Your country is witnessing a comprehensive and sustainable development movement
as it proceeds in the second phase of the Kingdom’s Vision 2030, targeting the development of promising and new sectors, supporting local content, facilitating the business environment, empowering citizens, engaging the private sector, and increasing the effectiveness of implementation to achieve greater success and progress, and meet the aspirations and ambitions of our dear homeland.
– Custodian of
the
Two Holy
Mosques
King Salman bin Abdulaziz Al Saud
"We have all the means to achieve our dreams and ambitions; there are no excuses for us to stand still or move backwards."
– His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud
Reporting Period: 1 January - 31 December 2023
Scope: RSG, including all its subsidiaries, unless otherwise indicated Feedback: For any questions or queries about this report or its content, please reach out to us: sustainability@redseaglobal.com Standards & Frameworks: In accordance with GRI Standards Aligned with UN Sustainability Development Goals Aligned to Saudi Arabia’s Vision 2030
FOR PEOPLE AND PLANET.
ABOUT THIS REPORT
We are
pleased to
present the
fourth annual Sustainability Report for Red Sea Global
(hereinafter referred to as RSG or the Group)a yearly overview of our sustainability performance and achievements across 2023
This report details how we are monitoring and reporting against our environmental, social, and governance targets, while outlining our priorities moving forward as we deliver the world’s most ambitious tourism projects, The Red Sea and AMAALA, as well as the luxury private island, Thuwal Private Retreat.
By publicly disclosing our commitments and progress, we aim to demonstrate our accountability and transparency as a responsible, multi-asset developer and operator.
Table of Contents
12 34 46 152 166 204 246
Introduction
• Reflections From Our Group CEO
• About RSG
• Year At a Glance
Sustainability
• Our Stakeholders
• Our Materiality Approach
• Our Sustainability Strategy
Environment
• Natural Capital
• Climate Change
• Resource Management
• Destination Development
Social: Our Community
• Socio-Economic Empowerment
• Community & Cultural Engagement
• Social Risk & Planning
Social: Our People
• Human Capital Development
• Health, Safety & Security
Governance & Economic
• Economic Impact
• Stakeholder Experience
• Governance Excellence
Annexures
• Habitats Found
• GRI Content Index
• Acronyms
CEO MESSAGE
"Paradise” and “heaven” are words I’ve been hearing every day from our very first guests, who have started arriving at Six Senses Southern Dunes via Red Sea International airport since our opening at the end of 2023. It has been so rewarding to see our visitors marvel at the pristine natural environments we are fortunate to possess, reinforcing what I have always believed – our natural environment is our greatest asset.
But how have we managed to create such idyllic travel destinations in a way that doesn’t just protect, but actively regenerates the environment and surrounding communities?
We've done so by prioritizing bold commitments with action on the ground helping us to win trust and inspire change. This has helped us to go beyond sustainability to strengthen and rejuvenate natural habitats and conserve endangered species. No other organization has done this on such an enormous scale, something that fills me with immense pride.
For us, this has involved driving the transition to clean energy, intervening to enhance environments and protect species, and encouraging future generations to take up the mantle and deliver positive change.
Across all the measures we have set out to achieve, we have made strong progress, thanks to the efforts of our extraordinary, multidisciplinary teams. I have been so impressed by our marine life scientists’ pioneering work in coral cultivation, our mobility team’s deployment of Saudi Arabia's largest off-grid EV charging network, and the ecologists working in our Mangrove Nursery who have transplanted 600,000 mangrove seedlings to four different sites.
These achievements are putting us well on track to deliver a net conservation benefit of 30% by 2040 and demonstrate firmly that we are delivering on the promises we made when we started.
Of course, regeneration is not only about the natural environment, but communities, too, and our social
impact team has worked tirelessly this year to ensure that local communities benefit from our destinations – through economic empowerment initiatives, to celebrations of artistic and musical heritage.
I have mentioned many times in this report, as one of the fastest-growing business in Saudi Arabia with 5,000+ staff, we want to inspire others in the tourism industry to follow our lead. This year, I have seen regenerative tourism gain traction like never before. Across high profile events I attended in 2023, such as COP28, World Travel Market, and the Arabian Travel Market, our ambition to leave environments and communities stronger than they were before has resonated deeply with key stakeholders.
I am constantly asked about our achievements, such as how we achieved the highest ever score for The Red Sea Master Plan by the prestigious LEED v4.1 Cities and Communities, or how we managed to lay 760,000 photovoltaic panels to power our flagship destination The Red Sea, or how we built our airport that is to be powered by renewable energy, Red Sea International.
What this has shown me is that the industry is keen to know more about how we have transformed our bold ambitions into reality, and my hope is that they embed regenerative principles in their own work.
As we look ahead, I take great pride in the impressive results we’ve delivered in 2023 by becoming the first Vision 2030 giga-project to welcome paying guests, and how we are laying the foundations for a regenerative revolution within a transformed Saudi Arabia.
This year we made our grand visions a reality.
– John Pagano Group Chief Executive Officer
About RSG
Who we are
RSG is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia.
What we do
RSG is a global multi-project developer and operator, seeking to lead the world toward a more sustainable future and showing how responsible development and regenerative tourism can uplift communities, drive economies, and enhance the environment. The protection of natural capital is central to all development decisions as the organization seeks to create a better future for all.
A cornerstone of Saudi Vision 2030’s ambition to diversify its economy, RSG plays a key role in transforming the nation, by creating exciting opportunities for young Saudi talent and the private sector as it develops assets and destinations across multiple sectors – delivering positive impact for people and planet. RSG is the visionary company behind some of the world’s most ambitious development ventures, including regenerative tourism destinations such as The Red Sea and AMAALA, as well as Thuwal Private Retreat. Across its portfolio, RSG utilizes the most innovative concepts, strategies, and technologies to deliver projects.
A cornerstone of Saudi Vision 2030’s ambition to diversify its economy, RSG plays a key role in transforming the nation, by creating exciting opportunities for young Saudi talent and the private sector
ABOUT
Our portfolio
Our portfolio includes three worldleading destinations along Saudi Arabia's west coast - The Red Sea, AMAALA, and Thuwal Private Retreat - with more than a dozen new projects up and down the Red Sea coast. We also established five more
subsidiaries during the year, bringing the total to 21 subsidiary businesses. They range from a sustainable seaplane company, Fly Red Sea, to our diving, water sports, and adventure brands, Akun, WAMA, and Galaxea, and our own security company, all ensuring that our responsible ethos is embedded throughout our operations, service delivery, and product supply.
73,967 hours of training provided to employees
5,586 employees Contributed SAR 14.75 billion
760,500 solar panels installed across five expansive solar farms to the GDP
Launched the Jewar app, a two-way communication channel for RSG to share news and opportunities with the local community, and for the local community to participate and share their inputs
45
in-house trainers to deliver internationally accredited Health and Safety trainings
Largest off-grid charging infrastructure operator in Saudi Arabia, with 150 electric vehicle charging stations and 82 electric vehicles
More than
5 million plants nurtured since inception at our Red Sea Landscape Nursery
We committed to accessible tourism, where our destinations and experiences will be fully accessible and inclusive for guests and visitors with disabilities and special needs
RSG and Kingdom Holding Company signed a SAR 2Bn Joint Venture to develop and own the Four Seasons Resort Red Sea
Inaugurated our first Mangrove Nursery
YEAR AT A GLANCE
WAMA – Water sports
Akun – Adventure
Galaxea – Diving
Providing customers with nature-based experiences
We opened Six Senses, Southern Dunes
• Desalination plant powered by renewable energy, with zero impact on the marine environment and coral reefs
• Wastewater treated on site and reused for landscape irrigation
• Resort is powered by renewable sources
46,350t of CO2 emissions avoided through emission - reduction initiatives
We made our ‘Coral Commitment’ to protect and regenerate corals in the Red Sea and beyond
Enabled the potential reach of 3,000 local farms through TAMALA to provide a sustainable-food supply chain for our projects
Entered into a 25 - year concession agreement with multinational electric utility company Électricité de France and clean energy company Masdar on a multi- utilities infrastructure facility that will service our AMAALA destination
AWARDS
Over the last year, we have won numerous industry awards, cementing our status as a visionary multi-project developer and operator and setting new standards in tourism, hospitality, and sustainability.
OUR ACHIEVEMENTS INCLUDE:
Turtle Bay Hotel Mostadam
Turtle Bay Hotel is Saudi Arabia's first asset to qualify for the coveted Mostadam Diamond grade for sustainable buildings, while Turtle Bay Village Z-Type Buildings received the Mostadam Gold award.
MEED PROJECTS AWARD
RSG won the ‘MENA Hotel Project of the Year’ award for Six Senses Southern Dunes, The Red Sea, at the prestigious 13th edition of the MEED Projects Awards ceremony. Our Group was recognized with three awards at the Construction Innovation Awards KSA 2023 ceremony, including:
• Sustainable Project of The Year
The Red Sea
• Hospitality Project of The Year - Turtle Bay Hotel
• Sustainable Initiative of The Year - RSG Baseline Survey – Red Sea Global
LEED
RSG was recognized as the Outstanding Developer of the Year by the US Green Building Council for our innovative and transformative projects in the Red Sea, under the LEED for Homes rating system.
RSG was awarded the prestigious LEED v4.1 Cities and Communities, achieving Platinum with a record 96 points (out of 110 potential points) for the Red Sea Project Master Plan Phase 1. This is the highest score ever achieved in the world under this rating system.
SUSTAINABILITY MIDDLE EAST AWARD
RSG won the ‘Innovation in Sustainability’ award by Sustainability Middle East at their annual Excellence Awards ceremony, held in Dubai.
BIG 5 GLOBAL IMPACT AWARDS
RSG was recognized as the ‘Sustainable Construction Organization of the Year’ at the 2023 Big 5 Global Impact Awards.
CONSTRUCTION TECHNOLOGY AWARDS 2023
Our Group was recognized as the 'Sustainable Organization of The Year' and Turtle Bay Hotel was named the 'Offsite Project of The Year' at the Construction Technology Awards 2023, held in Dubai.
KSA CHAPTER OF GLOBAL CIO AND CISO FORUM
Our First Zero-Emission 5 G Network Once Again in the Spotlight won the ‘Best Green Technology’ award at 17 th edition of the ‘Telecom Review Leaders’ Summit,’ held in Dubai.
Since our inception, we have evolved as an organization, but our values have always remained the same and will continue to do so.
Respect
“At RSG, Respect means valuing every voice and fostering a culture of trust and collaboration.”
Collaboration
“There is a truly collaborative culture, whereby every person’s important input is valued.”
Passion
“Every day we work hard to excel, and I’m proud to work in such a passionate, driven team.”
Resposibility
“I’m motivated to have a positive impact on our local environment for future generations.”
Mohammad Altuwijri Associate Director Talent Acquisition & Onboarding
Dania Alsaib Associate Director Development
How We Create Value
OUR VISION
Our vision is to become the world’s most responsible developer, by trailblazing new global standards that let built environments enable social and ecological transformation.
RESPECT
OUR MISSION
Our mission is to act as agents of change, by partnering with the world’s greatest minds to spearhead innovations that reimagine the boundaries of our industry and create a better world for people and planet.
Respect is at the center of everything we do. We treat our workers with respect, regardless of background and perspective. We maintain a deep appreciation of the culture, heritage, and natural environment of Saudi Arabia as we develop.
COLLABORATION
By coming together as one team, we achieve the best outcomes for people and planet. We aspire to create a caring and diverse culture, embracing opportunities to learn and develop skills from colleagues, like-minded partners, and suppliers to reach our goals together.
PASSION
We are passionate about achieving results with excellence, using each day to go beyond what is expected of us. We are passionate about Saudi Arabia and the opportunity to showcase its unique natural beauty and culture of warm hospitality to the world.
RESPONSIBILITY
We recognize our responsibility to develop and positively impact the environment and communities around us, not just for now but for future generations. We are responsible for setting new standards in sustainable development and standing at the forefront of responsible tourism.
How We Create Value
Our Objectives Strategic Pillars
How We Create Value
Our Outcomes
Enable Saudi Vision 2030: Support by helping to generate jobs and drive the growth of diverse new industries
Governance
Best-Practice: Raise standards for resiliency and responsiveness
New Sustainability Standards:
Enhancing natural capital and conserving finite resources
Building Great Places and Communities: Attracting visitors, residents, and business partners
Empower Local Communities:
Improving socio-economic and cultural conditions
Increase contribution to economic diversification
Create opportunities for business in Saudi Arabia
Maximize growth and profitability
Establish best-practice organizational structure and processes
Create Net-Positive impact
Create bespoke, exclusive, and memorable visitor journeys
Establish attractive working and living conditions
Ensure benefits for the community
Achieve high stakeholder satisfaction
Maximizing GDP contribution
Developing tourism sector & strengthening Saudi Arabia’s position as a global tourist destination
Ensuring RSG’s attractiveness for investments (including green investments)
Protecting the environment and enhancing ecosystems
Building a resilient organization with sound processes
Creating a seamless and effortless product and service experience.
Ensuring a skilled, performance-oriented and collaborative team
Empowering, celebrating, and advancing local people and culture
As we’ve grown, we’ve stayed true to our mission
Visionaries
We are a company that will change the category
Innovators
We are a company that challenges conventions
For People & Planet
We are a company that seeks to do better
Alignment to Saudi Vision 2030
Saudi Vision 2030 is a bold blueprint intended to build the best future for Saudi Arabia. It is designed to harness and showcase the nation’s greatest strengths , build upon its leading role at the heart of the Arab and Islamic worlds, and help create a more sustainable economy by forging new and stronger cultural and business connections with the world.
The government aims to increase tourism’s share of GDP to 10% and create 1.6 million jobs. At RSG, we are proud to be playing an
Pillar
A vibrant society
A thriving economy
instrumental role in boosting Saudi Arabia’s expanding tourism and hospitality sectors. Everything we do is designed to strengthen the country’s profile as a world-class tourism destination and deliver significant economic benefits.
We play an integral role in supporting each of the three pillars of Saudi Vision 2030, and by completion, The Red Sea, AMAALA, and Thuwal Private Retreat aim to create:
How we are contributing
Programs in partnership with governmental ministries and international entities
Directly and indirectly employing around 120,000 people
Supporting an equivalent number of jobs in the wider community
Contributing to Saudi Arabia’s Gross Domestic Product (GDP)
An ambitious nation
Setting new standards in luxury travel and positioning Saudi Arabia on the global tourism map
Outcome
Empowering youth
Catalyzing positive social change
Creating job opportunities
Creating indirect and induced jobs and opportunities for local businesses, entrepreneurs, and supporting industries
Estimated contribution to Saudi Arabia’s GDP:
• USD 65 billion during the construction phase
• USD 7.4 billion in RSG's steady state
Providing rare opportunities to enjoy the Kingdom's culture and natural world, together with high- quality, personalized accommodation and services
“In less than five years, the Kingdom has gone from an unknown to a must-see destination, and I am confident countries everywhere are inspired by this example and will follow it themselves.”
Zurab Pololikashvili, Secretary-General, UN Tourism
Our Stakeholders
We believe in forging long-lasting relationships with our stakeholders that are based on trust and mutual respect, and we aim to build a strengthbased engagement culture.
RSG seeks to consistently engage with internal and external stakeholders on relevant sustainability topics to ensure we continue to address matters that are important to them. Further information on how we engage with each type of stakeholder can be found in the Stakeholder Experience section of this report.
Our Materiality Approach
By materiality, we mean the identification of issues relating to Environmental, Social and Governance (ESG) that matter the most to our company and stakeholders.
We built on previous materiality assessments – including stakeholder engagement and benchmarking –which helped identify our material topics. This year, we further validated our material sub-topics based on additional engagement with stakeholders.
We will continue to undertake new materiality assessments when required to ensure that the topics we have identified remain relevant to RSG’s operations.
Sustainability Management Committee
Chaired by our Group CEO, our Sustainability Management Committee (SMC) comprises members of RSG’s Executive Management, whose multi-disciplinary and inter-divisional expertise contributes to embedding sustainability across the Group.
The SMC is responsible for overseeing, reviewing, approving, and endorsing the implementation and performance
of ESG initiatives. The SMC is also supported by a Sustainability Taskforce, consisting of representatives from each division and department, ensuring sustainability is considered across all aspects of business.
Dr. Maryam Ficociello
Group Chief Governance Officer
Mr. John Pagano
Group Chief Executive Officer
Mr. Ahmad Darwish
Group Chief Administrative Officer
Ms. Tracy Lanza*
Group Head of Global Branding and Marketing
Mr. Gregory Djerejian
Group Head of Investments and Legal
Mr. Ben Edwards
Group Head of Cost, Commercial and Procurement
Mr. Raed Albasseet
Group Chief Environment and Sustainability Officer
Mr. Nicholas King
Group Chief Development Officer
*Tracy Lanza left the Group on 27 March 2024
Mr. Timothy Williams
Group Head of People Strategy and Culture
Mr. Martin Greenslade
Group Chief Financial Officer
Our Sustainability Strategy
Building on the foundational work completed in 2022, we finalized our ambitious sustainability goals to be assessed against 130 KPIs, categorized across three tiers of readiness and implementation timelines. By the end of 2023, our goals and KPIs secured the endorsement of the SMC, marking a significant milestone in our sustainability journey.
