethically and responsibly.

Moreover, The Board of Directors (BoD) is tasked with overseeing the organization’s due diligence processes. These processes are designed to identify and manage the organization’s impacts on the economy, environment, and society. The enterprise risks identified also encompass the economic, environmental, and social aspects of the business.

Reviewing the effectiveness of the organization’s processes: The BoD is responsible for overseeing the company's overall risk management process. Risk management is considered a core strategic activity within the Company, and the responsibility for managing risk rests with the executive management, while the Committees of the Board and the Board, as a whole, participate in the monitoring and reviewing of the process. Specifically, the board has the responsibility for overseeing the strategic planning process and reviewing and monitoring management’s execution of the corporate and business plan; each board committee is responsible for oversight of specific risk areas relevant to their committee’s charters.

In December 2023, the Board of Directors (BoD) of the Gulf Petrochemical Industries Company (GPIC) gave its approval to a new vision, mission, and corporate values for the organization. This marked a significant milestone in the company’s history.

Furthermore, the BoD also endorsed the ‘GPIC Growth Strategy 2040’. This strategic plan is designed to guide GPIC on the right path and ensure the sustainability of its operations for many years to come. The strategy is a testament to GPIC’s commitment to growth, innovation, and long-term success. It reflects the company’s ambition to remain at the forefront of the petrochemical industry and continue to create value for all its stakeholders.

Delegating the responsibility for managing the organization’s impacts on the economy, environment, and people: GPIC employs a delegation of authority structure from senior executives in the company through a chain of commands. Generally, this occurs from the Chairman to CEO, to Deputy CEO-Manufacturing and Deputy CEO-Support, and is cascaded down to Departmental Managers and further to section heads. GPIC has a Schedule of Authorities (SoA) Policy to establish the approval levels for authorities within the company as part of the overall internal control process. This covers all activities that require approval from the company's authorities.

Responsible Employees/ Executives: Mr. Yasser Abdulrahim Alabbasi, CEO, and the head of the Safety, Health and Environment Council. The Safety, Security, Health and Environment Department is headed by Mr. Khalid Al Bin Ali, who reports directly to Mr. Yasser Alabbasi. Mr. Yasser reports directly to the Chairman and Board of Directors on all sustainability related issues.

The process and frequency for senior executives or other employees to report back to the highest governance body on the management of the organization’s impacts: The board of directors meet on a quarterly basis and five meetings are held in a year. In 2023 an annual general meeting was convened and in addition to this, the Committees of the Board also met thirteen times during 2023.

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

The role of the highest governance body in sustainability reporting: GPIC’s sustainability & ESG reporting committee ensures that all material aspects are covered. The chair of the committee, Mr. Abdulrahim Almaraghi, Enterprise Risk & Business Excellence Superintendent, formally reviews the organization’s sustainability report and then seeks final approval from CEO Mr. Yasser Abdulrahim Alabbasi. Policy and performance Statements in the report are from the senior decision-makers, such as the Chairman.

Disclosure 2-15: Conflicts of interest

All employees of GPIC including managers are expected to be familiar with the Company’s Code of Conduct and Professional Ethics and to apply it in the daily performance of their GPIC responsibilities. The Code of Conduct and Professional Ethics is intended to help employees focus on our corporate values of integrity and respect for people, help them recognize and make informed decisions on ethical issues, assist in creating a culture of the highest ethical and business standards, and provide mechanisms to report unethical conduct.

The Conflict of Interest is articulated in section 6.3 of the GPIC Code of Conduct and Professional Ethics Handbook. It also highlights the importance of bringing to the immediate notice of the management and the legal and compliance supervisor, any suspected cases of conflict of interest.

There is a Board of Directors Conflicts of Interest and disclosure policy to ensure that there is a clearly documented framework to identify, manage, and resolve any Director’s Conflicts of Interest. There is also a procedure to ensure that there is a clearly documented framework to identify, declare, manage, and resolve any matters that are or lead to a conflict of interest between employees and company business. There is a conflict of interest form that has to be duly filled out every year by the executive management team and employees of the procurement, logistic services, and corporate communications sections.

The full text of GPIC’s Code of Conduct and Professional Ethics is publicly available on our website - www.gpic.com.

Disclosure 2-16: Communication of critical concerns

Communication of critical concerns to the highest governance body: The CEO communicates critical concerns to the Board of Directors (BoD) during periodic board meetings and to the relevant board committees. Here’s a more detailed breakdown:

Periodic Board Meetings: Regular board meetings are a primary forum for the CEO to communicate with the board. During these meetings, the CEO presents updates on the company’s performance, discusses strategic plans, and addresses any critical concerns. Board Committees: The CEO also communicates specific issues to relevant board committees. Each committee is typically composed of board members with expertise in the committee’s focus area.

Emergency Meetings: In case of a critical concern that requires immediate attention, the CEO may call an emergency board meeting or a meeting of the relevant committee. Written Reports: In addition to verbal communication during meetings, the CEO may provide written reports to the board and its committees. These reports allow directors to review information in depth and prepare questions or comments for the meeting.

Open Communication: The CEO maintains an open line of communication with the board and its committees, ensuring they are informed of critical concerns in a timely manner.

Total number and the nature of critical concerns that were communicated to the highest governance body during the reporting period: In view of the continuity of market instability, financial crunch, and escalating energy costs, the key concerns and focus areas revolved around the following topics:

To have a safe and successful turnaround during the COVID-19 outbreak.

Maintain the financial health of the Company through operational excellence and cost optimization initiatives.

Secure growth and expansion projects through implementing GPIC’s 2040 Growth Strategy. Embrace new technologies for improving energy efficiency and plant performance enhancement.

Maintaining safety performance & adherence to environmental legislation. Increase in price of raw materials such as gas and electricity.

Market instability and low product prices.

Geopolitics and security challenges.

Improvement of cyber security measures.

Disclosure 2-17: Collective knowledge of the highest governance body

Measures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development: All of the Non-Executive Board of Directors are qualified in the fields of Engineering, Business, and Economics and have in-depth knowledge of Corporate Governance and Risk Management. The Board of Directors is regularly updated about the newest initiatives and trends in risk management and sustainability, both at a regional and global level, through presentations and workshops. For example, VAT, Cyber Security, etc. The Board of Directors represents the investing organizations, i.e., BAPCO Energies (Bahrain), Petrochemical Industries Company – PIC (Kuwait), and SABIC Agri- Nutrients Investment Company (Saudi Arabia). This pooled knowledge significantly enhances the Board’s leadership capabilities, providing a robust support for GPIC to achieve its vision and goals.

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

Evaluating the Highest Governance Body’s performance: Each of the Board Committees conducts a review of its charter every three years and an annual review of its performance. In addition to this self-assessment, each Committee makes regular reports to the Board of Directors. The Board conducts an annual review of the performance of the CEO. The Board Committees also undertake numerous risk oversight activities related to their charter responsibilities.

Disclosure 2-19: Remuneration policies

Remuneration policies: The Company has well established remuneration policies in line with the Bahrain Labor law, GPIC HR policies and Bahrain Corporate Governance Code.

Disclosure 2-20: Process to determine remuneration

Process for determining Remuneration: The process for determining remuneration is in line with Bahrain labor law and GPIC’s HR policies.

Stakeholders’ involvement in Remuneration: GPIC’s internal (selected) stakeholders are involved in setting the remuneration policies and the compensation plans and targets.

Disclosure 2-21: Annual total compensation ratio

Confidentiality constraints for this section.

IV. Strategy, Policies & Practices

Disclosure 2-22: Statement on sustainable development strategy

▶

Statements from Chairperson and CEO: Refer to "Opening Letters" page 12

Disclosure 2-23: Policy commitments

▶

At Gulf Petrochemical Industries Company (GPIC), we hold ourselves to the highest standards of ethical behavior. Our commitment extends beyond mere words; it is deeply ingrained in our actions and practices. Here’s how we demonstrate this commitment:

Human Rights Respect: GPIC’s unwavering commitment to human rights is non-negotiable. We recognize the inherent dignity of every individual and ensure that our business practices uphold and respect these fundamental rights.

Documented Commitments: Our dedication to responsible conduct is meticulously documented in our Code of Conduct and Professional Ethics. This comprehensive document serves as a beacon, illuminating the path toward ethical decision-making. Within its pages, we find clarity on expectations, values, principles, and norms that guide our behaviour.

Universal Application: The Code of Conduct and Professional Ethics is not a mere formality; it is the bedrock of our organizational culture. Every GPIC worker, from seasoned professionals to fresh recruits, reads, agrees to, and regularly signs the COE upon joining the company. This ensures that our shared commitment to ethical conduct permeates every corner of our operations.

Transparency and Accountability: We believe in transparency. The Code of Conduct and Professional Ethics is not hidden away—it is shared openly with all stakeholders. Our business partners, governance body members, and other relevant parties have access to the Code of Conduct and Professional Ethics through GPIC’s official websites. This transparency fosters trust and accountability.

Multilingual Accessibility: Recognizing our diverse workforce, the Code of Conduct and Professional Ethics is available in both Arabic and English languages. We bridge linguistic gaps to ensure that every employee comprehends their responsibilities and the ethical framework governing their conduct.

Global Alignment: Since 2012, GPIC has actively aligned its operations and strategies with the ten principles outlined by the UN Global Compact. These principles cover human rights, labor practices, environmental stewardship, and anti-corruption efforts. By adhering to these global standards, GPIC contributes to a more sustainable and just world.

Incident Reporting and Confidentiality: We take non-compliance and grievances seriously. GPIC has established a clear channel for reporting any incidents that deviate from our ethical standards. Confidentiality is paramount—we ensure that individuals can raise concerns without fear of reprisal.

For more information on our policies, commitments, and publicly available documents, please visit our website: https://www.gpic.com/About/PoliciesCertificates/Corporate%20Policies/.

GPIC ensures that the Code of Conduct and Professional Ethics is deeply embedded in its operations and business relationships through the following elements:

• Allocation of Responsibility:

GPIC allocates responsibility for implementing ethical commitments across different levels within the organization:

Senior Leadership: Senior leaders champion ethical behavior and set the tone for the entire organization.

Middle Management: Middle managers translate ethical principles into actionable steps within their teams.

Frontline Employees: Every employee shares the responsibility to uphold ethical standards.

• Integration into Organizational Strategies and Policies:

Strategic Alignment: GPIC integrates ethical commitments into its overall organizational strategy. Responsible business conduct aligns with the company’s long-term goals.

Operational Policies and Procedures: GPIC ensures that its operational policies explicitly reflect the ethical commitments outlined in the Code of Conduct and Professional Ethics.

These policies cover areas such as procurement, safety, environmental stewardship, and human resources. To ensure that our code of Ethics and Conduct is updated, GPIC has reviewed the code of Ethics and Conduct in 2023.

• Implementation with Business Relationships:

Supplier Relationships: GPIC extends its ethical commitments to suppliers. Supplier contracts explicitly reference adherence to ethical standards.

Customer Interactions: GPIC ensures that its business relationships with customers adhere to ethical principles. Fair pricing, transparency, and quality are paramount.

Stakeholder Engagement: GPIC communicates its ethical stance to stakeholders, including investors, regulators, and local communities. Transparency builds trust.

• Training and Education:

Employee Training: GPIC provides comprehensive training on implementing ethical commitments. New hires receive orientation sessions emphasizing the Code of Conduct and Professional Ethics.

Regular Refresher Courses: GPIC conducts periodic training to reinforce ethical behavior. These sessions cover real-world scenarios and practical decision-making.

Business Partner Education: GPIC educates business partners (suppliers, contractors, etc.) about the shared ethical framework. Alignment throughout the supply chain is crucial.

GPIC addresses these aspects related to remediation, grievance mechanisms, and stakeholder involvement:

Commitments to Remediation:

GPIC is committed to providing for or cooperating in the remediation of negative impacts it identifies as having caused or contributed to. When adverse impacts occur, GPIC takes responsibility to address them through legitimate processes.

Approach to Identify and Address Grievances:

Grievance Mechanisms: GPIC has established operational-level grievance mechanisms. These mechanisms serve as channels for project-affected individuals or communities to raise concerns, complaints, or grievances related to GPIC’s activities. The company actively listens to these concerns and takes appropriate actions to address them.

Other Processes for Remediation:

GPIC recognizes that some of its significant environmental impacts can occur during various stages of its operations, including sourcing of raw materials, manufacturing, transport, delivery, use, and disposal of its products or services. By providing information and taking preventive measures, GPIC aims to prevent or mitigate adverse environmental impacts throughout the life cycle of its operations.

Stakeholder Involvement in mechanism design and review:

GPIC actively involves stakeholders who are the intended users of grievance mechanisms in the design, review, operation, and improvement of these mechanisms. By engaging with affected communities, business partners, and other relevant parties, GPIC ensures that the mechanisms are effective, transparent, and responsive.

Effectiveness tracking and reporting:

GPIC systematically tracks the effectiveness of its grievance mechanisms and other remediation processes. Examples of their effectiveness include timely resolution of grievances, improved community relations, and prevention of recurring issues. stakeholder feedback informs GPIC’s continuous improvement efforts.

In summary, GPIC’s commitment to responsible business conduct extends beyond words—it is reflected in its actions, mechanisms, and engagement with stakeholders. By addressing grievances and remediating negative impacts, GPIC contributes to a more sustainable and accountable business environment.

Disclosure 2-26: Mechanisms for seeking advice and raising concerns

The mechanism for seeking advice and raising concerns for responsible business conduct: To address any concerns related to the organization’s operations and business relationships, individuals may follow established channels. These channels include reaching out to their superiors, managers, Human Resources, corporate communication managers, legal advisors, or labour unions. A clear written procedure outlines the steps for raising concerns. From the very first day of employment, employees are informed of their rights to voice any issues or seek clarification. Additionally, external parties can express their concerns by emailing the publicly available address or by calling the company directly. All requests for advice and raised concerns are treated with utmost confidentiality, and the reporting mechanism operates 24/7.

Disclosure 2-27: Compliance with laws and regulations

Instances of environmental non-compliance: GPIC was fully compliant with all environmental laws, labour laws and regulations during the reporting period 2022-2023 and, hence, did not pay any fines or experience any non-monetary sanctions.

Instances of economic and social non-compliance: We did not experience any non-compliance concerning non-compliance with laws and regulations in the social and economic areas during the reporting period 2022-2023.

Disclosure 2-28: Membership associations

Membership of Associations: GPIC takes an active role in many international, regional, and local organizations, such as the United Nations, fertilizer associations, sustainability and CSR organizations, health and safety organizations, and educational institutions. Some of the benefits that GPIC reaps out of its engagement with international and regional organizations are:

Add value to the organization by obtaining best practices and know-how in-house. Establish an international network of associates that can be tapped into when required. Provide GPIC workforce opportunities to work with and interact with international expertise. Further, solidify the goodwill and reputation of GPIC. ▶

Below is a list of our key engagements - Regional and International Organizations:

United Nations

• UN Global Compact.

• UN Environment.

• UN Food and Agriculture Organization.

Fertilizer and Chemical Associations

• International Fertilizer Association (IFA).

• Arab Fertilizer Association (AFA).

• Gulf Petrochemicals and Chemicals Association (GPCA).

Health and Safety Organizations

• National Safety Council – USA.

• Royal Society for the Prevention of Accidents (RoSPA).

• National Examination Board in Occupational Safety and Health (NEBOSH) – UK.

• British Safety Council – UK.

Educational Institutions

• Ministry of Education, Bahrain.

• Injaz Bahrain (part of Junior Achievement Worldwide).

• Bahrain Center for Strategic International & Energy Studies (DERASAT).

• Bahrain Institute of Public Administration (BIPA).

Others

• Global Reporting Initiative (GRI).

• Bahrain Society of Engineers.

• Bahrain Health and Safety Society.

We partner with organizations around the world, support global sustainability initiatives, and engage regularly with outside stakeholder groups. In addition to our direct business engagement, many of our employees give back through corporate philanthropy and volunteerism. Examples of externally developed principles and initiatives that we support include:

UN Global Compact: Since 2012, GPIC has committed to aligning our operations and strategies with the ten principles in the areas of human rights, labor, environment, and anti-corruption as outlined by the UN Global Compact. (For more details, refer to the section on UN Global Compact) .

UN Global Compact Food and Agriculture Business (FAB) Principles: In 2014, GPIC committed to and endorsed the 6 Food and Agriculture Business Principles. (For more details, refer to the section on FAB 6 Principles).

UN Global Compact Women’s Empowerment (WEPs) Principles: In 2014, GPIC signed its support and commitment to the WEPs. (For more details, refer to the section on WEPs).

GPIC’s Commitment to Responsible Care® RC 14001 Management System: GPIC has been certified as a member of the Responsible Care RC 14001 Management System since 2010. Responsible Care is the global chemical industry’s unifying commitment to the safe management of chemicals throughout their life cycle while promoting their role in improving quality of life and contributing to sustainable development. As a signatory to the global charter, GPIC will actively strengthen the Responsible Care initiative worldwide and is committed to a corporate leadership culture that proactively supports safe chemicals management through the global Responsible Care initiative, safeguarding people and the environment, strengthening chemicals management systems, influencing business partners, engaging stakeholders and contributing to sustainability.

Benchmarking through ISO standards and Management systems: GPIC is one of the few companies globally who are certified to several ISO standards and other management systems (For a complete list of management systems refer to GPIC Overview). GPIC also benchmark its safety and environment performance with fertilizer industries globally through IFA benchmark on regular basis.

V. Stakeholder Engagement

Disclosure 2-29: Approach to stakeholder engagement

Approach: The fundamental principles of GPIC’s ongoing sustainability stakeholder engagement strategy focus on three areas:

o Information sharing and disclosure.

o Participating in active dialogue.

o Collaborating on issues of mutual interest.

The overall purpose of this engagement is to advance the most appropriate business objectives while building GPIC’s reputation.

Identifying and selecting stakeholders: Stakeholder analysis helps identify and evaluate stakeholders that can and do impact or influence the Company’s strategy and reputation. The intentional effort is to identify stakeholders who can drive, block or shape the discourse around sustainability. In addition, those who are impacted may then influence how this discourse ultimately impacts GPIC. Through keeping up with current perspectives, more successful issues management and government affairs efforts are accomplished helping to avoid negative impacts for the Company’s businesses.

List of stakeholder groups: Now in our fourth decade of existence, with operations at our manufacturing facility in Bahrain and exports that span the globe, we believe stakeholder engagement is vital to ensure that we understand the demands of a rapidly evolving marketplace while also managing the expectations of society effectively. For GPIC, engagement with our stakeholders is a continual process that helps broaden our enterprise risk management processes to enhance the quality of information to our stakeholders on our analysis of the sustainability issues that are deemed material. This is achieved by adopting a strategy that focuses on more formal and frequent engagement with stakeholders, including shareholders, communities, and civil society organizations within the Kingdom.

Following are the key stakeholder groups that we engage with:

Shareholders. Employees.

The Local Community. Government and Regulators. Suppliers and contractors. Distributors. The Media.

Non-Profit Organizations and Academia. Regional/International Organizations. Customers. Banks.

For more information about stakeholders’ engagement, please refer to the next section, “Materiality Assessment and Topics.”.

Disclosure 2-30: Collective bargaining agreements

GPIC Under the provisions of the labor union law, the workforce, apart from managers and section heads, is prohibited from joining the labor union. This measure is in place to prevent undue influence on the workforce and to ensure their freedom to voice their concerns. It’s noteworthy that managers and section heads participate in separate committees. These committees provide a collective platform for raising and addressing concerns and issues.

Materiality Assessment & Topics

Our Ongoing Assessment Process

Stakeholders involved in the process Process Followed to determine Material Topics

Identification of Material Topics

Listing Material Topics

Changes from the previously reported list

Engagement with stakeholders serves as a compass, guiding our focus towards the pivotal issues that matter most to our company's success and sustainability, fostering mutual trust and advancing shared goals.

Our Ongoing Assessment Process

The materiality assessment process is a crucial component of our sustainability strategy, involving a thorough evaluation of various topics to determine their significance relative to our company. This process begins with identifying and assessing the relevance of different topics based on their potential impact on our business and stakeholders. We then engage in comprehensive consultations with both internal and external stakeholders to prioritize these topics. This prioritization is guided by specific, clearly defined criteria, which are meticulously measured to ensure an accurate representation of stakeholder concerns and business impacts. The outcome of this rigorous process is the identification of material topics, which are the issues most pertinent to our strategic objectives and stakeholder interests, ensuring our sustainability efforts are focused and effective.

Stakeholders Involved in the Process

At GPIC, engaging with our stakeholders is an ongoing practice that enriches our enterprise risk management processes. This continuous interaction allows us to provide stakeholders with improved insights into our analysis of key sustainability issues identified as material. Through this engagement, we ensure the quality and relevance of the information shared, enhancing transparency and fostering a deeper understanding of our sustainability priorities. This is accomplished by implementing a strategy that emphasizes more structured and frequent interactions with stakeholders, including shareholders, communities, and civil society organizations within the Kingdom.

To begin our Stakeholder assessment process, we compiled a comprehensive list of stakeholders for potential engagement, ranking them based on their influence on GPIC and vice versa. From this ranking, we identified our key stakeholders. Following this, we determined which stakeholders to engage with directly and indirectly. Each stakeholder category was thoroughly evaluated, leading us to decide on the inclusion or exclusion of each stakeholder through detailed justification with the ad of the GPIC Sustainability Reporting Committee and external consultants.

Following are the key stakeholder groups that we engage with:

Disclosure 3-1 Process to determine material topics

Process Followed to Determine Material Topics

Before introducing the materiality assessment process, it is essential to understand the preliminary steps taken to determine the material topics. This involves a thorough examination of various factors that influence our business and stakeholders. Initially, we conducted extensive research to identify potential issues relevant to our industry and operations. This research includes reviewing industry reports, benchmarking against peers, and analyzing emerging trends. We also gather input from internal departments to understand their perspectives on critical issues. This comprehensive approach ensures that we capture a wide array of topics that could impact our sustainability strategy. Only after this initial identification and understanding phase do we proceed to the detailed materiality assessment process.

The materiality assessment carried out by a third party consultant, Our third party consultant, consisted basically of 3 major factors as follows:

▶ Impact Assessment:

In this evaluation, "impact" signifies the influence an organization wields over the economy, environment, and/or society, indicating its role (whether positive or negative) in fostering sustainable development.

Our third party consultant conducted a thorough analysis of the potential effects GPIC might have within each of the 19 significant categories identified in the benchmarking study. This potential impact was gauged through two complementary evaluations, examining industry performance and geographical considerations. The purpose of this examination was not to assess GPIC's current performance on the selected issues but rather to provide a contextual understanding of its operational landscape. This insight illuminates potential adverse effects of business-as-usual practices and identifies opportunities for GPIC to enhance its current standing compared to other players in its industry or operating regions, as applicable.

For each material category, one or more quantitative measures for both industry and geographical assessments. These metrics utilized globally or regionally pertinent data to quantify the performance of each industry sector or nation. The results were then consolidated for each category and normalized on a scale of 1 to 10, with 10 indicating a higher potential impact.

A. For Industry Assessment

GPIC categorized its sector as "chemical manufacturing", to use this classification to weigh the industry in its assessment. In this evaluation, each material aspect was rated on a scale of 0 to 10, indicating how well the chemical manufacturing industry performs in that area compared to other industries. For example, if the chemical manufacturing industry performs poorly in certain areas, it would have a higher overall impact.

The process for conducting a materiality assessment varies by organization, but all assessments rely heavily on stakeholder engagement and initially identifying the topics that are important to the organization. This explains why organizations that are in the same field with the same scope of work normally have material topics that are considered common and material topics that are different or not applicable depending on different variable factors. Since our Materiality Assessment review started in 2022 and continued till 2023, the material topics from the sector standard (GRI 11) were not considered as the sector standard was not yet in effect. For this reason, the materiality assessment explained in this section was based on topics from the topic standards.

To pinpoint ESG topics that could be material to GPIC, a peer benchmarking assessment was carried out. This process involved documenting the most disclosed ESG topics based on publicly available information from the websites and sustainability reports of comparable companies. The peer companies were selected collaboratively by GPIC and the third party consultant and included Saudi Basic Industries Corporation (SABIC), Yara International, OCP Group, The Mosaic Company, and Nutrient. Following this initial evaluation, an in-depth benchmarking assessment was conducted, quantifying the ESG topics reported by GPIC’s peers, utilizing specific international frameworks such as the GRI Standards and SASB disclosures framework. As a result of this process, an initial 19 material categories were identified.

B. For Geographical Assessment

GPIC currently has one facility located in Bahrain. For this assessment, Our third party consultant assessed each material topic based on Bahrain’s relative performance, in which Our third party consultant incorporated reputable and internationally accepted datasets to apply a relative impact score for all indicators.

