RSG Sustainability Report 2022
“The Kingdom of Saudi Arabia is moving toward achieving everything that enhances the prosperity of the citizen and the prosperity of the country, its progress, security and stability, and to facilitate the citizen to achieve the various requirements that ensure a decent life, God willing.” Custodian of the Two Holy Mosques King Salman bin Abdulaziz AlSaud
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“Success stories always start with a vision, and the most successful visions are those that build on strengths.” His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz AlSaud
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We are pleased to introduce the third annual Sustainability Report for Red Sea Global (hereinafter referred to as RSG or the Group). This report presents our sustainability ambitions and targets as well as the environmental, social, and governance performance and impacts achieved in 2022. By publicly disclosing our ambitions and targets, we are upholding our values of accountability and transparency as a responsible developer. The report also provides our stakeholders with a comprehensive overview of our activities over the past 12 months as we continue to demonstrate our leadership in the tourism and development sectors. To note, the details captured relate to the operations of RSG, which include The Red Sea and Amaala, unless otherwise indicated. The reporting period corresponds to our financial year, which runs from 1 January to 31 December 2022, unless otherwise stated. The Sustainability Report has been prepared in accordance with the GRI Standards.
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CEO Message - Page 11 2022 Highlights - Page 12 Introduction -Page 20 Prioritizing Good Governance - Page 30 Our Sustainability Approach - Page 34 Environment Impact - Page 56 Social Impact - Page 90 Economic Impact - Page 114 Appendix - Page 128
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“With our first guests set to arrive at The Red Sea this year, this is no time to rest on our laurels. Indeed, my colleagues and I feel an enormous sense of responsibility, every single day.“ John Pagano Group Chief Executive Officer
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CEO Message I remember listening, with real excitement, to His Royal Highness’ first announcement of a new tourism project that would “open the Red Sea gate to the world”. It was back in 2017, when this part of the world remained untouched by tourism, even among seasoned travellers such as me and my family.
Red Sea region. It bridges knowledge gaps left from earlier studies, some of which took place as far back as the 1980s. The new findings are shaping key decisions, for example, in giving us the data to prioritize areas for development or for conservation.
After six transformative years, I am honored to play a role in opening that Red Sea gate. Following vast, collective efforts to deliver destinations that go beyond sustainability, 2023 is the year we will welcome our first guests to The Red Sea.
Alongside our work to protect, preserve, and enhance the planet, we are nurturing the skills and careers of our people. In 2022, we ranked among the Top 50 Inspiring Workplaces in the EMEA region.
Here, we will offer adventures and luxury amid landscapes that are home to some of the world’s most precious flora and fauna.
Building a relationship of trust with our communities is a key theme of this report. Projects launched in 2022 include Souq Amerah, a traditional market for local entrepreneurs in the Umluj governorate to showcase their products and reach a wider customer base. More than 50,000 visitors visited the Souq across 12 events.
Yet, even as we progress with destination delivery, we remain sensitive to our incredible responsibility as a developer in this rich and fragile land. Our responsibility is to develop for both people and planet. We need to move beyond sustainability, by not only preserving but enhancing the environment and local communities in the areas where we operate. We have promised to render The Red Sea and AMAALA as paradigms for the future of regenerative tourism, and nothing is more important than seeing that pledge through. As this report shows, we hit several important milestones in 2022 on the road to achieving this ambition. The Red Sea Landscape Nursery planted more than 200,000 trees, palms, and shrubs over 12 months. The nursery’s important work in enabling native species to thrive goes beyond the Kingdom of Saudi Arabia, helping to enhance precious ecosystems across the globe. We published one of the world’s largest environmental surveys of wildlife ever carried out within the historically understudied
All of this is underpinned by a comprehensive approach to setting new standards for good governance, compliance, and risk management. We earned several accolades for our responsible approach, including our attainment of the prestigious ISO37000:2022 international standard awarded to firms consistently displaying exceptional standards of governance. As a champion of Vision 2030, Red Sea Global is proud to support the vibrant society and thriving economy of Saudi Arabia. We are ambitious about making a strong contribution to the Kingdom’s Saudi Green Initiative, and the results are reflected in this report. I welcome you to explore the following pages to find out more about the positive change we are driving. We hope that the benefits will ripple across the Kingdom of Saudi Arabia and far beyond.
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Highlights
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RSG Sustainability Report 2022
Environment and Social Highlights Over the next few pages, we present some of our key highlights from the past year, which remain critical to the development of RSG’s portfolio:
Environmental and Social
Published findings from a survey we conducted of wildlife in The Red Sea area, one of the world’s largest environmental studies of its kind, setting new standards for responsible tourism.
RSG achieved the ISO14001:2015 Environmental Management System certification.
Raised our GRESB benchmarking score to 94/100 and retained the Green Star Sector Leader Award for the second consecutive year for The Red Sea, while Amaala achieved a score of 79/100 on its first assessment.
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Achieved recognition for the ‘Best Education CSR Programs – Real Estate Investment’ at the International Finance Real Estate Awards 2022.
Established Souq Amerah as a platform for local entrepreneurs to showcase their products and reach a wider customer base.
Partnered with the Saudi Geological Survey to execute advanced geological and paleontological research at our first two destinations, The Red Sea and Amaala.
Won the Energy Globe of Saudi Arabia National Award.
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RSG was ranked among the Top 50 Inspiring Workplaces in EMEA 2022.
The Red Sea Landscape Nursery Company planted more than 200,000 trees, palms, shrubs, ground covers, and other plants.
RSG achieved Platinum LEED certification for The Red Sea’s Turtle Bay villas and townhouses.
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The Turtle Bay Hotel was the first Saudi hospitality brand to be awarded the Green Key Certification for conducting environmentally friendly, sustainable, and responsible business.
Created and supported local job opportunities in the areas of marine operations, landscape nursery, online English for tourism, OSHA training.
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Governance and Economic Highlights
Became the first company in the Kingdom of Saudi Arabia to achieve the prestigious ISO37000:2021 international standard for good governance.
Recognized as ‘Hospitality Company of the Year’ at the Arabian Business Kingdom of Saudi Arabia Excellence Awards.
Achieved the Best New Green Loan Financing Project Award.
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Awarded the Project Finance Deal of the Year in the Capital Markets Saudi Arabia Awards.
Won ‘Project of the Year’ and ‘Smart Project of the Year’ at the Big Projects Middle East Awards.
Won both the BCI Global Award and the BCI Middle East Award for Collaboration in Resilience at the BCI Middle East Awards 2022.
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Added Ritz-Carlton Reserve, Miraval, and Rosewood to our stellar line-up of globally-renowned brands to operate at The Red Sea.
RSG Sustainability Report 2022
Officially opened the longest over-water bridge in the Kingdom of Saudi Arabia – the 3.3km Shura Crossing.
Obtained ISO37301:2021 Compliance Management Systems ISO for both RSG and Amaala – the first companies in the Kingdom of Saudi Arabia to be certified by the British Standards Institute (BSI).
Completed the airside for Red Sea International Airport.
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In 2022, we revealed our new identity as RSG to employees, key stakeholders, and our external audiences. This evolution reflects our growing ambition and expanding remit as a leading developer of responsible tourism destinations along the Kingdom of Saudi Arabia’s western coast. The transformation also demonstrates our global ambitions – to lead an industry-wide shift toward a model of regenerative tourism development at The Red Sea and Amaala while supporting the delivery of Vision 2030 here in the Kingdom. Our project portfolio now includes The Red Sea, Amaala, and more than a dozen new projects up and down the Red Sea coast. We’re creating our own subsidiary businesses – from a sustainable seaplane company to our own diving and adventure firms – to ensure that our ethos of responsibility is embedded throughout our operations, service delivery, and product supply. The evolution demonstrates our tireless commitment to setting new standards for the tourism and development sector and to delivering positive impacts for people and planet, wherever we operate.
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About Red Sea Global
RSG is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia. The Group is a global, multi-project developer, seeking to lead the world toward a more sustainable future and showing how responsible development can uplift communities, drive economies, and enhance the environment. The protection of natural capital is central to all development decisions, as the organization works to create a better future for all. RSG plays a key role in transforming the nation as a cornerstone of the Kingdom of Saudi Arabia’s Vision 2030 ambition to diversify its economy. The Group is committed to creating exciting opportunities for young Saudi talent and the private sector as it develops a broad base of built assets and destinations that have a positive impact on people and planet. RSG is the visionary company behind some of the world’s most ambitious development ventures, including luxury regenerative tourism destinations such as The Red Sea and Amaala. Across its portfolio, RSG leverages the most innovative concepts, strategies, and technologies to deliver projects successfully.
Our Vision
is to become the world’s most responsible developer, by trailblazing new global standards by which built environments become enablers for social and ecological transformation.
Our Mission is to act as agents of change, by partnering with the world’s greatest minds to spearhead new innovations that reimagine the boundaries of our sector and create a better world for people and planet.