These KPIs, both qualitative and quantitative, are now integral to each division, with clear ownership and defined calculation methodologies. The process of identifying these KPIs involved rigorous standards and reporting requirements, complemented by collaborative workshops to refine and tailor the KPIs, making them practical and achievable for reporting purposes.
Each division will roll out specific sustainability programs and initiatives, furthering our commitment to achieving and surpassing our goals and KPIs for regenerative tourism. This proactive approach is a testament to RSG's leadership and dedication to setting the benchmark for sustainable practices across multiple sectors.
1
Leading nature-positive development, advocating for practices that not only protect but enhance the environment
2
3 ENVIRONMENT
Creating authentic destinations that actively engage local communities as co-creators, and foster inclusive, safe, and empowering environments
SOCIAL GOVERNANCE AND ECONOMIC
Championing bespoke governance structures and contribute to the Kingdom's economic diversification.
Sustainability Strategy Framework
1.
• Biodiversity & Habitat
• Site selection & Land Use
2.
• Emissions
• Energy
• Climate Resilience
3.
• Water & Effluent
• Waste & Circularity
• Sustainable Supply Chain & Procurement
4.
• Green Design, Construction & Operation
• Culture and Heritage
5.
• Diversity, Equity and Inclusion
• Saudization
• Training and Education
6.
• Socio Economic Empowerment
• Community & Cultural Engagement
• Social Risk and Planning
7.
• Privacy and Security
• Health and Safety
• Worker Welfare
8.
• GDP & Employment contribution
• Green Finance
• Partnerships, Research & Innovation
9.
• Stakeholder Relations and Satisfaction
• Brand Communication
• Purpose in the Workplace
10.
• Ethical and Responsible Behavior
• Risk, Resilience and Compliance
• Effective Performance & Decisionmaking (EPDM)
Our Material Topics
Natural Capital
Climate Change
Resource Management
Destination Development
Human Capital Development
Social Risk Management & Development
Health Safety & Security
Economic Contribution
Stakeholder Experience
Governance Excellence Our 10 material topics contribute to all 17 UN Sustainable Development Goals
This integration has solidified our commitment to environmental stewardship and regenerative development, marking a significant step forward in weaving our sustainability goals into all facets of our business.
Our Environmental Management System (EMS)
RSG's EMS has been effectively integrated across our organization, embodying our environmental values and sustainability vision. The tiered structure ensures environmental compliance and sustainability performance.
At both corporate and project levels, we have seen specific, impactful outcomes. Our approach has standardized corporate practices, integrated legal requirements, and embedded bespoke project controls within a supportive, compliance-focused framework.
ISO 14001:2015
Environmental Management System
In October 2023, RSG completed a three-year ISO 14001 certification cycle for the EMS. In 2023, the system was reviewed and updated to ensure alignment with the RSG organizational structure, mandate, and context. In 2024, RSG will seek reaccreditation for ISO 14001 for the RSG Management System, applicable to the RSG Group, subsidiaries, contractors, and operators.
A Milestone in Regenerative Tourism
In 2023, we completed the Sustainability Management System in Hospitality Audit and became the first developer in Saudi Arabia to receive the ISO 21401:2018 certification. Covering environmental, social, and economic dimensions, this certification reflects our Group's commitment to regenerative tourism. Specifically, we demonstrated best practices related to carbonemission reduction, water and energy conservation, waste management, and wildlife protection. This recognition is a testament to our ongoing efforts to set new standards in responsible development and regenerative tourism.
As we open our destinations to the world, we continue to focus on conservation and the enhancement of ecosystems, while also providing guests with unique experiences.
Our Alignment with the Saudi Green Initiative (SGI)
The SGI articulates an ambitious and comprehensive climate action plan for Saudi Arabia with three overarching targets: Reducing Emissions, Greening Saudi, and Protecting Land and Sea. At RSG, we are fully aligned with the SGI and contribute to all three targets through diverse programs and initiatives.
Target One
Reducing Emissions
Saudi Arabia aims to reduce carbon emissions by 278 million tons per annum by 2030 and has committed to having 50% of its power generated from renewable sources by 2030. Beyond a domestic energy mix transformation, SGI is steering a range of ambitious initiatives that will reduce emissions.
Our alignment:
At least 75% of our destination assets will be LEED certified and the remainder will be Mostadam certified.
Our destinations will be 100% solar powered to help achieve Net Zero across our operations.
Target Two
Greening Saudi Arabia
Saudi Arabia aims to plant 10 billion trees across the country. Increasing the vegetation cover will help combat desertification through carefully planned afforestation initiative. This is equivalent to rehabilitating 40 million hectares of degraded land, helping restore vital ecological functions and improve air quality.
Our alignment:
Our nursery spanning 1 million m2 will produce thousands of plants per year, including local varieties and species.
By protecting, restoring and enhancing destination habitats, RSG aims to increase the density of mangroves by 50 million by 2030, in collaboration with the National Center for Vegetation Cover and other stakeholders
Target Three
Protecting Land & Sea
Protecting 30% of Saudi Arabia’s land and sea will provide vital habitats for native flora and fauna and ensure that humanity continues to thrive in harmony with nature. This target will guarantee that abundant wildlife and pristine landscapes will continue to define the natural ecosystems Saudi Arabia.
Our alignment:
Achieving and demonstrating a 30% net conservation benefit across our destinations,
75% of the destination islands will remain undeveloped (set aside for long-term protection and conservation).
Nine islands have so far been designated as special conservation zones.
We are focusing on the protection and enhancement of natural capital across our destinations, including marine, coastal, and terrestrial flora and fauna. We aim to achieve excellence in ecological conservation by offsetting the potential impact of our developments and enhancing local biodiversity to reach a net-positive conservation benefit.
The protection of natural ecosystems is core to our vision and strategy and aligned with the SGI. For example, our Red Sea coral reef ecosystems have unique attributes, hosting many endemic and endangered wildlife species such as the reef fish Sky Emperor and Humphead Wrasse, which are live and breed in the Red Sea region.
Biodiversity & Habitat
In terms of biodiversity and habitat, our primary goal is to deliver a 30% net conservation benefit by 2040 across The Red Sea and AMAALA destinations. Creating a net conservation benefit post construction refers to the enhancement in value of our natural capital compared to baseline conditions, with the active engagement of local
communities. All our programs are rooted in baseline studies and scientific evidence. In 2023, RSG conducted and/or completed several biodiversity projects focusing on megafauna such as dugongs and marine turtles, as well as mangroves and corals.
Pioneering Ecological Monitoring Tools
RSG has taken a multifaceted approach to conducting comprehensive marine and terrestrial habitat analysis, using cutting-edge surveying technologies as needed. The integration of drone surveys employing RGB and nearinfrared multispectral cameras has produced accurate tree counts and thorough assessments of terrestrial habitats, providing invaluable insights into vegetation cover and trends.
For benthic habitat surveys, RSG has harnessed the capabilities of three stateof-the-art technologies: (1) Flying Fish, (2) Vaarst sensor, and (3) Hydrus.
These tools allow us to capture intricate details of coral reefs and other benthic habitats, contributing to a thorough understanding of marine ecosystems.
Additionally, the use of satellite imagery has proven instrumental in comparing vegetation cover before and after both anthropogenic and natural environmental changes, letting us monitor and address ecological shifts on a broader scale. By utilizing these advanced surveying technologies, we continue to pioneer advancements in environmental analysis and conservation efforts.
Megafauna
Using helicopter flyovers and drones, we conducted a baseline survey to detect the presence of key species in and around AMAALA to estimate their population size. Key findings include the identification and mapping of several feeding grounds for marine turtles and dugongs, with more than 30 individual green turtles and one adult dugong spotted.
Mangroves
Mangroves are critical to maintaining the ecological health of the Red Sea environment, with an important role in biodiversity enhancement and climate resilience. In 2023, we intensified our efforts to restore, preserve, and enhance mangrove ecosystems. The environmental assessment process played a crucial role in this endeavor by establishing a Habitat Compensation Plan that included baseline conditions for existing habitats around key destination assets. Following development activities, compensation maps were developed to pinpoint areas of habitat loss and recommend locations for mangrove plantation and conservation.
Opening Our Mangrove Nursery
On World Mangrove Day, we opened our first mangrove nursery at The Red Sea. Closely aligning with the objectives of the SGI, RSG aims to increase the density of mangroves by 50 million by 2030, in collaboration with the National Center for Vegetation Cover and other stakeholders.
In partnership with the National Center for Vegetation Cover, we produced 1 million mangrove seedlings, of which approximately 600,000 were transplanted to four sites selected for their location and tidal conditions. We hosted 11 mangrove planting events to raise public public awareness about the significance of these vital ecosystems.
Working in partnership with the National Center for Vegetation Cover, approximately 600,000 mangrove seedlings, were transplanted
These coastal forests provide vital habitats for marine life, improve water quality, and support coral and seagrass ecosystems. Renowned for their carbon sequestration ability, mangroves play a key role in climate change mitigation, helping to reduce atmospheric carbon. Their conservation is vital for sustaining marine biodiversity, supporting local economies, and bolstering natural defenses against environmental changes.
Mangrove planting receptor sites
Receptor Site Description Number of Seedlings
Ummahat Island
Wadi Al-Hamd
Shura Island
Spanning six designated areas carefully chosen for suitable water availability, land for planting, and soil moisture.
Nestled within the Al-Wajh Governorate, Wadi al-Hamd is a vast expanse enveloped by lush mangrove forests where the waters flow gracefully from Wadi Al-Hamid, creating a breathtaking natural spectacle.
An extension of Shura Island, split into three distinct zones, allowing water ingress through two channels.
162,000
Shura Causeway Island
This area along the Shura Bridge has been partitioned into six sections, each adorned with meticulously planted mangroves, seamlessly integrating nature into its surroundings.
381,000
25,000
3,050
Every location was assessed to ensure that it provides optimal growing conditions, as Red Sea mangroves thrive in areas with adequate tidal flushing for nutrient-rich sediments and protection from waves and storms. These shallow water sites were also screened based on access to light, oxygen, and nutrients.
Mangrove Plantation Activity
Beyond plantation efforts, enhancements were made to existing habitats to support mangrove growth. For example, in the kayaking channels on Shura Island, around 25,000 mangrove seedlings were planted to enhance the existing mangrove forest and provide a more attractive experience for guests. These efforts also foster a deeper understanding of - and appreciation for - biodiversity conservation.
Looking Ahead
We are committed to continuing our mangrove plantation efforts with the goal of planting 1.5 million seedlings in 2024 To achieve this long-term ambition, we are developing advanced mapping tools to select optimal candidate sites. Our plans include establishing ‘mangrove parks’ to enhance ecological value, as well as creating a naturally flushing water channel at the Shura Island’s golf course.
Furthermore, we plan to pilot a transplanting activity at AMAALA’s Triple Bay Puro Cove. The intent is to stabilize sediments, improve water quality, sequester carbon, and support diverse wildlife. This initiative aligns with our landscaping vision of enriching the ecosystem. A volunteer event involving staff and consultants will plant 20,000 seedlings from RSG's nursery, showcasing our commitment to environmental stewardship and community engagement in our responsible development practices.
Puro Cove area
Turtles
RSG's marine strategy prioritizes turtle preservation in the Red Sea, focusing on safeguarding, rescuing, and rehabilitating Green and Hawksbill turtles, which are essential to ecological balance. We emphasize protecting their nesting sites to ensure annual returns,
which are vital for maintaining marine and coastal ecosystems. Turtles are significant for ecotourism, and they play key roles in nutrient cycling and habitat structure, underscoring their importance in our environmental initiatives.
One Of Three Phenomena in The World
At AMAALA, we have successfully tagged four green turtles - Gloria, Waad, Jeka, and Amaali - to monitor their nesting behaviors on our shores. This initiative aids in refining our marine mobility plans and managing guest water sport zones, while
enriching our understanding of turtles' foraging territories. Notably, tagged turtles Gloria and Amaali have remained mostly in the vicinity of Al Numan Island. Turtles usually migrate to other areas, so this year-round preference for a
single area is rare behavior that has only been observed in three locations globally. This tracking project is vital for our sustainable management and protection of turtle habitats at AMAALA.
Nourishing Our Beaches At AMAALA
A beach nourishment program is being initiated at AMAALA for 17 beaches to become possible turtle-nesting sites. These sites, chosen for their nesting potential or proximity to existing nests, will receive enhancements like cleaning and sand aeration to aid turtle reproduction.
We will monitor the impact on nesting, with plans to convert successful practices into guidelines for RSG's wider conservation efforts, emphasizing our commitment to marine and habitat restoration.
Corals
Coral Relocation Survival Rates
Survival at relocated sites are all well within what has been reported in scientific literature. The highest survival rate was observed for corals placed on platforms.
Corals are the cornerstone of the Red Sea's marine environment, underpinning its extraordinary biodiversity and ecological resilience.
To mitigate the environmental impact of coastal development, we initiated a coral relocation project, carefully moving corals to designated conservation areas. This proactive approach ensured the preservation of these vital marine ecosystems. From inception in 2021 through the year 2023, this project relocated approximately 98,000 corals from both the Al Wajh Lagoon and AMAALA sites, creating new habitats covering an estimated 37,500m 2 of seafloor. Through a team of divers and specialized equipment, the methodology involves detaching, transporting, and reattaching corals using carefully selected substrates and a binding agent.
Survival rate across our two destinations has been higher than 80%.
Corals from our site and relocation activities
Diver using hand tools to remove and tag corals
Our Custom RSG Logo Reef
RSG has been exploring new techniques for creating artificial reefs, using unique underwater structures and constructing a one-hectare reef habitat shaped like the company's logo. This endeavor not only compensates for coral reef losses but also enhances marine biodiversity and supports the recovery of degraded habitats.
“Our collective efforts have yielded valuable insights into the best conditions and techniques for coral enhancement. We’re confident, as we move into the next phase, we can further push up survival rates and expand capacity. This will help us in our immediate goal to actively enhance selected reef areas with low coral cover to preserve the ecological and aesthetic value of coral reefs in our destination areas. After that, we’re setting our sights on coral regeneration globally."
Raed Albasseet Group Chief Environment and Sustainability Officer
As the driving force behind the world's most ambitious regenerative tourism destinations, we have pledged our ‘Coral Commitment’ to protect and regenerate corals in the Red Sea and beyond. We unveiled this multi-layered program at a COP28 side event in Dubai, on board the “Ocean Xplorer” vessel, signifying our dedication through a Letter of Intent with The Coral Research & Development Accelerator Platform (CORDAP).
Looking Ahead
Simultaneously, we proudly introduced Corallium, our newly named marine life institute at AMAALA, and announced the successful outcomes of the first phase of our Coral Gardening Pilot Project.
We will continue to maintain, inspect, and restore corals. We remain steadfast in our commitment to enhance marine ecosystems by creating additional reef habitats using recycled carbonate rock. We will also initiate a pilot coralgardening project to outplant 10,000 coral fragments in 2024 and assess coral health and potential threats through comprehensive marine studies.
Additionally, we look to expand the Marine Life Operations Facility to allow for more agile and scalable coral cultivation operations. With our sciencebased approach, we aim to optimize growth and survival rates by expanding our infrastructure and selecting specific strong and fast-growing corals. The launch of a pilot project to test Mineral Accretion Technology, which uses low-voltage electric current to stimulate coral growth on metal structures, will further support our programs for coral regeneration.
Terrestrial
Doum Palms Rescue
RSG achieved the first-ever successful translocation of the native Doum Palm trees. The Hyphaene thebaica, better known as Doum Palm, is regarded as an iconic plant in regional landscape design. It grows slowly and is extremely difficult to translocate due to its complex root system. We removed three mature Doum trees near Umluj that were at risk from urban expansion and drought and relocated them to the Turtle Bay Hotel at The Red Sea.
“At a global level, there was no scientific literature investigating the challenges of transplanting the doum tree. We had to develop and test our own, customized methodology, procedures, and tools to safely transplant these mature-sized doum palms.”
Tarik Alabbasi Senior Director Environmental Programs
Photos of the relocation project showcasing the container and results
Plant Transplanting Guide
To further protect all the trees and vegetation within our destinations, we developed the RSG Plant Transplanting Guideline in line with the recommendations of our Environmental and Social Impact Assessments (ESIA). This guidance aims to assist contractors in maximizing transplanting success rates from planning and design through implementation and post-care.