In addition to these two mentioned criteria/ assessments, two additional assessments were considered based on two factors: stakeholders’ engagement and financial risk to GPIC.

C. Stakeholders Engagement

For this specific assessment, Our third party consultant worked with GPIC to define which internal and external stakeholders to engage with using these two specific engagement strategies to collect their feedback and input: an online survey and one-on-one interviews as follows:

GPIC received 194 responses out of the 271 stakeholders who were invited to take the survey – a 72% response rate. Survey respondents selected the priority level of the possible 19 material categories identified as follows:

Our third party consultant conducted eight stakeholder interviews with key representatives from 3 distinct stakeholder categories. The aim was to gain insights into GPIC's sustainability endeavors and gather feedback on the assessed material topics. During these interviews, stakeholders were engaged with a set of open-ended questions tailored to elicit their perspectives.

D. Financial Risks to GPIC

In the stakeholder survey's concluding segment, stakeholders were prompted to select up to five material topics they perceive as the most significant financial risks to GPIC. These chosen risks will serve as the basis for a deeper assessment to quantify the potential financial implications associated with each material topic. This evaluation aligns with a 'double materiality' framework, considering both internal and external impacts on GPIC's financial performance.

C.2- Stakeholder Interviews

Identification of Material Topics

Listing Material Topics

Disclosure 3-2 List of Material Topics

The process described in the previous section aimed to ultimately identify the material topics according to the Topics Standards 2021. The results of the impact assessments conducted in the aforementioned four steps were integrated with the ratings provided by stakeholders. This fusion generated the ultimate prioritized list of material topics, along with the materiality grid, as shown in the following graph:

Overall, it is apparent that Environmental and Social topics should be the primary focus of GPIC’s ESG strategy, which has been reiterated through the stakeholder interview process. Eight strategic material topics fall into the highest priority level for stakeholders and/or potential impacts. These eight topics are: Materials, Energy, Occupational Health & Safety, Waste Management, Customer Health & Safety, Air Quality, Labor Rights, and Greenhouse Gas Emissions. Meanwhile, our comprehensive list of material topics identified through the assessment process is reflected in the following table as follows:

The following table shows the material topics and their relevance to GRI Topics:

Safety and Product Steward-ship

As mentioned earlier, this report is prepared in accordance with the most updated 2021 GRI Standards. This means that compliance with the applicable sector standard and, in this case, GRI 11 Standard (GRI 11: Oil and Gas Sector 2021) is mandatory. This dictates that the identification of the material topics is not only based on the Universal Standards and Topic Standards but also based on the applicable sector standards. However, as shown in the previous section, the assessment started in 2022 till mid-2023, before the applicable sector standard came into effect. So, we decided also to review all material topics in the applicable sector standard to reveal more transparency and reaffirm our commitment to sustainability reporting while distinguishing ourselves as an example leader in this domain and strengthening our bonds with all our stakeholders and everyone who is reading our sustainability report.

The identified topics from the Sector Standard will include material topics and non-material topics from Topics Standards. The following is the list of the reported 22 topics from the sector standard:

As part of our ongoing dedication to sustainability and the adoption of Sustainable Development Goals (SDGs), the table below illustrates the connections between material topics pertinent to the oil and gas sector and their corresponding SDGs:

Changes from Previously Reported List

The alterations in the material topics observed between the last sustainability report and the previous reporting period stem from two primary factors. Firstly, the transition from considering COVID-19 as a pandemic to its diminished status has led to a shift in focus. Measures implemented to address the pandemic are no longer at the forefront, and the associated side effects have waned. Consequently, new circumstances have emerged, necessitating a re-evaluation of strategies and considerations. Secondly, the transition from referencing the GRI 2016 Standards to the 2021 GRI Standards has significant implications. With GRI Standards, adherence to sector-specific standard GRI 11 becomes imperative. This shift encourages the adoption of a broader perspective, as outlined in GRI 11, when determining material topics, moving beyond the scope of just choosing material topics from Topics Standards. Consequently, organizations must reassess what to disclose and what to consider as material or non-material, reflecting a more comprehensive approach to sustainability reporting.

Unveiling the Economic Dynamics of Sustainability

Exceptional economic performance is achieved through strategic foresight, relentless innovation, and unwavering commitment to operational excellence, driving sustainable growth and longterm value creation.

Performance Highlights I.

GPIC has shown itself to be resilient and adaptable, poised to thrive in the ever-evolving landscape ahead. Through strategic planning and investment in robust supply chain management systems, GPIC has ensured uninterrupted production cycles, safeguarding against disruptions and meeting market demands efficiently. Implementing innovative cost-saving measures and leveraging technology-driven solutions, GPIC has optimized its operational expenses while upholding product quality, thereby enhancing overall profitability.

US$ 87.30 Million

Profits in 2023 and US$ 303.16 Million in 2022

US$ 390.17 Million

Sales achieved in 2023 and US$ 597.44 Million in 2022

US$ 6.366 Billion US$ 2.665 Billion

Injected into Bahrain's Economy since inception

Dividends paid to shareholders

1,674,277 MT

Annual combined production achieved in 2023 and 1,510,623 MT in 2022

471,254 MT

Ammonia annual production in 2023 and 16,265,196 MT since inception

451,774 MT

Methanol annual production in 2023 and 15,960,089 MT since inception

751,199 MT

Urea annual production in 2023 and 16,839,022 MT since inception

1,657 MT

Methanol local sales in 2023 and 1,292 MT in 2022

1,283 MT

Urea Local Sale in 2023 and 1,306 MT in 2022

Summary including our Management Approach

Disclosure 3-3 Management of material topics

In order to maintain our ongoing sustainability and deliver lasting value to our shareholders, GPIC recognizes that business growth and financial performance are key factors. We recognize the significant direct and indirect impacts of our operations and focus on maximizing positive results while reducing negative ones.

As part of our direct impacts, we deliver shareholder returns in the form of dividends, tax contributions to governments, employee salaries and benefits, and payments to suppliers. The indirect impacts we create include improving the business environment, investing in local communities, and creating sustainable employment opportunities, in addition to improving the economic well-being of local communities.

Understanding the pivotal role of a robust manufacturing economy and its impact on both local and global scales, GPIC is dedicated to fostering manufacturing jobs and contributing to the growth of the communities where we operate. We endeavor to be not only a responsible corporate citizen but also a supportive member of the communities we serve, aiming to build resilient and sustainable societies through our actions.

We strive to be a positive force in the economy by providing jobs and fostering relationships with local communities. We are committed to investing in the future of our manufacturing partners and our employees and to making a lasting difference in the lives of the communities we serve.

One main objective is to become the ultimate growth partner for all our stakeholders. With this aim in mind, we take a comprehensive approach to achieving our goal. We are dedicated to integrating local suppliers into our supply chain as much as possible, which helps us to create a more sustainable and mutually beneficial relationship with our partners. We prioritize the employment of Bahraini nationals to support the local workforce and economy, and we take pride in actively contributing towards the betterment of the local community. We believe that by adopting these practices, we can create a more robust and sustainable business model, which will enable us to continue providing value to our stakeholders in the long term.

Challenges faced during 2022 and 2023

In 2022, one of our most significant challenges was conducting a major plant turnaround in March. Originally scheduled for 2020, the turnaround had been postponed due to the COVID-19 outbreak. Securing the necessary skilled workforce and importing equipment and resources posed considerable difficulties. Managing a labor force of approximately 4,000 while implementing COVID-19 mitigation measures was a daunting task. However, GPIC successfully completed all planned maintenance work orders and projects within the allocated time frame, achieving this feat without any lost time accidents. The accomplishment can be attributed to meticulous planning, thorough risk assessment, and effective business continuity plans.

The Russian and Ukrainian conflicts have had significant repercussions on global energy markets, driving up natural gas prices worldwide and contributing to inflation. Despite these challenges, GPIC has adeptly absorbed the rising costs associated with inflation, which were exacerbated by the substantial increase in our product prices on the international market. Remarkably, the financial years of 2022 and 2023 were characterized by healthy performance for the company.

The availability of natural gas at a feasible price in Bahrain poses a significant challenge in the upcoming years. As the Bahrain Kuff gas reserves gradually deplete, the Kingdom is actively exploring the import of liquefied natural gas (LNG). The anticipated rise in natural gas prices will directly impact the financial standing of the company.

New Plans

In 2023, GPIC collaborated with international consultants to identify growth opportunities, explore new markets, and chart a course for the company’s future until 2040. As part of this forward-looking strategy, GPIC aims to diversify its product portfolio to ensure sustainable growth. Notably, the Vision & Mission Statements were revised to align the company with the Kingdom of Bahrain’s vision of carbon neutrality by 2060 and the 2035 commitment towards 30% emission reduction, as well as other relevant sovereign and regulatory requirements, including the transition to a circular economy.

The comprehensive study yielded short, medium, and long-term growth strategies. Following successful completion and approval by our Board of Directors, we have issued a Request for Proposal (RFP) to several international consultants to assess the feasibility of the suggested growth strategy. To achieve this, we always explore various potential growth avenues, such as overseas joint ventures, mergers, and acquisitions. We believe that these avenues will provide us with opportunities to tap into new markets, expand our customer base, and diversify our product offerings.

At GPIC, we also recognize the importance of sustainability and efficiency in today's business landscape. As such, we are actively seeking opportunities to improve our energy efficiency and enhance our production capacities. This will not only help us reduce our carbon footprint and contribute to a cleaner environment but also help us increase our productivity and profitability in the long run. We believe that by adopting a proactive and innovative approach towards growth, sustainability, and efficiency, we can continue to thrive and remain competitive in the global marketplace.

Despite the challenges and geopolitical issues in the middle east, we remained resolute in our pursuit of profitability. We achieved this through efficient operations, and cost optimization measures. Moreover, the unwavering commitment and expertise of our loyal workforce proved to be invaluable in supporting our endeavors during strenuous times.

Economic Performance

1. GRI

201: Economic Performance (2016)

Disclosure 201-1: Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers

283,604406,135462,491549,793

GPIC Contribution to the Economy of Bahrain

Disclosure 201-2: Financial implications and other risks and opportunities due to climate change

Climate change poses a dire threat to the reliability of our operations. The escalation of temperatures can significantly impair the functionality of our equipment and machinery, leading to a potential decrease in production output. The necessity to adapt to these climatic shifts is expected to drive up operational costs, as it will require substantial investments in cutting-edge technologies, adherence to evolving regulations, and strategic alterations to our supply chain.

In a proactive measure against climate change, we commissioned a carbon capture facility in 2009, which has the capacity to capture 450 tons of CO2 daily. Our commitment to environmental stewardship is further underscored by our objective to reduce scope 1 and 2 emissions by 20% by the year 2030. This ambitious target is part of our comprehensive decarbonization strategy, which includes a series of initiatives, such as the deployment of solar panels with a total generation capacity of 3 MW. Of this, a 0.6MW facility is slated for commissioning in 2024. These efforts are supported by an investment that exceeds $100 Million, reflecting our dedication to sustainable operations and a cleaner future.

Our climate strategy is built on strong preventive maintenance and energy efficiency, including the use of energy-efficient equipment and optimizing energy consumption, as outlined in our energy reduction measures. We adhere to both internal and external audits in compliance with the ISO 50001 energy management system. At GPIC, we are steadfast in our commitment to sustainability, guided by the principles of environmental stewardship, social responsibility, and economic growth. Through proactive climate action and the adoption of innovative technologies, we aim to reduce our carbon footprint, thereby contributing to regional economic development and ensuring our sustainable success.

Disclosure 201-3: Defined benefit plan obligations and other retirement plans

In careful consideration of our strategic objectives and local regulations, GPIC meticulously tailors our compensation and benefits schemes to offer the most optimal plans to our workforce. A recent addition to our offerings includes a revamped early retirement policy specifically designed for our Bahraini team members, aimed at enhancing accessibility to benefits while upholding the financial stability and operational continuity of the company. Furthermore, our comprehensive benefits package comprises a wide array of options, including a savings plan, extensive health insurance coverage for both employees and their families, various loan facilities, indemnity packages, annual bonuses, and more.

2. GRI 202: Market Presence (2016)

Disclosure 202-1: Ratios of standard entry-level wage by gender compared to local minimum wage.

GPIC provides its employees with a competitive base salary, ensuring that compensation aligns with geographically competitive norms. Entry-level wages are determined based on factors such as job role, experience, and level of responsibility, with no consideration given to gender. These entry-level wages are set in accordance with the prevailing value of comparable roles within the external job market, considering similar positions in similar companies and locations. It's important to note that GPIC conducts a benchmark against minimum wage standards periodically.

Note the following:

• The definition of a significant location of operations is GPIC Complex, which includes all departments.

Disclosure 202-2: Proportion of senior management hired from the local community.

In accordance with company policy, all recruitment processes prioritize meritocracy, with no bias towards any other factors. GPIC proudly upholds principles of equal opportunity in employment. Our HR/recruitment policy underscores the importance of leveraging local talent as a priority before seeking alternatives, thus offering preference to local candidates in key operational areas. Notably, GPIC demonstrated its commitment to diversity and inclusion by appointing its first female manager, initially as the Human Resources Manager, and later expanding her role to encompass Corporate Communications as well. Additionally, GPIC boasts a robust Leadership program supported by an effective succession plan and talent management strategy aimed at nurturing Bahraini talents for senior management roles.

Note the following:

• The percentage of senior management at significant locations of operation that are hired from the local community is 100%.

• The definition used for ‘senior management’ is Departmental Managers and above.

• The organization’s geographical definition of ‘local’ is Bahrainis.

• The definition used for ‘significant locations of operation’ is GPIC Complex, which includes all departments.

3. GRI 203: Indirect Economic Impacts (2016)

Infrastructure investments and services supported

GPIC supports programs that address education, the environment and economic success – all important aspects of community sustainability. Since inception, GPIC has invested US$ 6.366 Billion into the economy of Bahrain. This contribution has been made in several areas, such as employment, training, procurement, dividends to the Government, purchases made within Bahrain. Below table shows our contributions during 2022 and 2023.

Disclosure 203-2: Significant Indirect economic impacts

Our operations and sustainable business practices have a significant indirect economic influence, impacting various spheres. As a leading player in the petrochemical and fertilizer industry, GPIC's products are crucial in boosting productivity, sustainability, food security, and operational efficiency within the value chains they operate. Our sustainable development principles are deeply rooted in our business strategy, and we collaborate with esteemed regional and global organizations like the UN Global Compact to address stakeholder concerns. We remain committed to improving community welfare by customizing our strategies and investments to promote sustainability locally and globally. GPIC contributes to the economic development of local communities by creating a conducive business environment, investing in the community, and creating opportunities for employment. We also undertake corporate social responsibility initiatives, providing financial support to communities and involving our employees actively. Our focus remains on supporting programs and non-profit organizations that promote sustainability and improve living standards in our operational areas.

4. GRI 204: Procurement Practices (2016)

Disclosure 204-1: Proportion of spending on local suppliers

By choosing to work with local suppliers, GPIC can contribute to the growth of the local economy through indirect stimulation of further investment. Opting for local sourcing can serve as a strategic measure to safeguard supply, as local suppliers are more familiar with the local market and can respond quickly to changes in demand. This, in turn, can bolster the stability of the local economy, as businesses that source locally are less susceptible to supply chain disruptions and can maintain consistent operations. Additionally, by sourcing from local suppliers, GPIC can foster stronger community ties and promote social responsibility. Supporting local businesses can lead to increased employment opportunities and contribute to the overall well-being of the community. By prioritizing local sourcing, GPIC can benefit both the company and the local economy.

Note the following:

• The percentage of the procurement budget used for significant locations of operation spent on local suppliers for 2022 is 94%, and for 2023 is 104% (compared to the previous year and the allocated budget).

• The geographical definition of ‘local’ is Bahrain.

• The definition used for ‘significant locations of operation’ is GPIC Complex in Sitra.

5. GRI 205: Anti-corruption (2016)

At GPIC, we are unwavering in our commitment to sustainability, which is evident in every aspect of our operations – from strategy to daily practices. We take a firm stance against fraud and corruption, both in the marketplace and our communities, and believe that ethical business practices are crucial to our credibility among stakeholders. We invest in comprehensive anti-fraud and anti-corruption measures, starting with stringent initiatives at the highest levels of leadership. Our Board of Directors and Executive Management are fully committed to fostering an ethical organizational culture and upholding responsibility to all stakeholders. We understand the pivotal role of leadership in setting a positive example and cultivating an ethical workplace environment. Therefore, we prioritize transparency, integrity, honesty, and ethical conduct throughout the organization, leaving no room for compromise. At GPIC, we assert that ethical conduct is not only a core value but also a critical business strategy that drives our success. To uphold our organizational commitments, we implement the following measures as integral components of our daily operations:

• Clearly articulating expectations and promoting ethical values: We communicate the organization's values and ethics, emphasizing consistent and ongoing adherence. This is formalized through a written 'Code of Conduct and Professional Ethics.’

• Leading by example: We prioritize the embodiment of our values, starting from the highest echelons of leadership. Our leaders and managers are expected to exemplify these values in their daily actions, serving as positive role models for our employees.

• Establishing a safe reporting environment for violations: We have created a secure platform for employees to report any observed unethical actions or behaviors without fear of retaliation. Additionally, employees have the option to report anonymously if they prefer not to disclose their identity.

• Recognizing acts of integrity: We ensure that ethical behavior within the organization is acknowledged and rewarded, including consideration for organizational awards for employees who consistently demonstrate high levels of integrity and ethical conduct above and beyond their duties.

GPIC confidently maintains profitability through ethical conduct. We follow the most rigorous corporate governance standards aligned with Bahraini law. Our comprehensive strategy is guided by ethical behavior, which we apply across all aspects of our operations, including our interactions with stakeholders, employees, local communities, and regulatory authorities. We strictly comply with Bahraini laws and regulations and hold ourselves to higher standards. Our policies monitor the activities of all individuals associated with the organization to prevent any abuse of privileged information. We are committed to fairness in our dealings with stakeholders, have a rigorous pre-qualification process, and conduct regular internal audits to ensure compliance with systems and procedures.

We seek validation from independent external auditors and undergo a joint shareholders audit every three years, enhancing our credibility, integrity, and ethical values. In 2023, we issued a revised Corporate Governance Policy, building upon our continuous improvement efforts. Additionally, in 2019, we developed a Standard Operating Procedure concerning conflicts of interest, providing a clear framework for identifying, declaring, managing, and resolving any conflicts of interest between employees and company businesses.

Our Corporate Governance Policy sets the framework that includes all the documents used in reference to internal governance topics. The corporate governance is a set of systems and processes, customs, policies, laws and regulations by which a corporation is directed, administered and controlled.The framework marked a crucial milestone in strengthening our anti-corruption and anti-fraud initiatives and systems and includes the following documents:

In order to fortify our anti-corruption framework, we routinely conduct a thorough compliance assessment in accordance with our Corporate Governance Policy on an annual basis and through a third party. Additionally, we have meticulously crafted a detailed Code of Conduct and Professional Ethics Handbook, which underwent presentation to the Audit, Finance, and Risks Committee in December 2015, followed by approval from the Board of Directors in May 2016 till we got the latest approval and update of the handbook which was issued in 2023. This handbook underscores our unwavering commitment to integrity, honesty, and accountability, reiterating our dedication to upholding the principles outlined in the UN Global Compact. It delineates our ethical standards pertaining to Human Rights, Labour Rights, Environmental stewardship, and Anti-Corruption measures. Furthermore, we initiated an extensive awareness campaign to promote adherence to the Code of Conduct and Professional Ethics.

Here are recent highlights showcasing our dedication to the principles of anticorruption outlined in the UN Global Compact:

We have introduced new

on segregation of duties and conducted an audit to ensure compliance.

corporate governance framework underwent review by the Board of Directors in 2016, with a revised version issued in 2020 and the latest update in 2023.

Disclosure 205-1: Operations assessed for risks related to corruption

Our internal audit team has recently conducted an in-depth assessment of process risks, specifically examining key functions within Finance, Human Resources, and Marketing to detect any potential fraud risks. Both internal and external financial audits are carried out across our organization to safeguard against financial corruption. Additionally, our Enterprise Risk Management system comprehensively addresses the risk of major fraud incidents. Oversight of our financial statements and legal/regulatory compliance is performed regularly by our Audit, Finance, and Risk Committee, in collaboration with external auditors, on a quarterly and yearly basis.

Note the following:

• Total number of operations assessed for risks related to corruption – the fraud and corruption aspect in every audit conducted ensures 100% coverage of every process in the three-year span.

• Total percentage of operations assessed for risks related to corruption - the fraud and corruption aspect in every audit conducted ensures 100% coverage of every process in the three-year span.

• Significant risks related to corruption identified through the risk assessment: Fraud risks are considered in all internal audit assignments. Some of the considered fraud risks include:

Additionally, we are proud members of the Pearl Initiative, a prominent independent nonprofit organization in the Gulf Region of the Middle East. The Pearl Initiative works to foster corporate accountability and transparency among businesses. It aims to drive collaborative action on various issues, including corporate governance, anti-corruption measures, codes of conduct, integrity, and reporting practices throughout the region. These initiatives collectively contribute to reducing the likelihood of employee engagement in corrupt or fraudulent activities, ultimately fostering a culture of integrity and transparency within our organization.

Disclosure 205-2: Communication and training about anti-corruption policies and procedures

Recently, as part of its commitment to the UNGC principles on anti-corruption, a number of our employees attended specific training and conferences related to corruption, bribery, fraud, etc.

GPIC has many tools for communicating the company’s stance and processes with respect to fraud and fraud-related activities and how they will be dealt with, including the following:

• GPIC Corporate Governance Policy, which is a framework that compiles corporate legislation, laws, and policy to bind the Board of Directors and Executive Management. The policy illustrates the attitude and tone set by the BoD and Executive Management.

• GPIC Code of Conduct and Professional Ethics Handbook, which highlights business ethics, conflicts of interest, bribery & corruption, gifts & entertainment, fraud & theft.

• A whistleblowing hotline is displayed on the GPIC website to contact the Legal and Compliance Supervisor, promoting the reporting of any misconduct and helping in detecting and preventing corruption.

• GPIC Segregation of Duties Guideline and Matrix, which defines and describes the SOD system and provides a framework for the creation of a SOD matrix for the different departments within the Company.

• GPIC Declaration of Conflicts of Interest Policy, Procedure, and Forms, which is a framework to identify, declare, manage, and resolve any matters that could lead to conflicts of interest through the electronic system for the annual declaration of conflicts of interest for GPIC’s Board of Directors, Executive Management and employees.

• The tendering/bidding process is being managed through a multidisciplinary committee, and the system for vendor pre-qualification is being developed.

• GPIC Schedule of Authorities that is approved by the Board of Directors and sets approval limits for the company transaction (which is embedded in GPIC systems and procedures).

Note the following:

All our employees, including board members and from all levels of seniority and different regions, received training on anti-corruption (100%).

Disclosure 205-3: Confirmed incidents of corruption and actions taken

A review of the complaints and completed investigations in 2022/2023 revealed that no GPIC employees were terminated for corruption-related behavior (No Confirmed cases related to anti-corruption and no public legal cases on that aspect).

6. GRI 206: Anti-competitive Behavior (2016)

Disclosure 206-1: Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

There were no cases of anti-competitive behavior, hence no actions.

7. GRI 207: Tax (2019)

GPIC operates in Bahrain, and currently, only the government has enacted and implemented value-added tax (VAT). GPIC pays its share of taxes, making a substantial contribution to the economic development of the country.

Disclosure 207-1: Approach to tax

GPIC’s tax strategy complies with the National Bureau of Revenue Bahrain guidelines. All business activities are conducted ethically, contributing to the company's sustainable development. The company's tax process is periodically reviewed by auditors and tax consultants, who report to the company's tax governing body appointed by the executive management.

Disclosure 207-2: Tax governance, control, and Risk Management

The company's tax governing body consists of the members of the executive management who are accountable for compliance with the tax strategy. This body identifies and manages risks by implementing the tax laws through regular reviews, obtaining feedback from the stakeholders, and training the relevant workforce on changes in applicable tax guidelines.

Disclosure 207-3: Stakeholder engagement and management of concerns related to tax

The company's tax governing body engages with and manages concerns related to tax matters with tax authorities, customers, and suppliers.

Disclosure 207-4: Country-by-country reporting

GPIC operates only in Bahrain, and this report covers all business activities, information, and data.

Performance Highlights

GPIC has consistently demonstrated exemplary performance in environmental stewardship. Through innovative sustainability initiatives and stringent adherence to environmental regulations, GPIC has significantly minimized its ecological footprint. The company's commitment to green practices is evident in its efficient use of resources, reduction of emissions, and implementation of comprehensive waste management systems. GPIC's proactive approach to environmental protection not only ensures compliance with international standards but also sets a benchmark for the industry, showcasing its role as a leader in environmental sustainability.