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The RSG Manifesto It may seem strange, but RSG’s story wouldn’t have started without the Hawksbill Sea turtle – a critically endangered species which populates the development area of our national projects, The Red Sea and Amaala. Protecting this beautiful creature shaped our philosophy to not only conserve but enhance the local environment so that future generations can enjoy everything our planet has to offer. Putting this philosophy into practice means we don’t see ourselves as just developers but as agents of transformation for a world facing its greatest challenge yet - climate change. While we know that we don’t hold all the answers, we recognize that achieving Net Zero isn’t enough to solve the problem completely. That’s why, from top to bottom, RSG has a radically innovative mindset to solving the environmental challenges we face. It’s in our corporate genes to push the boundaries of what is possible in sustainable development and tourism, and never to be satisfied with incremental gains. We also have local Saudi communities at the front of our minds, with an ambition to create a more prosperous society through our work. We are at the center of building the Kingdom of Saudi Arabia’s tourism industry as part of Vision 2030. This means that for us to succeed, the communities around us must feel empowered, with thousands of employment opportunities and skills to enjoy lifelong careers. By improving people and planet, we hope to change the way the world sees the Kingdom of Saudi Arabia. We hope to reveal the country’s unique beauty and sincere traditions of hospitality to global audiences, while creating some of the world’s most desirable destinations for relaxing, living, and working.
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Our Values Since our conception, we have gone through so much change, but our values have stayed the same and will remain steadfast:
Respect Respect is at the center of everything we do. We treat our workers with respect, regardless of background and perspective. We have a deep respect for the culture, heritage, and natural environment of Saudi Arabia as we develop.
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.
Passion We are passionate about achieving results with excellence, using each day to go beyond what is expected of us. We are passionate about the Kingdom of Saudi Arabia and the opportunity to showcase its unique natural beauty and culture of warm hospitality to the world.
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 achieve our goals together.
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Red Sea Global Project Portfolio An exquisite luxury tourism destination with islands, nature, and culture, setting a new standard of sustainable development and positioning Saudi Arabia on the global tourist map.
We create transformative personal journeys for exceptional communities inspired by arts, wellness, and the purity of the Red Sea.
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Alignment to Vision 2030 Vision 2030 is a bold blueprint intended to build the best future for the Kingdom of 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 diverse and sustainable economy. RSG plays an integral role in supporting each of the three pillars of Vision 2030, and once completed, The Red Sea (TRS) and Amaala aim to achieve:
A Vibrant Society Implement a range of community programs in partnership with national ministries and international entities that empower youth and catalyze positive social change through civic engagement.
A Thriving Economy Directly employ around 60,000 people and support an equivalent number of jobs in the wider community by creating indirect and induced jobs and opportunities for local businesses, entrepreneurs, and supporting industries. Our estimated contribution to the Kingdom of Saudi Arabia’s Gross Domestic Product (GDP) is 65 billion USD during the construction phase and 7.4 billion USD annually in its steady state.
An Ambitious Nation Set new standards in luxury travel and position the Kingdom of Saudi Arabia on the global tourism map by providing unique opportunities to enjoy culture and nature, together with high-quality personalized accommodation and services.
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RSG Value Creation Process
Objectives
Resources
How we create value
Economy & Governance
Financial Capital
Maximize growth and profitability Create opportunities for business in the Kingdom of Saudi Arabia Increase contribution to economic diversification
Manufactured Capital
Create network of trusted partnerships Create seamless and effortless product and service experience
Environment
Developing tourism sector & strengthening the Kingdom's position as a global tourist destination Maximizing GDP contribution Creating a Red Sea Zone Authority supported by required infrastructure and technologies
Create bespoke, exclusive, and memorable visitor journeys
Building unique architectural designs to enhance experiences
Natural Capital
Create Net Positive impact
Protecting the environment and enhancing the ecosystem
Human Capital
Establish attractive working and living conditions
Ensuring skilled, performance-oriented, and collaborative team
Social Capital
Ensure benefits for the community
Empowering local people and culture to be celebrated and advanced
Achieve high stakeholder satisfaction
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Ensuring RSG’s attractiveness for investments (including green investments)
Architectural Capital
Set new standard in sustainability
Social
Outcomes
Manufactured Capital
Increase contribution to economic diversification
destination
Create network of trusted partnerships
Creating a Red Sea Zone Authority supported by required infrastructure and technologies
Create seamless and effortless product and service experience
Objectives
Environment Economy & Governance
Social
Resources Architectural Capital
How create value Createwe bespoke, exclusive,
Natural Capital Financial Capital
Create Net Positive impact Maximize growth and profitability Set new standard in sustainability Create opportunities for business in the Kingdom of Saudi Arabia Establish attractive working and living conditions Increase contribution to economic diversification
Human Capital
Social Capital Manufactured Capital
and memorable visitor journeys
Ensure benefits for the community Create network of trusted partnerships Achieve high stakeholder satisfaction Create seamless and effortless product and service experience
Environment
Outcomes Building unique architectural designs to enhance experiences Protecting the environment Ensuring RSG’s attractiveness and enhancing the for investments (including ecosystem green investments) Developing tourism sector & strengthening the Kingdom's Ensuring skilled, position as a global tourist performance-oriented, destination and collaborative team Maximizing GDP contribution Empowering local people and culture to be Creating a Red Zone celebrated andSea advanced Authority supported by required infrastructure and technologies
Architectural Capital
Create bespoke, exclusive, and memorable visitor journeys
Building unique architectural designs to enhance experiences
Natural Capital
Create Net Positive impact
Protecting the environment and enhancing the ecosystem
Set new standard in sustainability
Social
Maximizing RSG GDPSustainability contribution Report 2022
Human Capital
Establish attractive working and living conditions
Ensuring skilled, performance-oriented, and collaborative team
Social Capital
Ensure benefits for the community
Empowering local people and culture to be celebrated and advanced
Achieve high stakeholder satisfaction
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Prioritizing Good Governance Our Governance Structure
Board of Directors Advisory Board Group Chief Executive Officer
Audit Committee
Subsidiary Governance Committee
Governance, Risk & Compliance
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Nomination & Remuneration Committee
Internal Audit
RSG Sustainability Report 2022
Board of Directors Led by H.R.H. Mohammed bin Salman bin Abdulaziz AlSaud, our Board represents the best talent from the corporate and institutional realms. The 10 Board members are experienced and impressive visionaries, committed to establishing RSG as a forward-thinking leader and contributing to the Kingdom of Saudi Arabia’s Vision 2030. The Board consists of nine non-executive directors and one executive director, who is also the CEO of the Group. The full list of RSG’s Board of Directors is:
H.R.H. Mohammed bin Salman bin Abdulaziz AlSaud Chairman
H.H Prince Badr bin Abdullah bin Mohammad bin Farhan Al Saud
H.E. Dr. Majid bin Abdullah Al-Qassabi
H.E. Mr. Ahmed bin Aqeel Al-Khatib
Board Member
Board Member
Board Member
H.E. Eng. Abdulrahman bin Abdulmohsen Al-Fadley
H.E. Mr. Majed bin Abdullah Al-Hogail
H.E. Mr. Yasir bin Othman Al-Rumayyan
Board Member
Board Member
Board Member
H.E. Dr. Fahad bin Abdullah Toonsi
Eng. Nadhmi bin Abdrab Alnabi Al-Nasr
Board Member and Secretary General
Board Member
Mr. John Pagano Board Member and Group Chief Executive Officer
Appointment of Board Members 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.
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Sustainability Governance Board members are responsible for reviewing and approving RSG’s sustainability-related policies, strategy, governance framework and structure to ensure that they will drive the Company toward the achievement of our sustainability goals. The Board also oversees RSG’s compliance with and adherence to existing sustainability initiatives, ambitions, and reporting standards. Board members remain informed on global sustainability agenda to help shape their views on best practice. No critical concerns were communicated to the Board during the period under review. Further details on RSG’s Advisory Board, Audit Committee, Subsidiary Governance Committee, Nomination and Remuneration Committee and Executive Management can be found in the appendix of this report.
Our Management Committees Six Management Committees drive our business on a day-to-day basis.
Executive Management Committee
Sustainability Management Committee
Supports our Group CEO in exercising oversight responsibility and coordinates our operational and risk activities in line with our corporate strategy.
Reviews and oversees the implementation of our sustainability strategy, Environment and Sustainability Framework, strategic KPIs, targets, programs, and initiatives across our organization, projects, and subsidiaries and keeps the Board apprised of sustainability-related matters of the Group during the quarterly Board meetings. .
Cybersecurity Management Committee Approves and oversees the implementation of our cybersecurity strategy, while making sure it is aligned with our strategic objectives and compliant with the relevant regulations.
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Grievances and Termination Management Committee Reviews, investigates, and recommends a course of action for grievances raised by employees.
Business Resilience Management Committee
Risk Management Committee
Oversees Business Resilience Management responsibilities and acts as a strategic committee in the event of a crisis. This includes sustainabilityrelated emergencies and crises.
Oversees and monitors the strategies, policies, and practices to identify, manage, mitigate, and report our material risks including environmental, social, and governance risks.