Looking Ahead
RSG aims to establish a comprehensive biosecurity control protocol to protect native plants and ecosystems. By focusing on prevention, we will limit the spread of pests, diseases, and invasive species, promoting ecological sustainability in operations. The protocol will include access control, monitoring, sanitation, and quarantine measures, developed with expert collaboration to safeguard plant health and maintain biodiversity in our nurseries.
Baseline Surveys at Wadi Khuff
A 55,000m 2 area in Wadi Khuff has been identified for ecological enhancement and restoration to contribute toward the 30% biodiversity enhancement target. A local spring near the surface provides almost year-round water to the Wadi. The first stage of the project is nearing completion and involves fencing the area to actively manage grazing and control vehicular access. Several community engagement events took place to clean up the area, raise environmental awareness, and highlight the importance of conservation. We conducted baseline surveys in 2023 to identify specific opportunities for ecological enhancements.
Our plant transplanting activities at Ummahat
Birds
Sooty Falcons
The Sooty falcons are a flagship specie in Saudi Arabia and are classifed as vulnerable. As part of our offsetting activities, artificial nests will be placed at several locations around Al Numan Island to provide alternative nesting areas during construction. These locations will include the area southwest of the island that has been marked as a no-go zone (i.e. no development). The exact location and number of these nests will be confirmed by RSG Avifauna experts who will leverage the learnings from Leith Island where similar nests have already been built.
We have mitigated this threat by placing predator bird statues at specific locations, creating visual cues that deter smaller birds
Sooty falcons and chicks, and a typical nesting area
Our Predator Bird Statues
The Red Sea coast has an abundance of diverse bird species, showcasing the region's vibrant avian life and ecological significance. Unfortunately, bird collisions, often referred to as birdwindow collisions, pose a threat to these populations. We have witnessed this at our destinations due to building structures with reflective surfaces that mimic open air. These incidents, peaking during migration, disrupt ecological balance and biodiversity, as birds are key to pollination, pest control, and seed dispersal.
We have mitigated this threat by placing predator bird statues at specific locations, creating visual cues that deter smaller birds from reflective surfaces and redirect their flight paths. This measure, combined with integrating building features like bird-safe glass and visual markers, significantly reduces collision risks and protects avian populations.
Natural Capital Accounting
Historically, natural capital assets have been undervalued. Recognizing and valuing these assets accurately is crucial for resource allocation by current and future generations and highlights the need to establish their true worth to people and the planet.
In 2023 , RSG completed the initial stage of a project to evaluate the natural capital ecosystems in and around the Red Sea. Focusing on Ummahat Island, which was determined to be an excellent case study based on its diversity, the project assessed and captured the natural capital of the area using an ecosystem services approach. For example, we considered and quantified the carbon sequestration potential of mangroves,
and we monetized the cultural values associated with nature-based tourism and water activities inside the inner lagoon and around the corals.
We also developed a bespoke Natural Capital Accounting Tool that allows RSG to analyze and measure the value and condition of the natural capital within our areas of operation. These parameters will help inform our internal and external stakeholders as required, by giving perspectives on the links between the economy and ecology. For the project's full life cycle, the tool will also provide information related to the effects of our operations on the natural capital outputs.
Site Selection & Land Use
Terrestrial Environmental Baseline Surveys
At RSG, Terrestrial Environmental Baseline Surveys are conducted following a thorough methodology to provide a detailed guide to internal design and implementation teams, design and construction contractors. These surveys help us create detailed habitat maps to ensure informed decision-making to protect biodiversity and natural resources.
Depending on the activities and scale of the development being assessed in the Environmental Social Impact Assessment (ESIA), different levels of data collection/ surveys are undertaken.
• Level 1 surveys: Provide sufficient spatial cover so that sensitive receptors are reasonably identified.
• Level 2 surveys: Include enough sites so that habitats may be suitably characterized, especially within areas likely to be impacted.
• Level 3 surveys: Provide a sound basis for monitoring sensitive habitats through the relevant project activities.
Our terrestrial surveys encompass physical and ecological environmental receptors, an indicative list of which is provided in the following table:
Specialism Environmental Receptors
Terrestrial Environment: Ecology
Terrestrial Environment: Physical
• Terrestrial Habitats
• Flora and Vegetation
• Non-flying Mammals
• Flying Mammals (Bats)
• Avifauna (Birds)
• Herpetofauna (Amphibians and Reptiles)
• Invertebrates
• Air Quality
• Noise and Vibration
• Contamination: Soil and Groundwater
• Archaeological and Cultural Heritage Sites
How we implement controls to avoid impacts during the early stages
RSG’s Concept Masterplan (CMP) targets the development of several islands in Al Wajh lagoon through a phased development approach that follows a Marine Spatial Plan and environmental surveys specific to the project area.
The natural systems in Al Wajh lagoon, with their biodiversity, are key assets to the allure of our destinations and warrant protection. Accordingly, RSG’s approach to responsible development in sensitive coastal environments implements controls to avoid impacts from the earliest stages of the project planning. This data-driven approach adopts a mitigation hierarchy that provides guidance based on the outcomes on the outcomes of various surveys, studies, and modelling specific to the project site.
Specifically, we have adopted an environmental design approach that involves identifying environmental conditions and sensitivities early in the design process, using environmental data, habitat mapping, and modelling to guide infrastructure planning. The strategy for servicing the islands and the associated siting of utilities and infrastructure is informed by data obtained from these surveys, studies done during the Pre-Concept Masterplan stage and from continued monitoring during implementation and beyond. This focus on avoidance and zoning at the visioning and planning phase minimizes the need for later mitigations and compensatory offsets and it ensures minimal environmental disturbance at our destinations.
Birds baseline surveys
Both The Red Sea and AMAALA lie within an Important Bird and Biodiversity Area (IBBA) as set out by Birdlife International. A few of the breeding bird species such as the Sooty falcon ( Falco concolor), Crab plover ( Dromas ardeola), White-eyed gull ( Ichthyaetos leucophthalmus), several tern species are regionally important and are listed as Saudi National High Conservation Priority (HCP) species under Saudi HCP Criterion No. 1
To achieve a balance between development and our commitment to environmental protection and
Archeological Sites
RSG boasts a rich tapestry of cultural, archaeological, urban heritage, and ethnographical sites, each serving as pillars for cultural tourism and integral components for the area's economic advancement when harmonized with other resources.
The area in and around The Red Sea destination contains sites spanning from the middle Stone Age to the twentieth century.
Protective measures encompass a spectrum of strategies, from robust conservation policies to community engagement initiatives. By nurturing a culture of responsible development and regenerative tourism, these measures can ensure the longevity and integrity of RSG's rich cultural heritage for generations to come.
The Red Sea Zone Sustainable Heritage Management Plan includes guidance on:
• Preserving or enhancing the special character or appearance of a heritage asset
preservation, we developed an Avifauna Proactive Mitigation Strategy (PMS) that embodies our responsible stewardship and development. This comprehensive strategy unfolds from a foundational understanding that lays the groundwork for informed decision-making for conservation and responsible development efforts and the development of a robust Proactive Mitigation Strategy (PMS) tailored specifically for The Red Sea destination.
• Reversing or ceasing any detrimental damage to heritage assets by restricting construction or other activities/infrastructure in proximity to or on heritage assets
• Demonstrating high standards of design and use of materials appropriate to the historic fabric informed by the Design Guidelines of the Land Use Planning Framework
• Respecting the setting of the heritage asset
• Enabling heritage assets to be understood and appreciated as associated assets that relate to each other
• Enabling restoration and conservation works for heritage assets
• Establishing protection and site access measures which ensure heritage assets are protected but not closed off to visitors
Climate Change
Aligning with the P I F’s Net Zero target, RSG undertakes substantial efforts to minimize emissions and offset any emissions we cannot eliminate. The process starts with tracking emissions across all destinations, establishes a carbon footprint baseline, and then implements carbon reduction and capture initiatives, such as green buildings, renewable energy production, and mangrove plantations.
Emissions
At RSG, we firmly believe that climateconscious development is integral to regenerative tourism. In 2023, RSG completed a bespoke Carbon Accounting Framework that will guide the monitoring, reporting, and verification requirements for the successful deployment of the Group’s Net Zero Strategy. This framework has provided us with clear visibility on our accounting boundaries, emission sources, and possible emission-reduction initiatives.
The framework captures both corporate and city-level emissions. Corporatelevel covers assets under the operational control of RSG, including corporate offices and projects outside city boundaries. City-level (using the Global Protocol for CommunityScale Greenhouse Gas Inventories) encompasses the entire geographical expanse of The Red Sea and AMAALA destinations, including all assets within the region, both those operated by RSG and by third parties, and extends to account for outbound waste and transportation.
From RSG-owned sources at both corporate and city levels, including the supply chain.
Looking ahead
We will roll out the Carbon Accounting Framework across the Group and leverage digital platforms to ensure smooth data flow, enabling us to make informed decisions that consider the climate impact and instill a climate-conscious culture.
From energy RSG acquires, such as electricity and cooling.
From activities not controlled by RSG but related to its operations, at corporate and city levels.
Scope 1: Direct Emissions
Scope 2: Indirect Emissions
Scope 3: Indirect Emissions
Summary of emission scopes
RSG Emissions by Source
Scope 1 - Diesel consumption in construction and transportation:
Diesel is mainly consumed in electric generators to meet energy needs where renewable electricity is still under commission or development. A small share is utilized in covering transportation needs.
Diesel consumed by contractors, mainly for construction machinery, the operation of generator sets, and transportation is not covered in consumption data as these are not owned and controlled by RSG. They will be captured as part of Scope 3 data collection in the future.
Scope 1 - Use of biodiesel:
Biodiesel is mainly consumed to replace diesel consumption across transportation and generators. The use of biodiesel reduces our emissions by approximately 90% when compared to conventional diesel.
Scope 2 - Purchased electricity through the Saudi Arabia grid:
Our offices in Riyadh are powered by grid electricity. The emission factor used is available through the Clean Development Mechanism Designated National Authority, an established source of information for grid electricity related
in Saudi Arabia.
Scope 2 - Electricity consumed from solar plants:
Electricity sourced from solar farms is clean but not zero-carbon. Solar farms do produce lifecycle emissions, from manufacturing to decommissioning, but these emissions are minimal compared to grid electricity. The emission factor for solar energy is currently provided by the National Renewable Energy Laboratory, but we aim to replace this factor with a site-specific factor once data collection and emission calculations are established for RSG solar plants in collaboration with our utility providers.
Emission Reduction Initiatives
RSG continues to explore and test carbon-reduction initiatives. For example, we have sourced and are now using biofuel from a local manufacturer who recycles used cooking oil into biofuel B100 in two applications: backup generators and transport trucks.
By substituting some of the diesel (emission factor of 2.66 tons of CO 2 per liter consumed) used in construction activities and transportation, biofuel (emission factor of 0.16751 tons of CO 2 per liter consumed) we avoided 6,350
Looking ahead
RSG will be ramping up renewable -energy production and using alternative fuels to progress toward net zero. We will continue the energy transition by increasing the share of biodiesel in our supply chain and logistics and increasing our solar -energy supply in operations.
tCO 2eq in 2023. We have also switched part of our supply chain fleet to B100 biofuel. We aim to increase the share of biodiesel in our energy mix to support the local economy and further reduce emissions.
In 2023, our solar farms in The Red Sea generated 71,600 MWh, avoiding 40,000 tCO 2 emissions. The avoidance was calculated based on a grid emission factor of 0.567 tCO2 eq/MWh (baseline) compared to a solar emission factor of 0.00001 tCO 2 eq/MWh (renewable).
The 2023 emissions inventory covers Scope 1 (direct) and Scope 2 (indirect), and moving forwards, we will gradually capture Scope 3 emissions from upstream and downstream sources. Scope 3 will be covered from our value chain,
Overall, RSG will continue to expand its suite of carbon-reduction initiatives, including renewables uptake, fleet electrification, enhanced emissions tracking, and LEED certification of all major assets and buildings, as well as carbon removal through mangrove plantation and other nature-based solutions.
covering emissions from the construction phase (embodied carbon) to operations phase (Scope 3 emissions from goods and services, capital goods, upstream transportation, transmission and distribution losses, and waste).
In 2023, RSG formally launched the first of its many planned solar farms. Our steadfast commitment to powering 100% of our operations using renewable energy is a significant contribution to achieving net-zero emissions.
2023 Energy Performance
In 2023, RSG consumed 304,113 MWh of energy across the organization. At The Red Sea, we kicked off operations at two renewable energy plants, namely Solar Farm 1 on the mainland and the Southern Dunes solar farm. Additionally, RSG's solar-energy storage solutions boasted a significant battery capacity of
57,950 MWh. Also in 2023, RSG consumed 2.5 million liters of biodiesel, particularly for projects in Southern Dunes, to operate internal combustion engines. This initiative reflects RSG's strategy to diversify energy sources and lower operational emissions.
While the solar farms in The Red Sea were built in 2022, we started commissioning them in 2023 to power early assets, under our 25-year concession agreement with ACWA Power.
Separately, RSG signed a 25-year multi-utilities concession agreement with a consortium led by the French utility company EDF and Emirati clean energy company Masdar to develop sustainable power infrastructure systems
that will serve the ultra-luxury AMAALA destinations. The facility will include a solar farm with a capacity of 248 MWp and a battery storage capacity of 700 MWh.
Looking ahead
RSG plans to further expand its renewable-energy portfolio and embed innovative technologies to enhance sustainability across its operations. At The Red Sea, we will commission the remaining solar farms and start connecting additional assets to the renewable grid. Meanwhile, RSG is also adopting biofuel to power the backup
generators which will only be used in case of power outages.
At AMAALA, the construction activities of the first phase of the AMAALA energy infrastructure systems will commence and progress quickly. We expect that early power supplies will be ready before the end of 2024 to deliver to early assets in preparation for our welcoming the first visitors to AMAALA
in 2025. Next year, we will also start planning the expansion phase of the AMAALA power infrastructure systems required to support phase 2 development plans of AMAALA assets. As part of this expansion phase, RSG will continue to measure wind data to assess the feasibility of wind energy to further boost renewables.
We are actively mitigating these risks to safeguard the natural beauty of the Red Sea and to enhance the resilience of the destination
Climate Resilience
We aim to strengthen the capacity of our destinations to anticipate, respond to, and adapt to climate change impacts, safeguarding our operations' essential functions while minimizing damage. Our focus on
climate resilience ensures long-term sustainability, addressing physical and transitional risks to mitigate climate change impacts.
Climate-Related Risks & Operating Model
At RSG, integrating climate-related risks into the Group’s operating model is crucial. This model ensures sustainable operations amid rising climate-change risks, such as extreme weather events, sea-level rise, and biodiversity loss. We are actively mitigating these risks to
safeguard the natural beauty of the Red Sea and to enhance the resilience of our destinations. The steps we undertake to manage climate-specific risks and incorporate them into the overall model include:
Assessing climate threats to the Red Sea sites, utilizing data and models to anticipate impacts on marine ecosystems and tourism, focusing on sea-level rise, storm intensity, and temperature changes.
Formulating mitigation strategies, focusing on sustainable infrastructure to withstand extreme weather, conservation of water and energy, and enhancing biodiversity with projects like coral rehabilitation and mangrove reforestation.
Acknowledging unavoidable impacts, we create emergency plans for climate scenarios, prioritizing the safety of tourists and staff and the protection of facilities and the Red Sea environment. This includes training, simulations, and collaboration with local entities to improve response efficiency.
Implementing a monitoring system for climate risks and updating strategies with data to adapt to changing climates. This ensures RSG’s long-term resilience and supports regenerative tourism by enhancing the ecosystems and communities it relies on.
Building Climate Resilience & Adaptation Across RSG Assets
Our sustainable building certifications, including LEED and Mostadam, are guiding the design, construction, and operations of RSG buildings to better withstand climate change. For example, we are prioritizing energy-efficient designs and durable materials, as well as sustainable construction materials.
Operationally, our emphasis on water and energy conservation, through wastewater treatment and reuse, as well as solarenergy production, aligns with
regional sustainability goals. We remain proactive in our approach to combatting the impact of climate change on our assets, ensuring that our operations are both sustainable and adaptable to unique conditions.
Climate-Crisis Management Plan
As part of our climate-crisis management plan, we assess climate-related risks, starting with a vulnerability analysis of threats like sea-level rise and severe weather events. Utilizing climate models and data, we predict environmental impacts on operations
and local ecosystems at RSG sites. To develop robust crisis-management plans, we combine scientific research with disaster-risk reduction and climate adaptation practices, collaborating with stakeholders, experts, and agencies to enhance organizational resilience.
Developing emergency response plans, including evacuation procedures, property security, and coordination with local emergency services, with regular drills and training to ensure readiness for identified scenarios.
Improving tourism infrastructure resilience involving creating flood defenses, elevating buildings against rising water levels, and adopting renewable energy to lower the carbon footprint and withstand environmental changes.