Reportable Environmental Incidents in 2022 and 2023

Hazardous waste to landfill in 2022 and 2023

Emissions reduced through the carbon dioxide recovery plant since 2009

9,270 Kg

Recycling of paper, plastic, metal, and cardboard in 2023 and 10,848 kg in 2022

183.7 MWH/Yr

Energy saving in 2023 as result of replacing 750 lamps

in 2022

Mangrove trees planted in 2023 and 2680

II. Summary including our Management Approach

GPIC has reliably exemplified that even amid rapid expansion within a fiercely competitive emerging market, it's feasible to fulfill environmental obligations and significantly diminish carbon emissions while enhancing profitability. With the global climate landscape becoming increasingly apparent, no enterprise can afford to disregard its environmental footprint. Therefore, GPIC is unwaveringly committed to upholding stringent environmental standards, recognizing that environmental stewardship is an essential gauge of accountability, competitiveness, and forward-thinking.

At GPIC, our management philosophy centers on three core tenets: reducing our environmental impact, seamlessly integrating environmental preservation into our operations alongside safety and health considerations, and ensuring compliance with regulations while transparently communicating our environmental performance.

We've showcased our dedication by establishing and upholding robust environmental standards while actively working to mitigate our industrial impact on local communities and the surrounding environment.

Our approach aligns harmoniously with Bahrain's Environmental Policy, underpinned by principles such as precaution, accountability, sustainability, and collective responsibility for sustainable development. Outlined below are the key highlights of our Environmental Strategy, which serve as the guiding principles for our investment decisions:

Benchmarking for Continual Improvement

We strive for excellence by benchmarking ourselves against the most rigorous global standards. To demonstrate our commitment, we pursue internationally recognized certifications like ISO14001- for Environmental Management, Responsible Care RC 14001, and ISO 50001. Additionally, we actively participate in specialized environmental and energy benchmarks set by esteemed global organizations such as the International Fertilizer Association (IFA), Arab Fertilizer Association (AFA), and others.

Biodiversity and Protection of Natural Habitats

At our production site, we have established a fish farm where approximately 100,000 sea bream fish are released annually into the deep sea, contributing to the enrichment of marine life.

Our fish farm was established in 1996, and since then, it has been managed to ensure the fish are raised in healthy and sustainable conditions and that their habitat is protected and conserved. In 2023, we released 2150 fish in different marine areas around the Kingdom of Bahrain in the presence of representatives from the Fish Directorate/ Ministry of Municipality and Agriculture.

Additionally, we maintain a bird sanctuary that accommodates various species of birds, both migratory and local. Surrounding our facility in Bahrain are meticulously designed gardens aimed at nurturing rare, indigenous, aromatic, and desert plants. These gardens serve as educational tools for school students, fostering awareness of environmental preservation and expanding their understanding of Bahrain's natural biodiversity.

GPIC has signed a memorandum of understanding with the Supreme Council for Environment to increase mangrove plantation surrounding the facility. We are taking a proactive approach to environment stewardship and collaborating with stakeholders to achieve common environment goals. The planting of 2680 mangroves in 2022 and 4660 in 2023 is a great achievement for biodiversity conservation and carbon sequestration. As part of our decarbonization strategy, we are planning to plant 250,000 mangrove trees by 2035.

Climate Change Commitments

In an era of global climate change, GPIC’s greenhouse gas emissions, as well as its carbon footprint, are some of the biggest challenges we face when planning our investment in environmental sustainability. GPIC has been able to implement some projects, such as the Urea Plant and the Carbon Dioxide recovery plant, that have reduced the company’s carbon footprint and greenhouse gas emissions, thereby helping us to contribute towards slowing the pace of climate change. The Carbon Dioxide Recovery (CDR) plant commissioned in 2009 captures 450 MT/Day of CO2 from the methanol-reformer flue gases and then recycles them back into our processes. Hence, it will reduce the Company’s carbon footprint and improve resource efficiency and production augmentation. This project is the best example of how GPIC combines business strategy with environmental sustainability.

Environmental Awareness

We are dedicated to fostering a culture of environmental responsibility among our employees and the communities where we operate. This commitment is upheld through ongoing training programs designed to equip our personnel with the skills, competencies, and empowerment needed for continuous improvement. We recognize that our employees are pivotal to the successful implementation of best practices in health, safety, and environmental stewardship.

Environmental Care beyond Borders

At GPIC, our approach to environmental management extends beyond our facilities, aligning with our core business principles of sustainability, responsible care, and corporate social responsibility. Through our Responsible Operations strategy, we aim to mitigate any adverse impact on neighboring communities. Our primary objective is to conduct business processes in a manner that generates a positive overall impact on society.

Environmental Review at the Design Stage

Every minor and major project and engineering modification undergo a comprehensive environmental impact assessment during the design phase. This assessment aims to pinpoint potential environmental repercussions, enabling us to mitigate or eliminate them proactively during the planning stage. Any identified gaps or concerns are promptly addressed to ensure the project aligns with our commitment to environmental sustainability. Additionally, every Modification and Capital Project undergo an Environmental review within our electronic Management of Change (MOC) system to ensure compliance with environmental standards.

Global Engagement and Sustainability

Beyond our operational commitments and responsibilities, we are actively involved in environmental initiatives aimed at creating impact and promoting sustainability. One notable example is our dedication to the UN Global Compact, where we adhere to its 10 Principles, including those focused on environmental sustainability. Additionally, we uphold the UN Global Compact Food and Agriculture Business Principles (FAB 6), particularly Principle 2, which emphasizes environmental responsibility. Environmental stewardship is a core value for us, underscored by our joint sponsorship of the annual RoSPA International Dilmun Environmental Award. This prestigious award recognizes companies with exceptional environmental management systems, reflecting our steadfast commitment to environmental excellence.

The SDGs significantly expand the scope of environmental concerns, with specific goals addressing oceans and marine resources, ecosystems and biodiversity, as well as land degradation and desertification. Furthermore, environmental sustainability is integrated across all other goals. Nearly half of the SDGs directly relate to environmental preservation. We have taken proactive steps to align our business priorities with the SDGs, showcasing our commitment to making meaningful contributions towards achieving these global objectives.

GPIC and the Environmental Dimension of the SDGs

Life Cycle Perspective

GPIC acknowledges that significant environmental effects arise during various stages of its operations, including raw material sourcing, manufacturing, transportation, delivery, and product or service disposal. Through vigilant monitoring and analysis of pertinent data, we endeavor to alleviate any detrimental environmental outcomes throughout these life cycle phases. We assess our level of control or influence over activities, products, and services from a comprehensive life cycle standpoint.

Monitoring and Control of Emissions, Effluents and Waste

As an integral aspect of our commitment to responsible operations, we engage in active monitoring of our gas emissions, liquid effluents, and waste generation. Moreover, we have implemented various measures to diminish our carbon footprint, thereby enhancing our overall environmental impact.

Regular Audits

Apart from internal audits conducted by our diverse committees, our facilities undergo regular audits by third-party expert organizations. These audits serve to verify that we uphold the standards to which we have pledged our commitment.

Reliable Operations with Minimum Business Interruption

We are firm believers that operating our plants efficiently and reliably, with minimal production interruptions and downtime, will help minimize the environmental impacts of our operations. To achieve this goal, we prioritize investments in reliable, cutting-edge technology and equipment. Additionally, we ensure that all our personnel receive proper training for their respective roles to maintain operational excellence.

Resource Efficiency and Conservation

We prioritize maximizing resource utilization across all our processes, addressing concerns related to water, energy, and raw materials. This approach aims to minimize waste in our manufacturing processes and promote the development of greener, more eco-friendly facilities.

Strict Compliance with Legislative and Regulatory Requirements

We prioritize adherence to relevant environmental laws and regulations, integrating compliance into the foundation of all our policies.

Our Environmental Performance 2022-2023

Our environmental performance from 2022 to 2023 was par excellence. We achieved our environmental targets, including the energy targets. Our emissions, effluents, and wastes were in compliance with the Bahrain Environmental Standards, and we did not experience any reportable environmental incidents in 2022-2023. We continued our drive towards energy efficiency and energy efficiency projects such as the introduction of energy-efficient lighting. We participated in a number of environmental benchmarking studies, including IFA benchmarking for effluents and emissions. We continue to maintain our biodiversity projects within GPIC and outside, and we established new Neem tree garden in 2019 with 150 trees. As part of our climate action, we planted 7340 mangroves in 2022 and 2023 within our facility, in addition to several hundred mangroves planted several years ago. We completed studying the installation of a 600 Kw of solar plan project utilizing GPIC employee’s car park roofs, and the actual implementation work started in the 4th quarter of 2023.

Our Salient Achievements

More recently, the Company received the Arabia CSR Award from UAE-based Arabia CSR Network. GPIC continued with its leadership role in SSHE excellence at regional and global levels and has been actively involved and engaged with Regional and Global organizations such as the National Safety Council, the Royal Society for the Prevention of Accidents, the UN, and the UN Environment. GPIC has engaged actively with governmental bodies on National level strategy formulation and legislation revision on environmental issues covering the Paris Climate Change Agreement COP 21 and associated greenhouse gas inventory reporting, the Role of Industries and the private sector in the implementation of UN 17 SDGs, National Energy Efficiency and National Renewable energy action plan, carbon capture and potential future scenarios, ozone depletion and Montreal Protocol national level initiatives and way forward, national Implementation plan of the Stockholm Agreement related to BCPs. The GPIC team participated in last year’s COP 28, which was held in Dubai.

Since 2013, we have continued with the replacement of existing conventional lights in process areas, non-process areas, buildings, and streetlights with energy-efficient LEDs. Since 2013, we have installed 7666 LEDs both in process and non-process areas, resulting in an energy savings of 1696 MWh/Y and a total GHG emission reduction of 846 tons CO 2 e. The energyefficient LED replacement project continued in 2022 and 2023 when we installed 2377 LEDs with an annual energy savings of 351 MWh. We have stopped our CDR steam boiler and are utilizing the excess steam available from our network. This has resulted in cumulative natural gas savings of more than 2 million m 3 during 2022 and 2023.

In 2023 GPIC has connected existing continuous emission monitoring system (CEMS) to the Supreme Council for environment to ensure compliance, transparency and for close monitoring. In addition to that, GPIC has commissioned new air quality monitoring station measuring 13 pollutants, for the regular monitoring of the air quality levels to help us identify trends and patters in the air quality data, to mitigate potential sources of pollution and prevent the risk of health issues associated with poor air quality.

Our Challenges

Our biggest environmental challenge is the location of our facilities, which is surrounded by sea, neighbouring facilities and the residential communities. We as a responsible care company are mindful of the challenges and hence follow a precautionary approach when it comes to environmental sustainability.

Compliance with environmental legislation, reducing energy consumption and emissions, resource conservation, energy efficiency, hazardous waste management, and pollution prevention are some of our main priorities in relation to the environmental challenges we face at GPIC.

Impact on sea water effluent dispersion as a result of reclamation around GPIC and the increase in sea water intake temperature during summers is a challenge impacting the energy requirements and the production rates.

Achieving zero waste to landfill has been a challenge for GPIC as finding alternative solutions in the Bahrain market is limited; the waste is diverted to incineration and recycling. However, GPIC would also like to go for a better alternative to incineration and divert the waste generated to 100% recycling. GPIC is exploring further recycling options outside the Kingdom of Bahrain; however, the cost of shipping and treatment is very high. GPIC is actively exploring other means, such as returning waste to the supplier at the end of the life of the product.

III. Environmental Performance

1. GRI 301: Materials (2016)

At GPIC, responsible consumption & production is a crucial part of our environmental strategy. We are committed to achieving resource efficiency and making the most of materials in all our operations. Our team is dedicated to promoting the principles of reduce, reuse and recycle, which we believe are essential for a sustainable future. By maximizing material efficiency, we not only lower our production costs but also reduce our carbon footprint.

Disclosure 301-1: Materials used by weight or volume

For paper consumption, the reduction shown in the following table of A3 and A4 paper used is mainly due to 2 reasons: working remotely and digitalization strategy. (campaigns and paper reduction are also included in our environment KPI and monitored on a monthly basis).

Disclosure 301-2: Recycled input materials used

We do not use any recycled input materials in our processes.

Disclosure 301-3: Reclaimed products and their packaging materials

We do not use reclaimed products.

2. GRI 302: Energy (2016)

The company is committed to building a sustainable energy future and strongly believes that innovative technologies and energy-efficient operations are crucial to achieving this goal. To this end, we are focused on sustainable production and consumption, with the aim of reducing the environmental impact of our operations. Although the production of fertilizers is relatively clean, it is a highly energy-intensive process that can have significant environmental effects. We are, therefore, working tirelessly to reduce our greenhouse gas emissions and enhance energy efficiency.

Since 1985, when our first ammonia and methanol plants were commissioned, we have made significant strides in this direction. For instance, we have reduced the total energy consumption per tonne of product from 11 Gcal/Metric tonne to 7.25 Gcal/Metric tonne in our current operations through various energy-saving initiatives such as the implementation of the Urea Plant in 1998 and the commissioning of the Carbon Dioxide Recovery Plant in 2009. In recent years, we have undertaken several energy-saving projects, including revamping the Ammonia Converter and upgrading our equipment to optimize our operations. We are proud to report that these efforts have led to improved energy efficiency and a simultaneous reduction in CO2 emissions across our plants.

As part of our ongoing commitment to sustainable energy practices, we obtained the Energy Management System ISO:50001 certification in 2015. We have set ambitious energy goals for ourselves, including replacing all conventional lights within our facilities with LEDs and establishing solar energy infrastructure to meet our energy requirements for buildings outside the process area. We firmly believe that we can create a sustainable energy future through our continued commitment to energy-efficient practices and innovative technologies. We are optimistic that our efforts will lead to a greener, more sustainable future for all.

▶ The following energy-related projects were planned and implemented during turnaround 2022:

Upgrading Urea side Sea Water / Fresh Cooling water Plate type Exchangers. Improving Urea Reactor conversion efficiency by providing Supercop Trays. Replacing Methanol reformer catalyst tubes with G4852 Micro R material. Other miscellaneous energy-related projects. Providing bypass across tube side of E-0401 in ammonia plant to maintain methanation inlet temperature.

▶ The following projects were studied during 2023 for their feasibility:

Installation of Heat Recovery Steam Generator (HRSG) downstream of the existing Gas Turbine.

Installation of RO-based Desalination Unit.

Provide MP Stripper and recover steam to utilize in Ammonia Primary Reformer. Further detailed feasibility shall be carried out by consultant through GPIC Request for Proposal RFP for GPIC future expansion plan.

Disclosure 302-2: Energy consumption outside of the organization

▶ For this report, we have not calculated energy consumption outside of the organization, but we have already indicated the imported electricity, as shown in the previous section.

Disclosure 302-4: Reduction of energy consumption

GPIC with the escalating gas prices in Bahrain and heightened global market competition, prioritizing reliability and energy efficiency has emerged as paramount for sustaining and bolstering the profitability of petrochemical plants. GPIC has achieved commendable success in upholding rigorous standards, consistently maintaining impressive on-stream factors, and maintaining an impeccable safety record for the Complex.

Regarding energy management, there has been a notable enhancement in the specific energy consumption of the Ammonia, Methanol, and Urea plants over time. This enhancement is attributable to the implementation of diverse energy-saving and environmental initiatives, coupled with the adoption of efficient technologies for new equipment and plants. The sustained decline in the average energy consumption of the plants serves as a testament to the efficacy of these endeavors.

GPIC has long upheld the belief that true energy efficiency in a plant is attained through a combination of high on-stream factors and robust capacity utilization. In alignment with this principle, significant modifications have been undertaken over the past 15 years to bolster reliability and efficiency, yielding a spectrum of accrued benefits.

Disclosure 302-5: Reductions in energy requirements of products and

services

Not Applicable. We do not sell products that require energy for use. (such as electrical appliances, computers etc).

3. GRI 303: Water and Effluents (2018)

Management Disclosures:

Disclosure 303-1: Interactions with water as a shared resource

Disclosure 303-2: Management of water discharge-related impacts

Water plays a vital role in GPIC's manufacturing processes. It is used for various purposes, including steam production, cooling, and supporting horticultural practices. In order to fulfill our water requirements, we rely on seawater desalination, which is a key aspect of our plant's layout. Our focus is on the recovery and reuse of process-related water streams, such as process and steam condensate, for which we use treatment methods like steam stripping and polishing. This approach optimizes resources and enhances energy efficiency. To ensure compliance with national legislative requirements, we have implemented rigorous monitoring procedures, including online analyzers, laboratory analyses, and regular inspections by government regulators. Groundwater surveillance is conducted to prevent potential contamination from process fluids and chemicals, with swift detection of any leaks or seepages. We are committed to maintaining strict adherence to all applicable regulations and standards.

In 2012, we made a significant switch from chlorine derived from seawater to Sodium Hypochlorite due to safety concerns. Furthermore, in 2014, we constructed and activated a double High-Density Polyethylene (HDPE) lined evaporation pond that can store up to 1000 m3 of wastewater and other solvents. This pond proved to be invaluable during plant turnarounds in 2015, 2018, and 2022 as it facilitated the management of spent fresh cooling water and catalyst-contaminated wastewater. The solid sludge generated through evaporation undergoes disposal in government-controlled hazardous waste landfill sites, or it is directed to other waste management facilities for treatment.

All our emissions and effluents are within the prescribed Bahrain Legislative limits, and they are managed in an eco-friendly manner and regularly reported to the Supreme Council for Environment. This reporting is done on a quarterly basis on various identified parameters as per the new Bahrain environmental legislation on effluents and emissions in place since 2021. The wastewater generated within our processes undergoes oil removal and neutralization before discharge into the marine environment, ensuring compliance with pollution regulations and alleviating environmental burdens. We take our environmental responsibilities seriously and are committed to minimizing our impact on the environment as much as possible. Having that said, We face the dual challenge and opportunity of minimizing water usage by treating and recycling various wastewater streams, including those contaminated with biological waste and methanol. Additionally, we persistently strive to diminish steam losses, thereby curbing both energy and water consumption.

As for our effluents, we release seawater discharged from our process units into the marine environment. This seawater is treated and assessed for quality before being discharged along with other effluents into the central seawater discharge. We closely monitor the seawater discharge through routine laboratory analyses and inspections by government environmental regulators to ensure compliance with regulations. Our water usage and effluent discharge are managed in accordance with our process demands and prevailing climatic conditions. During the summer months, our seawater needs increase by approximately 33%.

On an average, during 2022 -2023 the discharged water to marine environment contained Chemical Oxygen Demand (COD) value of ‹25 ppm and Biological Oxygen Demand value of 5 ppm, which were well below the accepted levels as per the Bahrain Environment Standards (BES).

Disclosure 303-3: Water withdrawal

Note: No water sources are significantly affected by water withdrawl.

Disclosure 303-4: Water discharge

The quality of water discharged is in accordance with the permissible limits as per Bahrain Environmental Standards (Legislative Limits).

Amount of Water Discharged

During 2022-2023 we did not have any incident related to non-complying water discharges and we did not experience any reportable environmental incidents involving significant spills.

Water Consumption by Sources vs Total Water Recycled/Reused

Water is very essential for GPIC operation where high-pressure steam is produced to running all turbines to produce Ammonia, Methanol and Urea. We have fire water, potable water and service water. EWA water is used for greenery landscape to reduce usage of desalination water. (Please note that water consumption is calculated by the water taken by desalination unit+ ALBA water+ EWA water).

Net Total Water Consumption

4. GRI 304: Biodiversity (2016)

At GPIC, biodiversity is not just a concept but a cornerstone of our commitment to environmental stewardship. We recognize the intricate web of life that sustains our planet, which is why we actively engage in initiatives such as planting mangroves, establishing fish farms, and creating bird sanctuaries. These efforts are not only aimed at preserving delicate ecosystems but also at enhancing biodiversity and promoting sustainable practices. By nurturing mangrove forests, we protect coastal areas from erosion and provide habitats for diverse marine life. Our fish farms not only support local communities with sustainable seafood sources but also contribute to marine biodiversity conservation. Similarly, our bird sanctuaries serve as havens for migratory species and indigenous birds, ensuring their habitats are safeguarded for future generations. At GPIC, we believe in fostering biodiversity as a vital component of our responsibility to the environment, promoting harmony between industry and nature.

Disclosure 304-1: Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

We do not have any operational sites that are managed near protected areas or of high biodiversity value (Our fish farm and bird sanctuary are not registered as protected areas). Not Applicable.

Disclosure 304-2: Significant impacts of activities, products, and services on biodiversity

We do not have any protected areas next to our operations, so we cannot report significant impacts on these protected areas.

Disclosure 304-3: Habitats protected or restored

We do not operate in any protected areas to implement restoration measures. Not Applicable. nt restoration measures. Not Applicable.

Disclosure 304-4: IUCN Red List species and national conservation list species with habitats in areas affected by operations

The areas we operate in have no listed IUCN species or endangered species. Not Applicable.

5. GRI 305: Emissions (2016)

The relationship between energy consumption and greenhouse gas (GHG) emissions is direct, as energy production is a significant source of emissions for our organization. At GPIC, we are committed to minimizing our GHG emissions, and we have been doing so since the inception of our plant design. We firmly believe that preserving the environment and optimizing resources are crucial for reducing our ecological footprint while meeting societal needs. As a result, we have integrated various eco-friendly concepts into our plant design and established operational principles to minimize GHG emissions. Reducing our GHG emissions is one of our core sustainability objectives, and we are dedicated to achieving this goal.

Reducing our scope 1 & 2 emissions by 20% by 2030, 30% by 2035 and reaching carbon neutrality by 2060.

GPIC'S DECARBONIZATION PATHWAY

Implementation of projects related to reduction of consumption of natural gas and energy.

Installation

Plant

Invest

and

of 3MW of new solar on site, 0.6MW as stage 1 by 2024.

250,000 mangroves and other species on site to improve biodiversity and sequester CO2.

2015 Baseline 2030 TRANSITION

in carbon capture utilization

storage projects wirh parent company.

Invest in blue ammonia technology to reduce energy & emissions.

Carbon Neutral by 2060 (with high quality carbon offsets aligned with value chain impacts).

2060

2030 TRANSFORMATION

GPIC's approach to minimizing Greenhouse Gas (GHG) emissions underscores our commitment to maintaining exceptionally high on-stream factors for our plants while enhancing environmental and safety standards. We firmly believe that sustained energy efficiency in a plant is contingent upon maintaining both high on-stream factors and robust capacity utilization. Any disruptions in plant operations inevitably lead to increased GHG emissions.

Internationally, energy-efficient plants are recognized for emitting fewer greenhouse gases compared to less efficient counterparts. Since 1985, we have successfully reduced our total CO2 emissions by 58%. This achievement is attributed to our steadfast operational reliability and the implementation of numerous energy-saving initiatives. These efforts began with the de-bottleneck project in 1989, followed by the establishment of our Urea Plant in 1998 and the subsequent commissioning of the Carbon Dioxide Recovery (CDR) Plant in 2009.

The CDR unit plays a pivotal role in our emissions reduction strategy, recovering 450 tonnes of CO2 per day from methanol reformer stack emissions and converting it into additional methanol and urea. Annually, this translates to a reduction of approximately 0.12 million tonnes of CO2 emissions. Since its inception in 2009, the CDR unit has contributed to a cumulative reduction of around 1.86 million tonnes of CO2 emissions.

Disclosure 305-2: Energy indirect (Scope 2) GHG emissions

Indirect GHG emissions are the consequence of GPIC’s consumption of energy but are emitted from sources controlled by another company. For example, the supplier of purchased power.

Disclosure 305-3: Other indirect (Scope 3) GHG emissions

GPIC is working to calculate its Scope 3 greenhouse gas (GHG) emissions, which encompass indirect emissions throughout its value chain, including both upstream and downstream activities. To approach this complex task, GPIC first maps its entire value chain to identify relevant sources of emissions. This involves gathering data from suppliers, transportation providers, product use, and end-of-life disposal. The company is employing a combination of primary data collection, where possible, and secondary data sources, such as industry averages and emissions factors. Despite these efforts, GPIC has not yet completed its Scope 3 emissions calculation due to challenges in data accuracy, availability, and the integration of diverse data sets across its global operations. The company continues to refine its methodology and improve data collection processes to achieve a comprehensive and accurate assessment of its Scope 3 GHG emissions.

Disclosure 305-4: GHG emissions intensity

Note that the Gases included in the calculations are CO2 CH4 N2O, and HFCs.

Disclosure 305-1: Direct (Scope 1) GHG emissions

305-5: Reduction of GHG emissions

We have reduced the Company’s absolute GHG emissions by more than 50 percent since 1985. The energy savings resulting from optimized energy efficiency from 2007 till now. The activities described in GRI 302-4 and implementing new processes that emit less greenhouse gases compared to traditional routes will be important to driving reductions in the future.