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Our Sustainability Approach Our Sustainability Vision: To become a global leader in regenerative tourism and responsible property development by prioritizing people and planet.
Our Sustainability Mission: Our ambition is to go beyond safeguarding the environment to achieve a significant positive impact, taking steps toward defining and delivering a regenerative model of development. We are establishing ourselves as a global sustainability leader by setting examples for others to follow. By integrating sustainability into the life cycle of our projects, we ensure that our business model confidently contributes to the Kingdom of Saudi Arabia’s Vision 2030 and multiple national and international ambitions. Our RSG Sustainability Strategy is the main enabler for delivering our unique ambition to leave a positive and lasting legacy for the world. It emphasizes restoring, renewing, and revitalizing natural and social systems while promoting long-term well-being for both people and planet.
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Our Environment and Sustainability Principles We have developed nine environment and sustainability principles to guide and inspire our stakeholders. These principles serve to not only maintain our environmental and social assets but also to protect them for the future. They apply to all operators, employees, consultants, and contractors who work in the development of our portfolio destinations. We continuously review these principles to make sure they are aligned with key organizational changes.
Water consumption management
Green certification
This principle works toward our goals of near-zero water discharge and compliance against our masterplan commitments and green certification requirements. It ensures that water conservation and efficiency are practiced across all our assets.
As part of our efforts to be transparent and align with leading best practices, we are actively pursuing and achieving green certifications to validate and improve our sustainability performance.
Solid waste management
Greenhouse Gas emission
Our waste hierarchy has been designed to ensure that the least amount of waste is sent to landfill, there is zero discharge to oceans, and we avoid hazardous waste generation. Wherever possible we are developing strategies to reduce single-use plastics and to promote circular processes through recycling and reuse.
We are targeting net-zero emissions for our building assets and company vehicles. In addition to renewable energy, we will also be incorporating low-emission design into our assets and ensuring zero solid waste to landfill during the operation.
Energy efficiency
Socio-environmental governance
As part of our commitment to net-zero emissions over the lifetime of the project, we are targeting becoming 100% powered by renewable energy. For all our assets, we seek to maximize energy efficiency, prioritize reduction in energy use, and design building systems and processes that require low energy. Additionally, our transportation strategy has been geared to maximize the utilization of land and sea electrical carriers.
It is imperative that our operations take place in an environment guided by a transparent, ethical, and fair governance structure. Our Environmental, Social and Governance (ESG) taskforce is responsible for achieving our sustainability targets, due diligence on compliance, alignment with international standards and delivery on investments. As part of this principle, we pursue mutually supportive relationships with our stakeholders.
Stakeholder engagement
Site selection
As a value-driven business, this principle ensures that we continue to engage with our internal and external stakeholders. This involves implementation of a stakeholder management plan, communication, and risk management.
To ensure that our developments have limited negative impacts, we adhere to the precautionary principle and are committed to offsetting any negative impacts on the environment and promoting well-being and community connectivity.
Sustainable procurement Our sustainability commitments also extend to our value chain which includes our consultants and contractors. Through the sustainable procurement principle, we can ensure that our assets are developed in line with our ethical requirements and meet the requirements of our green accreditations and sustainability targets.
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Our Sustainability Management Committee Our governance model ensures that all decision makers have appropriate authority, competence, and resources to assume the responsibilities assigned to them. Our sustainability performance is governed by a multi-disciplinary and inter-divisional Sustainability Management Committee (SMC). It is responsible for overseeing, reviewing, approving, and endorsing the implementation and performance of Environmental, Social, and Governance initiatives across RSG, its projects, and subsidiaries. The SMC sets the tone from the top and demonstrates the unwavering commitment across all management levels to drive greater efficiencies and improve outcomes. Chaired by our Group CEO, our SMC comprises members from RSG’s Executive Management. The SMC assumes many roles, and responsibilities and convenes at least once annually. For example, it oversees RSG’s sustainability policies, gives divisional authority for the effective implementation of the sustainability strategy, and monitors sustainabilityrelated issues and trends that could impact Company operations and performance.
Sustainability Management Committee Members
John Pagano
Ahmad Ghazi Darwish
Ian Williamson
Group Chief Executive Officer
Group Chief Administrative Officer
Group Chief Projects Delivery Officer
Nicholas King
Dr. Maryam Ali Ficociello
Douglas Ludwig
Group Chief Development Officer
Group Chief Governance Officer
Group Chief Financial Officer
Gregory Djerejian
Tracy Lanza
Tim Williams
Group Head of Investments and Legal
Group Head of Marketing & Communication
Head of People Strategy and Culture
Ben Edwards
Raed Albasseet
Dr. Omar Al-Attas
Group Head of Cost, Commercial & Procurement
Group Chief Environment & Sustainability Officer
RSZA Head of Environmental Protection & Regeneration
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Integrating Environmental Management Systems Our Environment and Sustainability Division (E&S) has developed a framework for integrating environmental management systems across the organization. This tiered approach has provided the basis for translation and alignment of values and vision across all functional levels of RSG operations. The cascading tiers facilitate progressively specific outcomes at corporate then project levels, accounting for initiatives that drive excellence, corporate standardization, integration of legal requirements, and integration of bespoke project controls within a support-oriented, compliance-focused framework.
The tiered approach embeds best international industry practice (such as ISO14001:2015 Environmental Management System) and goes beyond, by embedding excellence as a continual improvement mandate into our standard operational functionality. The framework will also generate a series of plans and guidelines to manage the potential environmental, social, and other sustainability impacts of certain activities or necessary processes across RSG.
ISO14001:2015 Environmental Management
System
In January 2022, Red Sea Global gained the Environmental Management Standard, ISO14001:2015 accreditation. The company-wide rollout of the Environmental M a n a ge m e nt S y s te m (EMS) the previous year had supported the company’s bid to achieve this certification. Annual maintenance audits are scheduled for the subsequent two years, and a recertification of the E&S Management System to ISO14001:2015 will take place in 2024.
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Green Office Program Our Green Office (GO) program is a key part of our overall ISO14001:2015 certified Environmental Management System (EMS) which aims to embed sustainability values into everyday office activities. RSG’s Green Office Charter is aligned with our Environment and Sustainability Principles. The Charter’s purpose is to foster and instill a culture of sustainability in our corporate offices, which cascades down to our project activities.
Our GO Program has six focus areas:
The associated initiatives ensure that the values and principles of our ES Policy are embodied in all our corporate office activities, helping us minimize any adverse impacts. To institutionalize our GO Program, we have appointed GO Champions across the organization who act as a division representative for GO requirements, initiatives, and reporting.
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Sustainability Performance In our pursuit of advancing regenerative tourism and achieving Net Zero goals, we took significant strides in 2022 to upgrade our Sustainability Performance Management System (SPMS). By adding new features and expanding the monitoring scope, we now benefit from enhanced data consistency and a more comprehensive representation of our operations.
About SPMS The SPMS process involves data collection, validation, analysis, and reporting, enabling us to make data-driven decisions. With the aid of data visualization through interactive dashboards, we gain valuable insights into our performance, empowering us to proactively address sustainability challenges. The SPMS reinforces our steadfast commitment to driving positive change and pioneering sustainability in the Red Sea.
Data Collection and Diversification In 2022, we continued to expand our data collection efforts across five critical sustainability categories: water, energy, emissions, waste, and social sphere. We widened the data sourcing scope to capture construction operations as well as activities from relevant corporate divisions, fostering a wider understanding of our sustainability performance. We diversified our data sources involving 10 divisions, incorporating insights from a wider range of data providers covering all active projects across TRS and Amaala destinations.
SPMS Process Data Collection
Data Processing
Construction Operations
Data Analysis & KPI Insights
Corporate
Data Communication Internal Stakeholders External Stakeholders
Data Management and Reporting Our communication with data providers has improved, ensuring reliable and comprehensive sustainability reporting across the organization. This has enriched the quality and depth of our sustainability data. Through meticulous data analysis, encompassing various metrics, we discern specific areas for enhancement, enabling us to direct our efforts effectively toward achieving our sustainability goals and targets. We will continue to upgrade and automate our data management system to support monitoring, reporting, and verification. The migration of the system to a digital platform will improve enhanced collection, analysis, and visualization. The new system will provide real-time insights, empowering RSG to make prompt data-driven decisions using interactive dashboards and alarms.