Ecosystem Protection & Restoration
Acting to preserve and restore local marine and coastal ecosystems crucial for tourism, including coral-reef restoration, mangrove planting for flood defense, and regenerative tourism practices to reduce environmental impact.
Climate Monitoring & Early Warning Systems
Investing in advanced climate monitoring technologies and early-warning systems to detect and respond to environmental threats in real time, minimizing potential damage.
Water & Effluent
Water management is critical to our activities and surrounding ecosystems. Since our destinations are off-grid, we have built our own Seawater Reverse Osmosis (SWRO) desalination plants to
Water Performance
In 2023, our temporary mainland SWRO plant produced 3.2 million m3 of freshwater, of which 3 million was distributed through The Red Sea network. The Sheybarah plant is powered by renewable energy, which reduces the carbon intensity of fresh water. The Ummahat plant and the temporary mainland plant will eventually be converted to run on renewables, as will our other, much larger mainland plant.
supply fresh water to all our assets. The Red Sea plant was built a safe distance from the island resorts to achieve zero discharge into the lagoons. Water efficiency across our assets is achieved
through green building certification (LEED and Mostadam), and all wastewater is treated in a central treatment plant producing processed sewage effluent for landscape irrigation.
The Red Sea Desalination Plants
SWRO Employer Requirements
Building on our desalination experience to date, RSG prepared in 2023 SWRO Employer Requirements for Seawater Reverse Osmosis plants. Distributed to all stakeholders who would benefit from this work, the requirements aim to provide recommendations and guidance to minimize the environmental impacts associated with the construction and operation of future facilities across our destinations, using a scientific and riskbased approach. This process includes:
1. Ecological impacts from intakes. 2. Ecological impacts from outfalls. 3. Regulatory requirements, constraints, and embedding controls.
We operate seven small-scale, off-grid sewage treatment plants (STPs) both offshore and in-land across our destination, with a combined capacity of 2,300 m3/ day. These STPs, along with our primary constructed wetland's capacity of 16,300 m3/day, provide treated water for irrigation. This decentralized approach enhances our wastewater management system's flexibility and resilience, ensuring effective treatment across diverse areas.
Establishing a Marine-Conditions Baseline
In 2023, RSG initiated a comprehensive marine water-quality and sedimentsampling program. Focusing on The Red Sea area, this program establishes baseline conditions of marine water quality and sediments. We conducted rigorous and periodic sampling to assess 75 environmental monitoring parameters in compliance with the NCEC including turbidity, dissolved oxygen, and
temperature. In 2024, we will expand the program to include AMAALA. The program tracks changes over time ensuring informed decision-making through knowledge of the characteristics of the water column and sediment in the lagoon. It also helps to preserve delicate ecosystems and ascertain ecological compliance.
Our Monitoring Buoys & The Mixing Zone
In 2023, we launched a groundbreaking initiative to enhance environmental monitoring across all operational assets and marine pathways. Specifically, we deployed buoys that monitor water quality in real time by measuring key parameters, including pH,
turbidity, salinity, temperature, total algae, dissolved oxygen, weather, and hydrocarbons. The buoys monitor water quality within the mixing zone and other sensitive areas across the lagoon, such as benthic habitats (occurring at the bottom of the body of water) near assets.
Looking ahead
In 2024, we will make significant progress in the development of the AMAALA SWRO, which will produce up to 37,000m 3 per day, as well as the sewage treatment plant which will handle up to 6,000m 3 per day. This expansion underscores our commitment to sustainability and efficient resource management. Additionally, we plan to enhance our environmental monitoring
capabilities by deploying 22 stateof-the-art buoys: 14 near-shore buoys and eight larger coastal buoys at both The Red Sea and AMAALA. This strategic deployment aims to bolster our efforts to collect and analyze data, ensuring meticulous oversight of marine conditions as part of our ongoing commitment to environmental stewardship and water-quality management.
Waste & Circularity
RSG's ambition to achieve zero waste to landfill is a cornerstone of its sustainability strategy. This requires effective waste-management and the effective separation of construction and operational solid waste into
multiple waste streams. In 2023, we developed a comprehensive wastemanagement strategy covering The Red Sea and AMAALA, which we have started to apply across all our assets.
RSG Waste-Management Strategy
Waste Categories
The project included development of the AMAALA construction-stage wastemanagement strategy and delivery of the operational waste management strategy and guidelines across both The Red Sea and AMAALA to achieve ‘Zero Waste to Landfill’ targets.
The project also produced Waste Management Guidelines (WMG) for the planning, design, and implementation of waste-management systems within a specified region or project. Rooted in the principles of environmental engineering
The strategy recognizes three broad waste categories.
Municipal
• Organic Food Waste
• Metal/Plastic
• Paper & Cardboard
• Glass
• Residual Waste*
Ad-hoc
• Bulky Waste
• Construction Materials
• Landscape Rubbish
*Residual waste is all non-recyclable and non-compostable waste fractions.
and responsible development, the WMG address the unique challenges and opportunities of the Red Sea region. The guidelines prioritize the sustainable and efficient handling of waste, emphasizing reduction at source, segregation, and storage. They also provide detailed technical standards, methodologies, and best practices to guide all stakeholders in the development and execution of environmentally sound and economically viable waste management.
Special
• Used Cooking Oil
• Electric & Electronic Equipment
• Batteries & Accumulators
• Household Hazardous Waste
• Textiles
Every asset will require a unique waste-management plan that estimates waste volumes and types, the size and location of waste rooms, and the method of transferring waste to the main waste-management facility.
Waste Generation & Recycling
8,681 tons of waste processed at our Waste Management Center at The Red Sea.
18% was recycled
18% was incinerated
Our hazardous waste generation decreased from 38 tons in 2022 to 16 tons in 2023, mainly due to the reduction in construction activities, underscoring our dedication to minimizing environmental impact through responsible handling of waste. Hazardous waste was disposed off-site by the nominated waste off-takers.
Looking ahead
RSG will commission the newly built Integrated Waste-Management Facility at the Red Sea that will be operated by Marafiq under a 25-year concession. Initially, the facility will handle up to 11,775 tons per year, increasing gradually to 37,639 tons by 2030. We will continue to cascade the WMG to relevant stakeholders, including asset teams and operators.
Building on learnings at The Red Sea, we will complete the design of the AMAALA Solid-Waste-Management Center and start construction. We will also leverage new partnerships with the Saudi Investment Recycling Company and the Royal Commission for AlUla to optimize waste management systems in Saudi Arabia.
Sustainable Supply Chain and Procurement
RSG is committed to fostering a sustainable supply chain that promotes environmental, social, and economic integrity. By integrating sustainability criteria into procurement processes, RSG aims to drive positive change across the Group and among its partners and suppliers.
Our Sustainable Supply Chain & Logistics Strategy
In 2023, we expanded our Sustainable Supply Chain Strategy to guide the selection of future suppliers and products. This strategy covers the management of environment, social, and economic impacts, including the encouragement of good governance practices throughout the lifecycles of goods and services.
The strategy identified 10 items across the supply chain, related to purchasing, contract logistics, and transport:
Sustainable Supply Chain and Procurement
At a minimum, suppliers are required to:
Environment
Comply with all applicable environmental laws and regulations, act proactively to comply with new regulations.
Based on the level of compliance with the criteria, the product is assigned a score facilitating more informed decision-making with sustainability in mind.
In 2024 and beyond, RSG aims to implement the sustainable supplychain strategy with established KPIs, initiate responsible sourcing with sustainability scores for Food & Beverages and Operating Supplies & Equipment, and target a net-zero Supply Chain through consumption control and offsetting. We plan to develop a regenerative supply chain Roadmap, pursue net-zero Logistics using efficient routing and alternative fuels, advance renewable transport
Evaluate their sustainability performance and regulatory compliance to ESG standards. Social Governance
Conduct business in an ethical manner, act with integrity always, have zero tolerance for fraud, conduct operations in line with fair competition laws, and source ethically.
Furthermore, we developed a preliminary sustainable-product scoring framework, with the following three criteria:
1
ESG supplier undertaking 2 Local vs. imported products
fuels, optimize our Central Distribution Center’s design for LEED certification, and enhance systems for sustainability tracking and reporting.
Ethical & Responsible Supply Chain
We recognize that our supply chain relationships pose a risk to the organization, which is why we have a Supplier Code of Conduct that outlines the terms and conditions under which suppliers can do business with our Group. Suppliers are required to comply, at a minimum, with all applicable laws and industry standards. In addition, they must comply with RSG's policies, site prerequisites, and additional supply conditions specified in our standard.
To ensure that our organization makes ethically sound decisions about the procurement of products and services, we require that our procured suppliers adhere to ethical and responsible sourcing. This allows us to detect potential sustainability risks, such as unanticipated safety incidents, industry-specific factors traced over numerous procurement categories, and
country-specific risks arising from the supplier's geographical placement.
Human rights, conflict of interest, safe and healthy workplace, diversity, and inclusion are among a few of the areas covered in the Supplier Code of Conduct. Additionally, 100% of our supplier contracts include an anticorruption clause.
Through regular supply chain audits our procurement team is able to identify any potential risks, such as safety incidents, macro-economic factors, and country-specific risks arising from the supplier's origin, while also managing our expenditure profile and transaction volume to ensure we do not overburden particular suppliers.
3 Ecological products
At RSG, we prioritize local procurement to cut transport emissions, boost the regional economy, and enhance supply chain resilience, aligning with our sustainability goals and fostering a circular, low-impact economic model.
During 2023, RSG identified a significant risk in relation to market capacity constraints within Saudi Arabia as the Vision 2030 developments collectively gathered pace. To mitigate this risk, RSG embarked on a series of local and international procurement roadshows to promote the supply chain opportunities presented by our Projects and encourage suppliers of goods and services to register as vendors and participate in our tenders.
Local events were held in Jeddah and Riyadh and International events included Qatar, UK, Germany, Egypt, Türkiye, South Korea, Japan, and Bahrain. These events' success was measured by the significant increase of local and international supply chain interest in our projects.
Receiving ISO Certification for Sustainable & Responsible Procurement Practices
We are also proud to confirm that RSG attained ISO 20400:2017 certification for sustainable procurement during 2023.
Looking Ahead
To further strengthen our standing on sustainable supply chain and procurement, we are developing a program to provide a framework and toolkit for enhanced collaboration with our suppliers, enabling them
to showcase their own approach to sustainability. This accompanies our efforts to achieve RSG's own priorities, such as local spend and whole lifecycle decarbonization.
Our objective remains to LEED certify 100% of our resorts
Destination Development
Sustainable Design, Construction & Operations
Sustainable Buildings and Certifications
RSG made significant progress in certifying green buildings in The Red Sea and AMAALA. Our objective remains to LEED certify 100% of our resorts and to certify at least 75% of the total build-up area, including support assets and other infrastructure. This attracts sustainability-conscious stakeholders, strengthens our market position, and showcases our leadership in responsible development.
In 2023, our portfolio of green assets comprised 56 buildings and resorts, including 31 in The Red Sea (covering 865,000 m 2 of BUA) and 25 in AMAALA (covering 752,000 m 2 ), distributed across six categories. This growing portfolio of projects also includes two master plan certifications under LEED for Cities and Communities (v4.1).
Overview of Building and Master Plan Accreditations in 2023
Looking Ahead
We expect the number of projects to grow from 56 in 2023 to approximately. 85 in 2024 . We are aiming to LEED certify at least four resorts (one mainland and three island resorts) and introduce the WELL certification system to our project portfolio in AMAALA.
We have also started pursuing LEED (v 4 Commercial Interiors) and WELL (by the International WELL Building Institute) for our headquarters, which will be completed and operational in 2024
Tracking Environmental Compliance Compliance During Construction
To enhance environmental performance and tracking efficiency, we integrated several databases into a live dashboard, which effectively monitors environmental data, incidents, document submission, and inspection scores. Collectively,
our tracking systems bolster our ability to monitor environmental compliance and seek continuous improvement as we progress through construction phases.
Figure showing the live dashboard for the contractors' performance for Red Sea Project and the live water quality dashboard
In 2023, despite a significant increase in the number of construction stakeholders, we observed a notable improvement in their performance:
Overall inspection scores rose from 79% in 2022 to
85.5%
This can be attributed to the substantial increase in the provision of environmental training, from 32,481 trainees in 2022 to
81,862 in 2023 (152% increase).
Figure showing the percentage of Training Categories for Red Sea and AMAALA Destinations.
Looking into our environmental incident rates, we maintain an overall environmental incident rate of 0.479, based on an international standard of the Occupational Health and Safety Assessment Series. This rate lies well below the OHSAS limit of 2.5.
Despite an increase in the number of incidents from 143 in 2022 to 181 this year, we ensure prompt and appropriate mitigation of all incidents. We remain committed to exceeding compliance standards and ensuring sustainable practices during construction and beyond.
Air Quality
The silt curtain installation and live monitoring buoy within active offshore construction site
The hive level for native trees protection within active construction site
RSG has established a comprehensive airand noise-quality monitoring system with 10 stations across its assets, recording many key parameters, including Particulate Matter (PM10, PM2.5) and other primary air pollutants. This network ensures air quality remains within the National Center for Environmental Compliance limits or within the collected baseline values readings established for every site prior to development. Data from the air quality monitoring stations feeds into a live dashboard which displays monitoring levels. An Air-Quality Index (photo) was developed to assess risks to sensitive populations guide protective measures. This system demonstrates RSG's dedication to safeguarding environmental and public health.
Case Study: Monitoring Bats at Desert Rock
Desert Rock is one of RSG’s bespoke resorts, carved into the cliffs. To mitigate the impact of construction activities on resident bat populations, we conducted a site-wide survey to establish a baseline. Two bat species were identified during an assessment at Desert Rock: P. pipistrellus and Myotis, both of which are classified as least-concern species on the IUCN red list. Bats make species-specific calls for echo-location and social functions.
We used specialized equipment such as acoustic detectors (see photo) to record bat echolocation calls and patterns. This is of critical importance to adjust timing of blasting activities to minimize disturbances to roosting bats. We then monitored bat activity before and after blasting events to safeguard biodiversity and guide construction activities, in relation to baseline conditions.
Samples for the Air-Quality Stations installed at the RSG assets
Compliance during operations
Starting in the third quarter of 2023, we introduced mandatory monthly environmental reporting for all operators. This reporting framework upholds our environmental monitoring obligations.
Initially, out of 21 operational assets, we secured 67% reporting compliance by the operators.
Through education and engagement, we raised the response rate to 100% by the end of 2023.
Environmental monitoring parameters include the quality of potable water, hazardous material usage, waste generation, and emissions monitoring across various operational assets. Other key metrics such
as water usage, wastewater management, and fuel consumption help us evaluate operational sustainability and identify opportunities for resource optimization.
Sustainable Hospitality Operations
Based on a global benchmarking exercise, we developed a strategic framework for sustainable hospitality and retail operations. This framework is aligned with ISO 21401 (Tourism Services) 1 and comprises rigorous requirements, guidelines, and mechanisms to structure the hospitality sustainability management system at RSG and the operational environmental and sustainability management plan for hotel operations.
We have adeptly managed sustainability operations for the hospitality sector during both the pre- and post-opening phases of several assets, including Six Senses Southern Dunes, ensuring compliance with national environmental regulations. Our commitment extends to meticulous reporting on environmental and sustainability metrics across operational assets, driving the successful implementation of our sustainability strategy.
Footnote 1 Tourism and Related Services: Sustainability Management System for Accommodation Establishments
At RSG, we have developed a comprehensive strategy for green mobility across land, sea, and air. This not only helps us in delivering on our sustainability commitments but delivers an exceptional experience for our guests.
Green Mobility
Land Mobility
We have electrified the guest transport experience. To support the opening of the first Red Sea hotels, we installed and commissioned the first phase of our electric-vehicle charging infrastructure. Specifically, we deployed Saudi Arabia’s largest off-grid EV charging network and
commissioned more than 150 AC and DC chargers by the end of 2023. This network supports the operation of our current EV fleet comprising 52 Mercedes EQS and 30 Lucid Air sedans, exclusively for guest transfers. This network complies fully with the Open Charge Point Protocol for
communication between charging stations and a central management system. It also connects by 5G network to a bespoke management platform.
In 2023, we also introduced two Autonomous Vehicles (AVs) at Turtle Bay Village. These are driverless shuttles that carry staff along fixed routes within the village. They enhance mobility and expand our zero-emission transport options for our colleagues on site.
We have also started to electrify other fleets. For example, we acquired five Quantron cargo trucks and seven Yutong buses for staff services. The year concluded with the introduction of the first two zero-emission Hydrogen Fuel Cell (HFC) Toyota Mirai cars, for evaluation. We will continue to monitor advances in hydrogen as a fuel for mobility.