GPIC was actively involved in pre and post-COP 21 consultations at the National and International levels. We have contributed towards Bahrain’s Intended Nationally Determined Contribution (INDC) and are currently engaged at the national and industry levels in exploring potential projects for carbon capture. We have also been providing our GHG inventory reports since 2016 based on IPCC version 2006. GPIC’s team participated in the recent COP 28 proceedings in Dubai. In addition to this, we are also involved in discussions regarding a renewable energy action plan and a national energy efficiency action plan, an initiative spearheaded by Bahrain’s Ministry of Energy in collaboration with UNIDO.

Our Carbon Dioxide Recovery unit (CDR), which has been in operation since 2009, has so far extracted over 1.86 Million tonnes of carbon dioxide, which has been used to enhance the production of urea and methanol. This translates to an average of 450 tons/day of carbon dioxide being captured by the CDR unit.

The previous sections show the general trend of Carbon Emissions reduction in Scope 1 and Scope 2. In addition to that our strategy of decarbonatization shows our future goals for further carbon emissions reduction to reach carbon neutrality by 2060 for scope 1 and scope 2.

Disclosure 305-6: Emissions of ozone-depleting substances (ODS)

Emissions that contribute to ozone depletion consist of substances with an ozone depletion potential greater than zero, capable of diminishing the protective stratospheric ozone layer. These emissions are governed by regulations outlined in the Montreal Protocol. In line with Bahrain’s environmental laws and the Montreal Protocol requirements, GPIC is actively implementing measures to eliminate ozone-depleting substances, particularly class 2 HCFCs, from our operations. As part of this effort, we are progressively replacing air conditioning units using R-22 with environmentally friendly refrigerants. However, developments following COP 21 have posed challenges for industries in deciding between phasing out or reducing the use of HCFCs and HFCs. In response, GPIC is adopting a cautious approach, considering factors like ozone depletion potential (ODP), global warming potential (GWP), and energy efficiency to guide our decision-making process.

Emissions of Ozone-Depleting Substances

Disclosure 305-7: Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air emissions

Air pollutants can pose serious threats to climate, ecosystems, air quality, habitats, agriculture, and human and animal health. Decreasing regulated pollutants results in improved health conditions for workers and neighboring communities. GPIC recognizes that surpassing regulatory standards can enhance the company's reputation, strengthen relationships with communities and workers, and support operational sustainability.

GPIC's production plants emit acidifying gases (NOx and SOx) from various sources alongside particulate matter and ammonia. These emissions undergo meticulous monitoring through continuous online systems and laboratory sampling to ensure compliance with regulations.

In 2023, GPIC took significant strides towards enhancing air quality monitoring within the facility. GPIC commissioned a new air quality station with advanced monitoring capabilities and generated air quality index (AQI) reports, which has enabled comprehensive tracking of air pollutants and quality. In addition, GPIC implemented a continuous emission monitoring system (CEMS) to track emissions from stacks in real time. CEMS is also connected live to the Supreme Council for Environment, which is a crucial step in meeting legislative requirements; by integrating the monitoring system with SCE, GPIC ensured transparency and demonstrated our commitment to complying with environmental regulations. This system has also helped us take appropriate actions before any deviations occur.

Over time, GPIC has actively pursued measures to further reduce emissions. These efforts include operational enhancements and investments in clean technologies such as ultra-low NO x burners. The level of SO x emissions is influenced by the H2S content in the natural gas supply. Although H2S levels fluctuated during the past years, SOx emissions remained within contractual and legislative boundaries.

Air Emissions such as Sox , NOX , VOC, PM10 and NH3

6. GRI 306: Waste (2020)

At GPIC, waste management is an integral part of our environmental strategy. We are committed to implementing the waste minimization hierarchy for both hazardous and nonhazardous waste. In 2022 and 2023, we have successfully implemented initiatives to reduce non-hazardous waste sent to landfills. Additionally, we have actively collaborated with the Supreme Council for Environment to find alternative disposal methods for hazardous waste, leading to zero hazardous waste in landfills in 2022 and 2023.

GPC recognizes the importance of minimizing the generation and disposal of non-hazardous waste. In 2024, we have introduced a comprehensive initiative to collect recyclable materials such as plastic, paper, metal and cardboard. This collection system has proven to be sustainable and has significantly reduced our reliance on landfills. By implementing recycling practices, we contribute to conserving natural resources, reducing energy consumption and mitigating environmental impacts.

GPIC acknowledges the significance of proper hazardous waste management. In collaboration with the Supreme Council for Environment, we have actively sought alternatives to landfilling hazardous waste. This proactive approach has yielded remarkable results, as we achieved zero hazardous waste in landfills in 2022 and 2023.

In addition, a major component of hazardous waste generated at our site is the spent catalyst. To ensure responsible disposal, we have established partnerships with overseas recycling agencies. These agencies possess the expertise and facilities to safely recycle and extract valuable materials from spent catalysts. By recycling this waste stream, we promote a circular economy and reduce the environmental impact associated with hazardous waste disposal.

To ensure continuous improvement and accountability, GPIC has includeded the minimization of non- hazardous waste generation as one of our Key Performance Indicators (KPIs). This KPI enables close monitoring and follow up on waste reduction efforts. By tracking and assessing our progress, we can identify areas of improvement, implement corrective measures and drive sustainable waste management practices.

Through the implementation of the waste minimization hierarchy. We have successfully reduced non-hazardous waste sent to landfill. We remain committed to monitoring our waste generation and continuously improving our waste management practices to protect the environment and promote circular economy.

Disclosure 306-1: Waste generation and significant waste-related impacts

The manufacturing of Ammonia / Methanol and urea is generally a clean process; however, hazardous and non-hazardous waste, both in solid and liquid form, is generated through various stages and modes of operation (These wastes are mainly relevant to the organization's own activities only). The potential waste-related hazards/ risks and their impacts are riskassessed and addressed through the responsible management of hazardous and nonhazardous waste, which is one of the key focus areas within our environmental strategy. Our strategy is defined by a waste minimization hierarchy, which fundamentally includes waste reduction from source (most preferred) to proper disposal (least preferred). Catalysts are one of the main raw materials in our industry, and hazardous catalyst waste is recycled by selling it to certified overseas recycling agencies.

▶

We reduce our hazardous waste (mainly catalysts) by operating the plants in an efficient way with minimum unplanned outages, thereby increasing the life of the catalysts. Reusing a few items, such as the catalyst drums from new catalysts. These drums are used to store spent catalysts. Some of the empty chemical drums are cleaned and reused to store spent resins prior to sending them to the landfill. Wood waste is reused to make wooden boxes for storing maintenance tools and rotary equipment, such as compressor rotors, before sending them to overseas OEM workshops. Enhancing recycling of paper, plastic, and metals and introducing cardboard recycling.

All the hazardous waste transportation is governed by Bahrain’s MO 3 of 2006, which is handled by a third-party contractor, based on contract, where all the waste is collected into a waste disposal area which is thereafter and transported to the final disposal destination. The waste leaving the complex is monitored on that basis.

Five types of hazardous waste are transported from GPIC. Five are within Bahrain and the fifth one is exported outside Bahrain. All the hazardous waste transportation is governed by Bahrain’s MO 3 of 2006.

▶ Initiatives in 2022/2023 regarding waste:

Effective management of waste towards the ultimate objective of zero waste to landfill: Minimize hazardous waste disposal to landfill by 90% and minimize non-hazardous waste disposal to landfill by 1% compared to 2017 waste generation figures.

To ensure effective waste disposal and avoid accumulation of waste in waste disposal areas by setting a target of 50% of the annual industrial waste generated to be disposed to external facilities.

In 2023, GPIC has put a plan to revise existing waste management plans and develop an integrated waste management approach.

TYPE 01

TYPE 04

TYPE 02

Hazardous solid to waste incinerator in Bahrain

(resin, activated carbon, oily rags, waste paints, expired chemicals, spent filter elements, spent ceramic fiber, spent PUF, Spent rock wool, etc.)

Natural Gas condensate is recycled back to Tatweer Petroleum in Bahrain.

Spent tube lights/ mercury lamps for crushing/ disposal to waste management companies in Bahrain.

Spent catalysts from process plants are exported to overseas recycling agencies.

Medical waste generated at GPIC Medical Centre is sent to a certified incinerator for medical waste in Bahrain.

TYPE 03

TYPE 05

Waste Generated (Hazardous and Non-Hazardous)

306-4: Waste diverted

Total Waste Diverted from Disposal (Hazardous and Non-Hazardous)

Recycled Material

Disclosure 306-5: Waste directed to disposal

7. GRI 308: Supplier Environnemental Assessment (2016)

Locally based suppliers are defined by the Company as ‘Suppliers within Bahrain’. Wherever possible we prefer to procure from local suppliers. We always promote local suppliers as a priority, and nearly 40% of our approved suppliers include local suppliers.

The following factors are considered when selecting suppliers:

Suppliers’ ability to meet the requirements.

Principal suppliers or original manufacturers.

Suppliers’ previous history record of performance in a similar scope of supply.

Suppliers who have service facilities in Bahrain.

Suppliers with a level of manpower.

Safety Health & Environment system certification.

Disclosure 308-1: New suppliers were screened using environmental criteria

The number of new suppliers screened through the Safety, Health, and Environment (SHE) assessment criteria is 19 in 2022 and 7 new suppliers in 2023.

Disclosure 308-2: Negative environmental impacts in the supply chain and actions taken

By focusing on safe and reliable operations with high on-stream factor and robust mechanical integrity program, we did not experience any event impacting adversely our environment. We also did not receive any complaints from neighbouring communities regarding any negative impacts of our operations. Moreover, there were no reported cases of negative environmental impacts in the supply chain and hence no actions were taken.

Elevating workplace satisfaction is our ongoing journey to excellence, where empowered teams, collaborative culture, and meaningful growth converge to inspire

I. Performance Highlights

GPIC has consistently shown outstanding dedication to social responsibility. Through impactful social initiatives and rigorous adherence to ethical guidelines, GPIC has made significant strides in enhancing community welfare. The company's commitment to social integrity is apparent in its support for education, healthcare, and cultural initiatives. GPIC actively promotes workforce diversity, ensures fair labor practices, and engages in philanthropic activities that benefit local communities. By prioritizing social sustainability, GPIC not only meets global benchmarks but also leads by example in fostering a socially inclusive environment within the industry.

The percentage of sick leaves dropped respectively from 1.95 in 2022 to 1.49 in 2023

assessment of all new suppliers is correct

was the employee's retention rate in 2022 and 98% in 2023

Women employees at GPIC

incidents of non-compliance in 2022-2023

34,779 hrs of training were provided on 2023 and 25,107 hrs were provided in 2022

39,917,136 total-safe man-hours were achieved in 2023 including 24,815,810 safe hours without LTA and 15,101,326 hrs for contractors

II. Summary including our Management Approach

Disclosure 3-3: Management of material topics

Our Social Performance Highlights

At GPIC, we deeply value our employees as integral assets driving our business success. Our commitment extends beyond mere words, encompassing fair treatment, diversity, inclusion, and transparent feedback mechanisms. By adhering to Bahrain’s laws, regulations, and our own Code of Conduct and Professional Ethics, we created a supportive and equitable workplace environment.

Our HR policy aligns with Bahrain’s Labour Law, ensuring strict compliance while simultaneously nurturing employee well-being and fostering continuous professional growth. But that’s not all. We prioritize employee development through succession planning, targeted initiatives, and the advancement of local talent. Our aim is to cultivate a robust pipeline of future leaders via leadership programs, coaching opportunities, and a rewards and recognition framework that celebrates exceptional talent within our ranks.

Our commitment extends to the Bahraini community. We place prominence on training and developing Bahraini nationals. Our systematic integration of Bahraini talent into our workforce offers structured career development pathways, empowering individuals to realize their full potential.

As we strive to be the employer of choice, we orchestrate multifaceted strategies tailored to attract and retain luminaries in their fields. Through these efforts, we created an ecosystem of inclusivity and recognition where everyone is empowered to contribute meaningfully to our collective tapestry of success.

Attracting Talented People and Investing in Tomorrow’s Talent

Attracting and Retaining Top Talent in the Petrochemical Sector: In the dynamic landscape of the chemical sector, attracting and retaining skilled personnel with the requisite expertise has emerged as a formidable challenge. Recognizing this, GPIC has proactively implemented innovative strategies in both recruitment and Learning & Development (L&D), with a primary focus on sustaining a highly engaged workforce.

Our organization’s resilience and longevity are intrinsically linked to our ability to allure and retain top-tier talent within the industry. This imperative is seamlessly integrated into our Enterprise Risk Management framework, prompting strategic measures to spotlight the virtues of a career trajectory at GPIC for prospective candidates across all tiers. Additionally, we employ a multifaceted range of initiatives to attract potential employees.

Key Initiatives:

1- Vocational and Industrial Training:

We actively facilitate vocational and industrial training opportunities for students and the children of our employees. This nurturing approach fosters practical skill development and career readiness.

By investing in the next generation, we contribute to the overall growth of the industry and empower local communities.

2- Educational Sponsorships: 3- Psychometric Analysis in Recruitment: 4- Streamlined Application Process:

GPIC proudly sponsors and supports key educational initiatives across Bahrain. We extend scholarships to the children of our employees, recognizing that investing in their education contributes to the long-term success of our workforce’s families.

As part of our ongoing efforts to refine recruitment practices, we integrate psychometric analysis into our systems.

This enhances our capacity to effectively screen and select candidates who align with our organizational principles and requirements.

To ensure efficiency and accessibility, we have implemented a standardized, internetbased application system accessible to all potential candidates.

This streamlined process enhances the candidate experience and allows us to identify talent more effectively.

At the core of our organizational strategy lies a multifaceted approach dedicated to continually enhancing our employees’ capabilities. Our commitment to personalized development plans is pivotal in achieving this goal. Here’s how we’re fostering growth:

1. Tailored Development Plans:

We recognize that each employee’s journey is unique. Hence, we create personalized development plans that align with their aspirations and organizational needs These plans encompass a mix of formal training, mentorship, and experiential learning.

2. Leveraging Technology:

Our Performance Management System (PMS) is evolving. We’re transitioning to an SAPbased platform, ensuring seamless tracking and evaluation of performance.

The integration of the SAP Competency-Based Training (CBT) module further strengthens our framework. It aligns competencies with training opportunities, creating a virtuous cycle of growth.

3. Competency-Based Approach:

Our methodology revolves around competency-based needs analysis. We identify skill gaps and design targeted interventions.

Employees engage in specialized training sessions, honing their abilities in areas that matter most.

Self-directed learning is equally vital. E-learning modules and participation in the Toastmasters program empower employees to take charge of their growth.

Adhering to our Principles

Our adherence to the principles of meritocracy ensures that every decision, from recruitment to compensation and promotions, is underpinned by a commitment to fairness and impartiality. Furthermore, we have instituted a comprehensive awards program to recognize and celebrate exceptional performance, demonstrating our appreciation for the dedication and excellence of our employees. Concurrently, we proactively foster leadership opportunities as part of our broader strategy to cultivate and retain top-tier talent within our organization.

Our Young Leadership Program

Their innate digital fluency, creativity, and the youth's willingness to challenge conventional norms are invaluable assets that drive transformation and propel businesses forward. GPIC embeds both external and internal programs designed to support and encourage the potential of young talents, promoting an environment where they can thrive, develop, and contribute meaningfully to the organization's objectives.

In light of research findings indicating a prevalent deficiency in essential communication and leadership skills among university graduates, resulting in challenges for employers in filling vacancies, GPIC has strategically aligned its Corporate Social Responsibility (CSR) initiative with the development of a Junior Leadership Program. This program targets the cultivation of key soft skills deemed essential for aspiring young professionals entering the job market, as validated by extensive research conducted with undergraduates and graduates.

The Junior Leadership Framework and its associated curriculum are meticulously designed to address competency gaps in critical areas such as interpersonal skills, teamwork, and effective communication, complementing academic achievements with practical aptitudes necessary for success in today's dynamic work environment. Aligned with GPIC's overarching corporate objectives, this initiative aims to bridge the gap between academic preparation and industry demands, ensuring that future talent is equipped with the requisite skills to thrive in their roles.

Moreover, GPIC's Training and Development Programme for Graduate Engineers reflects GPIC’s focus on fostering professional growth within the organization. Crafted specifically for Graduate Engineers assuming roles within the company, this program delineates a comprehensive blueprint for their efficient onboarding and skill enhancement.

The program unfolds through three distinct phases, each thoroughly designed to facilitate the incorporation and professional development of our Graduate Engineers. Part A entails an intensive Orientation Program spanning one month, providing a comprehensive introduction to the company's ethos, operations, and organizational culture. Following this, Part B focuses on Plant Process Familiarization, offering a month-long immersion into the intricacies of our plant operations, equipping engineers with firsthand knowledge of our processes and technologies. Finally, Part C involves a rigorous ten-month On-the-Job Training phase, during which engineers actively engage in practical applications, honing their skills and expertise under the guidance of seasoned professionals. This structured process permits our Graduate Engineers to receive a comprehensive and immersive learning experience, preparing them to excel in their roles within our organization.

Sustainable Coaching Culture

GPIC has embarked on the journey to establish a resilient, formal, and enduring coaching culture. Marking the initial phase of this transformative pursuit, 42 members of the GPIC team have successfully completed a rigorous training workshop conducted by one of the foremost international coaching experts, The Leadership Trust. Enabled with invaluable insights and skills garnered from this prestigious workshop, our focus has been shifted towards the second stage of our initiative, which consists of entailing the creation of tangible opportunities for our talented team to apply their newly acquired coaching proficiencies within our community, creating a culture of continuous learning, growth, and collaboration.

Diversity and Inclusion

GPIC is committed to diversity and inclusion. As an equal opportunity employer, we advocate for fair and non-discriminatory practices in all aspects of employment, including recruitment, assignment, promotion, transfer, termination, salary, benefits, and training nominations.

Recognizing the invaluable contributions of women in all spheres of life, we actively provide them with equal opportunities for career advancement, professional development, and leadership roles within our organization.

With a specific priority on empowering women and communities in Bahrain. Approximately 13% of our workforce comprises expatriate employees hailing from diverse regions such as Asia, Africa, Europe, and the Far East. Moreover, women constitute 7% of our employees, and our Ladies Working Committee plays an outstanding role in advancing their representation and contributions within the company and society. The charter of our Ladies Committee encompasses the following objectives:

• Initiating actions to support and empower women both within and outside the organization.

• Orchestrating specialized events that accommodate the needs and interests of women.

• Collaborating with external professional women's organizations to amplify our collective impact and foster mutual growth and development.

For further details on Women's Empowerment, please refer to the section on ‘Women’s Empowerment Principles.’

Safety of our Employees and the Host Communities

Safeguarding the safety and well-being of our employees and the surrounding communities transcends mere obligation; it symbolizes our spirit and utmost concern. GPIC implements the highest standards of health and safety within our manufacturing facilities, meticulously scrutinizing every potential risk to our operations and personnel, reflecting our profound responsibility to maintain a culture of safety that resonates throughout our organization and the community.

While we significantly invest in projects dedicated to safety enhancement, environmental stewardship, and the reliability of our equipment and facilities, our approach is outlined by a governance structure comprising specialized committees tasked with overseeing the implementation and maintenance of our safety protocols.

The Safety, Health, and Environment Council steers the overarching framework of safety protocols and environmental sustainability efforts.

• The Safety Committee is dedicated to the continuous refinement of workplace safety protocols and procedures.

• The Process Safety Management Committee manages processes to prevent accidents and uphold operational integrity.

• The Responsible Care Committee supports initiatives promoting responsible practices across all facets of our operations.

Together, these committees form solid evidence of our inclusive safety framework, embodying our commitment to safety, environmental care, and operational reliability.

Health Care

Anchored by an ultra-modern Medical Clinic operational round-the-clock, we maintain proactive measures in delivering care and support.

Within this realm of excellence:

Methodical health screenings, complemented by sessions on industrial hygiene and occupational wellness, highlight our proactive stance on preventive care.

Attention to prevalent health concerns such as obesity and diabetes, facilitated by expert nutritionists.

The significant presence of certified first aiders among our employees.

Aligned with global imperatives on health, safety, and environmental stewardship, GPIC assumes a leadership role in awareness initiatives. Spearheading these efforts is our valued Health Committee, entrusted with:

Fostering awareness around Health and Responsible Care.

Orchestrating the GPIC Anti-Smoking Program.

Upholding impeccable hygiene standards across our canteen facilities.

Facilitating routine and emergency committee gatherings to deliberate on the health status of our personnel, alongside addressing all matters concerning the well-being, hygiene, and overall wellness of employees within the complex and at the GPIC Club premises.

Innovation and Creativity

We offer abundant opportunities and platforms for our team members to voice their perspectives, share ideas, and unleash their inherent talent. The Innovation and Suggestions Committee, along with GPIC’s Industry 4.0 Committee, exemplifies our commitment to fostering a culture of ingenuity and forward-thinking.

Honoring labor rights is deeply embedded within our essence, cemented through annual agreements between Executive Management and the Labour Union. GPIC leads the way in Bahrain by adopting a platform for our team to express their voices through a dynamic Labour Union; in 2021, we have designated the first female member, illustrating our dedication to gender empowerment.

The symbiotic relationship between management and the Labour Union is marked by their collaboration across a spectrum of working committees, including the Management Labour Union High Council and the SHE Council. This collaborative framework establishes an active involvement of Labour Union representatives in critical decision-making processes, elevating transparency and inclusivity within our organizational governance.

Union (LU) Representation in GPIC Councils and Committees for 2022 and 2023

Recognizing and Rewarding Employees

At GPIC, we believe in recognizing and rewarding the exceptional efforts of our employees at every level of the organization. To achieve this, we offer a diverse range of awards spanning various departments and divisions to celebrate outstanding performance and commendable contributions. These awards include recognition for exemplary safety practices, sustained performance, innovative suggestions, and notable achievements in environmental stewardship.

Moreover, we host an annual awards ceremony where employees are incentivized and honored for their dedication and accomplishments. Some of the awards presented include awards for sustained performance and outstanding contributions, as well as recognition for individuals who demonstrate excellence in promoting safety and environmental initiatives. In addition to our recognition programs, GPIC places a high priority on the well-being and financial security of our employees. Our employee benefits scheme is designed to align with our overall organizational strategy, ensuring that our workforce is adequately compensated and supported.

Furthermore, we provide a comprehensive range of benefits, including savings schemes, health insurance coverage for employees and their families, access to loans, and indemnity, among others. These benefits are tailored to meet the diverse needs of our workforce, reflecting our commitment to fostering a supportive and rewarding work environment at GPIC and to maintaining our best human resources performance at all levels, reflected specifically in high retention and satisfaction levels among all our employees.

Empowering Bahraini Nationals

At GPIC, empowering Bahraini nationals is deeply ingrained in our core values. We prioritize the professional growth and advancement of Bahraini employees across all levels of our organization. Through meticulously crafted career development initiatives and comprehensive training programs, we ensure that Bahraini nationals have the resources and support they need to excel within our company. Our steadfast dedication to fostering an inclusive and nurturing workplace environment is reflected in our remarkable employee retention rates and the exceptional benefits we provide. By offering competitive compensation packages, continuous mentorship, and ample opportunities for career progression, we not only attract top talent but also empower Bahraini nationals to make significant contributions to our collective achievements.

Leadership Commitment to Human Rights and Environmental Protection

At GPIC, our leadership holds a profound commitment to the preservation of human rights and the protection of the environment. This dedication is deeply ingrained in our core values and operational principles, guiding our actions and decisions towards sustainable and ethical practices. This commitment is not only integral to our corporate governance policy but also aligns with Bahrain's Labor Law and the principles of the UN Global Compact. Through organization-wide policies, we aim to promote the protection of human rights in all aspects of our operations.

Human Rights in the Context of Sustainable Development Goals (SDGs)

The adoption of the 17 Sustainable Development Goals (SDGs) marks a significant moment in global governance, highlighting the importance of safeguarding human rights and protecting our planet. Both humans and the environment are at the core of the 2030 Sustainable Development Agenda. Climate change, identified as one of the greatest threats to human rights, underscores the urgent need for action to ensure the well-being of individuals and communities worldwide.

Employee Rights and Workplace Safety

At GPIC, we are committed to ensuring the human rights of our employees in accordance with international standards, including the ILO's Declaration on Fundamental Principles and Rights at Work. This includes promoting nondiscrimination, prohibiting child and enforced labor, and upholding freedom of association and collective bargaining. We strive for a workplace environment that is safe, healthy, and free from harassment or intimidation, fostering economic and social development while encouraging creativity and innovation.