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Environmental Compliance RSG takes environmental compliance very seriously. We have a dynamic team of environmental inspectors whose job is to monitor our construction activities and contractors to ensure compliance with environmental laws and regulations as well as our RSG environment and sustainability principles. In October 2021, RSG initiated an intensive environmental inspection program to assess the performance of contractors and operators against their social and environmental management plan requirements. The average score increased from 70% across all assets in 2021 to 79% in 2022, despite the increase in the number of contractors and work activities. This is primarily attributed to our robust training and awareness program. At RSG, environmental incidents are events that cause or had the potential to cause harm to the environment and its functional areas. Examples include but are not limited to injuries to flora and fauna, regulatory violations, and hazardous chemical spills. These incidents typically affect environmental receptors including air, water, land, or local habitats. Incidents are reported and tracked according to five categories: near miss, minor, moderate, major, and critical. Across our destinations, we track violations in pollutant levels or departures from normal operating procedures that last for more than one hour. The number of such incidents increased from 43 in 2021 to 118 in 2022. Despite this increase, the Incidents Frequency Rate (IFR) decreased during this same period from 0.406 in 2021 to 0.361 in 2022. The incidence rate is calculated using the formula defined by OSHA 1904.29; Recording and Reporting.1 We treat the ecosystem the same way we treat people; in our analysis, injuries apply to natural organisms and species. We are proud to report that all the recorded incidents were minor with no regulatory breaches. There was no ecological damage through these minor incidents, and all resolutions occurred within the defined periods. 1
= Incidence rate = (Number of injuries and illnesses X 200,000) / Employee hours worked
Prevention through training As early as January 2022, we started rolling out a robust training program that reached more than 31,000 individuals who received training across relevant environmental and social categories. Our tiered training program targeted supervision consultants and contractors’ environmental teams, who in turn provided training to the workforce. For example, the entire workforce received training on critical works such as how to install and replace silt curtains, and how to implement tree relocation protocols.
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Our Sustainability Strategy Framework In 2022, RSG produced its first Sustainability Strategy Framework, which was approved by the SMC in December 2022. It was an important milestone in our journey toward regenerative tourism and Net Zero. To produce this framework, we conducted a gap analysis and benchmarking exercise targeting more than a dozen international standards and guidelines and nine global organizations* with leading sustainability practices. We engaged with all the divisions across the organization and held 46 workshops. This benchmarking exercise and stakeholder engagement process resulted in 10 material topics and 29 sub-topics. The RSG Sustainability Strategy will be finalized in 2023, including the validation of strategy goals and KPIs (including cross-functional KPIs), and the formulation of road maps to enable strategy implementation, monitoring, and future reporting. Standards and guidelines considered included Saudi Arabia’s Vision for 2030, Saudi Green Initiative, UN SDG’s, GRI, TCFD, GRESB, SASB, UNWTO, and IFC among others.
*
The organic evolution of the RSG Sustainability Strategy:
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10
1 2
9 3 8
4 7
5 6
Strategic Pillars
Material Topics
Strategic Pillars
Material Topics
Sub-topics
Material Topics
Sub-topics
Strategic Pillars
1.
8.
• Biodiversity & Habitat
5. • Diversity, Equity and Inclusion
• Site selection & Land Use
• Saudization
2.
• Green Finance
• Purpose in the Workplace
• GHG Emissions
• Training and Education
• Partnerships, Research & Innovation
• Green Mobility
6.
• GDP & Employment contribution
• Socio Economic Empowerment
9.
• Energy
• Community Outreach
• Stakeholder Relations and Satisfaction
• Water & Effluent
• Cultural Engagement
• Brand Communication
• Waste & Circularity
• Social Impact and Planning
• Sustainable Procurement
7.
10.
• Privacy and Security
• Ethical and Responsible Behavior
• Green Design, Construction & Operation
• Health and Safety
• Risk, Resilience and Compliance
• Culture and Heritage
• Worker Welfare
• Effective Performance & Decisionmaking (EPDM)
3.
4.
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Engaging with Our Key Stakeholders Our stakeholders are organizations or individuals who have a certain interest in or expectation of our organization, whose decisions influence our organization, or who are influenced by ours. We value their opinions and perspectives and will continue to engage with them to achieve our goals for people and planet. In 2023, our engagements will increasingly focus on hotel operators and visitors.
Our key stakeholders Type of stakeholder
Method of engagement
Why we engage
Internal Shareholders
Employees
Corporate website
Internal communication and portal
General assembly
Internal awareness material
Corporate reporting
Training programs
Access to capital
Improve productivity
Satisfy investor needs
Drive business objectives Motivation and engagement
Expectation of stakeholder
Delivering growth and return on investment Job security Skill development Career growth
Type of stakeholder
External Operators
Financial Institutions
NGOs and Universities
Design and Architecture firms
Governmental Entities and Regulators
Method of engagement
One-on-one meetings
One-on-one meetings
Direct engagement with NGOs
Site visits and tours
Consultation with regulators and Government entities
Site visits and tours
Corporate reporting
Specialist conferences and discussions
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Participation in Specialist key international conferences events and discussions Student events and enrichment activities Collaboration with education and research institutions
RSG Sustainability Report 2022
Type of stakeholder
External Operators
Financial Institutions
NGOs and Universities
Design and Architecture firms
Governmental Entities and Regulators
Why we engage
Understand requirements
Secure financing
Talent development and knowledge sharing
Innovation and better product and service offering
Understand regulatory requirements
Expectation of stakeholder
Properties for business expansion
Return on funding
Mutually beneficial relationships
Opportunities for business
Complying with regulatory requirements
Type of stakeholder
External Supply Chain
Method of engagement One-on-one meetings
Why we engage
Expectation of stakeholder
Communicate requirements
Business opportunities
Local Municipalities
Other National Projects
Local Communities and Businesses
Participation in conferences and discussions
Participation in external congresses and forums
Active engagement of local community in project areas Social media and press releases
Understand Alignment with requirements related other national to operations projects
Understand challenges
Complying with requirements
Positive impact on community
Mutually beneficial relationships
Build mutually beneficial relationship
Responsible business
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Materiality Assessment Process Building on and enhancing the 2020 materiality assessment, we have conducted a series of internal stakeholder workshops with all divisions. This included a benchmarking exercise to validate the material topics that had previously been identified. The recent management review enabled RSG to further define and group the previously identified material topics into categories, that have a similar impact. The link between the GRI topics disclosed in our previous reports and the ways in which it now translates into the current corresponding material topics is indicated in the diagram below. We will continue to undertake new materiality assessments when required to ensure that the topics we have identified remain relevant to RSG’s operations.
Aligning with the SDGs Our 10 material topics contribute to all 17 UN Sustainable Development Goals:
Our Material Topics
Relevant UN SDG(s)
GRI Standards
Natural Capital GRI 304: Biodiversity 2016
Climate Change
GRI 305: Emissions 2016 GRI 302: Energy 2016
Resource Management Destination Development Human Capital Development Social Risk Management & Development Health Safety & Security
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GRI 302: Energy 2016 GRI 303: Water and Effluents 2018
GRI 308: Supplier Environmental Assessment 2016 GRI 306: Waste 2020
GRI 302: Energy 2016 GRI 303: Water and Effluents 2018 GRI 401: Employment 2016 GRI 402: Labor/ Management Relations 2016 GRI 404: Training and Education 2016
GRI 405: Diversity and Equal Opportunity 2016 GRI 202: Market Presence 2016 GRI 409: Forced or Compulsory Labor 2016 GRI 413: Local Communities 2016
GRI 405: Diversity and Equal Opportunity 2016 GRI 202: Market Presence 2016 GRI 403: Occupational GRI 203: Indirect Health and Safety 2018 Economic Impacts 2016 GRI 416: Customer Health and Safety 2016 GRI 418: Customer Privacy 2016
Economic Contribution
GRI 201: Economic Performance 2016 GRI 202: Market Presence 2016
Stakeholder Experience
GRI 2-29 Approach to Stakeholder Engagement 2021
Governance Excellence
GRI 205: Anti-corruption 2016 GRI 206: Anti-competitive Behavior 2016 GRI 406: Non-discrimination 2016
RSG Sustainability Report 2022
“As we progress into the operational stage, the requirements for GRC are becoming increasingly complex and demanding. We are continuing to build on the high standards we have already set, as evidenced by our ISO certifications – making us one of the first companies in the Kingdom of Saudi Arabia to qualify” Dr. Maryam Ficociello
37000
31000
37301
22301
ISO37000:2021
ISO31000:2018
ISO37301:2021
ISO22301:2019
Governance of organizations
Risk management
Compliance management systems
Security and resilience — Business continuity management systems
We continuously review and monitor our approaches to Governance, Risk and Compliance (GRC) practices. The delivery of our projects is guided by an integrated GRC Framework, which gives us enhanced governance oversight and heightened visibility of risks and uncertainties, while ensuring compliance with applicable rules and regulations. Our laser-like focus on Governance, Risk and Compliance is an integral part of our commitment to setting new standards across the industry, reinforcing our position as a visionary leader in responsible development. By continually reviewing our practices and adjusting where necessary, we can ensure a consistent degree of reliability, integrity, and readiness to address uncertainties across our project portfolio. Furthermore, we are working to ensure that our industry-leading GRC practices are replicated across all of our subsidiaries, with all entities within the RSG ecosystem effectively managed through a unified governance approach. In 2022, the Governance Department undertook a comprehensive review of our Internal Control Toolkit in line with the COSO standard, with a view to developing a guide to best practice for other organizations in the Kingdom of Saudi Arabia. This toolkit contains governance procedures that any business can roll out with relative ease, empowering them to benefit from RSG’s ethos of radical innovation when it comes to the “G” in ESG. We reviewed and updated the toolkit to ensure it remained suited to the maturity of our portfolio, as well as the changing needs of our organization as we completed our evolution into a globally minded multi-project developer.