Yutong electric buses
Looking Ahead
RSG will significantly expand its EV charging infrastructure to support the opening of future resorts, including
Shura Island, and the growth of the EV fleet, including cars and buses. Once completed, there will be approximately 1,000 EV charging
points across the destination, with marine and airside locations as well as super chargers (up to 150 KW).
Hydrogen Fuel Cell (HFC) Toyota Mirai
Quantron Cargo Trucks
Fire & Rescue Operations
We formally launched our electric firefighting and rescue vehicles, including eight battery-powered response vehicles, mini-pumpers, and tankers, to support our island and resort operations. These compact and eco-friendly mini-vehicles were chosen for their suitability to the delicate infrastructure, such as resort bridges. They enhance our 'barefoot experience' promise, while minimizing environmental impact.
Sea Operations
Our sea-transport operations aim to provide best-in-class marine support to all The Red Sea and AMAALA operating departments. We provide marina services, asset management, and operations of vessels to ensure uninterrupted guest and staff transfers.
Air Operations
RSG acquired its first seaplanes and obtained the first seaplane Air Operator Certificate in Saudi Arabia. RSG has chosen to fuel its fleet of seaplanes using Sustainable Aviation Fuel from day one. To further decarbonize air transport, we also signed a memorandum of understanding for hydrogen-fuel-cell conversion of seaplanes.
Looking Ahead
We remain steadfast in our commitment towards a zero-emission future. We will accelerate our transition to electric mobility across all our fleets and explore new advances in HFC hydrogen-fuel-cell technology on land, sea, and air.
Culture & Heritage
Arts & Culture
The amplification of local heritage – as defined by tangible or intangible - is a critical component of the Arts and Culture strategy. In the vibrant tapestry of the Red Sea coast, rich cultural heritage and artistic expression form the cornerstone of our community's identity. It is of great importance to support the local arts creatively and economically, while providing unique experiences for our guests.
Recognizing the importance of this cultural wealth, RSG analyzed the business pertaining to arts and culture, Its needs span three workstreams:
1
2
3 Public Art Strategy for Development Production and Installation for Delivery Public Programing for Destination Development
We are now working closely with the relevant teams and have proposed culturally sensitive and communityfocused public art and music programming, as well as venues in the urban realm to engage visitors and local communities in the arts.
Our connection with the community will grow as the scope of public programming expands. From a delivery perspective, as more hotels go live in 2024, we will be able to deliver more performances.
This allows RSG to engage with local artists and place them on the same platform as international artists.
Furthermore, RSG implemented its first major art commission, for six sculptures at Red Sea International Airport by both local and international artists.
Heritage Conservation
In 2023, RSG conducted a site-wide archaeological survey resulting in the mapping of 823 significant sites at AMAALA, including:
In collaboration with local boatbuilders, an initiative was launched to restore a 60-year-old vessel, the last of its kind, in Al Wajh. Once restored, the boat will reside on the beach, under the care of the future hotel operator. This tangible artifact will tell the rich story of the local area and celebrate the community's cultural heritage.
Photo of vessel found
Food Systems
Partnering with Saudi Airlines Catering Company
In 2023 , RSG placed one of the largest catering and laundry-service contracts in Saudi Arabia with Saudi Airlines Catering Company (SACC), which is set to generate over 500 jobs for Saudis and other professionals.
The partnership will see SACC design, build, and operate a central production unit for catering services for employee meals. Additionally, laundry services will be offered at The Red Sea, including employee uniforms and hotel linen.
“We are dedicated to ensuring our partners and employees who live and work at The Red Sea receive seamless services. SACC, with over 40 years of experience in catering and amenities, coupled with a deep understanding of the Saudi market, will provide the high standards we expect,”
John Pagano, Group CEO of Red Sea Global
TAMALA
To develop partnerships in Saudi Arabia’s agricultural sector, RSG led the establishment of the farmers’ cooperative called The Red Sea Farm Cooperative (TAMALA) in the Tabuk region. TAMALA will provide technical and logistical support to local farms that will benefit from the RSG destinations. The farms are uniquely positioned to provide fresh,
1
Prominent clients, namely RSG as a primary and wholesalers as secondary
local, and high-quality produce to our destinations, thereby greening our food supply chain.
RSG joined with the public and private sectors alike to establish TAMALA; our initial partners include Ethmar Alriyadah Co. Ltd and Ghoroos Charitable Foundation. A Board of Directors has been formed to oversee
2
Marketing and training activities
the cooperative and ensure that the needs of the farmers are being met.
Bringing together 3,000 farms – many of which grow citrus fruits, olives, and dates – TAMALA is supporting the farming community surrounding The Red Sea and AMAALA destinations, with 29 active members and five employees.
3
Diverse revenue streams (from operations, support services, seasonal cultivation, and expansion of agricultural output).
TAMALA
This approach creates agricultural jobs, enhances livelihoods, develops new skills, improves quality and methodologies, and reduces the overall carbon footprint of RSG’s supply chain through local sourcing of agricultural produce.
In 2023 , TAMALA established a dedicated office in Al Wajh and surveyed more than 300 local farms. The cooperative has also started delivering produce to Turtle Bay Village and Six Senses Southern Dunes.
The National Food Production Initiative
This initiative boosts local farmers through modern agricultural training, merging advanced Saudi technology and manufacturing capabilities with essential training and tools. The objective is to fortify Saudi agriculture and contribute to food security. The
National Food Production Initiative brings together many agricultural partners, including TAMALA, Tamimi Markets, Red Sea Farms, SABIC, Napco, Terraxy, Catrion, and Grown Green.
Launch of TAMALA and the office at Al Wajh
Looking Ahead
RSG will continue investing in farmer training and rural infrastructure to improve financial targets of local farms. Furthermore, we are increasing the cooperative's administrative and technical capacity, meeting market demands, diversifying livelihoods for greater resilience, expanding product promotion, and providing extensive farming services. These efforts will strengthen the agricultural sector and support community development.
Socio Economic Empowerment
At RSG, we aim to support the localization of human capital and innovation and the empowerment of local SMEs to contribute to our destinations and the local economy, while uplifting the quality of life by providing alternative livelihoods for impacted communities in the region.
Looking back at Amerah Souq
For three months, Amerah Souq celebrated the rich local culture of Umluj, showcasing a diverse range of agricultural goods, handicrafts, local cuisine, captivating folklore performances, and special programs for kids. As the souq continues to grow and evolve, RSG can see positive, significant socioeconomic impacts, especially by creating opportunities for SMEs.
Characteristics of the souq:
exhibitors performers 12 +95 +300 7
Zones
activation days (weekly)
Socioeconomic impacts:
Visitors
Exhibitor satisfaction +53k +321 +1Million 96%
Jobs created
SAR generated income
Community & Cultural Engagement
Jewar Application
Jewar was launched in 2023 as one of RSG's socioeconomic empowerment and community-engagement initiatives. It is a mobile application tailored for the local communities surrounding The Red Sea that aims to establish a twoway communication channel. This enables RSG to share news, employment opportunities, relevant information, and lets the local community participate and share their inputs, facilitating sustainable opportunities and establishing consistent engagement.
Jewar's goal is to empower the local community through enhanced engagement and participation in the region's development.
Stats from 2023
Downloads Registrations
13,000+
9,000+
Votes on Polls
2,000+
Job Applications
5,000+
Program Application
4,000+
Artificial Reef Creation
In 2023, we invited five companies to contribute to various pilot projects for artificial reefs, with the objective of sharing knowledge and examining the designs proposed by the participating companies to investigate the most feasible reef.
Our Volunteering Program
2023 saw the roll-out of our volunteering program, with opportunities provided for employees from both RSG and companies we work with.
Opportunities ranged from mangrove planting to beach cleanups, with over 200 volunteers participating across all activities.
The Red Sea Sunset Drink
We infused culture and authenticity into the guest journey by crafting The Red Sea Sunset, a drink inspired by regional landscapes and born of a partnership between TAMALA and Turtle Bay Village.
This drink showcases its local identity with hints of rosemary and cardamom. It combines orange juice with our local doum fruits, in a nod to our success in transplanting native doum palm trees at our destinations.
Empowering Local Talent by developing soft skills
During 2023 , RSG embraced the role of community catalyst, launching ‘Soft Skills’ workshops to empower and enhance the skill sets of local talents. In partnership with the Saudi Human Resources Development Fund and Tamkeen, we crafted sessions rich in practical knowledge -- from lessons in communicating effectively and drafting CVs to mastering interview etiquette.
Numbers from these workshops: in-person sessions
81
English For Tourism
As part of the Group’s efforts to empower local communities, we launched a sixmonth online English program to upskill youth living near our projects. This program aimed to provide youth with required language skills through a tailored approach to teach English terms related to tourism that would enable career opportunities in the tourism industry.
More than 20,000+ applications received
820 trainees
74
155
602 trainees graduated
Total of 432 learning hours per trainee over 24 weeks virtual sessions local trainees
207
locals hired so far (34 during the sessions)
Social Risk & Planning
Social Impact Assessment Methodology
On rare occasions, we learn of concerns in the local community regarding our development activities. Our dedicated team follows a systematic process which receives any grievances directly from the stakeholder
through multiple mediums such as hotline, e-mails, formal letters, which is then circulated internally to be addressed appropriately. The stakeholder is then updated with the measures taken, and the case is closed.
Review Phase
Build the necessary input, assess the current gaps, and identify solutions.
Methodology Building Phase
Based on the review phase outcomes, this phase aims at delivering a solid foundation for Social Impact Assessments.
Socioeconomic Baseline Study
The goal of this project is to build a socioeconomic baseline for the western coast of Saudi Arabia, where RSG operates. This study aids the impact assessment process by providing socioeconomical information and data, ultimately for
North coast
As shown in the three main activities below, this methodology aligns with our Group's mandate, targets, and objectives, enabling us to systematically evaluate and enhance the social outcomes of our development projects and ensure sustainable and communitycentric progress.
Training Activity
Build capacity in Social Impact Assessment and Social Impact Management Plan activities.
use as a decision-making tool for RSG. Additionally, this study would act as a reference point for inquirers about our destination’s local area and communities. The study covers three main areas along the coast:
Middle coast
South coast
includes coastal cities in the Tabuk region
includes coastal cities in the Asir and Jizan regions
includes coastal cities in the Al Madinah and Makkah regions
Human Capital Development
As RSG continues to grow, we strive to attract, engage, develop, and retain the best talent to be able to deliver some of the most visionary tourist developments in the world.
Our Employees
Employee Diversity
We believe diversity enhances innovation and creativity, which is why we place significant emphasis on maintaining an inclusive workplace that provides equal opportunities for all. As a company with a diverse workforce comprising different ages, genders, and nationalities, our HR policies assist us to ensure equal opportunities and fair treatment for all employees.
Gender Diversity
At RSG, we strive to achieve greater gender diversity in the workplace by supporting females at every level by providing equal career opportunities. RSG actively advocates female empowerment and acknowledges that female talent is essential to the development of our organization and communities.
As part of the Group’s recruitment practices, RSG ensures that at least one female candidate is on the shortlist of individuals considered for each role. We also support women to reach their full potential through mentorship and career support, both within our own organization and in the communities where we operate.
More than one in eight of our workforce is female
10 Women in senior management positions
310 women hired in 2023, the most of any year so far
“Red Sea Global represents more than just a hospitality company; it symbolizes a platform for scientists of which I am one to thrive and make meaningful contributions to our communities. By embracing diversity and championing women in science, we can create a more inclusive and vibrant scientific community for generations to come.”
Dr. Lina Eyouni, Senior ManagerEnvironmental Quality and Monitoring
“I remember my first impression when I joined RSG; it was like a world of its own. You will find a diverse team of people from various countries and cultures, all working together hand in hand to achieve the same goals – especially enabling women’s empowerment. Everyone is willing to help and support, regardless of the departments.”
Rana Abuauref, Manager - Health and Safety
Supporting Saudi Talent
We are committed to empowering ambitious men and women in Saudi Arabia through employment, competency training, professional development, and enrichment. We hire the most innovative minds, who combine vision and technical expertise with a hunger to develop and improve our business operations and ensure business resilience. With this commitment, we are proud to contribute to the development of the national workforce and build the human capital of Saudi Arabia.
We will continue to prioritize programs and activities that will enable us to achieve our Saudization goals and encourage nationals from Saudi Arabia to join us and be part of driving a positive change for the country.
We are also working to further increase opportunities for the rising number of Saudi nationals in our workforce and enhance our Saudization performance, ultimately contributing to making Vision 2030 a reality.
Total Saudi employees by gender
Saudi middle management by gender
Saudi employees below middle management by gender
1,452 Saudi nationals recruited in 2023 40% Saudization rate achieved across corporate functions
To ensure that we achieve our Saudization goals we continue to closely monitor and track KPIs to measure the percentage of Saudization at different levels.
Age Diversity
Total employees
Breaking barriers
During the year, RSG recruited 17 talents with physical and cognitive challenges, as part of our diversity, equity, and inclusion efforts and in line with the Group's pledge for accessible tourism. RSG will continue to expand the hiring initiative through partnering with local universities to recruit talent with physical and cognitive challenges, allowing the Group to further enlarge its talent pool.
Building Our Business with New Talent
Along with the rapid expansion of our business, RSG's hiring rate surged in 2023 . This was facilitated by initiatives, including employer branding, enhancements to the hiring process, diversity and inclusion efforts, data-driven decision-making, and the adoption of technology.
Our Group Talent Acquisition team received the 2023 ‘HRO Today Talent Acquisition Team of the Year’ award.
Our Talent Acquisition team was recognized once again for their dedication and excellence in HR operations by being acclaimed as the ‘EMEA Recruitment Team of the Year’ by HRO Today Association.
Actively working to retain our top talent
RSG continues to develop programs and initiatives to engage and retain our employees.
We also have an internal job-posting program in place, an initiative that aims to provide employees with opportunities to change their jobs within the Group, further enhancing the ability to retain talent.
Following the 2022 employee engagement survey, RSG transformed the results into impactful cascading sessions with our executive and senior leadership teams, hosting several focus groups and actionplanning workshops to delve deep into the feedback and make informed decisions for the future of the Group.
Looking Ahead
In 2024, RSG will launch the second employee engagement survey to provide employees with a platform to express their feedback about their employee experience while ensuring we continue to track our progress.
RSG maintains frequent and transparent communication with employees and has a dedicated team responsible for organizing regular engagement activities across its locations which contributes to fostering a positive work environment. RSG also conducts periodic employee surveys to understand the employee experience and develop action plans to address areas of improvement.
Employee Benefits
Employee benefits and remuneration are important tools for ensuring that our employees feel appreciated and rewarded for their efforts and motivated to continue working to the best of their ability. Attractive benefits also enable us to stand out as competitive employers, helping us to attract and retain the right talent. This is why we have developed an impressive and competitive benefits plan:
Medical & life insurance - for all employees and their dependents
Educational Assistance
Rewards Program
Other benefits vacation leave, parental leave, disability coverage
Relocation Benefits
Well-being allowance
Turtle Bay Village Residences (for all employees on the construction site) - employee accommodation, recreational facilities
Employee Welfare
As part of the corporate wellness program, employees have access to the wellness champion network which includes targeted webinars and coaching programs to promote physical and mental wellness. Our Employee Assistance Program offers a confidential, comprehensive support system available 24/7, 365 days a year, designed to assist employees with both personal and work-related challenges.
“By upskilling our workforce through training and education, we at Red Sea Global are helping to ensure the future success not only of our company but of the Kingdom. We are deeply committed to Vision 2030 and its goals, such as developing human capital in line with market needs and ensuring equal access to job opportunities. Ultimately, our aim is to contribute to creating a talent pool with the skills necessary to overcome the challenges that lie ahead and ensure the brightest possible future for Saudi Arabia."
Ahmad G. Darwish Group Chief Administrative Officer
Enhancing Employee Capabilities
At RSG, we use internal and external programs and other learning events to invest in our employees' capabilities. We deliver these programs through classroom-based and e-learning methods.
We follow a structured process to capture the knowledge, skills, experiences, and behaviors required for employees across all organizational departments and levels.
Our focus areas
• Environmental management
• Sustainability
• Accounting and taxation
• Governance
• Risk and compliance
• Auditing
• Marketing
• Digital transformation
• Finance
• Business continuity
• Real estate
• Leadership and soft skills
• Project management
• English and Arabic language
• Facility management
• Key performance indicators
• Health and safety
• Human resources
• Legal
• Procurement
This year, the fourth edition of our successful Elite Graduates Program commenced with 54 new graduates selected. The program enrolls fresh Saudi graduate talent through a comprehensive system of placement and training programs that encourage individuals to achieve their highest potential. It also provides graduates with entry-level jobs that equip them with hands-on experience in exciting roles.
Enrolled in fields with a scarcity of Saudi experts
For next year TOTAL NUMBER
Since inception
HEALTH, SAFETY, & SECURITY
We're one of the safest places to work in Saudi Arabia.