Equal Employment Opportunities and Fair Treatment

We are dedicated to providing equal employment opportunities to all applicants and employees, basing recruitment decisions on relevant qualifications, skills, and experience. All employment-related decisions, including advancement, development, and disciplinary actions, are carried out with fairness and equity in mind. Additionally, we encourage our employees to contribute their ideas and suggestions for improving our work processes, valuing their input as a driving force for motivation and innovation.

Confidentiality and Corporate Citizenship

At GPIC, we prioritize the confidentiality and security of employee information, ensuring that personnel records are maintained accurately and securely. Moreover, we encourage our employees to be good corporate citizens, promote mental and physical well-being, and encourage active participation in professional societies, charities, and community initiatives within the Kingdom of Bahrain.

▶ Youth Empowerment and Engagement

At GPIC, we recognize the pivotal role of youth in driving sustainable development initiatives forward. Understanding that the success of the Sustainable Development Goals (SDGs) hinges on youth engagement, we are committed to empowering young individuals to become critical thinkers, change-makers, innovators, communicators, and leaders. To demonstrate our dedication to youth empowerment, GPIC established a Youth Committee in 2016. This committee is tasked with identifying the needs of young employees and providing constructive feedback to management for the benefit of our youth workforce. Our CEO has emphasized the importance of shaping the minds of future leaders and providing them with opportunities to effect sustainable change in the world. Through educational initiatives and mentorship programs, GPIC aims to inspire young leaders and equip them with the knowledge and skills needed to create a brighter future. In conjunction with the World Youth day, GPIC held an interactive session for the company young employees, graduates from different universities and newly enrolled in the company, to hear their views and suggestion for areas to improve in the company. In addition, the company organized training program and competition aiming at building leadership skills of young people and working within a team through various games and physical skills.

In 2023, in conjunction with the World youth day, GPIC held an interactive session for the company young employees, graduates from different universities and newly enrolled in the company, to hear their views and suggestion for areas to improve in the company. In addition, the company organized training program and competition aiming at building leadership skills of young people and working within a team through various games and physical skills.

Supplier and Contractor Rights

GPIC extends the same level of care and consideration to our suppliers and contractors as we do to our employees. We are committed to maintaining a work environment that is conducive to their well-being, free from intimidation, hostility, or any offensive behavior. Our suppliers and contractors can trust that GPIC conducts its affairs with transparency and integrity, adhering to a standard of honesty and fairness in all interactions. Additionally, we ensure that any conflicts of interest are identified and addressed promptly, with guidance provided by our HR department. Furthermore, we guarantee that all business transactions are conducted without fear of bribery, corruption, coercion, or undue influence.

Empowerment of Women

GPIC is dedicated to being a beacon of empowerment for women in Bahrain's industrial sector. We prioritize the recruitment and advancement of women within our workforce in compliance with Bahraini laws. To oversee practices of fairness and adherence to women's human rights, we have established an Equal Opportunities Council. This council monitors gender equality practices and upholds GPIC's commitment to the UN Women's Empowerment Principles. On Bahrain Women's Day, our CEO expressed sincere appreciation for the invaluable contributions of our female colleagues and reaffirmed our commitment to supporting their professional growth and success.

Protection of Children's Rights

GPIC is deeply committed to protecting the rights of children by promoting education, innovation, environmental awareness, health, safety, and responsible care initiatives. We uphold a strict policy against child labor and ensure that our business dealings do not involve the employment of children. Furthermore, we collaborate with stakeholders to support initiatives aimed at improving the well-being of children and safeguarding their rights.

Community Rights and Engagement

At GPIC, we respect the cultures, customs, and values of the communities in which we operate. Through partnerships with NGOs, local charities, sports clubs, ministries, and parliamentary representatives, we strive to protect and promote the rights of communities. We engage in open dialogue with stakeholders and actively participate in community engagement activities to address concerns and share performance indicators. By fostering transparent and amicable partnerships, we aim to contribute to the economic, educational, environmental, and social development of our communities.

Societal Engagement and Responsibility

At GPIC, Corporate Social Responsibility (CSR) is deeply ingrained in our business ethos, guiding how we conduct our operations to generate a positive impact on society. We recognize our significant responsibility to the communities in which we operate, understanding that our actions extend far beyond our immediate stakeholders. Central to our CSR efforts is a steadfast commitment to the safety and well-being of our employees and the citizens of Bahrain. We prioritize the operation and maintenance of our plants to ensure they pose no harm to our employees or the surrounding community.

Our dedication to societal well-being extends beyond safety measures. We believe in investing in the social fabric of Bahrain, addressing both immediate needs and long-term sustainable development. Through strategic investments in education, vocational training, and healthcare, we aim to empower individuals and communities to lead healthy and productive lives. Our social investments are designed to reach every segment of Bahraini society in need, fostering inclusivity and opportunity for all.

Furthermore, GPIC's contributions to the national economy of Bahrain have been substantial, totaling over US$ 6.366 Billion since our inception. This contribution spans various areas, including employment, training, procurement, dividends to the government, and the integration of local businesses into our supply chain.

Community engagement lies at the heart of our business model, as evidenced by our active participation in numerous institutions and organizations both locally and internationally. From serving on boards and committees to sponsoring conferences and workshops, we leverage our presence to influence decision-making in critical areas such as health, safety, environment, and education. Additionally, we collaborate with professional bodies and educational institutions to promote knowledge-sharing and skill development in fields relevant to our industry.

Our commitment to supporting the welfare of the community extends to financial contributions, in-kind donations, and volunteering efforts across a wide range of causes, including health, safety, education, charity, sports, and culture. Through partnerships with organizations like INJAZ Bahrain and the Crown Prince International Sponsorship Program, we strive to nurture future leaders and prepare young individuals for success in the workforce.

At GPIC, we believe that true societal impact goes beyond financial contributions; it's about actively engaging with communities, fostering meaningful relationships, and empowering individuals to thrive. Through our diverse initiatives and partnerships, we remain steadfast in our commitment to making a positive difference in the lives of others and contributing to the sustainable development of Bahrain and beyond.

Community Engagement and Enrichment

At GPIC, we are deeply committed to the well-being and prosperity of the communities we serve. We believe that true success is measured not only by financial gains but also by the positive impact we make on society. From the outset, our goal has been to share opportunities and contribute to making the world a better place for everyone.

In 2004, we established an exclusive club for our employees and their families, providing a space for recreational activities, sports, and educational programs. This club serves as a hub for summer activities, offering a range of facilities, including a gymnasium, swimming pool, football pitch, and tennis court. Additionally, it hosts various training events throughout the year, enriching the lives of our employees and their families.

We have undertaken a unique approach to knowledge sharing by publishing a series of books, leaflets, and educational materials. These resources are designed to disseminate valuable information not only within our industry but also to broader society, catering to individuals of all ages.

To oversee and coordinate our social activities, we have established various committees dedicated to different aspects of community engagement. From organizing camping trips to coordinating beach cleaning efforts, these committees play a vital role in fostering a sense of belonging and promoting social responsibility within our organization and beyond.

Through these collective efforts, we strive to enrich the lives of our employees, their families, and the broader community, embodying our commitment to social responsibility and community enrichment at every step.

As a result of the company keenness to support civil society institutions and contribute to the development of the skills of our dear country students, GPIC hosted 60 students from various universities from inside and outside the kingdom of Bahrain for internship with the company for two months in 2022 and 2023. Over the past years, the company has developed a comprehensive practical training program that trains its participants in different departments of the company according to their discipline in order to provide them with the opportunity to discover concepts related to the demands of the labour market and help them understand the value of training as well as introduce them to the real working environment and challenges.

Our

Performance in 2022 and 2023

Our contribution and Sponsorship to charities, NGOs, and other worthy causes remained 100 % of the the allocated budget throughout the years, including the past two years (2022 and 2023).

III. Social Performance

GRI 401: Employment (2016)

Employee Recognition and Rewards: At GPIC, we prioritize the acknowledgment and appreciation of our employees' exceptional contributions. We maintain a diverse array of awards tailored to every echelon of the organization, ensuring that individuals who demonstrate exemplary dedication and go above and beyond their duties receive due recognition. These accolades encompass performance-based incentives spanning various departments and divisions, alongside commendation for exemplary safety practices.

Additionally, we host an annual awards ceremony featuring an incentivized scheme to honor our workforce. Among the accolades conferred are distinctions for sustained excellence, outstanding performance, and recognition of innovative contributions, such as the Best Suggestion of the Year. Moreover, we celebrate individuals who embody our commitment to environmental stewardship and safety excellence through awards such as Environment Personality of the Year and Safety Personality of the Year.

Employee Benefit Framework: GPIC is committed to aligning our compensation and benefits plans with our overarching strategic objectives. As part of this commitment, we offer a comprehensive suite of benefits, including a savings scheme, health insurance coverage for employees and their families, access to loans, and indemnity provisions.

401-1: New employee hires and employee

Disclosure 401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees

Refer to Disclosure 201-3: Defined benefit plan obligations and other retirement plans (Please note that “Significant location of operation” is considered as our manufacturing facility in Sitra, Kingdom of Bahrain).

Family Support Benefits:

GPIC provides comprehensive support for employees who are welcoming a new addition to their family. Female team members are entitled to 60 days of fully paid leave, covering both pre and postnatal care.

Childcare Assistance:

After maternity leave, mothers have the flexibility to allocate one hour per day for childcare until their child reaches six months and then half an hour per day until the child's first birthday. These childcare periods can be seamlessly integrated into their working hours without any reduction in wages, ensuring a smooth transition back to work while prioritizing family needs.

GRI 402: Labor/Management Relations (2016)

Disclosure 402-1: Minimum notice period regarding operational changes

GPIC upholds a consistent track record of compliance with all relevant labor and employment legislation in our operating jurisdictions. We prioritize maintaining robust relationships with our labor union, fostering collaboration and understanding.

Our commitment extends to forging equitable agreements that benefit both our workforce and our business interests. Safety remains paramount, reflected in our steadfast safety culture and industry-leading safety performance.

While global standards may not mandate a minimum notice period for operational changes, we proactively establish clear protocols in consultation with all stakeholders, embedding them within our labor contracts. These protocols may vary by region to accommodate local regulations.

Communication channels between senior management and employees are characterized by timeliness and effectiveness. Regular committee meetings between the labor union and GPIC management provide platforms for discussing diverse topics, ranging from health and safety matters to administrative concerns. We ensure all employees have opportunities to express their perspectives through regular forums dedicated to addressing their concerns.

GRI 403: Occupational Health and Safety (2018)

Management Disclosures: 403-1,403-2,403-3,403-4,403-5,403-6 and 403-7

Ensuring the health, safety, and well-being of our workforce is paramount to us. Safety stands as our foremost concern, championed by our leadership and embedded throughout our entire organization. We firmly assert that genuine sustainability for employers hinges on their commitment to safeguarding the safety, health, and welfare of their employees.

At GPIC, our commitment to Safety, Health, and Environment (SHE) is deeply ingrained in our business ethos. We embrace the triple-bottom-line concept, where our financial success is intertwined with our social responsibilities and dedication to the well-being of our workforce and the environment. Recognizing the crucial link between occupational health and sustainability, we have proactively integrated OHS principles into our sustainability initiatives, aligning them with the UN's 17 Sustainable Development Goals (SDGs). Our organizational goals, both longterm and annual, as well as departmental objectives, underscore this interconnectedness, emphasizing our alignment with the SDGs.

The global safety IFA benchmark reflects our performance for the last 10 years (including year 2022 performance); specifically with regard to evaluating two main metrics i.e. the Lost Time Injury Rate (LTIR) and Total Recordable Injury Rate (TRIR).

We are pleased to highlight that GPIC's performance is outstanding as both metrics are way below the global average, as demonstrated below:

GPIC achieved zero LTIR for both employees and contractors.

Average (Employees + Contractors) : 1.64

GPIC achieved zero LTIR for both employees and contractors.

GPIC achieved zero LTIR for both employees and contractors.

Industry Average (Employees + Contractors) : 1.29

Recordable Injury Rate (TRIR)

Industry Average (Employees + Contractors) : 1.64 GPIC (Employees + Contractors): 0.72 (83.4% lower than the industry average)

4.3

Disclosure 403-1: Occupational health and safety management system

At GPIC, SHE management systems are not mere protocols but a way of life guiding our actions and decisions. By fostering a culture of safety and well-being, we empower our employees to prioritize excellence, leading to enhanced performance and the consistent delivery of highquality products. Our dedication to "Zero Harm" remains unwavering, extending beyond metrics to encompass the protection of our people, facilities, environment, and re-evaluated communities. Additionally, our comprehensive health strategy emphasizes prevention, quality, and advocacy, equipping employees with the resources needed to promote personal and familial well-being.

Through these concerted efforts and our adherence to ISO standards, including ISO 45001, ISO 31000, ISO 22301, and RC 14001, we uphold the highest standards of health, safety, and environmental stewardship, underscoring our commitment to sustainable business practices.

Employees have the ability to report work-related hazards to their line supervisors or the Safety, Security, Health, Environment and (SSHED) department at any time, ensuring a proactive approach to risk management. All risk assessments, categorized by level of severity, undergo regular review to maintain relevance and effectiveness. Low-level risks are every three years, medium-level risks are annually, and high-level risks are continuous. Furthermore, any newly identified or foreseeable risks are promptly integrated into the Risk Management framework.

To support a culture of safety and accountability, the company's policies and procedures empower workers to remove themselves from unsafe work situations without fear of retaliation. In the event of accidents or near misses, the SAP Manarah Incident Management module serves as an electronic repository for capturing incidents and near misses, prioritizing confidentiality and protection for whistle-blowers. Root cause analysis is conducted for all documented incidents, guiding the implementation of corrective actions to prevent recurrence.

Standard Operating Procedures (SOPs) are in place for reporting accidents and incidents, ensuring consistency and efficiency in response protocols; for significant incidents, such as lost-time accidents, a dedicated Accident Investigation committee is convened, leveraging the Tap Root methodology for comprehensive investigation and analysis. These measures underscore our commitment to maintaining a safe and secure work environment for all employees.

Disclosure 403-2: Hazard identification, risk assessment, and incident investigation

GPIC implements a rigorous Risk Management Protocol that addresses both enterprise-level and business process risks, including those pertaining to Occupational Health and Safety (OHS). This protocol is guided by a comprehensive Standard Operating Procedure (SOP) on Risk Management, with employees undergoing thorough training. Each risk assessment undergoes a meticulous screening process via the risk management portal before approval. At the enterprise level, the Resilience committee regularly reviews company risks.

All risk assessments undergo periodic review, with low-level risks reviewed every three years, medium-level risks annually, and high-level risks continuously. Any new or foreseeable risks are promptly included in the Risk Management framework. Employees can report workrelated hazards to line supervisors and the Safety, Security, Health, Environment, and (SSHED) department at any time. The GPIC SAP Manarah Incident Module serves as an electronic database for capturing incidents and near misses, with safeguards in place to protect whistleblowers.

The company's policies and procedures empower workers to remove themselves from unsafe work situations without fear of reprisals. All accidents and near misses are documented in the GPIC SAP Manarah Incident Module, with root cause analysis conducted to implement

recurrence. SOPs are in place for reporting accidents and incidents, with a dedicated Accident Investigation committee formed for significant incidents such as lost-time accidents, utilizing the Tap Root methodology for thorough investigation and analysis.

Disclosure 403-3: Occupational health services

Ensuring the safety and well-being of our employees and contractors during the March 2022 Turnaround was paramount for GPIC, particularly in the wake of the COVID-19 pandemic. With over 4000 contractors involved, our commitment to health and safety remained unwavering. GPIC views the safety and health of its workforce and neighboring communities as a fundamental responsibility. We uphold the highest standards of health and safety across our manufacturing facilities, diligently monitoring potential risks to both operations and personnel. Significant investments are made in safety, environmental care, and equipment reliability projects. Certified to ISO standards for Occupational Health and Safety, Risk Management, Business Continuity, and Responsible Care, our policies are transparently accessible on our official website.

GPIC's comprehensive health strategy prioritizes prevention, quality, and health system management, empowering employees with the tools and information needed for personal and familial health investments. We foster a culture of health and well-being through additional policies and practices. Certified to ISO 45001 and other management standards, we strictly adhere to Bahrain Labor Law and all relevant occupational health and safety regulations. Our risk management framework covers all aspects of our operations, with a particular focus on OHS.

The complex operates a 24-hour medical center staffed with qualified professionals, ensuring regular medical check-ups for all employees, including occupational health assessments. In 2023, we initiated the SAP Manarah project, integrating EHS modules for Incident Management, Risk Assessment, MOC, and Waste Management, marking a significant advancement in online safety management systems. Furthermore, we conducted a Heat Index survey, established dedicated SOPs, commissioned an Air Quality Monitoring unit, and benchmarked ourselves internationally with the International Fertilizer Association (IFA).

Additionally, we conducted a Perception Safety Survey in collaboration with the National Safety Council (NSC), encompassing our entire workforce, and pledged our commitment to Musculoskeletal disorder (MSD) prevention with the NSC. These initiatives reflect our ongoing dedication to enhancing safety standards and fostering a culture of well-being within our organization.

Disclosure

403-4: Worker participation, consultation, and communication on occupational health and safety

At GPIC, our success is deeply rooted in the integration of Safety, Health, and Environmental (SHE) management systems into the fabric of our organization. Beyond mere programs, these systems represent a core aspect of our corporate culture. Recognizing that our commitment to SHE is fundamental to earning and upholding public trust, we view it as essential to our identity as responsible corporate citizens, neighbors, and collaborators. SHE excellence not only guides our sustainable business practices but also defines our values and principles.

To effectively execute our SHE management strategy, we prioritize worker participation and consultation, providing structured platforms for input and feedback. This includes the active involvement of employees, represented by labor union representatives, in key SHE-related committees and councils such as the SHE Council, Safety Committee, Health Committee, and Environment Committee. Through these avenues, employees contribute suggestions for enhancing SHE practices and share relevant information using various electronic platforms such as knowledge-sharing databases and the company intranet. GPIC conducts monthly safety contractor meetings to share the trends to incidents, near misses, best practices and areas of improvement.

Central to our success is the collaborative effort facilitated by cross-functional working committees. These committees, comprised of both management and labor union representatives, ensure that SHE performance is regularly reviewed and discussed. By fostering open dialogue and inclusivity, these committees serve as forums for addressing SHE-related issues and implementing improvement initiatives. This inclusive approach to SHE management reinforces our commitment to excellence and continuous improvement across all facets of our operations.

On monthly basis we conducts contractors safety meeting to share the trends to incidents, near misses, best practices, lessons learned and areas of improvement.

In 2023, GPIC has conducted a safety survey for all employees and contractors in collaboration with National Safety Council (NSC) to enable the company to improve and assess our safety performance, identify areas for improvement, further enhance our safety performance and safety culture within GPIC. The objective of the survey is to help GPIC measure how employees feel about the current safety policies and procedures and to provide opportunity for employees and contractors to share recommendations for improvement.

Disclosure 403-5: Worker training on occupational health and safety

At GPIC, fostering the personal and professional growth of our team members stands as a cornerstone of our commitment. We employ a diverse array of methods to empower our employees to enhance their skills and capabilities, ensuring that each individual has a personalized development plan tailored to their aspirations and areas for growth.

Our approach to employee development encompasses a range of initiatives designed to align with our overarching vision of cultivating a dynamic organizational culture. Through strategic interventions in organizational development, such as targeted training programs, opportunities for secondments, business-related travel experiences, and engagement in community volunteerism, we provide avenues for our employees to expand their horizons and contribute meaningfully to their personal and professional growth.

To further enhance our training and development efforts, we have implemented a Performance Management System (PMS) within SAP S/4 Hana. This system serves as a catalyst for continuous improvement, facilitating the tracking and evaluation of employee progress and performance.

As part of our comprehensive training regimen, we offer a variety of occupational health and safety (OHS) and process safety courses, both internally and externally. These courses cover a spectrum of topics ranging from generic OHS training for all employees to specialized training for technical personnel, advanced firefighting, and emergency response training for safety and emergency response personnel, and mandatory first aid training for all employees. Through these initiatives, we ensure that our workforce remains well-equipped to navigate and respond effectively to diverse challenges and scenarios in the workplace.

The following types of training are identified:

Generic OHS training is for all.

Specific OHS training is mainly for technical people.

First aid training is mandatory Modelized emergency training (MERT) for all.

Advanced firefighting and emergency response for safety and emergency responsible personnel.

At GPIC, our commitment to promoting the health and well-being of our workforce extends beyond occupational health and safety services. We understand that supporting our employees' overall health contributes to their overall satisfaction and productivity. Therefore, we offer a range of voluntary services and programs that address both work-related and nonwork-related health concerns. These services include access to confidential counseling and support programs, wellness initiatives, and health screenings. By providing these resources, we aim to create a supportive environment where employees feel empowered to prioritize their health and well-being. Additionally, we prioritize confidentiality to ensure that employees feel comfortable seeking assistance without fear of judgment or reprisal. Through these efforts, we demonstrate our commitment to fostering a workplace culture that values and prioritizes the health and well-being of our workforce.

Disclosure

403-7: Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

At GPIC, we adhere to a rigorous risk management protocol to identify both existing and potential foreseeable occupational health and safety (OHS) risks and their associated impacts across all phases of our operations, products, or services. Our certification to ISO 45001 underscores our commitment to a risk-based approach. Moreover, when engaging with contractors, suppliers, vendors, and other business partners, we extend this risk-based methodology to ensure OHS considerations are integral to their prequalification process.

Disclosure 403-6: Promotion of worker health

At GPIC, our persistent dedication to safety remains resolute. As we progress, our commitment to realizing our safety objectives must intensify. While striving for "Zero Harm" encompasses more than numerical benchmarks or statistics, these metrics are crucial for gauging our progress. Ultimately, our focus is on safeguarding the well-being of our personnel, facilities, environment, and neighboring communities.

Moreover, GPIC has implemented a robust health strategy centered on preventive measures, quality assurance, health system management, and advocacy. We empower our workforce, including contractors with the necessary tools and knowledge to prioritize their personal health and that of their families. Additionally, we actively foster a culture that prioritizes health through various policies and initiatives aimed at promoting well-being.

As of December 2023, we take pride in achieving over 39 Million accident-free working hours for our staff and contractors—an indication of our pursuit of safety excellence. Furthermore, we ensure that our workforce is fully represented in critical safety and health committees, with labor union members constituting 100% of the representation. Even at the highest levels, such as the Safety, Health, and Environment Council, the labor union chairman serves as the advocate for our workforce, ensuring their perspectives are acknowledged and respected.

Disclosure 403-9: Work-related injuries

At GPIC, we adhere to the ISO 45001 certification, underscoring our commitment to occupational health and safety. We employ a risk-based methodology that informs our approach to everyday operations, as well as special projects. This entails conducting comprehensive risk assessments, identifying potential hazards, and implementing mitigation measures across all activities.

It's noteworthy that throughout the reporting period, we have not encountered any highconsequence injuries, a testament to the effectiveness of our safety protocols and risk management strategies.

To further enhance our safety protocols, we've introduced last-minute on-site job hazard identification measures in addition to our existing risk assessments. This proactive approach ensures that potential hazards are promptly identified and addressed, minimizing the likelihood of incidents or accidents occurring during project execution.

Work Related Injuries

cluding fatalities)

At GPIC, we take extensive measures to safeguard the occupational health of our workforce across various work environments, including manufacturing facilities, offices, and field settings. Rigorous workplace risk assessments are conducted to identify and evaluate potential hazards, followed by the implementation of targeted education and training programs to ensure safe practices.

Our proactive approach extends to general health prevention initiatives aimed at reducing overall health risks among employees. We collaborate with external medical and public health experts to coordinate emergency planning and implement exposure controls in line with global standards. To further ensure the well-being of our workforce, all employees undergo baseline and periodic medical screenings, evaluations, and health counseling sessions. Additionally, comprehensive medical treatment services are readily available to address any health concerns that may arise.

Given the nature of our industry, where employees are exposed to high-risk occupational hazards, such as those related to hearing conservation and confined spaces, we prioritize the implementation of preventive measures tailored to mitigate these risks.

Our health protection framework revolves around recognizing hazards, reducing risks, screening for illnesses, and confirming the effectiveness of our systems. Moreover, GPIC is dedicated to promoting overall employee health through a range of preventive, diagnostic, and treatment services covered under our comprehensive medical benefits package.

In fostering a culture of collaboration and inclusivity, GPIC ensures that labor union members actively participate in key safety and health committees, including the Safety, Health, and Environment Council, Safety & Responsible Care Committee, Health Committee, and Environment Committee. These committees serve as forums for thorough discussions on safety and health-related matters, reflecting our commitment to employee well-being. Additionally, comprehensive health insurance coverage is extended to all employees and their families, underscoring our dedication to supporting their health and welfare.

The

The work-related

GRI 404: Training and Education (2016)

Our approach to training and development is meticulously structured, informed by a thorough needs analysis that encompasses both technical proficiencies and soft skills. We offer a blend of in-person sessions and e-learning modules to ensure accessibility and flexibility.