ISO37000:2021 Certification In 2022, RSG was certified as being complaint with ISO37000:2021 by the prestigious BSI, which provides principles and key aspects of practices to guide governing bodies and groups. Stemming from RSG’s commitment to good governance, RSG was the Kingdom of Saudi Arabia’s first company to obtain the ISO37000:2021 certification and was among the first 10 to get certified in the GCC region.
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Managing our Risks Risk management has remained an integral part of RSG’s culture over the last year. It continues to support our objectives, enables risk-based decision making, and has been statistically proven to support project success. The Risk Management Department regularly identifies, assesses, and facilitates the management of both internal and external risks and uncertainties in meeting RSG’s objectives. ESG and economic risk management are at the heart of what we do, in line with RSG’s determination to be a responsible developer and achieve a positive impact on the environment, society and economy. Starting from our Board-approved ‘risk appetite’, we have identified the risk boundaries for our environmental and social commitments. As we conduct frequent risk assessments across the various levels of our Group, we have a solid understanding of our material sustainability topics. Building on this knowledge, we have developed and implemented mitigation strategies to address relevant threats and ensure the effective execution of the identified mitigations.
Resilient RSG A fully integrated partner that enables business resilience and risk-based decision-making for RSG management to proactively prevent, reduce, respond, and recover from any adverse events while enhancing the risk & resilience culture and supporting effective governance.
Governance
Technology
People & Culture
• Risk Appetite
• E-GRC
• Risk Management Policy
• Destination Unified Command Center
• Risk & Resilience Team Professional Development
• Resilience Policy
• Crises Control
• Risk & Resilience Operating Model
• Quantitative Analysis
• Organizational Structure & Job Descriptions
• Risk & Resilience Champions Training • Executive and Employee Risk & Resilience Awareness • Risk & Resilience Culture Surveys
Enterprise Risk Management
Resilience Management
• Enterprise Risk Management
• Crisis Management
- Corporate Risk Management - Projects (Development & Delivery) Risk Management - Operations Risk Management
• Business Continuity Management • Emergency Management • Destination Resilience
• Environment, Social, Governance (ESG) and Economic Risk Management
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ISO31000:2018 Re-Certification During 2022, RSG was re-certified as compliant with ISO31000:2018 by BSI, due to RSG’s risk management processes for enterprises and projects management being both up to date and aligned with international best practices.
Managing Our Sustainability-Related Risks
Environmental Risks
Health and Safety Risks
Cyber, Technology, and Data Risks
Managing our Environmental Risks We have assigned environmental risk leaders across the business to ensure that our enterprise risk management framework is effectively deployed in all departments. These leaders are responsible for regular risk assessment exercises, which are recorded in risk and compliance registers
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Potential Enterprise Risks Increased environmental pollution within the project site
Degraded quality of water within the region, resulting in biodiversity loss and reduced appeal to consumers
Inappropriate calculation of water demand levels
Potential for damage to known archaeological sites
Deteriorated air quality
Our Identified Environmental Sustainability Management Risks Limited environmental and social governance stewardship and monitoring capability
Delay or failure to set effective sustainability standards
The design of the project will alter permanently the existing landscape character
Potential of permanent disruption/damage to biodiversity of site
Climate change in RSG sites impacting the value proposition
Managing our health and safety risks Health and safety risks are embedded into our enterprise risk management framework and cover both corporate and project sites. With our Board of Directors, we have captured our organization’s risk appetite on health and safety and developed ‘Key Risks Indicators’ that help us monitor potential risk exposure and provide us with early signs to prevent and mitigate issues in a timely manner. Moreover, our health and safety risk assessments are vital to enable us to continuously identify potential hazards for injury or ill-health, evaluate their likelihood given our current safeguards, and make informed decisions on whether our safeguarding measures need to be strengthened.
Managing cyber, technology and data risks Information systems and technology are used across the business at corporate offices, on sites, and at destinations. We are aware that this creates vulnerabilities, which we proactively identify and address to ensure data confidentiality, integrity, and availability. Our ambition to be a smart destination goes hand in hand with our zero-tolerance policy toward any risk arising from cyber penetration, attack, or data leakage. To guarantee data protection, we protect our data environment with data-loss protection and cyber-risk assessments, which are integral to our risk management strategy and data security efforts. We conduct quarterly cybersecurity risk assessments to better identify, control, and mitigate all types of cyber risk, such as ransomware, data leaks, phishing, malware, insider threats, and cyberattacks. We are also establishing a culture of cybersecurity awareness across the organization with Group-wide campaigns to educate every employee on their role in protecting data, to enable them to proactively identify and report on suspicious emails and links.
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Building a resilient organization In the evolution of RSG, the business resilience program aims to benchmark against global best practices. With our recent certification against the internationally recognized ISO22301:2019 standard, our coverage of threats and preparedness against disasters can now be considered industry-leading. As the Kingdom of Saudi Arabia’s first national project to be certified in this regard, our certification outcomes are a testament to our consistent efforts in maintaining the resilience program’s effectiveness. 2022 saw the resilience program recognized by the Business Continuity Institute, the largest network of risk and resilience professionals worldwide. RSG won both the Middle East and the Global awards for Collaboration in Resilience, which showcased how various departments and stakeholders worked together to build a robust program in crisis management and business continuity. 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 pollution, 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 Sustainability section of this report.
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Compliance We have embedded compliance into RSG’s activities, functions, and processes to ensure that the responses to compliance obligations remain current and dynamic. In 2022, we continued to make investments in our compliance infrastructure, including monitoring and reporting tools, people, and training, to develop and strengthen our culture and control of the compliance risks across RSG.
ISO37301:2021 Certification Alignment of RSG’s compliance management program with leading best practices enabled RSG to achieve the ISO37301:2021 Compliance Management System in 2022, with zero non-conformities awarded by BSI. Receiving the certification was a testament to the strength of RSG’s compliance management system and our excellent commitment to policies, procedures, applicable legal and regulatory requirements, and documented management system.
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Safeguarding Ethics and Integrity Ethical conduct, personal and business integrity, and legal and regulatory compliance are core elements of good governance. They help to ensure that we stay true to our corporate principles and culture and place an expectation on us as a business to always do the right thing and in all circumstances. Compliance and ethics are embedded into our activities, functions, and processes to ensure that our responses to compliance obligations remain current and dynamic. Our policy is to be transparent in our compliance management process, both internally and externally. We aim to create awareness and understanding of our compliance culture and go beyond compliance with laws and regulations. We proactively promote a culture of ethics and integrity where all employees are aware of our guiding values and adopt the right behaviors. There are multiple policies around key areas of focus, including but not limited to: • Anti-bribery and Corruption • Code of Conduct • Confidentiality • Conflict of Interest • Gifts and Hospitality • Related Party Transactions • Supplier Code of Conduct • Transparency and Disclosure • Whistleblowing Our core corporate governance policies, developed by the GRC Division, are regularly reviewed and approved by the Board of Directors. Our Code of Conduct encompasses all of the policies mentioned above, and all employees must read it, sign it, and declare that they will abide by the Code on an annual basis. Our Group Chief Governance Officer maintains oversight and responsibility over disclosures, and through our Compliance Department, all necessary disclosures are raised with our Board (where applicable) and the relevant regulatory bodies. All RSG employees receive training on topics such as code of conduct, confidentiality, related-party transactions, and whistleblowing, which form part of the employee induction process, as well as annual refreshers to create a culture of continuous awareness on compliance.
Avoiding, disclosing, and managing conflicts of interest Our Conflict of Interest policy outlines the guidelines required to avoid, prevent, and manage conflicts of interest, and ensure that accountability and transparency are the norm in our Company culture. The policy is far-reaching across the organization – applying to Board members, committee members, executive management, employees, consultants, contractors, seconded staff, and any other persons associated with our organization at Group or subsidiary level. The policy stipulates that all concerned persons are required to act responsibly and respectably and to remain free of influences that may result in the loss of objectivity regarding business conducted with our organization or its stakeholders. All employees are required to complete and submit a Conflict of Interest disclosure form on an annual basis.
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Our Supplier Code of Conduct Our suppliers must reflect our ethics, integrity, and compliance culture. We have developed a comprehensive Supplier Code of Conduct around legal and ethical standards that all suppliers are expected to adhere to which details policies around multiple areas of ethical risk. In particular it provides information on how to avoid, recognize, and deal with ethical issues, including reporting cases of unethical conduct to our organization in line with our whistleblowing policy. 100% of our supplier contracts include an anti-corruption clause:
Our Supplier Code of Conduct Covers the Following: •
Human Rights
•
Conflict of Interest
•
No Forced or Child Labor
•
Safe & Healthy Workplace
•
Diversity & Inclusion
•
Corporate Social Responsibility
•
Anti-harassment
•
Ethical Business Practices
•
Wages and Hours
•
Gifts and Business Courtesies
•
Business Integrity
•
Intellectual Property and Confidentiality
•
Fraud
•
Ethical and Anti-counterfeit Sourcing
•
Fair Competition Laws
•
Environment, Health, Safety, & Security Practices
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Combatting unethical and unlawful behavior An open door policy
Our online whistleblowing platform
All employees are responsible for reporting and are encouraged to report issues related to ethics and integrity. They are responsible for reporting and are encouraged to report any concerns about unethical or unlawful behavior to their line manager, the Internal Audit Division or the GRC Division. Our whistleblowing policy details when and how to report suspected instances, and our Internal Audit Division investigates reported matters alongside other departments if relevant on a case-by case basis.