Our aim is to create a safe and secure environment, free of incident and injury, for those who work in or interact with our business operations. We achieve this by nurturing a strong safety culture, where every member takes responsibility for their own safety and that of others, ensuring a collective commitment to uncompromising safety standards. This commitment is further reinforced through targeted safety campaigns that underscore our dedication to adhering to the highest international standards in health, safety, and security.
We recognize that a safe work environment not only protects our employees but also contributes to overall organizational success. Through a series of initiatives, we have implemented comprehensive health and safety measures to create a workplace where employees feel secure, valued, and empowered to perform their roles effectively.
Our Campaigns & Communications
At RSG, our health and safety campaigns are more than just communications – they are catalysts for change and empowerment. By delivering clear, engaging, and well-aimed messages, we strive to create a workplace culture where health and safety are not just priorities but integral components of our organizational values. Through, we empower employees to make informed decisions, take ownership of their well-being, and contribute to a safer and healthier work environment for all.
We also shared health and safety best practices and daily toolbox talk collections to ensure safe work practices and raise awareness continuously on various, and environmental topics.
Blood donation campaigns
Flu and chickenpox vaccination campaigns
Road safety campaigns
Turtle Bay Hotel was awarded ISO 22000:2018 Food Safety Management System certification
RSG is now a registered Corporate Learning Partner with National Examination Board of Occupational Safety and Health (NEBOSH) UK
Worker Welfare
This year, RSG unveiled its latest health and safety initiative, the "It's Safe to Speak Up" campaign, reaffirming its dedication to the well-being and safety of its workforce. By empowering employees to voice their concerns and proactively addressing compliance issues, RSG sets a benchmark for ethical business practices in the industry. As RSG continues to champion worker welfare, we aim to stand out as a beacon of integrity and accountability in the world.
Management Systems & Accreditations
RSG successfully unified the Health and Safety Management System at the Group level and extended the ISO 45001:2018 certification scope to cover AMAALA.
We are dedicated to continuously monitoring and improving our health and safety and food safety performance through regular inspections, audits, training, stakeholder engagements, and management reviews.
The RSG Health and Safety Division has reached a significant milestone by attaining four prestigious accreditations to date. These achievements stand as a testament to our unwavering commitment to maintaining the highest standards of safety, health, and well-being at our organization. ISO 45001:2018
Obtained Highfield International Certification to deliver Internationally accredited health and Safety Courses
RSG won the Merit in the International Safety Awards 2023 by British Safety Council
Empowering Saudi Talent through the RSG
Health and Safety Mentorship Program
RSG initiated a Saudi Health and Safety Mentorship Program to nurture local expertise while advancing health and safety standards within Saudi Arabia.
A tailor-made program was developed for core technical safety training, including emergency response, risk management, auditing, management systems, and communication, to ensure our talent is equipped with the right skills.
Furthermore, the workforce had opportunities to participate in internationally recognized training from esteemed organizations such as NEBOSH and Highfield, all delivered by in-house trainers.
Strengthening Emergency Medical Services
Through strategic partnerships with International SOS, The Helicopter Company, and Alpha Star Aviation Services, RSG has fortified its emergency medical services, solidifying its commitment to employee welfare and operational excellence. Moreover, RSG expanded the contract scope for medical provider International SOS to support all site-based personnel with all primary medical needs and continual health-related advice through its onsite professional medical teams and specialists.
Promoting Health & Safety
Extends Beyond the Walls of our Workplace
RSG delivered internationally accredited health and safety courses to members of the local Technical College in Umluj, demonstrating our commitment to promoting excellence in occupational health and safety standards across the wider community. Through interactive sessions, practical demonstrations, and real-world case studies, participants were empowered to identify potential hazards, take preventive measures, and respond effectively to emergencies, thereby safeguarding both themselves and their colleagues.
Incident Management:
We employ a six-step approach for incident management
Incident Evaluation
Scoring for Potential and Actual Severity based on 4 -0 Scale
Health & Safety Statistics
Objective assessment, investigation, and rootcause analysis
We have implemented robust Health and Safety statistics and analysis mechanisms that cover incidents involving employees and non-employees alike. Through detailed review and trend analysis, the company ensures continual improvement in health and safety data analysis and initiates campaigns and engagement programs to improve awareness and the safety culture across our Group and for our wider stakeholders.
Determine Level of Corrective Actions and Preventive Measures
ZERO
Review at the Executive Level with Senior Management for Level 4 incidents
Dissemination of H&S Alerts and Bulletins
work-related fatalities because of work-related ill health for all employees and non-employees in 2023.
Rate of high-consequence work-related injuries, excluding fatalities, for both employees and nonemployees has decreased to ‘’zero’’ in 2023
Although the overall rate of recordable work-related injuries rose by 27%, the total number of hours worked increased by 70% compared to the previous year's statistics. There were 24 recordable work-related injury cases among employees in 2023. Of these, three incidents resulted in lost time or days away from work. For non-employees, there were 167 recordable work-related injury cases.
Of these, 46 incidents resulted in lost time or days away from work.
Even with the increased number of hours worked during the year, the rate of recordable work-related injuries was significantly lower than the industry benchmark4
Work-related injuries for all workers who are not employees but whose work and/or workplace is controlled by RSG
Despite our comprehensive training programs and awareness campaigns, sadly, during 2023, a motor vehicle accident on the public highway resulted in a fatal injury to a contractor employee. Following a thorough investigation into this driving-related fatality, RSG installed a median fence to prevent
unauthorized U-turns by vehicles on the public highway. We also installed additional signage and launched campaigns to enhance road-safety awareness across our entire network.
Customer Health & Safety
Privacy & Security
The importance of Security for our guests, employees, and community members is a key priority for us. To uphold this priority, we conducted extensive workshops, trainings, and courses, equipping our teams with the skills to ensure top-
Our efforts related to safety and well-being extend beyond our employees. As we open our destinations to the world, we have extended our health and safety measures to include our valued guests.
Our robust framework for risk assessment and control covers construction, operations, and entertainment activities in RSG's subsidiaries and services. By conducting comprehensive risk assessments, implementing robust control measures, and fostering a culture of safety, businesses can mitigate risks and create environments where everyone can enjoy all activities safely .
RSG plans and executes a variety of drills to ensure we have robust emergency-response arrangements to cover operations. To improve our collaboration on safety across different departments and functions, we have established several committees that focus on road safety, diving safety, emergency preparedness, and adventure activities.
During 2023 , we developed powerful operating procedures and guidelines aimed at providing safe activities and a safe environment, above and below the water, for employees and guests alike. For example, we installed a fully operational hyperbaric chamber at The Red Sea area. This facility demonstrates our commitment to ensuring the wellbeing of divers across our network and establishing the Saudi Arabian Red Sea coast as a world-class diving destination.
notch security at our destinations. This effort highlights our dedication to providing a secure and safe environment for everyone involved, with 370 trainees participating in 53 workshops, 549 training sessions, and 62 courses.
Looking Ahead
RSG will continue to strengthen our security capabilities across all destinations and within the organization. We plan to expand our range of workshops, training sessions, and courses in areas like hospitality, land, maritime, and organizational security. This comprehensive approach will ensure our teams are well-equipped with the necessary skills and knowledge to maintain and enhance safety and security standards.
Data Responsibility
Employees, suppliers, business partners, and other external stakeholders entrust us with their personal data, and we take our responsibility to protect their data very seriously.
As RSG continues to progress into the operational stage of becoming a smart destination, ensuring data security and personal data privacy is critical for us to gain the trust of future customers and encourage their fast adoption of our digital technologies.
We have developed a robust program to manage and protect data that covers the end-to-end lifecycle of collecting, storing, and processing data. The program consists of technical controls, industry-standardized policies and procedures for data management, pre-defined mechanisms to report data breaches to local and global regulatory bodies, and training programs for our employees.
To keep guest data safe, we request active consent prior to collecting customer details. We offer transparent information about how data will be stored, processed, and used while making customers aware of their data rights. We collect and store data only to provide a service and then dispose of it in accordance with customer data regulatory requirements.
RSG achieved a 100% compliance score at the Essential Cybersecurity Controls audit conducted by the National Cybersecurity Authority.
RSG contributed SAR 14.75 billion to Saudi Arabia’s Gross Domestic Product (GDP) in 2023.
RSG and Kingdom Holding Company signed a SAR
2 billion joint venture
RSG announced the successful completion of an investment deal with Kingdom Holding Company (KHC), a prominent global investment company headquartered in Saudi Arabia. The SAR 2 billion joint venture brings together RSG and KHC in a 50/50 partnership to develop and own the Four Seasons
Resort Red Sea, expected to open in early 2025. The investment in our destination is proof of the private sector's confidence in RSG.
Circular Economy
As part of RSG's commitment to setting new standards for responsible development, we continued to adopt measures to manage waste and pollutants. While contributing to minimizing environmental impacts, these also create economic opportunities and drive innovation.
Reduce
• Design and build energy-efficient assets to conserve energy and reduce emissions
• Adopt techniques such as design simulation to reduce construction waste and use of raw materials
• Reduce supply chain emissions by working with local farmers and cooperatives to develop a supply chain for sustainable food
• Use zero-emission transport options
• Power 100% of our destinations with renewable energy
Reuse
• Reuse different types of construction waste as aggregate for building roads
Recycle
• Production of fresh water from sea water
• Treating sewage to produce wastewater for landscape-nursery irrigation
• Recycle dry waste through recycling centers
Remove
• Plantation of mangroves which reduces atmospheric carbon
• Conservation, restoration, and enhancement of eco systems contributing to reducing emissions and regeneration
Key Achievements: Subsidiaries
RSG established three brands under this subsidiary to operate and manage adventure sports activities to provide our guests with world-class experiences on land and above and beneath the
sea. These brands have been created with sustainability at their core and will continue to build on our ambition to deliver a regenerative approach to tourism that protects and enhances the local environment.
Red Sea Sports & Entertainment Company: WAMA
Sustainability Practice WAMA
Community Engagement
Sustainable Procurement
Reduction of GHG Emissions
Wildlife Protection
• Recruiting experienced international instructors alongside local Saudi watersports instructors
• Sourcing equipment and uniforms from vendors who have a sustainable supply chain and who use ecologically responsible materials
• Offering standup paddleboards and kayaks powered by human effort or electric motors to ensure that no pollutants enter the sea
• Promoting activities that emit low or zero emissions, such as kayaking, sailing, e-foiling, and kite surfing
• Promoting mangrove conservation through educational programs and watersports experiences that align with RSG’s environmental guidelines
• Following the Royal Yachting Association’s Green Blue policy that promotes Respect, Protect, and Enjoy for the marine environment
Key Achievements: Subsidiaries
Red Sea Sports & Entertainment Company: GALAXEA
Sustainability Practice GALAXEA
Community Engagement
Sustainable Procurement
Reduction of GHG Emissions
Wildlife Protection
• Recruiting dive instructors and guides from diverse backgrounds
• Partnering with sustainabilitydriven suppliers for dive gear and apparel
• Allowing controlled visitor numbers for snorkeling and diving activities
• Providing educational snorkeling and responsible diving experiences that align with RSG’s environmental guidelines
• Advocating for marine conservation through dive certification courses
• Working closely with Saudi Water Sports & Diving Federation and PADI International to ensure that all diving facilities operated by Galaxea lead in regenerative tourism standards and set the blueprint for future diving development around the world
Key Achievements: Subsidiaries
Red Sea Sports & Entertainment Company: Akun
Sustainability Practice Akun
Community Engagement
• Recruiting guides from around the country, including the local communities who have expertise in the local terrain
Sustainable Procurement
Reduction of GHG Emissions
Wildlife Protection
• Collaborating with sustainable outdoor gear brands for hiking equipment including daily uniform made from recyclable clothing
• Offering hiking, guided nature walks, and electric mountain-bike rides
• Leading mangrove planting projects in coastal areas from RSG mangrove nursery
• Contributing to the Saudi Green Initiative by encouraging the planting and protection of native species throughout the entire Red Sea terrestrial region
• Organizing clean-up events to safeguard terrestrial ecosystems
• Raising awareness about wildlife conservation during guided nature walks
• Establishing our astronomical observation experience, built around regenerating the natural connection between humans and stars by increasing the number of people who are able to “observe” celestial objects
Red Sea Security Company
Red Sea Security aims to train and develop local talent to become best-in-class security personnel as part of its mission. We expect our recruits to deliver the highest standards of hospitality and security while looking after our destinations, future guests, employees, contractors, and visitors.
Our new employees, who graduated through the Hospitality Security training program, have been assigned posts across all RSG projects, subsidiaries, and our upcoming unique collection of hotels at our destinations.
Through the Hospitality Security program, our new employees completed intensive training in land, maritime, and aviation security, as well as tourism and hospitality.
Red Sea Landscape Nursery
Our Group’s Landscape Nursery, the largest in the region at 1 million m2 , has successfully:
• Landscaped The Red Sea with 186,000 plants
• Planted 5 million plants since it began operating
Plants grown in the Landscape Nursery are predominantly native species, which are fully adapted to the climate and conditions around the destination, both coastal and inland.
Our active participation in the Saudi Green Initiative, aimed at combating global climate change, contributes significantly to Saudi Arabia’s afforestation efforts. Our goal, through innovative landscape design, is to create enchanting destinations where our exquisite plants will thrive. These areas will not only captivate visitors but also offer them a tranquil retreat, in perfect harmony with the splendor of nature.
Our Group has also invested heavily in training and hiring Saudi talents at the Landscape Nursery, ensuring that this project benefits both people and planet.
Stakeholder Experience
Shareholders
Employees
Maintaining stakeholder relationships through regular engagement to ensure that their expectations are met is of paramount importance to RSG.
Method of engagement
Corporate website
General assembly
Corporate reports
Internal communication and portal
Internal awareness material
Training programs
Satisfaction surveys
Visitors and Residents Surveys
Awareness Sessions
Operators
Financial Institutions
NGOs and Universities
One-on-one meetings
Site visits and tours
Specialist conferences and discussions
One-on-one meetings
Corporate reporting
Direct engagement with NGOs
Participation in key international events
Student events and enrichment activities
Collaboration with education and research institutions
Why we engage Stakeholder expectation
Access to capital
Satisfy investor needs
Improve productivity
Drive business objectives
Motivation and engagement
Enhance visitor experience
Address any concerns
Understand requirements
Delivering growth and return on investment
Job security
Skill development
Career growth
Visitor and resident satisfaction
Properties for business expansion
Secure financing
Talent development and knowledge sharing
Design and Architecture firms
Suppliers
Local Municipalities
Giga-Projects
Local Communities and Businesses
Government Entities and Regulators
Site visits and tours
Specialist conferences and discussions
One-on-one meetings
Participation in conferences and discussions
Participation in external congresses and forums
Active engagement of local community in project areas
Social media and press releases
Consultation with regulators and Government entities
Innovation and better product and service offering
Communicate requirements
Understand requirements related to operations
Alignment with other national projects
Understand challenges
Build mutually beneficial relationship
Understand regulatory requirements
Return on funding
Mutually beneficial relationships
Opportunities for business
Business opportunities
Complying with requirements
Mutually beneficial relationships
Positive impact on community
Responsible business
Complying with regulatory requirements
Inclusive Experiences
Going beyond inclusivity in our workplace, RSG pledged to accessible tourism, whereby our destinations and experiences subsidiaries will be fully accessible and inclusive for guests and visitors with disabilities and special needs. Having the opportunity to build in accessibility from the ground up, RSG has been working on
an accessibility agenda that is aspirational, alive, and responsive, making a real difference to guest experience through the delivery of spaces, products, and services, irrespective of physical or cognitive ability.
Governance Excellence
Board of Directors
Group Chief Executive
Board of Directors
H.R.H. Mohammed bin Salman bin Abdulaziz Chairman
Our Board, led by H.R.H. Mohammed bin Salman bin Abdulaziz Al Saud, represents the best talent from the corporate and institutional realms. Our Board comprises 10 members who are experienced and competent, committed to establishing RSG as a forward-thinking leader in regenerative luxury tourism and contributing to Saudi Arabia’s Vision 2030 .
The Board of Directors of the Group oversee the management team, ensure compliance with laws and regulations, and safeguard stakeholders' interests. The Board plays a vital role in the Group’s overall governance and success.
Board of Directors' Key Responsibilities:
H.H. Prince Badr bin Abdullah bin Mohammed bin Farhan Al Saud Board Member
H.E. Dr. Majid bin Abdullah Al-Qasabi Board Member
H.E. Mr. Ahmed bin Aqeel Al-khatib Board Member
H.E. Eng. Abdulrahman Bin Abdulmohsen Al-Fadley Board Member
H.E. Mr Majid bin Abdullah Al-Hogail Board Member
H.E. Mr. Yasir bin Othman Al-Rumayyan Board Member
H.E. Dr. Fahad bin Abdullah Toonsi Board Member and Secretary General
Eng. Nadhmi bin Abdrab Alnabi Al-Nasr Board Member
Mr. John Pagano Board Member and Group Chief Executive Officer
Appointment of Board Members Board Independence
Board members are appointed by the General Assembly, taking into consideration the Nomination and Remuneration Committee’s recommendation. Members of the Board are required to possess the experience, knowledge, skill, and independence to be able to perform their duties efficiently and effectively.