Our training initiatives span a diverse array of methodologies, including Toastmasters, classroom training, coaching, mentoring, and facilitation of higher education opportunities. These avenues provide comprehensive coverage of topics such as supervisory and leadership skills, SAP competency, behavioral interventions, and technical training. Our overarching goal is not only to enhance job-specific technical competencies but also to cultivate well-rounded individuals who can thrive as responsible corporate citizens.

Disclosure 404-2: Programs for upgrading employee skills and transition assistance programs

We take a holistic approach to the training and development of our employees, aiming not only to enhance their job-specific technical skills but also to cultivate qualities that contribute to their success as responsible corporate citizens.

Through our training initiatives, employees have the opportunity to develop a range of skills, including supervisory and leadership capabilities, proficiency in SAP Competency-based performance management and appraisal systems, and participation in classroom sessions, coaching, mentoring, and other behavioral interventions.

Our training programs encompass diverse modalities such as e-learning, participation in Toastmasters, and facilitation of higher education opportunities. These initiatives reflect our commitment to nurturing well-rounded professionals who are equipped to excel in their roles and contribute positively to the corporate community.

Disclosure 404-1: Average hours of training per year per employee

Disclosure 404-3: Percentage of employees receiving regular performance and career development reviews

Performance Management (PMS) at GPIC is designed to optimize the link between employee growth and organizational success. Leaders and employees collaborate closely to ensure PMS effectiveness by setting SMART goals, fostering continuous development through feedback and dialogue, and regularly reviewing progress both formally and informally throughout the year. PMS is intricately woven into GPIC's overarching employee development strategy, focusing on honing skills that facilitate adaptability, align behaviors with corporate objectives and ethical standards, and provide avenues for employees to enhance their performance and impact.

Our PMS cycle provides a structured framework for aligning expectations and goals, integrating ongoing coaching and feedback, and summarizing contributions, encompassing both the "What" (core job responsibilities, goals, and impact) and the "How" (behaviors and competencies).

Key components of our PMS approach include:

Aligning Expectations & Setting Goals.

Continuous Coaching, Feedback, and Reviews.

Annual Contribution Summary.

Mid-term and Annual Reviews.

Effective leadership entails setting clear, meaningful, and challenging performance expectations while providing regular coaching and feedback. At GPIC, leaders are encouraged to collaborate with their team members to identify strengths and areas for development, fostering engagement and driving organizational success.

The PMS cycle culminates in a formal review of annual performance. During this session, employees receive feedback on their achievements and areas for growth throughout the year, which they use to formulate personal development objectives for the upcoming year. Eligible employees undergo an Annual Performance Review and receive a performance rating within the system.

Percentage of Employees Who Received a Regular Performance and Career Development Review During the Reporting Period

GRI 405: Diversity and Equal Opportunity (2016)

GPIC's endorsement of the UN Women's Empowerment Principles (WEPs) in 2014 marked a pivotal moment in our commitment to promoting gender equality and women's empowerment on a global scale. By pledging our support, our CEO affirmed our organization's dedication to upholding these principles, which serve as a beacon guiding our internal strategies for advancing women in the workplace.

Through our alignment with the WEPs, GPIC has taken proactive steps to enhance transparency and accountability regarding our efforts to promote gender equality. We recognize the importance of not only championing women's advancement within our organization but also actively measuring and reporting on our progress. This commitment to comprehensive reporting goes beyond mere data collection; it reflects our steadfast commitment to fostering an inclusive workplace culture where all individuals, regardless of gender, have the opportunity to thrive and contribute meaningfully.

By embracing the WEPs, GPIC has positioned itself as a leader in the global movement for gender equality. Our dedication to transparency and accountability not only strengthens our internal initiatives but also underscores our broader commitment to creating a more equitable and just society. Through ongoing collaboration and dialogue, we strive to build a workplace where every individual feels valued, respected, and empowered to reach their full potential.

Disclosure 405-1: Diversity of governance bodies and employee

Disclosure 405-2: Ratio of basic salary and remuneration of women to

men

The distinction is based on talent and merit and not on gender 1:1

Please note for this section, “Significant locations of operation” refer to all GPIC departments at one location, in Sitra, Kingdom of Bahrain.

GRI 406: Non-Discrimination (2016)

At GPIC, we stand firm in our commitment to human rights and non-discrimination, embedding these principles into every facet of our operations. Grounded in the International Labour Organization's Declaration on Fundamental Principles and Rights at Work and the Bahraini Labour Law, our policies ensure the protection of our employees' rights with unwavering dedication.

We adamantly oppose all forms of discrimination and exploitation, actively promoting an inclusive environment where every individual, regardless of background, is valued and respected. Our commitment extends to upholding the rights to freedom of association, collective bargaining, and a workplace free from harassment or hostility.

Safety is paramount in our workplace ethos. We relentlessly pursue the goal of zero injuries and illnesses, both on and off the job, recognizing that the well-being of our employees is fundamental to our success. Through strict adherence to safety, health, and environmental standards, we prioritize the protection of our human capital.

Our workplace culture is one of collaboration and mutual respect. We foster an atmosphere free from intimidation or offensive behavior, where employees feel empowered to contribute their ideas and innovations without fear of reprisal. Every employee is valued not just for their skills but for their unique perspectives and contributions to our shared goals.

Religious freedom is sacrosanct at GPIC. We honor and respect the diverse beliefs of our employees, ensuring they have the space to practice their faith with dignity. By adhering to local laws and regulations and staying vigilant to emerging legal requirements, we safeguard the rights and interests of our employees and the company alike.

Equal opportunities are at the heart of our recruitment and advancement processes. We base our decisions solely on merit, fostering a level playing field for all applicants and employees. Fairness and equity guide every aspect of employment, from career development to disciplinary procedures.

Our commitment to employee well-being extends beyond the workplace. We encourage our team members to actively engage with their communities, supporting charitable organizations and community initiatives that align with our values. By fostering a culture of corporate citizenship, we empower our employees to make a positive impact both within and beyond our organization.

Disclosure 406-1: Incidents of discrimination and corrective actions taken

In 2022-2023, there were no cases of discrimination. The Company strictly follows a nondiscrimination policy.

GRI 407: Freedom of Association and Collective Bargaining (2016)

At GPIC, we recognize the critical importance of upholding fundamental human rights and labor standards throughout our operations and supply chain. In our commitment to responsible business practices, we are acutely aware of the potential risks that may arise concerning the right to freedom of association and collective bargaining within our operations and among our suppliers. As part of our core values and ethical principles, we prioritize the protection and promotion of these rights, ensuring that all individuals within our sphere of influence are afforded the opportunity to organize and bargain collectively without fear of discrimination or reprisal.

Disclosure 407-1: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

GRI 408: Child Labor (2016)

At GPIC, we are unwavering in our commitment to safeguarding the rights of our workforce. We firmly uphold the freedom of association, ensuring that employees can engage in collective bargaining without any fear of retaliation. Our Code of Conduct and Professional Ethics explicitly enshrines this commitment, fostering an environment where employees across all operational areas can form collective bargaining agreements.

Our labor union representatives actively engage with executive management through regular meetings. These discussions address workers’ concerns and explore ways to enhance working conditions and overall environments. We believe that an empowered workforce contributes to our success.

Moreover, our dedication to inclusivity extends beyond national borders. Non-Bahraini employees are warmly welcome to participate in our labor union. By nurturing an inclusive and transparent workplace culture, we strive to create an environment where every employee feels valued, respected, and empowered to collectively advocate for their rights. ●

At GPIC, our commitment to eradicating child labor is unwavering. Aligned with international agreements, local regulations, and the UN Global Compact Principle 5, we uphold the highest ethical standards across our operations and supply chain. We firmly believe that every child deserves a childhood free from exploitation, which is why we maintain a zero-tolerance stance against child labor. Through proactive measures and collaborative efforts with stakeholders, we diligently ensure that our operations and supply chain remain free from the scourge of child labor. By upholding human rights and ethical standards, we strive to create a work environment and supply chain where the dignity and rights of every individual, especially children, are protected and respected.

Disclosure 408-1: Operations and suppliers at significant risk for incidents of child labor

GPIC maintains a zero-tolerance policy towards child labor across all operations, ensuring strict adherence to labor laws and regulations. While our internal review has confirmed that none of our operations pose a risk of child labor, it's important to note that information regarding suppliers has not been factored into this assessment.

Furthermore, our commitment to upholding human rights extends beyond our immediate operations. GPIC is dedicated to aligning with the principles outlined in the UN Global Compact, particularly Principle 5, which advocates for the abolition of child labor. By adhering to these principles, we reaffirm our pledge to promote ethical practices and protect the rights and wellbeing of all individuals involved in our supply chain.

GRI 409: Forced or Compulsory Labor (2016)

GPIC is firmly dedicated to eradicating compulsory labor throughout its operations and supply chain. We diligently comply with local laws, ethical standards, and the principles set forth by the UN Global Compact. Through thorough assessments and proactive measures, we vigilantly monitor and address any potential risks of compulsory labor, both within our organization and among our suppliers. Our unwavering commitment to upholding human rights underscores our determination to cultivate a workplace and supply chain characterized by dignity, fairness, and respect for all individuals involved.

Disclosure 409-1: Operations and suppliers at significant risk for incidents of forced or compulsory labor

There is no risk of forced or compulsory labor within any of our operations, as GPIC maintains strict compliance with labor laws. Additionally, our commitment to upholding human rights extends beyond mere adherence to regulations; we are dedicated to fostering an environment where the rights of all individuals are respected. As part of this commitment, we align with the principles outlined in the UN Global Compact, which serves as a guiding framework for our ethical conduct and practices. Through these efforts, we created a workplace culture that prioritizes dignity, fairness, and respect for all.

GRI 410: Security Practices (2016)

Disclosure 410-1: Security personnel trained in human rights policies or procedures

All GPIC security officers have undergone training that covers subjects such as the use of force, prevention of inhuman or degrading treatment, discrimination, and proper identification and registration. The same training applies to all thirdparty security personnel. Between 2022 and 2023, seven training events were arranged, with 71 security personnel in attendance.

GRI 411: Rights of Indigenous Peoples (2016)

Disclosure 411-1: Incidents of violations involving the rights of indigenous peoples

There were no incidents of violations involving the rights of minorities and Indigenous peoples.

Communities (2016)

Disclosure 413-1: Operations with local community engagement, impact assessments, and development programs

GPIC endeavors to be a supportive community member and a reliable partner, prioritizing the cultivation of positive relationships in every locality where we have a presence. We place utmost importance on the welfare of these communities, recognizing that their prosperity directly impacts our own success.

All of our operations are fully engaged in local community initiatives, conducting thorough impact assessments and implementing development programs (100% of our operations). We prioritize active involvement with local residents to identify their needs, assess the impact of our operations, and collaborate on programs aimed at enhancing community well-being. Our long-term commitment to sustainable

social interventions spans various areas, including strategic philanthropy, capacity building, educational support, women's empowerment, and youth engagement. Additionally, we are dedicated to environmental protection and awareness, promoting safe and eco-friendly operations while engaging with the community through visits, outreach programs, and educational initiatives.

Furthermore, we prioritize providing employment opportunities to the local community, with a particular focus on Bahraini residents. Through these efforts, we aim to create meaningful value in the lives of community members while fostering positive relationships and contributing to sustainable development.

Disclosure 413-2: Operations with significant actual and potential negative impacts on local communities

GPIC plays a vital role in enhancing the economic and social well-being of the local communities where it operates. Operating within a heavily regulated industry, we maintain close collaboration with state officials and regulators to ensure responsible practices that mitigate any environmental impact on these communities and maintain a record of zero grievances from the local community during the reporting period.

As a certified Responsible Care company RC 14001 since 2010 and with ISO 14001, GPIC adheres to the highest standards of environmental and social responsibility. We actively apply the guiding principles and codes of Responsible Care, both within our facilities and beyond. Through this process, we identify potential negative impacts on

communities, assess risks, and implement improvement plans to minimize any adverse effects.

Moreover, GPIC places a strong emphasis on security, incorporating the Responsible Care Security Code into our operations. We conduct regular security vulnerability assessments at our sites worldwide and integrate security scenarios into all emergency plans to ensure the safety and well-being of local communities.

GRI 414: Supplier Social Assessment (2016)

GPIC actively engages in the chemical industry's Responsible Care® initiative, exemplifying our steadfast commitment to promoting safety and sustainability in all aspects of our operations.

When it comes to external manufacturing, where GPIC's equipment is produced at third-party sites, we conduct regular audits to ensure adherence to quality standards and compliance with the fundamental EH&S Expectations for external manufacturers. Moreover, we diligently select suppliers who demonstrate a commitment to ethical labor practices, reflecting our dedication to responsible sourcing.

In handling hazardous materials, GPIC provides comprehensive 'Safe Handling' Guides and conducts training sessions to ensure that all employees are well-informed about safety procedures. These efforts underscore our unwavering commitment to prioritizing the safety and well-being of our workforce and communities.

Disclosure 414-1: New suppliers that were screened using social criteria

According to our prequalification system, all new suppliers undergo thorough screening based on criteria related to technical, financial, safety, security, health, environment, and social factors.

GRI 415: Public Policy (2016)

Disclosure 415-1: Political Contributions

We do not make any political contributions.

Disclosure 414-2: Negative social impacts in the supply chain and actions taken

Overcoming

Supply Chain Challenges: Navigating Adversity with Resilience and Success

In 2022, a significant turnaround occurred in March, coinciding with the aftermath of the COVID-19 pandemic, which posed challenges for the 4000-strong contractor workforce. However, with the implementation of standard operating procedures (SOPs) and robust risk management strategies, these challenges were effectively addressed and managed successfully.

In 2023, the global geopolitical landscape was marred by conflict and the Red Sea crisis, resulting in disruptions to supply chain management. Sea shipments encountered difficulties, prompting measures to mitigate risks by opting for longer routes that bypass the Red Sea, albeit with associated time and cost implications. As a result, approximately four additional weeks were added to shipping times. In some cases, reliance on airfreight became necessary, leading to further cost implications.

Despite the mentioned uneasy challenges, there were no significant actual and potential negative impacts identified for labor practices in the supply chain that have been reported for the years 2022 and 2023.

As part of the GPIC Responsible Care Product Stewardship programs, we do the following:

Using innovative solutions during the engineering and design stage of the new projects or modifications to the existing plants to ensure the reduction of our own environmental impact and carbon footprint.

Running responsible operations in terms of producing, handling, and exporting the highest quality products to ensure the customers and end users are fully satisfied with our products.

Communicating in the form of booklets and guidelines on product risks and handling procedures, including safety data sheets(SDS), distributed to all personnel involved in product transport, such as ships and trucks.

Arranging meetings with local buyers and make them aware of the GPIC way in conducting business in terms of safety, health, environment and product handling.

Holding regular meetings with customers, to further streamline the entire supply chain, linking operations with the end users. One of the most important points on the agenda of each of these meetings is to gauge the level of customer satisfaction and attain feedback on finding ways to further improve our processes and operations.

Using a responsible methodology of collection, recycling, and disposal of contaminated products in line with local environmental standards and legislation.

Conducting mandated external independent surveyor inspections of the Product Handling Facility and ship cargo tanks to ensure full compliance with the buyer’s requirements and international standards.

Maintaining GPIC compliance with Level – 1 (Gold Status) by the Department of Agriculture, Water and the Environment- Australia. Accreditation means that GPIC has the best low-risk facility for the production, storage and export of granular urea, which in turn provides an added value to all GPIC Urea customers around the world. This accreditation enforces strict guidelines to ensure GPIC products are fully controlled from the source to the end user, protecting them from any contaminants and pollutants.

Maintaining GPIC’s Marine Terminal is in compliance with the International Ships & Port Security (ISPS) according to IMO regulations and the local port authority. Ships calling the GPIC Marine Terminal to load Urea must declare their security level according to the ISPS code before entering berth.

Conducting shore and ship meetings to achieve smooth, efficient and safe operations so that all safety, environmental and security requirements are fully understood and implemented by the ship personnel.

Maintaining that GPIC Urea and Methanol products registration under the European REACH program (Registration, Evaluation, Authorisation and Restriction of Chemical Substances) (UREA REG# 01-2119463277-33-0095 & METHANOL REG# 01-2119433307-44-0005). This is the case for GPIC procedures with regard to product and service information and labeling, with particular reference to (i) substances that might produce an environmental or social impact, (ii) the disposal of the product and environmental/social impacts, and (iii) the safe use of the product or service.

●

Inviting customers to visit the company’s complex to exchange views and ideas with regard to working procedures and further enhance business relationships.

●

Providing our customers with full technical support as needed.

GPIC was also among the first industrial organizations in the Kingdom of Bahrain to acquire the “ Port Operator license” in July 2017 from the Ports and Maritime Authority. This license allows GPIC to operate and manage its jetty solely for the export of urea to the international market.

This license provides our stakeholders and clients clear assurance that GPIC’s Marine Terminal was built to the highest international standards for export terminals and meets all marine and industrial safety requirements for loading large bulk carriers.

Disclosure 416-1: Assessment of the health and safety impacts of product and service categories

At GPIC, every product undergoes a thorough evaluation, taking into account its Safety, Health, and Environment (SHE) considerations, its intended use, and potential impact. This assessment is integral to our SHE management approach, spanning all stages of the product life cycle, as depicted in the accompanying table. In addition to the mentioned codirectional, we emphasize the health and safety analysis of all of our products with great importance. Through our business risk review process, we meticulously analyze and address any potential negative effects on people, assets, and the environment stemming from our business operations. This proactive approach extends to minimizing SHE-related impacts associated with both new and existing operations, products, applications, and services throughout their life cycles.

To ensure ongoing vigilance, GPIC mandates that businesses conduct risk reviews in response to significant new information, such as changes in product uses, regulations, or raw materials. Additionally, these reviews may be triggered periodically to maintain a proactive stance. Efforts have been made to improve clarity and reinforce these triggers, facilitating comprehensive risk assessment and fostering a culture of continuous improvement.

COMPONENT: - Life cycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant products and services categories subject to such procedures

Development of product concept

Research and Development

Certification

GPIC’s products are in two categories 1) Urea and Ammonia are additive for enhancing agricultural produce and due care has been given to health and safety. 2) Methanol can be used in fuel additives, pharmaceuticals and households etc. and hence due care is also given to health and safety. Our industry’s basic raw material is fossil fuel(natural gas) and we are not exploring alternate raw materials for our process however we invest on sustained basis to improve our energy and resource efficiency and we are also carrying out a feasibility study to implement the use of solar energy within GPIC.

Products are already developed and the Company does not conduct any in- house research and development.

No certification is required. However, the Company has obtained all the key certifications and one of the few Companies who are certified to ISO9001; ISO14001; ISO:45001;PAS99; RC14001; ISO27001; ISO31000; ISO22301; ISO50001; Halal Methanol; IFA Protect & Sustain Product Stewardship Manufacturing & production Yes Marketing

The marketing of our three products is done by our shareholder companies SABIC Agri Nutrients & PIC. The health and safety risks are communicated through product safety information and MSDS.

distribution & supply

The health and safety risks are communicated through product safety information and SDS.

The health and safety risks are communicated through product safety information and SDS

Disposal Not applicable. Reuse/Recycling

Disclosure 416-2: Incidents of non-compliance concerning the health and safety impacts of products and services

Throughout the reporting period, we maintained a commendable record of adherence to health and safety standards across all aspects of our products and services. Notably, there were no incidents or instances of non-compliance concerning the health and safety impacts associated with our offerings. This achievement underscores our unwavering commitment to prioritizing the well-being of our customers, employees, and stakeholders. By diligently adhering to stringent health and safety protocols, we have ensured the delivery of products and services that meet the highest standards of safety and quality, thus fostering trust and confidence among our stakeholders.

GRI 417: Marketing and Labeling (2016)

Disclosure 417-1: Requirements for product and service information and labeling

Each of our products undergoes meticulous labeling, ensuring clarity and accuracy in identification by including the relevant information which may include sourcing, directions of safe use and disposing , materials included and others etc... Additionally, our urea bags receive specific labeling to convey pertinent information. We are dedicated to providing comprehensive product information to all customers, thereby fostering transparency and facilitating informed decision-making.

Disclosure 417-2: Incidents of non-compliance concerning product and service information and labeling

During the years 2022 and 2023, there were no instances of non-compliance related to product and service information and labeling in the reporting period, marking our 100% commitment to excellence and compliance.

Disclosure 417-3: Incidents of non-compliance concerning marketing communications

During the years 2022 and 2023, we encountered no incidents of non-compliance regarding marketing communications from any of our stakeholders.

GRI 418: Customer Privacy (2016)

Disclosure 418-1: Substantiated complaints concerning breaches of customer privacy and losses of customer data

At GPIC, safeguarding customer data and privacy is paramount to delivering exceptional service. We take great care to ensure that customer information remains secure and confidential. We are proud to report that we have not encountered any validated complaints related to breaches of customer privacy or incidents of customer data loss. This achievement underscores our commitment to maintaining the trust and confidence of our valued customers as we continue to prioritize the protection of their sensitive information.

Synergizing Our Efforts with UN Sustainable Development Goals (SDGs)

Commitment to Global Agenda-UN Global Compact

Implementation of the ten principles into Strategies and Operations

Bridging Sustainability Frameworks: SDGs, UNGC, GRI Standards & GPIC's Impact

By aligning our efforts with the UN Sustainable Development Goals, we strive to integrate sustainability into every aspect of our operations, driving positive impact and contributing to a future where economic growth and environmental stewardship go hand in hand.

Commitment to Global Agenda-UN Global Compact

At GPIC, we understand that fostering sustainable economic development is a collective duty. Since 2012, we have been dedicated to the UN Global Compact (UNGC) principles, as we believe in conducting our business ethically while honouring our people and the environment that supports us.

GPIC has been a UNGC signatory since 2012 and has committed to the UNGC Food and Agriculture Business Principles (FAB) and the UNGC Women’s Empowerment Principles (WEPs) since 2014.

GPIC pledges to uphold the ten principles of the UN Global Compact, which cover human rights, labor standards, environmental protection, and anti-corruption efforts. We also commit to annual reporting and communication with our stakeholders regarding our progress in implementing these principles.

From 2015 till 2021, GPIC reported, according to the UN Global Compact “Advanced Level,” to satisfy the 21 specified criteria in 10 COP 10 Principles. This represents our self-evaluation of how we have fulfilled the UN Global Compact Advanced Level criteria. To access the full list of our COP reports, please visit the following link: https://unglobalcompact.org/what-is-gc/ participants/17279-Gulf-Petrochemical-Industries-Company.

As of 2022, GPIC adopted the recently introduced questionnaire structure instead of the 21-criteria system founded earlier. The new questionnaire, which was announced in the UNGC COP guidebook 2023, is organized into five sections. The first section, Governance, provides a cross-cutting overview of companies’ sustainability governance structure. The other four sections—Human Rights, Labour, Environment, and Anti-Corruption—survey companies’ performance in more detail with respect to the Ten Principles of the UN Global Compact.

In all five sections of the questionnaire, the questions are grouped into different categories as they typically address:

Processes and policies that demonstrate a company’s commitment to advancing sustainability topics connected to the Ten Principles. Efforts taken to prevent negative social and environmental impacts on those topics. Performance indicators. Response, remediation, and reporting mechanisms used to address grievances and reflect on lessons learned.

According to the aforementioned grouping, questions can be classified into one of five categories: Materiality, Commitment, Prevention, Performance, Remediation and Reporting

Note: G= Governance, HR= Human Rights, L= Labor, E= Environment, AC= Anti-Corruption. Text included in each box references specific questions in the survey. For example, the first question in the Governance section is labeled G1.

For more information on the UNGC COP Guide Book 2024, please visit https://unglobalcompact. org/library/6107

PARTNERSHIPS FOR THE GOALS: Why does it matter?

To strengthen and enhance the international partnership for sustainable development.

Following the global COVID-19 pandemic, it is evident that bolstering multilateralism and global partnerships is more crucial than ever for resolving worldwide issues. The Sustainable Development Goals remain the cornerstone for rebuilding more effectively.

To achieve these goals, unified effort is needed, bringing together governments, civil society, scientists, academia, and the private sector. Partnerships are important for GPIC for the following reasons:

Add value to the organization by obtaining best practices and know-how in-house.

Establish an international network of associates that can be tapped into when required.

Further solidify the goodwill and reputation of GPIC.

Provide GPIC workforce opportunities to work with and interact with international expertise.

GPIC ‘s contribution towards SDG #17: PARTNERSHIPS FOR THE GOALS

The Company engages with several international and regional organizations such as the UN Global Compact, the National Safety Council (NSC - USA), the Royal Society for the Prevention of Accidents (RoSPA - UK), the International Fertilizer Association (IFA), the Arab Fertilizer Association (AFA), Gulf Petrochemicals and Chemicals Association (GPCA), Global Reporting Initiative (GRI).