• Available in English and Arabic • Accessible 24/7 • Anonymous channel • Available to employees and non-employees
27 whistleblowing cases were received in 2022
Listening to our stakeholders’ concerns External stakeholders are extremely important to us. We have proactively created a platform for them to contact us with any concerns so that we can address them quickly and effectively. This is why we have created an external grievance management procedure which details how grievances will be received, managed, and resolved.
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Our External Affairs and Government Relations (EA&GR) Department is responsible for managing the external grievance management procedure. The team receives and processes all grievances from the local community and follows up with the internal teams involved to ensure that every issue is investigated and resolved. They are primarily responsible for maintaining our external grievance register and processing forms which help us to establish a documented, traceable, and auditable process. Given that our Social Development Department regularly engages with the local community, they also receive some of the grievances. They monitor the external grievance management procedure and support the EA&GR Department in finding successful resolutions to avoid the recurrence of similar issues.
Closed Submissions
100% were investigated
Dismissed Submissions
16
Under Assessment Submissions
RSG is in the process of developing an application (app) with the objective of establishing a two-way communication channel between RSG and the local communities. This is expected to further strengthen the external grievance and suggestions process in place while also building on the process of communicating opportunities available to the local communities thereby fostering relationships with local communities.
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The biological diversity in the Red Sea is rich and unique. Our destinations comprise many different habitats and species which together bring invaluable benefits to the Kingdom of Saudi Arabia and to our regenerative tourism model. Important coastal habitats include corals, mangroves, sandy beaches, mudflats, and sabkhas. Important terrestrial habitats include species-diverse wadis (including granite massifs), shifting barchan dunes, and Acacia-rich plains. Our ESG model is intimately linked to the health and vitality of these habitats and related ecosystems for generations to come.
Sabkha
Mudflats
Sandy Beaches
Mangroves
Corals
Overview of Important Red Sea Coastal Habitats
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Development activities will inevitably impact the natural capital. RSG has therefore developed a very effective process for avoiding, identifying, and mitigating potential impacts from our destination activities. This phased approach is rigorous and embedded in our environmental management system.
Phase 1
Phase 2
Phase 3
Concept Masterplan Development
Environmental & Social Impact Assessment
Environmental Management Plans
Integrated Master planning Steps:
VDA Application
Mitigate Residual Impacts
Review of the Masterplan done with considerations of the Value Driven Approach. In 2022, RSG completed 22 ESIAs for The Red Sea and five ESIAs for Amaala. These studies address a range of social and environmental issues including biodiversity, ecosystem connectivity, and socio-economic provisions. They provide a solid foundation for environmental management planning and impact mitigation.
Residual impacts, if any, must be mitigated following the mitigation hierarchy.
• Geographic Focus • Identify, Prioritize, & Select Sites • Identify, Design, & Select Interventions
Additionally, we have embraced a mitigation hierarchy to support our master-planning and ESIA process. Avoidance sits at the top of the inverted mitigation pyramid, while offset is effectively our last resort.
Avoid
Minimize
Decreasing Preference
Avoiding impacts by looking for alternative designs, locations, methods for development where impacts will be less severe.
Minimizing our impacts at the chosen development site that are not avoidable.
Rescue
Relocate or translocate species to protect and rescue them from development activities.
Enhance
Enhance degraded or removed ecosystems following exposure to impacts that cannot be completely avoided or minimized.
Offset
Compensate for any residual, adverse impacts after full implementation of the previous four steps.
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Red Sea Landscape Nursery During the year the Red Sea Landscape Nursery which spreads across one million square meters continued its efforts by planting more than 200,000 trees, palms, and shrubs contributing to biodiversity and alignment with the SGI. The plants grown in the Landscape Nursery are predominantly native species, which are fully adapted to the climate and conditions around the destination.
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Biodiversity & Habitats As part of our Biodiversity Action Plan, it is important to focus our initiative and efforts on priority species - species which provide significant biological and cultural value to people and nature. We therefore continue to monitor, protect, and enhance the habitats for a selection of priority species, including birds, turtles, mangroves, and corals.
Birds Management Overview We prepared a Birds Management Overview that outlines the steps, resources, and timeline required to conserve native bird species and protect and enhance their habitat. In 2022, tremendous groundwork was conducted targeting the Osprey and the Sooty falcon.
Conservation
Restoration
Enhancement
Protect birds and their habitat from external threats, ongoing development, human activities (mainland and islands).
Return an ecosystem to its original structure. Mitigation actions will avoid, minimize, or remedy direct impacts of development.
Improve the current state of birds in terms of their nesting, foraging, and populations
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The Osprey Census
The Sooty Falcon
We conducted an Osprey monitoring and habitat use assessment, targeting 92 islands plus Amaala. The census checked 357 nests and identified 84-96 breeding pairs. GPS tagging was performed on three juveniles and five adults, and 89 Osprey chicks were ringed. Several Osprey platforms were erected around the Al Wajh lagoon and will be monitored in 2023.
We completed an assessment of the Sooty falcon (and seabirds) targeting 92 islands. Telemetry was conducted for flight tracking, and breeding attempts were monitored using Live-Cam.
RSG Sustainability Report 2022
Corals Management Overview The rich biodiversity and marine sanctuary of the Red Sea coast contain important coral systems that must be safeguarded. Working in collaboration with local stakeholders, the Coral Management Overview acts as our blueprint for conserving, restoring, and enhancing coral reefs with outlined steps, resources, and timelines. Safeguarding our coral reefs ensures that their health is improved while generating benefits for local communities by protecting this crucial resource. The Coral Management Overview aims for:
Conservation
Restoration
Enhancement
Protect coral reefs from further degradation and preserve them for future generations.
Repair damaged or degraded coral reefs.
Improve the growth, survival, and resilience of existing coral reefs or create new ones.
Baseline Assessment
Identifying Preferred Artificial Substrates
We completed the Coral Reef and Environmental Baseline Assessments covering 20% of all corals across the Al Wajih lagoon. Our large floating coral nurseries provide us with the means to measure coral growth rate assessments as well as oversee a sustainable coral source stock.
Using advanced surveys and the latest technology, we were able to identify preferred artificial substrates, depending on location and reef-building goals, thereby maximizing the value of relocation corals.
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Mangroves Management Overview We completed the baseline foundational work for the management of mangrove habitats. Working closely with other stakeholders, we developed a comprehensive Mangrove Management Overview that is based on three intervention pillars: Conservation, Restoration, and Enhancement.
Conservation
Restoration
Enhancement
Protect existing mangrove forests from human-induced threats.
Restore impacted mangrove forests and deal with development impacts and required compensatory actions.
Active measures to increase mangrove cover or create new mangrove habitat.
Compensation Requirements
Site Selection for Nurseries
Candidate Plantation Sites
We made a preliminary estimate of the compensation requirements for mangrove plantations, according to which 1 million mangroves would be needed to offset habitat damage and loss due to development (equivalent to 100ha).
We then selected potential sites for large-scale nurseries in coordination with the National Center for Vegetation Coverage, and based on hydrodynamic conditions.
We identified candidate plantation sites across the southern islands according to hydrodynamic parameters, water quality, and sediment conditions. Nursery operations will commence in 2023.
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Turtle Management Overview An effective marine conservation blueprint requires a comprehensive plan dedicated to turtles outlining the steps required to conserve, protect, rescue, and restore turtle populations in the Red Sea. The Green and Hawksbill marine turtles play a pivotal role in maintaining a healthy and balanced ecosystem in the Red Sea and across our project areas. Protecting and enhancing nesting beaches for the annual return of sea turtles is fundamental to our work at RSG. Sea turtles are important for both marine and terrestrial ecosystems, as well as for human culture and economy. They fill various roles as prey consumer, competitor, and host in the ocean food web. They also help stabilize sand dunes, maintain sea grasslands, transfer nutrients and energy, and modify the physical structure of the marine habitats. Turtles are simply amazing creatures, loved by nature seekers and tourists.
Conservation
Restoration
Enhancement
Manage habitats to improve sea turtle population outcomes, and build the information base needed for visitor, spatial, and light management.
Respond to or mitigate immediate threats to sea turtle well-being and recruitment success.
Restore, improve, or expand key habitats, including high-density nesting beaches.