The Board consists of nine non-executive directors and one executive director, who is also the CEO of the Group.
The Board undergoes a performance evaluation on an annual basis, in accordance with the Nomination and Remuneration Committee’s recommendation.
Board members are responsible for reviewing and approving RSG’s sustainability-related policies,, governance framework, and structure to ensure that they will drive the Group toward the achievement of our sustainability goals. The The Board also oversees RSG’s compliance with and adherence to existing sustainability initiatives, ambitions, and reporting standards, with input from the SMC. Board members remain informed on the global sustainability agenda to help shape their views on best practices.
No critical concerns on potential or actual negative impacts were communicated to the Board during the period under review.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee of RSG ensures transparency and fairness in the Nomination and Remuneration process.
The Committee monitors the effectiveness of the Group’s Board, Advisory Board, Committees, and Executive Management.
H.E. Eng. Abdulrahman bin Abdulmohsen Al-Fadely Committee Chairman
H.E. Mr Majed bin Abdullah Al-Hogail Member
H.E. Dr. Fahad bin Abdullah Toonsi Member
Nomination and Remuneration Committee's Key Responsibilities (non-exhaustive):
Nominate Boards, Committees, and Advisory Board
Oversee implementation of governance
Review and recommend remuneration policy
Subsidiary Governance Committee
The purpose of the Subsidiary Governance Committee is to govern and oversee certain subsidiaries and projects under development, as approved in the Group Governance Framework.
H.E. Dr. Fahad bin Abdullah Toonsi Commitee Chairman
H.E. Eng. Abdulrahman Bin Abdulmohsen Al-Fadley Member
Mr. Mazen bin Abdullah AlFuraih Member
Mr. John Pagano Member
H.E. Mr. Ahmed bin Aqeel Al-khatib Member
H.E. Mr Majid bin Abdullah Al-Hogail Vice-Chairman
Ensure alignment of activities and business performance across relevant entities
Responsible for overseeing material subsidiaries
Audit Committee
The purpose of the Audit Committee of Red Sea Global and its subsidiaries is to assess the effectiveness of internal controls, monitor compliance with laws, and address any potential conflicts of interest. The Audit Committee has a critical role in promoting transparency, accountability, and financial integrity.
H.E. Abdulaziz bin Salih Al- Furaih Member
Mr. Yousef bin Mohammed Al-Mubarak Member
H.E. Mr Majid bin Abdullah Al-Hogail Commitee Chairman
Audit Committee
Key Responsibilities (non-exhaustive):
Examine financial statements and reports
Review adequacy, effectiveness, and independence of internal and external audit work
Advisory Board
RSG’s Advisory Board comprises a group of external experts who give guidance and strategic advice to the Board, the Group CEO, and the Executive Management team to support growth and success. The Advisory Board members have industry-specific knowledge and experience, and they offer valuable insights on business opportunities and potential risks.
Ms. Aradhana Khowala Chair H.E Dr. Mohamed Wahid Hasan
Mr. Horst Schulze
Prof. Carlos Duarte Mr. Piers Schmidt
Ms. Frances-Anne Keeler Mr. Philippe Cousteau, Jr. Ms. Sue Harmsworth
Advise the Board and Executive Management in specialized areas
Create a network of influential people interested in, and supportive of, the Group Advisory Board's Key Responsibilities (non-exhaustive):
Promoting awareness and visibility of the Group globally
Executive Management
Mr. John Pagano
Group Chief Executive Officer
Group Head of Design
Mr. Ahmad Darwish
Group Chief Administrative Officer
Mr. Neal Coote
Group Head of Infrastructure
Mr. Ian Williamson**
Group Chief Projects Delivery Officer
Group Chief Environment and Sustainability Officer
Mr. Anton Bawab*
Group Head of Operations
Mr. John Dunne
Group Head of Health and Safety
Group Head of Planning and Controls
Mr. Benjamin Edwards
Group Head of Cost, Commercial and Procurement
Mr. Raed Albasseet
Mr. Brian Spraker*** Head of Health and Safety
Mr. Faisal Butt
Mr. Scott Henshaw
Mr. Gustavo Rubio
Group Head of Residential Sales
Dr. Maryam Ficociello
Group Chief Governance Officer
Mr. Timothy Williams
Group Head of People Strategy and Culture
Mr. Nicholas King
Group Chief Development Officer
Ms. Tracy Lanza****
Group Head of Global Branding and Marketing
Mr. Tareq Musmali
Group Chief Internal Aduit Officer
Mr. Gregory Djerejian
Group Head of Investments and Legal
Mr. Douglas Ludwig*****
Group Chief Financial Officer
Mr. Martin Greenslade
Group Chief Financial Officer
In 2023 RSG:
• Obtained re-certification for ISO 37000:2021 Governance of organizations certification
• Established a Subsidiary Management Committee
* Anton Bawab - left the Group on 20 April 2023
**Ian Williamson – left the Group on 23 June 2023
***Brian Spraker - left the Group on 28 July 2023
****Tracy Lanza left the Group on 27 March 2024
***** Douglas Ludwig transitioned to an Advisory Role for the Group on 3 December 2023
Our Management Committees
Executive Management Committee
Sustainability Management Committee
Grievances & Termination Management Committee
Business Resilience Management Committee
Risk Management Committee
Subsidiary Management Committee
*Established in 2023
Cybersecurity Management Committee
Risk Management: Integral to Business Success
Risk management continues to be an integral component of RSG's business at various levels encompassing RSG corporate, projects, subsidiaries, operations and destinations. It plays a crucial role in supporting the organization's objectives and enabling risk-based decision-making, which has proven statistically to enhance project success.
RSG's risk-management framework is seamlessly integrated into every stage of our development projects, from the initial planning and design phases to the construction, delivery, and operational stages. Our multidisciplinary teams identify, assess, and mitigate potential risks, with a keen focus on sustainability-related concerns.
The Risk Management Department at RSG regularly identifies, assesses, and facilitates the management of both internal and external risks and uncertainties in meeting the company's objectives. Environmental, Social, and Governance (ESG) considerations, as well as economic risks, are at the heart of the Risk & Resilience Department's
activities, aligning with RSG's commitment to being a responsible developer and achieving a positive impact on the environment, society, and the economy.
Starting from the Board-approved 'risk appetite', RSG has identified the risk boundaries for its environmental and social commitments. Through frequent risk assessments across various levels of the Group, the organization has developed a solid understanding of its material sustainability topics. Building on this knowledge, RSG has developed and implemented mitigation strategies to address relevant threats and ensure the effective execution of the identified mitigations.
Identification
Our Enterprise Risk & Resilience Framework aims to proactively prevent, reduce, respond to, and recover from adverse events, while enhancing the risk and resilience culture and supporting effective governance.
In 2023 RSG obtained:
• Re-certification for ISO 31000:2018 Risk Management for RSG, and certification for 4 subsidiaries
• Re-certification for ISO 22301:2019 Security & resilience for RSG and certification for The Red Sea and AMAALA destinations
• Awarded KSA Enterprise Risk Management & Business Continuity Management Setup and Implementation
Managing Our Sustainability Risks
At RSG, our commitment to responsible development is evident in the robust risk-management approach we employ from the inception of any development project. This comprehensive approach extends throughout the project delivery phases and operational lifecycle of our assets, ensuring meticulous attention to sustainability risks and the mitigation of our identified material topics.
RSG's risk-management approach is not a static process but rather dynamic and iterative. We continuously monitor the evolving landscape, both internally and externally, to identify emerging risks and adapt our strategies accordingly. This agility allows us to proactively address sustainability-related challenges and capitalize on emerging opportunities.
Environmental Risks Health & Safety Risks Cyber,
RSG has established a comprehensive environmental risk-management framework that is deeply embedded across all divisions and departments covering corporate, projects, and destinations. Environmental risk leaders have been assigned throughout the organization to ensure the effective deployment of this framework. These leaders are responsible for conducting regular riskassessment exercises, which are thoroughly recorded in the company's risk and compliance registers.
Health and safety risks are a critical component of RSG's enterprise risk-management framework, covering corporate, project sites, and destinations. In close collaboration with the Board of Directors, the company has clearly defined its risk appetite for health and safety and developed a set of Key Risk Indicators (KRIs) to monitor potential risk exposure and provide early warning signs for timely prevention and mitigation of issues.
Moreover, RSG's health and safety risk assessments are vital in enabling the continuous identification of potential hazards for injury or ill-health, the evaluation of their likelihood based on current safeguards, and the informed decision-making process to strengthen safeguarding measures as necessary.
Technology, & Data
Risks
Information systems and technology are used extensively across RSG's corporate offices, project sites, and destination operations. The company is aware of the vulnerabilities this creates and proactively identifies and addresses them to ensure the confidentiality, integrity, and availability of data.
Aligned with RSG's ambition to be a smart destination, the organization maintains a zero-tolerance policy towards any risks arising from cyber penetration, attacks, or data leakage. To guarantee strong data protection, the company employs data-loss prevention measures and conducts regular cybersecurity risk assessments as an integral part of its risk-management strategy and data-security efforts.
These quarterly cybersecurity risk assessments enable RSG to better identify, control, and mitigate a wide range of cyber risks, including ransomware, data leaks, phishing, malware, insider threats, and cyberattacks. Additionally, the company has fostered a culture of cybersecurity awareness across the organization, with Group-wide campaigns to educate employees on their role in protecting data and proactively identifying and reporting suspicious activities.
Supply Chain Risks
RSG proactively manages supply chain risks through regular audits, which enable the identification of potential issues, such as safety incidents, macroeconomic factors, and country-specific risks arising from the supplier's origin. To mitigate these risks and improve supply chain resilience, the company has embarked on a series of local and international procurement roadshows to promote supply chain opportunities presented by its projects and encourage suppliers of goods and services to register as vendors and participate in the company's tenders.
Our business-resilience framework provides guidance on how incidents, emergencies, and crises should be communicated, escalated, investigated, and managed. The framework covers multiple scenarios that might impact our sustainability ambitions, such as hazardous spills, air or water pollution, odor, lighting, noise and vibration, waste management and disposal, biodiversity, archaeology, and cultural heritage. We have conducted simulations for scenarios covering multiple areas, such as cyber, physical security, and crisis communications, and have defined our response mechanisms accordingly.
Climate resilience is discussed in detail under climate change in the Environmental section of this report.
Building a Resilient Organization Compliance & Business Ethics
At RSG, we recognize that sustainability is not just about environmental stewardship; it encompasses ethical business practices and compliance with regulations and company policies. We are committed to upholding the highest standards of integrity, transparency, and legal compliance in all aspects of our operations. In this section, we outline our approach to compliance with regulations and company policies and our commitment to ethical business conduct. During the year, 30 whistleblowing allegations were reported, all of which were investigated and actioned accordingly.
Regulatory & Non-Regulatory Compliance
RSG recognizes the importance of complying with relevant laws, regulations, and standards. We are committed to conducting our business activities in accordance with applicable local, national, and international laws and regulations.
Our compliance efforts include:
• Regular monitoring of changes in regulations related to our industry and operational activities.
• Conducting comprehensive risk assessments to identify potential compliance risks and develop mitigation measures to address them.
• Integrating compliance requirements into our policies, procedures, and business processes.
• Engaging with legal experts and industry associations to ensure our practices align with regulatory expectations.
• Implementing robust compliance-training programs for employees to enhance awareness and understanding of legal and company policy requirements.
In 2023 RSG obtained:
• Re-certification for ISO 37301:2021 Compliance Management System certification for RSG
Business Ethics
At RSG, we believe that ethical behavior is fundamental to our success and reputation. We are committed to fostering a culture of integrity, honesty, and accountability throughout our organization. Our commitment to business ethics includes:
• Establishment of a Code of Conduct that outlines our expectations for ethical behavior and compliance with laws and regulations.
• Provision of channels that are accessible 24/7 for both employees and non-employees to report ethical concerns or violations anonymously and without fear of retaliation.
• Integration of ethical considerations into our decision-making processes, including supplier selection
• Engagement with stakeholders to promote ethical practices across our value chain and industry.
Living the Values
RSG's values and conduct are central In all that we do. We facilitate purposeful action and high performance. The bedrock of our Code of Conduct comprises our personal values and the manner in which we are each expected to conduct ourselves.
New training materials on our Code of Conduct, Conflicts of Interest, Gifts, and Hospitality have been prepared and released. In addition, we created several awareness campaigns, one of which covered our Code of Conduct, and required all employees to formally acknowledge that they have read and will comply with the Code.
Finally, on a yearly basis we require all Board Members, Committee Members, Executive Management, Employees, Contractors and any other persons associated with the Group to disclose any interests they have that may conflict with the interests of the Group, in line with our Conflict of Interest Policy.
Transparency & Accountability
We are committed to transparency and accountability in our sustainability reporting. We disclose information on our compliance efforts, ethical practices, and performance indicators to enable stakeholders to assess our progress and hold us accountable. Our commitment to transparency includes:
• Publication of an annual sustainability report that provides comprehensive information on our sustainability performance, including compliance and ethical practices.
• Engagement with stakeholders through various channels, such as stakeholder meetings, surveys, and consultations, to gather feedback and enhance transparency.
• Commitment to continuous improvement based on stakeholder feedback and evolving best practices in sustainability reporting.
By upholding the highest standards of compliance and business ethics, we strive to build trust with our stakeholders, mitigate risks, and create longterm value for our business and society. We remain committed to continuous improvement and transparency as we work toward our sustainability goals.
Habitats Found at TRS and AMAALA
Habitat type
(Critical, Natural, Modified)
Coral and coral reefs Critical High
Seagrass and seagrass beds Critical High
Description
Coral diversity is high, with 56 genera and 170 species of hard coral identified throughout the project’s region, and high levels of coral recruitment cover. Coral-reef resilience indicators are present throughout the region.
Seagrass and seagrass beds vary in density between 10% and 30% cover in shallow water areas, with denser seagrass beds in deeper areas covering extensive areas of the sea floor
Coastal sabkha * Natural Medium
Mangrove Critical High Mangrove stands are present throughout the Al Wajh bank and the adjacent coastline. They are among the most extensive in the Red Sea.
Natural: Other beaches Critical Sandy beaches offer nesting sites to the IUCN Critically Endangered Hawksbill turtle (Eretmochelys imbricata).
Terrestrial vegetation Natural Medium
*Sabkhas are saline flats or salt-crusted depressions found along the coasts of North Africa and Saudi Arabia. Periodic flooding and evaporation of the sabkhas create saline conditions which limit vegetation, dominated by native succulents and halophytes.
Marine biomes
• The outer reef that lies on the outside of the lagoon, with moderate to steep sloping walls, often reaching deeper than 20m. Large marine fauna such as sharks, eagle-rays, sea turtles, Napoleon wrasses and large trevallies are observed more frequently along the outer reef than inside the lagoon.
• The inner reef is generally shallower than the outer reef, consisting mostly of moderate-to-low-sloping coral reefs and sandy-muddy bottom, with extensive seagrass beds on its southern side. Ecological communities on the inner reef are characterized by moderate fish diversity and abundance.
• The northeast lagoon, generally shallow and closer to shore, is characterized by sandy-muddy bottom, coral rubble, and only a few sparse live corals and seagrass patches.
• The southeast lagoon, with numerous scattered coral colonies (though sometimes dense). Moreover, sponges are a dominant structural component, and seagrasses are sparse in abundance and scattered in distribution. Each of these habitats is important for sea turtles found in the area.
Marine habitats
• Reef walls: Inside the Al Wajh lagoon, they are home to important accumulations of fish and are one of the most productive habitats in the project area.
• Fore reefs: Typically have high coral cover and therefore support biodiverse communities.
• Windward reef crests: Among the most diverse and environmentally sensitive habitats. They are typically located between the reef slope or reef wall and the reef flats and are often found in shallow water.
• Patch reefs: Well-defined biodiversity hotspots, usually embedded in a sandy or rocky substrate and often home to large schools of fish.
• Dense coral assemblages: Dominated by branching corals of various Acropora species. These tend to form in shallow and turbulent waters in tidal passes and are widely distributed adjacent to the reef wall.
• Sparse coral assemblages: They occur in sandy or rocky areas where no large or extensive reef systems are developed and can be found in or adjacent to almost any other habitat. Commonly, these assemblages can be highly biodiverse and therefore represent important resources. Near the mainland, sparse coral assemblages are frequently dominated by various branching Acropora coral species.