II. Integrating the UN 10 Principles into Strategies and Operations

At GPIC, we have deeply embedded the ten principles of the United Nations Global Compact (UNGC) across four key areas into our organizational culture. These principles are seamlessly integrated into our strategic planning and operational practices, ensuring they influence every facet of our business. We are dedicated to continuous improvement, diligently working to meet and exceed our goals. Our efforts are concentrated on upholding strong governance while promoting human rights, ensuring fair labor standards, protecting the environment, and fighting corruption. By incorporating these principles into our corporate culture and daily activities, we aim to generate sustainable value for all stakeholders and make a positive impact on the global community. Formore information on the UNGC 10 Principles, please visit https://unglobalcompact.org/whatis-gc/mission/principles.

This figure shows the UNGC 10 principles distrubted across the four key areas: Human Rights - Labour - Environment - Anti Corruption

Companies are required to support and respect the protection of internationally proclaimed human rights.

Companies should ensure that they are not complicit, even indirectly, in human rights abuses. 3.

Companies are required to uphold the freedom of association and the effective recognition of the right to collective bargaining.

Companies should uphold the elimination of all forms of forced and compulsory labour.

Companies should uphold the effective abolition of child labour.

Companies should uphold the elimination of discrimination in respect of employment and occupation.

Companies are required to support a precautionary approach to environment challenges.

Companies are required to undertake initiatives to promote greater environmental responsibility.

Companies are required to encourage the development and diffusion of environmentally friendly technologies. 10. Companies should work against corruption in all its forms, including extortion and bribery.

HUMAN RIGHTS LABOUR

Businesses should support and respect the protection of internationally proclaimed human rights.

Make sure that they are not complicit in human rights abuses.

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

The elimination of all forms of forced and compulsory labour.

The effective abolition of child labour.

The elimination of discrimination in respect of employment and occupation.

Businesses should support a precautionary approach to envirnmental challenges.

Undertake initiatives to promote greater environmental challenges.

Encourage the development and diffusion of environmentally friendly technologies.

Buinesses should work against corruption in all its forms, including extortion and bribery.

Sustainable Development Goals

End poverty in all its forms everywhere.

End hunger, achieve food security and improved nutrition and promote agriculture.

Ensure healthy lives and promote wellbeing for all at all ages.

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Achieve gender equality and empower all women and girls.

Ensure availability and sustainable management of water and sanitation for all.

Ensure access to affordable, reliable, sustainable and modern energy for all.

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

Reduce inequality within and among countries.

Make cities and human settlements inclusive, safe, resilient and sustainable.

Ensure sustainable consumption and production patterns.

Take urgent action to combat climate change and its impacts.

Conserve and sustainability use the oceans, seas and marine resources for sustainable development.

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainability manage forests, combat desertification, and halt and reserve land degradation and half biodiversity loss.

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

Strengthen the means of implementation and revitalize the global partnership for sustainable development.

The United Nations Global Compact's (UNGC) new Communication on Progress (COP) questionnaire consists of 89 questions designed to help businesses report on their adherence to the Ten Principles and the Sustainable Development Goals (SDGs). The questionnaire focuses on five key areas: governance, human rights, labor, environment, and anti-corruption. This comprehensive approach ensures transparency and encourages continuous improvement without scoring or ranking, aiming to promote global corporate sustainability through detailed and consistent reporting. To view GPIC’s answered questionnaire for the year 2022, you can directly access the questionnaire on the following link: https://cop-report.unglobalcompact.org/ COPViewer/2023?responseId=R_1FhrtnFx0rsmni5

Bridging Sustainability Frameworks: SDGs, UNGC, GRI Standards & GPIC's Impact

The table below highlights the interrelations between the questions presented in the recently introduced COP questionnaire (as explained earlier), UNGC 10 principles, Sustainable Development Goals (SDGs), and GRI standards disclosure. As for GPIC's contribution to all this, the answer to each specified question in the questionnaire can be accessed through the presented link (refer to the previous section to check the link for the questionnaire). This correlation is derived from the UNGC COP Guidebook 2024.

SECTION 2: HUMAN RIGHTS

SECTION 3: LABOUR

(2016)

(2016)

(2016)

(2016)

Questionnaire

in the

3-3 for topics

(2018)

(2016)

(2016)

(2016)

(2016)

3-3 for topics

403 (2018)

406 (2016)

407 (2016)

408 (2016)

409 (2016)

(2018)

(2016)

(2016)

(2016)

3-3 for topics 403 (2018)

(2016)

(2016) L3:

(2016)

(2016)

(2016)

(2018)

(2016)

L4:

(2016)

(2016)

(2016)

(2018)

(2016)

(2016)

(2016)

(2016)

SECTION 4: ENVIRONMENT

Question presented in the COP Questionnaire

Mapping to the Ten Principles of the UN Global Compact Mapping to SDG Targets Mapping to GRI Standards (2021) Disclosures

3-3 for topics

302 (2016)

303 (2018)

E1: Policy commitment

7,8 1,2,3,6,7,8,9,11,12,13,14,15

304 (2016)

305 (2016)

306 (2020)

E1.1: Policy detail 7,8 1,2,3,6,7,8,9,11,12,13,14,15 2-23

201-2 (2016)

3-1 and 3-3 for topics

302 (2016)

E2: Stakeholder engagement 7,8 1,2,3,6,7,8,9,11,12,13,14,15

E3: Prevention/ mitigation 7,8 1,2,3,6,7,8,9,11,12,13,14,15

303 (2018)

304 (2016)

305 (2016)

306 (2020)

201-2 (2016)

3-1 and 3-3 for topics

302 (2016)

303 (2018)

304 (2016)

305 (2016)

306 (2020)

201-2 (2016)

3-1 and 3-3 for topics

E4: Prevention/ mitigation progress assessment

E4.1: Goals and targets

E4.2: Measuring progress against targets

7,8 1,2,3,6,7,8,9,11,12,13,14,15

7,8 1,2,3,6,7,8,9,11,12,13,14,15

302 (2016)

303 (2018)

304 (2016)

305 (2016)

306 (2020)

201-2 (2016) 3-1 and 3-3 for topics

302 (2016)

303 (2018)

304 (2016)

305 (2016)

306 (2020)

201-2 (2016)

3-1 and 3-3 for topics

302 (2016)

7,8 1,2,3,6,7,8,9,11,12,13,14,15

303 (2018)

304 (2016)

305 (2016)

306 (2020)

201-2 (2016) 3-1 and 3-3 for topics

302 (2016)

E5: Remedy

7,8 1,2,3,6,7,8,9,11,12,13,14,15

E6: Greenhouse gas emissions (Scopes 1 and 2) 7,8 1,2,11,12,1,3,14

E7: Greenhouse gas emissions (Scope 3)

E7.1: Scope 3 emissions detail

E8: R&D investment in low-carbon products and services

E9: Climate adaptation

E10: Renewable energy

E13: Water withdrawal and consumption

303 (2018)

304 (2016)

305 (2016)

306 (2020)

305-1 (2016) 305-2 (2-16)

Single-use plastic

Transparency in Action: Reporting on the UNGC FAB 6 Principles

I. Commitment to Food and Agriculture Business Principles II. Implementation of the FAB-6-Principles

Embracing the food and agricultural business principles outlined by the UNGC is essential for cultivating sustainable practices and ethical standards within our industry, paving the way towards a resilient and equitable global food system while securing a nourished future for all while addressing food insecurity and hunger challenges.

I. Commitment to Food and Agriculture Business (FAB) Principles

In our ongoing commitment to sustainability, GPIC has actively engaged in initiatives focused on sustainable agriculture, aligning with the principles outlined by the United Nations Global Compact (UNGC) Framework for Action on Business (FAB). Globally, we collaborate with esteemed organizations such as the International Fertilizer Association and the Arab Fertilizer Association to drive progress in sustainable agriculture practices. Locally, GPIC partners with the National Initiative for Agriculture Development, a non-profit organization dedicated to promoting sustainable agriculture through various initiatives, including training, financing, and capacity building.

In 2015, recognizing the importance of internal engagement, we established an Agriculture Committee within GPIC to promote awareness and activities surrounding sustainable agriculture among our employees. This committee evolved in 2016 into the Agri-nutrient Committee, retaining its original objectives while emphasizing the importance of raising awareness to enhance crop yield and nutrient content.

Through our production and export of fertilizers globally, as well as our active participation in agricultural development platforms, GPIC plays a pivotal role in advancing the agriculture sector and improving food security worldwide. These efforts directly contribute to the achievement of UN Sustainable Development Goal #2 - Zero Hunger, reinforcing our dedication to creating a more sustainable and food-secure future for all.

At GPIC, we take pride in our accomplishments in advancing the Sustainable Development Goals (SDGs), with a particular focus on SDG #2: Zero Hunger. Our commitment to SDG #2 is evident in our organizational policies and initiatives that promote sustainable agriculture. We adhere to the six principles outlined in the UN Global Compact's Framework for Action on Business (FAB) to ensure that our efforts in sustainable agriculture are aligned with global best practices and standards as follows:

Principle 01

AIM FOR FOOD SECURITY, HEALTH AND NUTRITION:

Businesses should support food and agriculture systems that optimize production and minimize wastage to provide nutrition and promote health for every person on the planet.

Principle 02 BE ENVIRONMENTALLY RESPONSIBLE:

Businesses should support sustainable intensification of food systems to meet global needs by managing agriculture, livestock, fisheries and forestry responsibly. They should protect and enhance the environment and use natural resources efficiently and optimally.

Principle 03

ENSURE ECONOMIC VIABILITY AND SHARE VALUE:

Businesses should create, deliver, and share value across the entire food and agriculture chain, from farmers to consumers.

Principle 04

RESPECT HUMAN RIGHTS, CREATE DECENT WORK AND HELP COMMUNITIES TO THRIVE:

Businesses should respect the rights of farmers, workers and consumers. They should improve livelihoods, promote and provide equal opportunities, so communities are attractive to live, work and invest in.

Principle 05

ENCOURAGE GOOD GOVERNANCE AND ACCOUNTABILITY:

Businesses should behave legally and responsibly by respecting land and natural resource rights, avoiding corruption, being transparent about activities, and recognizing their impacts.

Principle 06

PROMOTE ACCESS AND TRANSFER OF KNOWLEDGE, SKILLS & TECHNOLOGY:

Businesses should promote access to information, knowledge and skills for more sustainable food and agriculture systems. They should invest in developing capacities of small holders and smalland medium - sized enterprises (SMEs), as well as more effective practices and new technologies.

▶ ZERO HUNGER: Why does it matter?

To end hunger, achieve food security and improved nutrition, and promote sustainable agriculture.

Extreme hunger and malnutrition remain a barrier to sustainable development and create a trap from which people cannot easily escape. Hunger and malnutrition mean less productive individuals, who are more prone to disease and thus often unable to earn more and improve their livelihoods. There are more than 800 million people who suffer from hunger worldwide, the vast majority in developing countries.

GPIC’s contribution towards SDG #2: ZERO HUNGER

GPIC produced more than 16.5 Million tons of granular urea since 1998 and exported globally. Moreover, GPIC is engaged with global and regional fertilizer organizations such as International Fertilizer Association (IFA) and Arab Fertilizer Association (AFA) for knowledge sharing and capacity building to further enhance the agri-nutrient sector and address food security.

II.Implementation of the FAB-6Principles

GPIC's empowerment strategy fosters increased engagement among our employees, empowering them to contribute meaningfully to our business objectives and personal development goals. Through formal communication channels and committee participation, our employees actively shape our organizational direction, fostering a culture of inclusivity and autonomy in decision-making. This collaborative approach has not only streamlined our processes but also cultivated a positive and engaging workplace environment, facilitating our journey towards becoming a truly inclusive organization.

Ensuring food security and accessibility to resources is fundamental to achieving Sustainable Development Goal (SDG) #2: Zero Hunger, which aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture. Providing consistent access to nutritious food is crucial for human survival and development, as it directly impacts health, cognitive abilities, and productivity. This, in turn, supports other SDGs, such as SDG #3 (Good Health and Well-being), by reducing malnutrition-related health issues, and SDG #4 (Quality Education) by enabling better learning outcomes in children who are well-nourished. Furthermore, sustainable agricultural practices contribute to SDG #13 (Climate Action) by promoting environmentally friendly farming techniques that mitigate climate change effects. Hence, the commitment to eradicating hunger and ensuring resource accessibility not only fulfills a basic human right but also catalyzes progress across multiple interconnected global goals, fostering a more sustainable and equitable world.

AIM FOR FOOD SECURITY, HEALTH AND NUTRITION:

Businesses should support food and agriculture systems that optimize production and minimize wastage to provide nutrition and promote health for every person on the planet.

▶ Partnerships

Partnerships are integral to GPIC's commitment to sustainable development and agriculture, both locally and globally. As a prominent member of the Gulf Petrochemicals and Chemicals Association (GPCA) and a Champion Practitioner of the Responsible Care RC-14001 Standard, GPIC plays a leading role in shaping industry standards and practices. Additionally, GPIC actively engages with international safety organizations such as NSC-USA, RoSPA-UK, NEBOSH-UK, and global fertilizer associations like IFA, alongside regional organizations like AFA.

In 2022-2023, GPIC participated in key regional and global forums, including the GPCA Agrinutrient Conference, IFA Global Sustainability Summit, COP 27, and COP 28. Through fireside chats and focused interviews, GPIC's leadership shared insights on the fertilizer industry's post-pandemic role, contributing valuable perspectives to the discourse.

GPIC's ongoing organizational involvement in working groups within associations like IFA, AFA, and GPCA further exemplifies our dedication to collaborative efforts to advance sustainability practices. This commitment has been recognized through accolades such as the Arab Corporate Social Responsibility Award, which GPIC has proudly received for nine consecutive years, underscoring our unwavering commitment to corporate social responsibility and environmental stewardship.

▶ Supporting Local Farming

GPIC proudly supports the annual Farmer’s Market in Bahrain, an empowering initiative that brings together local farmers and agriculturists in a vibrant market setting spanning five months each year. Unlike imported produce commonly found in supermarkets and hypermarkets, the Farmer’s Market offers the community direct access to locally grown fruits and vegetables, fostering a deeper connection between producers and consumers within the Kingdom. GPIC's longstanding sponsorship of the Farmer’s Market reflects our commitment to raising awareness about locally sourced produce while creating a platform for sustainable agriculture.

In 1992, GPIC initiated the ‘Charity garden,’ a 1,500 m2 plot of fertile land within our facility dedicated to cultivating indigenous fruits and vegetables. The produce from this garden is distributed directly to low-income Bahraini households, contributing to food security and supporting local communities.

Furthermore, in 2015, GPIC partnered with the UNEP Green Wave for the Biodiversity program, aiming to promote green spaces and biodiversity by planting local trees in schools across Bahrain. Over the years, GPIC has donated thousands of saplings to schools, engaging students in practical tree-planting activities alongside experienced employees.

A total of 4,147 saplings were distributed to 20 schools for the academic year 2023/2024 and 110 schools were covered since the start of the program in 2015. Schools were provided with a variety of saplings including Bambar, Jambo, Moringa, Bauhinia, Lime, etc.

▶ Access to Nutritious Food

At GPIC, we prioritize the well-being of our employees and contractors by offering access to our exclusive 'GPIC canteen', where a variety of nutritious food options, including salads, fresh fruits, juices, and local fish, are available at subsidized rates. Moreover, we provide healthy meals tailored to the nutritional and calorie needs of individuals, fostering awareness of healthy eating habits among our workforce. During our maintenance turnaround in 2022, we extended this commitment to over 4000 external contractors by providing them with a daily supply of fresh fruits and juices, ensuring access to nutritious food sources for all onsite workers, regardless of income level.

In alignment with our dedication to promoting healthy and sustainable dietary choices, GPIC launched the FAO's International Year of Pulses campaign in 2016. As part of this initiative, we introduced a pulse-based menu, offering viable meat alternatives once a month to promote healthier individuals and a healthier planet. Additionally, our agri-nutrient committee has published an informative booklet on local trees and their associated health benefits, aimed at raising awareness among our employees and the wider community in which we operate These efforts underscore our commitment to promoting holistic health and well-being among our stakeholders, contributing to a healthier workforce and environment.

Principle 02

BE ENVIRONMENTALLY RESPONSIBLE:

Businesses should support sustainable intensification of food systems to meet global needs by managing agriculture, livestock, fisheries and forestry responsibly. They should protect and enhance the environment and use natural resources efficiently and optimally.

▶ Preserving Local Species and Biodiversity

We show our commitment to biodiversity conservation and sustainability through our innovative programs that include fish farms, bird sanctuaries, and mangrove plantations. At our facility, we developed those projects as part of our comprehensive approach to environmental sustainability and biodiversity conservation. Our fish farm provides a sustainable source of food while also contributing to the conservation of aquatic biodiversity by breeding endangered local species. The bird sanctuary provides a protected habitat for a variety of bird species, many of which are endangered, while our mangrove plantation helps to mitigate the negative effects of climate change and protect and conserve local biodiversity. These projects are carefully designed to complement each other, creating a holistic approach to biodiversity conservation and sustainability within our facility.

In 1996, GPIC took a pioneering step by establishing a fish farm within our facility, strategically located at the seawater outfall. This initiative was further expanded in 2012, aiming to address the decline in the local 'sea bream' fish population due to overfishing in Bahrain waters. Over 1000,000 fish were nurtured in our fish farm and subsequently released into local waters, with the goal of replenishing fish stocks and enhancing availability in our local markets. In 2023, we released 2,150 fish in different marine areas around the Kingdom of Bahrain in the presence of representatives from the Fish Directorate/ Ministry of Municipality and Agriculture. As part of this initiative, we also embarked on a mangrove planting program in the surrounding areas, contributing to the sustainability of biodiversity and ecosystem preservation within the region.

Recognizing the importance of preserving indigenous plant species threatened by modernization and urbanization, GPIC has established two dedicated gardens within our facility, spanning a total of 1,200 square meters. These gardens serve as sanctuaries for local herbs, medicinal plants, and aromatic species, paying homage to the legacy of HH Shaikha Sabika bint Ebrahim Al Khalifa.

Our commitment to environmental stewardship extends to the preservation and proliferation of indigenous flora, with initiatives such as the establishment of the Neem tree garden in 2019, boasting over 150 trees.

GPIC has formally committed to environmental stewardship by signing a memorandum of understanding with the Supreme Council for Environment. Our proactive approach includes collaborating with stakeholders to achieve shared environmental goals. Notably, we’ve already achieved significant milestones by planting 2680 mangroves in 2022 and 4660 in 2023, contributing to biodiversity conservation and carbon sequestration. Looking ahead, our ambitious decarbonization strategy aims to plant 250,000 mangrove trees by 2035.

▶ Bird Sanctuary

GPIC's establishment of the Bird Sanctuary in 2001 exemplifies the harmonious coexistence of nature and technology. Situated within our facility, the sanctuary attracts over 80 species of migratory birds annually. The bird sanctuary is managed to provide birds with healthy and diverse food sources and protect them from predators while contributing to the conservation of local biodiversity.

To raise awareness about the diverse avian inhabitants of the sanctuary, we have published a booklet detailing the various bird species found within its confines. This informative resource is periodically distributed to our employees and the wider community, shedding light on the characteristics of each species and emphasizing the importance of conservation efforts, particularly for endangered avian populations. Through initiatives like the Bird Sanctuary and educational outreach, GPIC remains committed to fostering environmental stewardship and biodiversity conservation.

▶ Environmental Protection

GPIC stands as a trailblazer in environmental stewardship, seamlessly weaving it into our operational fabric. Every decision we make is underpinned by environmental considerations, reflecting our unwavering dedication to sustainability. Our Environment and Responsible Care Management System, fortified by IFA Protect and Sustain Product Stewardship certifications, ensures meticulous oversight of our environmental impact.

In our relentless pursuit of energy efficiency, we embraced the ISO 50001 Energy Management system in 2015. Our Energy Management Committee actively identifies opportunities to reduce energy consumption and efficiency. Rigorous environmental assessments accompany facility alterations and new constructions, ensuring alignment with regulations and standards.

To combat climate change, GPIC has charted a Decarbonization Pathway. By 2030, we aim to reduce scope 1 and 2 emissions by 20%, followed by 30% by 2035, ultimately achieving carbon neutrality by 2060. Our initiatives span natural resource reduction, solar power generation, and a commitment to planting 250,000 mangrove trees around our complex by 2035.

Our unwavering commitment extends to health, safety, and environmental preservation.

Recognitions like the Patron’s Award from the Royal Society for the Prevention of Accidents (RoSPA) and the GPCA Care Community Awareness Award underscore our leadership in the fertilizer industry, fostering a culture of care and safety.

ENSURE ECONOMIC VIABILITY AND SHARE VALUE:

Businesses should create, deliver, and share value across the entire food and agriculture chain from farmers to consumers.

▶ Product Quality Along the Supply Chain

At GPIC, we uphold rigorous quality control measures throughout the entire lifecycle of our urea product, from production and storage to export, ensuring unparalleled quality and purity. Our steadfast commitment to delivering uncontaminated fertilizer of the highest standard has earned us prestigious recognition from the Australian Department of Agriculture. We take great pride in being awarded Level 1 Gold status accreditation, a testament to our dedication to excellence in bulk fertilizer shipments.

Maintaining Level 1 Gold status accreditation underscores GPIC's position as a low-risk facility for the production, storage, and export of granular urea. This accreditation signifies adherence to stringent guidelines that safeguard our product's integrity from inception to end-user delivery, shielding it from any potential contaminants or pollutants. The latest inspection report for the year 2023 reaffirms our unwavering commitment to biosecurity integrity across the supply chain, emphasizing our adherence to recognized management strategies and ongoing compliance with import requirements.

This esteemed status, valid until May 20, 2027, subject to annual third-party audits, enhances the value proposition of GPIC urea for customers worldwide. As we continue to prioritize quality assurance and regulatory compliance, we remain steadfast in our mission to provide top-tier fertilizer solutions that meet the highest industry standards and exceed customer expectations.

▶ Agriculture Awareness

At GPIC, we're proud of our production of urea, a crucial fertilizer utilized by farmers worldwide to boost crop growth and yield. While we lack direct contact with end consumers and farmers, we understand the importance of providing comprehensive guidance on safe urea handling and optimal usage. That's why GPIC has developed and distributed "The Urea Guideline" book, serving as a valuable resource for farmers looking to maximize urea benefits for their crops.

Principle 04

RESPECT HUMAN RIGHTS, CREATE DECENT WORK AND HELP COMMUNITIES TO THRIVE:

Businesses should respect the rights of farmers, workers and consumers. They should improve livelihoods, promote and provide equal opportunities, so communities are attractive to live, work and invest in.

▶ Employee Opportunities for Agriculture

In 2023, GPIC achieved notable recognition by clinching the HR Management Award at the 11 th Gulf Cooperative Council (GCC) Forum for HR Development, the Best CSR Practices Award, and the Employer of Choice Award from the Human Resources Management Summit.

As a cornerstone of the local economy and community, our workforce predominantly comprises individuals from Indigenous communities, with a growing emphasis on female inclusion. Over the years, we've fostered knowledge exchange by hosting women entrepreneurs and local farmers to educate our employees on farming techniques, indigenous plants, and crops suited to Bahrain's climate and soil. Despite their primary roles lying outside agriculture, we invest in enhancing their understanding of sustainable farming through workshops, conferences, and formal training.

GPIC has established an agri-nutrient committee that actively shares information and newsletters on seasonal and home agriculture to bolster awareness and stimulate interest. The committee also curates an agriculture-related resource database and hosts internal awareness sessions to bolster employees' capacity and contribute to national food security. As part of our social responsibility, we hosted the Best Home Garden competition in 2022 and 2023, inviting employees to showcase their gardening prowess. Evaluations considered garden design, agricultural techniques, irrigation systems, plant diversity, indigenous tree presence, and overall garden aesthetics, reinforcing our commitment to environmental stewardship and green initiatives in Bahrain.

In addition, in commemoration of National Environment Day 2023, GPIC launched the ‘Share a Plant’ initiative to promote environmental awareness and sustainability among its employees. On the day, GPIC distributed potted plants to every one of its employees across its facilities. The goal of this campaign was to encourage employees to take an active role in environment conservation efforts and spread awareness about the importance of agriculture and greenery.

▶ Supporting Farmers

GPIC's commitment to supporting farmers' needs is evident through various initiatives. Although we do not engage directly with farmers, we actively participate in industry forums, such as the IFA and AFA, alongside their relevant working groups. Locally, we partner with the National Institute for Agriculture Development. Our efforts extend to gathering feedback from customers through our marketing committee, which conducts field visits to gain insights.