Turtle Nesting Assessment and Tagging Pilot
Rehabilitation of Turtles with Floating Syndrome
Enhancement and Debris Removal
We tagged 40 turtles to track the movement and welfare of rehabilitated and released turtles. The assessment is helping us fill information gaps on habitat use of Hawksbill turtles and generates fundamental information on sea-turtle nesting (temperature, duration, and hatching success).
We developed a temporary facility to provide basic rehabilitation care for sea turtles, in collaboration with NCW Fakieh Aquarium. The facility will improve our capacity to respond to turtle events in distress.
We restored and enhanced nesting turtle habitat by removing waste generated from human activities from priority beaches on Breem, and by installing natural barriers on the island to reduce the incidence of turtles falling off the cliff edge and overturning.
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Terrestrial Management Overview The Terrestrial Management Overview presents conservation and restoration land management practices for our biodiversity ecosystems. Our habitat communities present terrestrial ecosystems comprised of living and non-living organisms that we are committed to protect. To ensure that we are promoting biodiversity and protecting wildlife, our spatial planning foundational work identified areas for protection, restoration, and enhancement. Additionally, the Environmental and Social Impact Assessments continue to provide valuable insights for identifying risks and mitigations. Those in turn help outline specific actions for conservation as laid out in our Biodiversity Action Plan. Terrestrial Management Overview aims to:
Conservation
Restoration
Enhancement
Preserve and protect terrestrial native biodiversity.
Restore degraded ecosystems.
Enhance biodiversity and ecosystem services.
We implemented diverse activities such as a spatial terrestrial habitat assessment (left column images) and an ecological restoration pilot in Wadi Khuf (right column images).
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Site Selection and Land Use
Marine Spatial Planning as a Decision-Making Tool As part of our commitment to achieving a net positive impact on the natural capital, RSG conducted a comprehensive Marine Spatial Planning (MSP) exercise for The Red Sea southern islands. This exercise enables RSG to optimize conservation benefits while developing sustainable tourism assets. The study formed a policy framework to optimize the allocation of marine space and identify set-aside islands where development is prohibited so as to avoid negative interactions and allow for habitat enhancement. The MSP process ensures that the spatial and temporal distribution of RSG development activities in The Red Sea southern islands achieve ecological, economic, and social objectives. The MSP will provide a blueprint for RSG in the development and sustainable use of biodiversity resources and ecosystems by providing a comprehensive overview and general understanding of these islands. It enables us to take a coordinated approach allocating marine spaces for tourism and residential and real estate development activities, while simultaneously achieving environmental, economic, development, and social goals.
What is Marine Spatial Planning? UNESCO broadly defines Marine Spatial Planning as a “public process of analyzing and allocating the spatial and temporal distribution of human activities in marine areas to achieve ecological, economic, and social objectives that usually have been specified through a political/consultative process. Characteristics of MSP include ecosystem-based, area-based, integrated, adaptive, strategic, and participatory”.
Design-Based Protection and Offsets On the developed islands, our E&S and Design teams work closely together to ensure that further offsets, modifications, or repositioning of the masterplan are implemented after we identify the sensitive habitats. This approach ensures that our developments mitigate any possible disturbance to the existing habitat. These protection efforts will be communicated to future guests, as part of the overall guest experience.
A Design Based Protection Example: Quman Island A valuable example would be Quman Island. Through baseline assessment, it was noted that Quman Island is not like any other island. This pristine island offers dense and healthy mangroves, corals, turtle nesting areas and seagrass that serve as a feeding trail for turtles and dugongs. The Sooty falcon, a near-threatened species on the IUCN Red List, was observed in multiple locations within Quman’s ancient coral cavities. To ensure the protection and enhancement of sensitive habitats and species, RSG decided to earmark almost 50% of the island for long-term protection and enhancement. The final masterplan was adjusted accordingly. 67
RSG Sustainability Report 2022
Achieving a 30% Net Conservation Benefit by 2040 At RSG, our aim is to create a net positive impact on our natural capital post-construction, compared to baseline conditions. Our natural capital scheme focuses on protecting and enhancing the destination’s marine and terrestrial natural capital for future generations. We aim to achieve excellence in ecological conservation and enhance local biodiversity to reach net positive conservation benefits and offset any residual impact. We have implemented and continue to implement multiple projects and initiatives that avoid and reduce any development impacts, rehabilitate affected terrestrial and marine habitats, and offset any residual effects.
We Embrace the Precautionary Principle The precautionary principle states that we must avoid serious or irreversible potential harm to the natural environment, despite lack of scientific certainty as to the likelihood, magnitude, or cause of that harm. By adhering to the precautionary principle we prevent development in environmentally sensitive terrestrial or marine habitats. Additionally, we actively engage in conservation efforts to protect biodiversity and support the preservation of endangered plant and animal species. Our approach includes establishing habitat corridors to facilitate species connectivity across project areas.
Achieving net positive conservation value:
*
*Value Driven Approach (VDA) is a bespoke framework which aims to enhance ecosystem services and the associated environmental values and benefits within an area of influence. Ongoing efforts to work towards the 30% net conservation benefits is further detailed under Natural Capital. 68
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Emissions A key goal and differentiating factor for the Group and our destinations is to achieve netzero carbon emissions over the project lifetime. We are also aligned with the SGI and the Kingdom of Saudi Arabia’s national program to achieve net zero by 2060. Delivering net zero requires monumental efforts by all of us to reduce and avoid emissions and then offset any residual emissions that are hard to abate. Our efforts to reduce emissions include:
LEED Certification
District Cooling
Smart Destination
Future Mobility
We are designing and building energy-efficient commercial, residential, and hospitality assets.
In the Red Sea, we are building a district cooling plant to lower the energy intensity of cooling.
We are optimizing building management and operations through a smart destination platform.
We are prioritizing zero-emission transport using electric, hybrid, and hydrogen vehicles.
Additionally, during construction, we focus wherever possible on selecting materials with a low global warming potential based on their environmental product declarations. Several assets incorporate sustainable timber for structural and design functions. Sourced sustainably and certified, such timber further reduces and avoids embodied carbon emissions. Unlike steel, concrete, and aluminum, timber is a net carbon sink, not an emitter.
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Our efforts to avoid emissions include: Our destinations will be 100% solar powered and avoid emissions from grid electricity. Because our destinations will be off grid, our solar farms will provide round-the-clock renewable energy using a battery storage system that is one of the largest in the world. (A full description of our achievements in building one of the largest solar networks is presented under the Energy section.)
Scope 1 and 2 Emissions In 2022, our main sources of energy-related emissions included grid electricity to power our RSG corporate offices in Riyadh, and generators powering our construction activities at TRS and Amaala. Our corporate offices were retrofitted by installing motion sensors and energy-efficient lighting. Our destinations consumed approximately 12.6 million liters of fuel (diesel, gasoline, and other fuel types) emitting 35,532 tCO2e* under Scope 1. Scope 2 emissions amounted to 110 tCO2e from grid electricity at our corporate offices in Riyadh Digital City. We continue to set energy reduction targets for our managed properties with regular reviews and implementations of energy management plans. At our sites, we piloted mitigation solutions such as sustainable paints and advanced energy-efficient air handling units to reduce heat gain and further improve energy efficiency. *Calculation method: Diesel (12,652,557 L) X Energy Content (36.42 MJ/L) X Emission Factor (74.1 KgCO2e/GJ)
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Green Mobility Historically, transportation has always represented a significant source of greenhouse gas emissions. At RSG, we continue to explore alternative options for green mobility including land, sea, and air transport. Our Future Mobility strategy, comprising four key pillars, is evolving commensurate with technological advances and commercial feasibility: 1.
Battery electric vehicles (BEVs).
2.
Hydrogen infrastructure
3.
Autonomous vehicles trials
4.
Advanced air mobility
On BEVs, RSG has made plans to purchase 82 electric vehicles, including the Mercedes EQS and Lucid Air, which will be delivered and made operational in 2023. To enable this EV transition, our Mobility team has designed an extensive EV charging infrastructure that will be deployed in phases, reaching 1,000 charge points by the end of 2024. Just like other infrastructure across our destinations, these chargers will also be solar-powered, thereby effectively delivering zero-emission transport. In November 2022, RSG revealed its first partners for a Net Zero and smart mobility network. Specifically, we signed commercial agreements with Juffali (Mercedes-Benz), Lucid, and two other partners to deploy a next-generation fleet of zero-emission electric buses for employee transportation.
RSG is procuring zero-emission electric buses for its employees. As part of its efforts to implement green mobility in waterways, RSG is acquiring the Kingdom of Saudi Arabia’s first electric foiling boat which generates zero emissions and pollutants to the water. The reduced sub-surface noise minimizes any impact on aquatic life and will be used to transport guests to the islands. RSG is also exploring hydrogen to power various assets, including heavy vehicles and trucks and electric Vertical Takeoff and Landing aircraft (eVTOL). We will also be using Sustainable Aviation Fuel (SAF) to significantly reduce emissions compared to conventional jet fuel. We have started making plans to source biodiesel to power our existing fleet. 72
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Air Quality We are actively tracking ambient air quality around the project site, with an emphasis on high-impact regions identified in our Environmental and Social Impact Assessment studies. These locations have real-time air quality monitoring devices that are approved by the Kingdom of Saudi Arabia National Center for Environmental Compliance (NCEC) and provide accurate and reliable monitoring. Particulate matter (PM2.5, PM 10) and meteorological data are currently being monitored, and efforts are being taken to ensure levels remain within NCEC limits.