• Fringing reefs: Develop as a nearly continuous fringe of coral growth and hard structure around or along virtually all islands and most of the mainland coastline. The coral communities found on fringing reefs vary greatly, depending on their exposure to wind and waves, and their nearshore versus offshore position.
• Reef flats: May be dominated by coral, rubble, or algae. In coral-dominated reefs flats, live coral cover and diversity can be high, especially on the seaward edges of reef flats.
• Seagrass meadows: Most seagrass habitats are located along the outer perimeter of the lagoon. One of the largest continuous areas of seagrass habitat occurs in the southern project area, outside of the lagoon. The species present within Al Wajh lagoon are Halophila stipulacea and Thalassia hemprichii.
Intertidal habitats (Mangrove and Sabkha)
TRS also includes intertidal habitats consisting of grey and red mangroves and sabkhas along the shorelines of the islands. Mangroves provide a suite of ecological functions and services in coastal environments, including shoreline protection, water-quality improvement, provision of wildlife and fisheries habitat, and global carbon storage.
Sabkha is an upper intertidal to supratidal flat influenced by periodic flooding with sea water, often by wind-driven extreme high tides. Also known as salt flats, they may often include blue-green algal mats on their surface and scattered halophytic (salt-tolerant) plants, including chenopods.
Sea turtle habitats
On sandy beaches, nesting by turtles in the area is predominantly by Hawksbill turtles (Eretmochelys imbricate, IUCN Critically Endangered), with limited nesting on a few islands by Green turtles (Chelonia mydas, IUCN Endangered), notably on the islands of AlWaqadi and Breem. Turtle nesting on islands was found to be widespread and fairly ubiquitous, with 15 of the islands surveyed showing signs of nesting.
Marine mammals habitats
Marine mammals were seen on three occasions, including two sightings of Indian Ocean Bottlenose dolphins (Tursiops aduncus) and one sighting of the IUCN Endangered Indian Ocean Humpback dolphin (Sousa plumbea). Areas of local dugong sightings include the shallow area south of Breem, the waters between AlWaqadi Island and the southern lagoon, and the shallow coastal area between Laheq and the mainland.
Seabird nesting habitats
TRS is within an Important Bird Area (IBA), as set out by Birdlife International and referred to as the Al-Wajh Bank IBA. Nearly all islands can be considered very important nesting habitats, especially when compared with the mainland shoreline, which is generally low in avifauna abundance and species diversity. Four key species are considered to be of restricted geographical range:
• Crab plover (Dromas ardeola): IUCN category: Least Concern, HCP-1
• Sooty gull (Larus hemprichii): IUCN category: Least Concern
• White-eyed gull (Larus leucophthalmus): IUCN category: Near Threatened, HCP-1
Species diversity is limited, and the percentage cover of vegetation is low. The common species of terrestrial vegetation is Halocnemum strobilaceum, a salt-tolerant plant. There is no critical habitat present within the terrestrial biome, however, it supports bird species that are considered a high conservation priority in the Kingdom of Saudi Arabia, such as ospreys.
AMAALA
Coastal Hills
The Coastal Hills near the AMAALA coastline feature low, sloping, and highly eroded terrains dissected by wadi channels filled with coarse materials leading to the coast. Vegetation is minimal, with occasional small trees and shrubs in narrower channels. The area's cliffs offer nesting grounds for birds such as Sooty gulls and potential roosting spaces for bats, contributing to the region's biodiversity.
The AMAALA coastal plain gives way to a wider wadi delta system, characterized by higher vegetation cover compared to other areas. Common vegetation includes Acacia tortilis and other small trees, grasses, and shrubs. The region's mudflats provide crucial foraging grounds for wading bird species, and the northern mangroves hold significant conservation value, supporting various local fauna and bird species.
Beaches Backed by Low Cliffs and Dunes
The beaches along the AMAALA coastline and Al Nu’man Island are predominantly sandy and rocky, backed by low cliffs and dunes. Vegetation is limited but includes species like Haloxylon salicornicum and sea lavender. The beaches serve as important nesting habitats for threatened Hawksbill and Green sea turtles, offering crucial support for these endangered species' survival.
Inland Hills
The Inland Hills in the AMAALA region are characterized by rugged, steeply sloping rocky terrains with numerous incised wadis and narrow channels. Vegetation is sparse, consisting mainly of Haloxylon salicornicum scrub and small Acacia trees. The area is home to various reptile species, lesser jerboa, and other fauna, including eagles, falcons, and bats, enhancing the region's biodiversity and ecological richness.
Coastal Fringing Reefs and Lagoons
The AMAALA region is adorned with extensive fringing reefs along the entire mainland coastline and around Al Nu’man Island, interspersed with lagoons, patch reefs, and reef flats. These areas host a rich diversity of coral-reef communities with variable reef status and depths extending to 70m+. Live coral cover often exceeds 20%-50%, supporting numerous species of corals, invertebrates, and reef fish. The overlapping areas with other habitats like lagoons and seagrass beds provide ideal conditions for various life stages, including critically endangered Hawksbill turtles and endangered Humphead wrasse, often supporting significant numbers of small juveniles.
Coastal Seagrass and Algal Communities
Coastal areas in the AMAALA region are also home to extensive seagrass and macroalgal communities, often intertwined with coral reefs within shallow lagoons. Nine species of seagrasses have been reported, and algal beds dominate in shallow, nearshore rock platform areas. These seagrass beds are vital foraging habitats for threatened species like dugongs and Green turtles and serve as significant nurseries for a wide range of fish and invertebrate species. The presence of important food fish also highlights the environmental asset that seagrass represents within the Amaala area.
Offshore Reefs and Islands
Offshore islands in the AMAALA region, predominantly composed of raised reef limestone, are fringed by reefs and sub-reef limestone. Al Nu’man Island, the largest in the region, features diverse topography, from rocky hills to coral reef lagoons. Outer reefs, though poorly known at present, are expected to support extensive coral-reefs and other habitats like seagrass beds and algal assemblages. These areas, adjacent to deep water, are crucial for various threatened marine megafauna, some of which are migratory and are protected under international agreement in the Kingdom of Saudi Arabia.
GRI Content Index
For the Content Index – Advanced Service, GRI Services reviewed that the GRI content index has been presented in a way consistent with the requirements for reporting in accordance with the GRI Standards, and that the information in the index is clearly presented and accessible to the stakeholders. The service was performed on the English version of the report.
Statement of use
GRI 1 used
Applicable GRI Sector Standard(s)
GRI STANDARD/
OTHER SOURCE
Red Sea Global has reported in accordance with the GRI Standards for the period 1 January to 31 December, 2023.
GRI 1: Foundation 2021
Not Applicable
DISCLOSURE OMISSION
General Disclosures
GRI 2: General Disclosures 2021
PAGE NUMBER(S) AND/ OR DIRECT ANSWERS
2-1 Organizational details 9, 14-16
2-2 Entities included in the organization’s sustainability reporting 16
2-3 Reporting period, frequency, and contact point 8-9
2-4 Restatements of information
Our portfolio will be expanding substantially in 2024. Therefore our sustainability strategy will be reviewed to reflect significant changes in impacts arising from the planned portfolio expansion.
2-5 External assurance This report has not been assured by a third party.
2-6 Activities, value chain and other business relationships 14, 20-29, 106-109, 206-216
2-7 Employees 172-191
2-8 Workers who are not employees 173
2-9 Governance structure and composition 221-237
2-10 Nomination and selection of the highest governance body 225-227
2-11 Chair of the highest governance bod y 223
REQUIREMENT(S)
GRI 2: General Disclosures 2021
2-12 Role of the highest governance body in overseeing the management of impacts 223-225
2-13 Delegation of responsibility for managing impacts 37, 225, 227, 234
2-14 Role of the highest governance body in sustainability reporting 36-37, 225, Our sustainability report is reviewed and approved by our Group CEO
2-15 Conflicts of interest 225, 242-245
2-16 Communication of critical concerns 225
2-17 Collective knowledge of the highest governance body 223-225
2-18 Evaluation of the performance of the highest governance body
2-19 Remuneration policies
2-20 Process to determine remuneration
2-21 Annual total compensation ratio
Confidentiality constraints This is not disclosed publicly as this involves sensitive information and privacy considerations.
Confidentiality constraints This is not disclosed publicly as this involves sensitive information and privacy considerations.
Confidentiality constraints This is not disclosed publicly as this involves sensitive information and privacy considerations.
Confidentiality constraints This is not disclosed publicly as this involves sensitive information and privacy considerations.
2-22 Statement on sustainable development strategy 13, 39, 42
205-1 Operations assessed for risks related to corruption
205-2 Communication and training about anti-corruption policies and procedures
205-3 Confirmed incidents of corruption and actions taken 242
Governance Excellence
GRI 3: Material Topics 2021 3-3 Management of material topics
GRI 206: Anticompetitive Behavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
None
Destination Development, Climate Change
302-1
302-2
302-3 Energy intensity
GRI
302-4 Reduction of energy consumption
302-5 Reductions in energy requirements of products and services
Information unavailable Energy intensity data is not available for several key assets and therefore not included herein. We are working on improving the data capturing processes and intend to report on this in future.
Information unavailable We are working on improving the data capturing processes on reduction of energy consumption and intend to report on this in future.
Information unavailable We are working on improving the data capturing processes on energy reduction of services and intend to report on this in future.
Resource
GRI 303: Water and Effluents 2018
303-2 Management of water discharge-related impacts 98-101
303-3 Water withdrawal 98
303-4 Water discharge
303-5 Water consumption
GRI 3: Material Topics 2021 3-3 Management of material topics
304-1 Operational sites owned, leased, managed in, or adjacent to protected areas and areas of high biodiversity value outside protected areas
GRI 304: Biodiversity 2016
304-2 Significant impacts of activities, products, and services on biodiversity
304-3 Habitats protected or restored
304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations
Information unavailable Water discharge related data is not available for several key assets and therefore not included herein. We are working on improving the data capturing processes and intend to report on this in future.
Information unavailable Water consumption related data is not available for several key assets and therefore not included herein. We are working on improving the data capturing processes and intend to report on this in future.
Natural Capital
GRI 3: Material Topics 2021
3-3 Management of material topics 86-95
305-1 Direct (Scope 1) GHG emissions 88
305-2 Energy indirect (Scope 2) GHG emissions 88-89
305-3 Other indirect (Scope 3) GHG emissions
GRI 305: Emissions 2016
305-4 GHG emissions intensity
305-5 Reduction of GHG emissions 89
305-6 Emissions of ozone-depleting substances (ODS)
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
Information unavailable We are currently not tracking our scope 3 emissions. We are working on having a system in place to report on this in future.
Information unavailable GHG emission intensity data is not available for several key assets and therefore not included herein. We are working on improving the data capturing processes and intend to report on this in future.
Information unavailable ODS emission related data is not available for several key assets and therefore not included herein. We are working on improving the data capturing processes and intend to report on this in future.
Information unavailable Air emission data is not available for several key assets and therefore not included herein. We are working on improving the data capturing processes and intend to report on this in future.
Resource Management
GRI 3: Material Topics 2021 3-3 Management of material topics 103-105
306-1 Waste generation and significant waste-related impacts
306-2 Management of significant waste-related impacts
306-3 Waste generated 104-105
GRI 306: Waste 2020
306-4 Waste diverted from disposal 104-105
306-5 Waste directed to disposal 104-105
Resource Management
GRI 3: Material Topics 2021 3-3 Management of material topics
GRI 308: Supplier Environmental Assessment
308-2 Negative environmental impacts in the supply chain and actions taken
GRI 3: Material Topics 2021
GRI 401: Employment 2016
3-3 Management of material topics 173-191
401-1 New employee hires and employee turnover 180-183
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 184
401-3 Parental leave 185
GRI 3: Material Topics 2021
GRI 402: Labor/Management Relations 2016
3-3 Management of material topics 173-191
402-1 Minimum notice periods regarding operational changes
As part of our commitment to transparency, all material operational changes are communicated to our employees ahead of time, with varying notice periods depending on the type of change and its impact on them.
Health, Safety and Security
GRI 3: Material Topics 2021 3-3 Management of material topics
403-1 Occupational health and safety management system
403-2 Hazard identification, risk assessment, and incident investigation
403-3 Occupational health services
403-4 Worker participation, consultation, and communication on occupational health and safety
GRI 403: Occupational Health and Safety 2018
403-5 Worker training on occupational health and safety
403-6 Promotion of worker health
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety management system
403-9 Work-related injuries
403-10 Work-related ill health
Human Capital Development
Human Capital Development
GRI 3: Material Topics 2021 3-3 Management of material topics 173-191
405-1 Diversity of governance bodies and employees 174-179, 223-225
GRI 405: Diversity and Equal Opportunity 2016
405-2 Ratio of basic salary and remuneration of women to men
All employees have a basic salary above the minimum wage, and we are committed to the right of equal pay for equal work for our female and male employees
Governance Excellence
GRI 3: Material Topics 2021 3-3 Management of material topics 221-245
GRI 406: Non-discrimination 2016
Confidentiality constraints This is not disclosed publicly as this involves sensitive information and privacy considerations.
406-1 Incidents of discrimination and corrective actions taken 242-245
Human Capital Development
GRI 3: Material Topics 2021 3-3 Management of material topics 173-191
GRI 409: Forced or Compulsory Labor 2016
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor
Social Risk Management and Development
GRI 3: Material Topics 2021 3-3 Management of material topics
GRI 413: Local Communities 2016
413-1 Operations with local community engagement, impact assessments, and development programs
413-2 Operations with significant actual and potential negative impacts on local communities
Health, Safety and Security
GRI 3: Material Topics 2021 3-3 Management of material topics
416-1 Assessment of the health and safety impacts of product and service categories
GRI 416: Customer Health and Safety 2016
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services
Health, Safety and Security
GRI 3: Material Topics 2021 3-3 Management of material topics 194-202
GRI 418: Customer Privacy 2016
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
Stakeholder Experience
GRI 3: Material Topics 2021 3-3 Management of material topics
Abbreviations and Acronyms
AV Autonomous Vehicles MW Megawatt
CEO Chief Executive Officer MWh Megawatt hour
COP Conference of the Parties NEBOSH National Examination Board in Occupational Safety & Health
CORDAP Coral Research & Development Accelerator Platform ODS
Ozone-Depleting Substances
EMS Environmental Management System PADI Professional Association of Diving Instructors
ERM Enterprise Risk Management PIF Public Investment Fund
E&S Environment & Sustainability PPP
ESG Environmental, Social, and Governance PM
Public-Private Partnership
Particulate Matter
ESIA Environmental and Social Impact Assessment RSG Red Sea Global
GDP Gross Domestic Product RSZA Red Sea Zone Authority
GHG Greenhouse Gas SAR Saudi Arabian Riyal
GRESB Global Real Estate Sustainability Benchmark SDG'S United Nations Sustainable Development Goals
GRI Global Reporting Initiative SGI Saudi Green Initiative
GJ Gigajoule SPMS Sustainability Performance Management System
H&S Health and Safety SMC Sustainability Management Committee
HFC Hydrogen Fuel Cell STP Sewage Treatment Plant
HR Human Resources SWRO Sea Water Reverse Osmosis
HRDF Human Resources Development Fund TRIR Total Recordable Injury Rate
HRH His Royal Highness TRS The Red Sea
ISO International Organization for Standardization UN SDG's United Nations Sustainable Development Goals
IUCN International Union for Conservation of Nature USD United States Dollar
KHC Kingdom Holding Company WMG Waste Management Guidelines
KPI Key Performance Indicator
KSA Kingdom of Saudi Arabia
LEED Leadership in Energy and Environmental Design
LTI Lost Time Incident
LTIR Lost Time Incident Rate
MAT Mineral Accretion Technology
MLOF Marine Life Operations Facility
Forward-looking Statements
This Sustainability Report (the “Report”) may contain certain forward-looking statements with respect to our business, operations, assumptions, goals and other possible future situations. These statements generally, but not always, may be identified by the use of words such as “believe”, “expect”, “are expected to”, “intend”, “estimate”, “should”, “strive”, “will”, “may”, “aspire”, “goal”, “will”, “vision”, “aim”, “aspiration”, “mission”, “look”, “ambition”, “commit”, “intend”, “strive”, “target”, “plan”, “ensure”, “must”, “seek”, “pursue”, “toward”, “expect”, “plan”, “estimate”, “objective”, “want” or similar expressions, including variations and the negatives thereof or comparable terminology, are used to identify forward looking statements. These statements include, among other things, statements about expectations, targets and goals in connection with our sustainability initiatives. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied, or projected by, the forward-looking information and statements. We do not intend or assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, since the forward-looking statements are based solely on the circumstances during the reporting period. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Report. Except where noted, the information covered in this Report highlights our performance and initiatives in fiscal year 2023. This Report may contain links to or information from other internet sites. Such links and information are not endorsements of any products or services in such sites and no information in other organizations has been endorsed or approved by us.
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