We contribute significantly to Bahrain's agricultural sector by annually providing urea fertilizer to the Ministry of Works, Municipality Affairs, and Urban Planning. Additionally, we support Bahraini farmers through an annual initiative, supplying over 50 tonnes of urea. This initiative aligns with the National Initiative for agricultural development, endorsed by Her Royal Highness Princess Sabeeka bint Ibrahim Al Khalifa, promoting green culture and sustainable development.

In 2022, GPIC has donated 2 tonnes of urea to the Ministry of Agriculture. In addition we have also donated 22 tonnes of urea to Al Areen wildlife park and reserve in 2022 and 20 tonnes in 2023. We also aid local farmers through domestic subsidized urea sales.

ENCOURAGE GOOD GOVERNANCE AND ACCOUNTABILITY:

Businesses should behave legally and responsibly by respecting land and natural resource rights, avoiding corruption, being transparent about activities, and recognizing their impacts.

▶ Sustainability Reporting

Alongside actively overseeing our environmental footprint and implementing measures to curtail energy usage, we openly record our endeavors through our biennial sustainability reports. Since 2012, we've released seven comprehensive reports. Our most recent, aligned with GRI Standards 2021 version. In 2014, GPIC solidified its commitment to sustainability and transparency on a global scale by becoming an organizational stakeholder with the Global Reporting Initiative.

▶ Engagement with Policy Makers

Since 2015, GPIC has been actively involved as a stakeholder with the BAPCO Energies, participating in discussions and forthcoming workshops regarding Bahrain’s Intended Nationally Determined Contributions for climate change negotiations at COP 21. Engineers from GPIC were integral members of Bahrain’s delegation at the COP 26, COP 27, and COP 28 forum.

In addition to our engagement with BAPCO Energies, we collaborated with the Supreme Council for Environment to update Bahrain's National Biodiversity Strategy and Action Plan, as well as the National Implementation Plan for PCBs under the Stockholm Convention. Furthermore, our leadership represents GPIC on various policy-making platforms at local, regional, and international levels, including the National Initiative for Human Rights, IFA, AFA, NSC, RoSPA, GPCA, and others.

▶ Environmental Compliance

At our complex, strict adherence to environmental compliance is paramount. We diligently monitor and manage our emissions and effluents to maintain environmental standards. Our commitment extends to quarterly reporting of these metrics to the Supreme Council for Environment. Additionally, we provide annual reports to the Council on our chemical usage and waste production. In 2022 and 2023, our dedication to recycling led us to achieve the milestone of zero hazardous waste sent to landfills, further underscoring our commitment to sustainable practices. In 2023, we also launched a continuous emissions monitoring system (CEMS) and connected all our stack emissions live with the Supreme Council for Environment to ensure compliance.

PROMOTE ACCESS AND TRANSFER OF KNOWLEDGE, SKILLS, AND TECHNOLOGY:

Businesses should promote access to information, knowledge, and skills for more sustainable food and agricultural systems. They should invest in developing capacities of smallholders and small- and medium-sized enterprises (SMEs), as well as more effective practices and new technologies.

▶ Knowledge Sharing with the Community and Farmers

GPIC ensures that buyers receive guidance on the optimal use of urea through the distribution of informative booklets before each sale. These booklets cover crucial topics such as soil health, fertilizer application, and farming best practices.

Additionally, GPIC actively participates in the annual Bahrain International Garden Show, where we engage with the community by sharing valuable tips on home agriculture and seasonal farming practices. In alignment with the event's theme each year, we distribute books covering various subjects, including food safety and human health. This initiative aims to promote environmental awareness and encourage the expansion of green areas across the Kingdom.

Our fish farm demonstrates our commitment to sustainable food production and protection of aquatic biodiversity. We also allow community engagement where school students participate in introducing the fish to the farm to promote education and awareness of environment sustainability.

As part of GPIC summer camp activities for employee children, one of the educational workshops entitled “Plant with Saeed” was run in coordination and cooperation with the Ministry of Municipal Affairs and Agriculture. The workshop aimed to teach participants the basics of agriculture and methods of caring for agricultural seedlings, whether indoor or outdoor and encourage the children to think of gardening as an enjoyable hobby.

GPIC employees’ children were invited to launch the mangrove reserve expansion project in 2023. The children participated and helped plant the ten thousand seedlings, this reinforces GPIC belief in sustainability and expanding its pioneering environmental projects for the future generations to carry it forward.

▶ Knowledge Sharing with the Employees

GPIC established the Agri-Nutrient Committee with the primary goal of raising awareness among our employees and the broader community regarding agriculture. This committee actively shares valuable tips and newsletters to provide stakeholders with guidance on improving farming and agriculture practices, thus contributing to heightened employee engagement. Additionally, the committee maintains a database of agriculture-related resources for reference purposes and plans to conduct internal awareness sessions to enhance employees' capacity and capability in food cultivation for national food security.

Through GPIC's suggestion scheme, employees are encouraged to contribute their knowledge and suggestions, with the Agriculture Committee considering the allocation of a specific section for agricultural ideas. Furthermore, our employees were granted access to IFA webinars addressing pertinent topics related to fertilizers, agriculture, and food security, providing them with valuable knowledge and insights.

▶ Promoting Research

To enhance agricultural knowledge and practices, we intend to sponsor a comprehensive research study on soil types nationwide, including recommendations for suitable crops in each region. Furthermore, GPIC has been a proud sponsor of Bahrain's annual Environmental Research Program since 2004, supporting 20 research initiatives. The program encompasses various fields, with agriculture being a prominent area of focus. Noteworthy projects from this year's participants include innovative approaches such as irrigation control using smartphones and precision irrigation techniques through controlled water release. Through these sponsorships, we aim to foster innovation and sustainability in agriculture while empowering the next generation of environmental stewards.

In brief, producing fertilizers is essential for achieving SDG 2 - Zero Hunger and promoting human rights by ensuring access to nutritious food. Fertilizers increase agricultural productivity, empowering communities, especially women, to contribute to food security and sustainable development. By prioritizing fertilizer production and responsible use in agriculture, we advance towards a world where everyone has the basic components for a thriving life, aligning with the SDGs and promoting global well-being.

Championing Gender Equality: UN Women's Empowerment Reporting Principles

Commitment to UNGC Women’s Empowerment Principles Implementation of the 7 Women's Empowerment Principles

Embracing the UN principles for women empowerment is our pledge to dismantle barriers and cultivate environments where every woman's potential can flourish, driving societal equity and sustainable progress.

Commitment to UNGC Women’s Empowerment Principles

GPIC is entirely committed to advancing women's empowerment strategies, aiming to lead the marketplace by creating an inclusive environment where women excel. Our dedication spans from recruitment to nurturing and retaining women across various roles, including within our top management teams. We uphold a strict zerotolerance policy against discrimination, as outlined in our organizational discrimination policy, championed by our pioneering Equal Opportunities Council and overseen by our CEO.

Recognizing the crucial role of women in shaping our sustainable future, we invest in their professional development and qualifications. Since 2014, GPIC has proudly supported the UN Global Compact's Women's Empowerment Principles (WEPs), publicly endorsing equal opportunities in the workplace. Our unwavering commitment has earned us prestigious accolades, including the Award for Women's Empowerment, presented twice by Her Royal Highness Princess Sabeeka bint Ibrahim Al Khalifa, making GPIC the sole recipient in the region to achieve this distinction multiple times.

Women at GPIC have risen to senior executive positions, earning international and regional recognition for their outstanding contributions. Our female employees have received esteemed awards such as the Women in Leadership Award from the Bilateral US-Arab Chamber of Commerce, the Procurement Hero Award from the Middle East Procurement Conference, the Women's Award in Industry and Assets Management from the Gulf Society for Maintenance and Reliability (GSMR), and the Rising Star Award from the Gulf Petrochemicals and Chemicals Association (GPCA).

In our pursuit of excellence, we remain committed to recruiting women with diverse competencies and expertise, an endeavor endorsed by Her Royal Highness Princess Sabeeka bint Ibrahim Al Khalifa.

At GPIC, we celebrate the achievements of women and continue to empower them to achieve even greater success. GPIC's dedication to SDG 5 shines through its organizational policies and initiatives promoting gender equality, which are reinforced by its constant adherence to the seven principles outlined in the UN Global Compact's Women's Empowerment Principles (WEPs) as follows:

Principle 01

Leadership Promotes Gender Equality

Principle 03 Health, Safety, and Freedom from Violence

Principle 02

Equal Opportunity, Inclusion and NonDiscrimination

Principle 05

Enterprise Development, Supply Chain and Marketing Practices

Principle 04

Education and Training

Principle 06

Community Leadership and Engagement

Principle 07

Measure and Publicly Report on Progress to Achieve Gender Equality

GENDER EQUALITY: Why does it matter?

To achieve gender equality and empower all women and girls.

Women and girls represent half of the world’s population and, therefore, also half of its potential. But today, gender inequality persists everywhere and stagnates social progress. Women continue to be underrepresented at all levels of political leadership. Across the globe, women and girls perform a disproportionate share of unpaid domestic work. Inequalities faced by girls can begin right at birth and follow them all their lives. In some countries, girls are deprived of access to health care or proper nutrition, leading to a higher mortality rate.

GPIC’s contribution towards SDG #5: GENDER EQUALITY

First female HR &Corporate Communications manager at GPIC. First female Labour union member at GPIC.

Women are represented in training, events, committees, audits, etc. Equal Opportunities Council includes equal remuneration and promotion of women in the workplace .

GPIC committed to the UN Global Compact Women’s Empowerment Principles WEPs in 2014.

GPIC’s Human Resources and Corporate Communications Manager is amongst the most influential women in the Arab world and the Middle East for 2021, according to CEO Middle East Magazine.

7% of our employees are females.

Contributing to other related targets in other SDGs, such as SDG #8: Decent Work and Economic Growth and SDG #10: Reduced Inequalities and other targets in different SDGs.

Implementation of the 7 Women's Empowerment Principles

GPIC's empowerment strategy fosters increased engagement among our employees, empowering them to contribute meaningfully to our business objectives and personal development goals. Through formal communication channels and committee participation, our employees actively shape our organizational direction, fostering a culture of inclusivity and autonomy in decision-making. This collaborative approach has not only streamlined our processes but also cultivated a positive and engaging workplace environment, facilitating our journey towards becoming a truly inclusive organization.

We are committed to nurturing the professional growth of our women employees, equipping them to navigate the complex challenges of our industry and emerge as future leaders in manufacturing. Our dedication is evident in the outstanding performance and active involvement of our female workforce. In 2019, another milestone was achieved when a female employee assumed a leadership role as a member of the GPIC Labour Union Board, marking the first time a woman held this position since the inception of the Labour Union committee. Additionally, our Human Resources and Corporate Communications Manager was recognized as one of the most influential women in the Arab world and the Middle East for 2021 by CEO Middle East Magazine.

Before delving into the specifics of how GPIC applies the seven principles for women's empowerment, it's essential to understand the foundational commitment driving our actions. At GPIC, fostering gender equality and empowering women is not just a checkbox on a corporate agenda; it's a fundamental ethos ingrained in our organizational culture. From recruitment practices to leadership development initiatives, every aspect of our operations is guided by the principle that diversity and inclusion are not only morally imperative but also essential for sustainable success. This overarching dedication sets the stage for the comprehensive implementation of the UN Global Compact's principles for women's empowerment within our company.

Leadership Promotes Gender Equality

In 2014, GPIC demonstrated commitment to the Women's Empowerment Principles (WEPs) by signing the CEO Statement of Support. This public endorsement solidified our dedication to these principles, including the utilization of gender-specific data to track progress, a commitment we continue to uphold.

Following an ongoing partnership with the Supreme Council for Women in the Kingdom of Bahrain, GPIC established an Equal Opportunities Committee in 2013. This committee was tasked with developing and overseeing equal opportunity procedures, aligning goals with the SCW, coordinating community activities, and addressing potential discrimination cases. In March 2017, the committee was elevated to the status of the Equal Opportunities Council, reinforcing its responsibilities in ensuring compliance with regulations and fostering a culture of equal opportunities within the company.

Additionally, our commitment to gender equality extends to our internal initiatives, such as the Ladies Committee. Formed to improve the social environment for female employees, this committee organizes events, activities, and collaborations with external organizations to support women in the workplace.

At GPIC, our company policies are rigorously implemented to prevent discrimination at all levels, ensuring that every employee, regardless of their position, role, or grade, is treated with fairness and respect.

Principle 02

Equal Opportunity, Inclusion and Non-discrimination

At GPIC, our commitment to equal opportunity is exemplified by the comprehensive inclusion of women across all departments. We actively recruit and appoint women to managerial and executive roles across our organization. This proactive approach ensures their representation and advancement within our workforce.

To further promote gender diversity and participation in decision-making processes, women employees are appointed to various committees, serving as members, coordinators, and chairpersons. These roles, including representation on committees like the Youth Committee, underscore our dedication to fostering an inclusive workplace culture. Moreover, our commitment to equal opportunity extends to our recruitment, promotion, and compensation practices, supported by a zero-discrimination policy across all HR-related aspects.

Women at GPIC enjoy equitable access to benefits, including insurance, loans, and scholarship opportunities for their children. As members of the Labour Union, they receive the same benefits as their male counterparts, ensuring fairness and parity within our workforce. Additionally, our support for women's holistic well-being includes access to fitness facilities at the GPIC Club and participation in sports campaigns, both internally and within the wider community. We actively encourage women to engage in community sports clubs and competitions, some of which are sponsored by GPIC, further fostering their personal and professional development. In recognition of their contributions, women employees are celebrated during award ceremonies such as Labour Day and Annual Celebrations, as well as through Employee of the Month awards. Our commitment to gender equality is evident in award categories that recognize outstanding performance and sporting achievements, with separate categories for male and female employees, ensuring equal recognition and appreciation for all.

Females in Senior Management and Supervisory Levels

Female Employees at GPIC

Principle 03

Health, Safety and Freedom from Violence

As per our company policy, all employees have access to complimentary medical treatment at our Medical Centre or any approved facility, with both male and female doctors available. Our comprehensive medical insurance covers a majority of ailments, and for those not covered, the company assumes the associated costs, including maternity expenses. In alignment with Bahraini law, female employees receive a 60-day maternity leave on full pay, with an additional 2-hour maternity care allowance upon return in the first year. Going beyond legal requirements, we extend the maternity care period to one hour until the child's second birthday, recognizing the importance of supporting working mothers.

Our medical center staff hold NSC certifications in CPR, ensuring they are equipped to provide appropriate care, with specialized training for pregnant women. Regular CPR training is provided to all employees, with specific health campaigns targeting women, such as Breast Cancer Awareness and exercise courses led by female instructors.

Safety is paramount for all employees, with comprehensive safety training provided, including pregnancy safety courses. Female employees working on-site are equipped with appropriate safety gear, and our women engineers have access to individual company cars to facilitate commuting, especially during plant maintenance activities. To further enhance safety, female security officers are stationed during working hours to assist female employees entering and exiting the premises, ensuring a secure and supportive environment for all.

Education and Training

At GPIC, career development is integral to our approach, with training and performance evaluations forming key components of this process. We are committed to fostering advancement opportunities for women across all levels and departments, investing in policies and programs to support their professional growth. Our commitment to equality is reflected in our standardized training programs, where both men and women receive the same curriculum for their respective job titles. Additionally, our employees benefit from access to a wide range of training courses, both locally and internationally, aimed at enhancing their skills and expertise.

While the COVID-19 pandemic posed challenges to traditional training methods, we adapted by incorporating a variety of webinars and digital training resources to ensure continued learning opportunities for our workforce. Although the total training hours were impacted in 2020 and 2021, we remained determined in our commitment to provide quality development opportunities for our employees. GPIC demonstrates its support for the aspirations of our young professionals and its dedication to investing in the future leaders of our organization, regardless of gender, and empowering them to reach their full potential.

Training Hours Abroad (outside Bahrain) by Gender

Principle 05

Enterprise Development, Supply Chain and Marketing Practices

While the majority of our suppliers are the original manufacturers of our equipment, our bidding process remains inclusive, welcoming all qualifying suppliers based on objective technical criteria. Despite this impartial approach, we actively seek to bolster our partnerships with women-owned enterprises, including small businesses and women entrepreneurs. To promote gender diversity and support female-led ventures, we regularly engage health practitioners from women-owned businesses to deliver lectures and collaborate with external female trainers to conduct training sessions. Additionally, we proudly sponsor publications authored by women, further demonstrating our commitment to empowering and amplifying their voices.

In terms of marketing strategies, our products are marketed worldwide by our shareholders strictly based on their technical specifications, devoid of any genderbased marketing tactics. This approach ensures that our products are promoted solely on their merit and functionality rather than relying on gender stereotypes or biases.

Principle 06

Community Leadership and Engagement

At GPIC, we are committed to leading by example and using our influence to champion gender equality. We actively collaborate with our business partners, suppliers, and community leaders to foster inclusion and drive progress toward equality. Recognizing the transformative power of long-term partnerships, we prioritize initiatives that empower women in the community. One such partnership involves our support of Bahrain's Supreme Council for Women (SCW), where we sponsor events such as Bahraini Women's Day celebrations to promote women's empowerment. Additionally, our women engineers, in collaboration with the SCW, engaged with high school and college students nationwide, sharing their experiences in Science, Technology, Engineering, and Math (STEM) fields and inspiring young women to pursue careers in STEM.

InJAz Bahrain, an affiliate of the esteemed Junior Achievement Worldwide program, stands as one of our principal educational partners in the Kingdom. This collaborative program plays a vital role in preparing students for the professional world by imparting essential skills. In support of this initiative, we not only provide financial backing but also actively engage our employees as volunteers to deliver courses in schools across Bahrain. Moreover, our commitment extends to offering training chairs for InJAz employees and providing internship opportunities for the organization's beneficiaries. Through our volunteer program, all employees have the chance to enrich their leadership capabilities while positively impacting students of all genders throughout the Kingdom.

In collaboration with the Ministry of Education, we spearhead various annual training initiatives aimed at fostering student development. Among these programs is the Environmental Lectures, a longstanding endeavor launched two decades ago to raise awareness about environmental conservation and climate change. Additionally, our Environmental Research program, initiated in 2004, provides support for high school science projects facilitated by our dedicated employees. However, during the academic year 2020-2021, activities such as environmental lectures and the Green Wave campaign were temporarily suspended due to the COVID-19 pandemic, prioritizing the safety of both students and our staff.

Recognizing the growing threat of cyber security attacks, we have also taken proactive measures to educate students on the importance of cyber security. Through awareness lectures delivered by our experts, we aim to equip students with the knowledge and skills needed to navigate the digital landscape safely and responsibly. These initiatives reflect our ongoing commitment to empowering students with essential skills and knowledge to thrive in an ever-evolving world.

Environmental Research Program – Participating Schools

As an integral component of our employee benefits package, the company extends valuable support to the community through initiatives like the scholarship program for employees' children and our recognition program for high-achieving students. These efforts have a direct and meaningful impact on the younger members of our community, fostering their academic and professional development. In line with our commitment to equality, all students who meet the minimum academic requirements are equally eligible for recognition and support. Additionally, we are proud to welcome young female students from Bahrain and beyond to participate in industrial training programs at GPIC, providing them with valuable opportunities to gain hands-on experience and further their education.

In addition, we proudly serve as the annual sponsors of the Crown Prince's International Scholarship Program. This initiative is dedicated to supporting an equal number of male and female students annually as they pursue higher education opportunities abroad. At the core of our sponsorship is the belief that equitable access to education is a fundamental right, forming the cornerstone of equal opportunities within our broader community.

Principle 07

Measure And Publicly Report On Progress To Achieve Gender Equality

In our unwavering commitment to achieving gender equality, we have taken significant strides to improve our reporting practices. We have introduced a specialized section within our GPIC GRI Sustainability Report dedicated solely to this cause. This section is designed to serve as a comprehensive tool to measure, monitor, manage, and report on our progress toward gender equality.

Our approach aligns with the seven principles of the United Nations Global Compact’s Women’s Empowerment Principles (UNGC WEPs). We utilize gender-aggregated data to ensure accuracy and comprehensiveness in our reporting. This commitment is a testament to our dedication to transparency and accountability, reinforcing our pledge to promote gender equality within our organization.

We believe that by publicly sharing our progress, we not only hold ourselves accountable but also inspire others to take similar actions. We are proud of the steps we have taken and look forward to continuing our journey towards gender equality. By fostering gender equality and ensuring the full participation of women in all aspects of society, including the corporate sphere, we unlock immense potential for economic growth, social progress, and environmental sustainability.

Voices of Others: Perspectives and Testimonials

Voices of Others: Perspectives and Testimonials offer a tapestry of diverse experiences and insights, enhancing our journey with rich, authentic narratives that inspire and guide us.

At GPIC, feedback and testimonials play a pivotal role in shaping companies for various reasons. They offer a window into the audience's preferences and behaviors, fostering a deeper understanding of their needs and expectations. This invaluable insight enables us to gauge stakeholder satisfaction levels and identify areas for improvement across all facets of their operations. Moreover, testimonials serve as powerful tools for building trust and bolstering the reputation of our brand and achievements. As stakeholders exchange their experiences, they form expressive connections with other external parties, ultimately bolstering our reputation and credibility.

As we celebrate 44 years of GPIC's journey toward sustainability, it's a special time to look back and appreciate the stories and sentiments shared by those who've been a part of our growth. These testimonials aren't just words on paper; they're snapshots of our history, capturing the heart and soul of our organization. They remind us of the people we've touched, the communities we've impacted, and the strides we've made in making the world a better place. Reading through them is like reliving the highs and lows, the challenges and triumphs that have shaped us. Each testimonial is a testament to the passion and dedication of everyone involved, from our team members to our partners and stakeholders. They remind us of the bonds we've forged and the trust we've earned along the way. So, as we celebrate this milestone, let's cherish these stories and let them inspire us to continue our journey with the same spirit and determination that have brought us this far.

A letter from Agrantis CEO, Mr. Geraldo Jorge da Silva, to GPIC CEO, Mr.

Yasser Alabbasi

Table of Abbreviations - Acronyms

AFA

API

ASRY

BAFCO

BAPCO

BCM

IPIECA

Fertilizer Association

Petroleum Institute

Shipbuilding and Repair Yard

Aviation Fuelling Company

Petroleum Company

Continuity Management

BD Bahraini Dinar

Capacity Utilization

CDR

CEO

CO2

CO2e

COE

Percentage of design capacity utilized based on calendar days

International Petroleum Industry Environmental Conservation association

ISO International Organisation for standardisation

KSA

LTA

MT

NGO

NIHR

NSC

OHSAS

On-stream factor

PIC

of Ethics

COP Communication on Progress

COVID-19

CSR

ERM

EWA

FAB

GEO

COronaVIrus Disease of 2019

Social Responsibility

Risk Management

and Water Authority

and Agriculture Business Principles

Environment Outlook GHG

GJ

GPCA

Petrochemicals and Chemicals Association GPIC

Petrochemical Industries Company GRI

Reporting Initiative

IFA

Kingdom of Saudi Arabia

Lost time accident

Metric Tonne

Non–Governmental Organization

National Institute of Human Rights

National Safety Council, USA

Occupational Health and Safety Assessment Series

Operating days as percentage of calendar days

Petrochemicals Industries Company

PMS Performance Management System

PMS Performance Management System

PPB

Parts Per Billion PPM

REACH

RoSPA

SABIC

Parts Per Million

Registration, Evaluation and Authorisation of Chemicals

Royal Society for the Prevention of Accidents,UK

Saudi Basic Industries Corporation

SAP Safety and Performance

SHE

UN

UNEP

UNGC

US

Utilization factor

Safety, Health, Environment

United Nations

United Nations Environment Programme

United Nations Global Compact

United States

Percentage of the design capacity utilized based on operating days

WEP Women's Empowerment Principles

GRI Content Index

Biodiversity Impact

Suppliers’ Social

No major incidents occur due to the strict legistlations and no material relevance to our operations

No relevance to the structure of our operations and due to the strict legistlations of the Kingdom of Bahrain

Closing Remark

As we reach the final chapter of our sustainability report for this year, we will continue to narrate our legacy throughout our 44 years sustainability journey for as long we can show our dedication and commitment to close one chapter and open a new one with renewed energy, determination and confidence in our ability to make a positive impact and uphold GPIC's legacy of excellence. On behalf of GPIC, we would like to thank everyone involved and committed to making our journey successful by all means. Let us embrace the challenges ahead with a new drive to ensure that our path forward remains one of innovation, sustainability, and enduring impact.

For all of our stakeholders and readers, we value your feedback as it helps us grow broad, bigger, and better. Please contact us for any feedback or comment by sending an email to the Sustainability Reporting team at gpic@gpic.com or by sending your feedback directly online at www.gpic.com or by calling us at this number: +973 17 731777

Please visit our website: www.gpic.com