Monitoring PM10 In 2022, all PM10 values were below the mean daily limit set by the National Center for Environmental Compliance (340 µg/m3). PM 10 averages in the The Red Sea area for 2021 (from June 2021, when monitoring started) was 61 µg/m3. For the same period of 2022, the average reading of PM 10 was 49 µg/m3, showing an improvement of PM10 performance by 11 µg/ m3 despite an increase in construction activities.
Air-quality monitoring stations (expected deployment in 2023).
In 2023, all operational assets will have real-time air-quality monitors that measure PM1 , PM2.5, PM 10, PM 100, CO, CO2 , O3, NO, NO2 , SO2 , H2S, noise, temperature, humidity, wind speed, and wind direction.
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Climate Resilience Climate change is a material topic for RSG on many levels, including global warming, rising sea levels, and biodiversity loss. Our resilience-based thinking is embedded across the organization and has actively contributed to several taskforces that align climate risk to mitigation and response protocols. For example, our Destination Resilience Program explores the risk and resilience associated with human-induced climate change, including the impact of heat waves on energy and water demand; the impact of drought on food supply and local farming; the impact of sand storms on solar panels, etc. We are also actively future-proofing our observation systems by creating linkages with other non-RSG related databases, such as the National Oceanic and Atmospheric Administration Sea Surface Temperature Anomaly Charts. These linkages help inform mitigation approaches and preparedness responses.
Predicting Sea Level Rise
Climate-change-induced sea level rise may cause the natural and built environment to get submerged under water over time. At RSG, early identification of areas that may get submerged due to increased sea levels is critical to our development planning process. Our planners and designers, therefore, take all the necessary steps to avoid or minimize the impacts on those areas that are at risk of flooding. Typical measures include avoiding development altogether, flood protection measures, and land raising. RSG used this proactive approach to managing the risks associated with sea level rise in the natural environment and ecosystem of the Southern Islands. Specifically, we developed habitat maps for 73 islands which provided contour lines showing sea level rise by the year 2100, based on IPCC5-8.5 (conservative scenario). This guidance is most effective at the start of the project to avoid expensive mitigation measures later in the project cycle.
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Harmonized Framework for Standardization of Natural Capital and Carbon Accounting against Sustainable Financing Requirements RSG is working toward establishing standardized frameworks for natural capital and carbon accounting against different corporate and project boundaries. The purpose of this work is to: (1) help RSG develop internal awareness to facilitate growth in accordance with future accreditation goals, and (2) establish a framework from which potential sustainabilitylinked financing and monetization could be progressively understood and integrated into development programs. The outcomes of the project included the development of a theoretical monetization strategy that incorporates:
Nature-based options
Carbon-based options
Insetting and offsetting opportunities.
Sustainable aviation fuels, embodied carbon, and energy switch trends.
Technology-based options Digital pathways and forecasting options.
This work has significantly improved our understanding of how to employ and integrate accreditation and monetization tools in a regenerative development portfolio.
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Energy RSG is committed to the Kingdom of Saudi Arabia’s Net Zero ambition for 2060. More than ever, we remain committed to achieving: 1. Net Zero in operational emissions by 2030 2. Net-zero carbon emissions from assets over the lifetime of the project (TRS & Amaala) 3. Powering our destinations from 100% renewable energy From the outset, we decided to design and develop a regenerative tourism destination off-grid. This means that all our assets will be operated from renewable energy, including our hotels, as well as retail and entertainment venues and all supporting infrastructure, such as seawater reverse osmosis, district cooling, and wastewater treatment. In 2022, as part of our Private Public Partnership (PPP) Agreement with a consortium led by ACWA Power, we achieved significant progress in the deployment of our renewable energy systems that will power all Phase 1 projects of TRS. All the solar farms are on track and will be commissioned in 2023. Once completed, these solar farms will avoid up to 625,000 tCO2eq per year, which is equivalent to removing 134,000 gasoline-powered passenger vehicles from the roads for one year.
“From the very beginning, we promised to do things differently, and building the largest destination in the world powered solely by renewables was a key part of that.” John Pagano, GCEO of Red Sea Global
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Overview of Solar Farms for Red Sea Phase 1: Solar Farm Location
MWp
~Solar Panels
Expected Production
Avoided Emissions tCO2eq/Year*
MWh/year Coastal solar farm 1
122.4
228,788
329,000
186,742
Coastal solar farm 2
266.4
497,952
722,000
409,920
Inland (Six Senses)
6.0
11,228
16,000
9,154
Inland (Desert Rock)
6.0
11,228
16,000
9,263
Island (Sheybarah)
6.0
11,256
16,000
9,136
406.8
760,452
1,099,000
624,215
*KSA’s grid emission factor in 2021 was 0.568 kgCO2eq/kWh. Total avoided emissions will depend on the electricity demand and will be verified independently. The energy projections are based on the maximum production of net electricity from each solar farm using bifacial panels and a tracking system.
The two coastal farms will serve all the mainland-area assets, which are connected to the permanent power primary network. Two mainland micro-grids (Six Senses and Desert Rock) as well as Sheybarah Island have their own independent solar farms. In 2022, we also made significant progress in planning and designing our renewable energy infrastructure for Amaala, and that will be tendered in 2023. In our unwavering pursuit of excellence in both design and procurement, we are transferring the learnings from The Red Sea project to Amaala.
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Water and Effluents In our destinations, RSG is building four Sea Water Reverse Osmosis (SWRO) plants to produce freshwater from seawater. This process is energy-intensive and produces a highly saline effluent, called brine. To ensure zero discharge into the lagoon, the mainland SWRO plants were built a safe distance from the destination assets to avoid disturbing the lagoon. Additionally, the outfall route and length allow for the brine to be discharged in an area of deep water which will facilitate dispersion and mixing of the brine and reduce potential impacts on marine ecosystems. As part of our ESIA process, we assessed baseline marine conditions around each desalination plant and will be monitoring water quality at the edge of the mixing zone using buoys. This enables us to respond quickly to potential problems caused by brine effluent and reduce the consequent harm to marine ecosystems. Overview of Sea Water Reverse Osmosis Plants in TRS: Capacity
Intake
Outfall
M /day
Length m
Length m
(Total & Marine)
(Total & Marine)
Mainland (RO1)
30,000
2,005 – 1,370
2,781 – 2,114
2023
Sheybarah Island
1,000
965 – 315
965 - 315
2023
Ummahat Island
1,500
835
5,880
2023
Mainland (near RO1)
12,500
1,445
2,156
Operational
SWRO Location
3
Completion Date
The SWROs will be operated by Marafiq under a 25-year Design-Build-Operate and Transfer (DBOT) concession. They will be solar-powered in line with our Net Zero commitment. The National Center for Environmental Compliance (NCEC) has authorized real-time water-quality monitoring buoys at these sites to enable accurate and dependable monitoring, according to NCEC guidelines and limit values. Monitoring parameters include temperature, pH, conductivity, dissolved oxygen, turbidity (a measure of the amount of cloudiness in sea water caused by individual particles) , and dissolved organic matter. In addition, monthly examination of sediment quality will be performed to ensure that our activities have the least possible impact on the marine environment. Our commitment to water and sediment testing will help RSG develop new employer requirements for future utilities.
All wastewater is treated at our central sewage treatment plant. The treatment process includes extensive reed beds which enhance water quality before storage in the holding ponds. The treated sewage effluent is then entirely reused for landscape irrigation and by our landscape nursery. Combined, the reed beds and holding ponds have become an important habitat for fauna and flora, including birds. 78
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Pioneering New Sustainability Standards To further understand the potential impact of brine discharges on marine life and working on the principle of long-term ecological stewardship, we commissioned a study that coupled literature review and laboratory-based empirical research to better understand salinity and temperature tolerances within key benthic local Red Sea marine species. The intent of this on-going work, undertaken alongside King Abdullah University of Science and Technology (KAUST), was for RSG to understand which site-specific project controls might be applicable to embed into SWRO facilities operations over and above the commitments made via the Environmental and Social Impact Assessment process relevant to regulatory standards, protocols, and nationally established criteria.
By better understanding local ecological sensitivities, particularly for species that are sensitive to changes in salinity, RSG will be able to establish new standards aligned to site specific ecological requirements. These standards will be based on best international industry practices and mechanisms, such as employer requirements and minimum functional specifications. Pulse Amplitude Modulated (PAM) Flourometry imaging, illustrating health of corals exposed to different dilutions of simulated effluent after seven days:
CRT
0
6.25
0.2
12.5
0.4
25
0.6
50
0.8
100
1
100
27˚C
30˚C
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Waste and Circularity Building a destination of this scale inevitably generates thousands of tons of construction waste. Our vibrant residential communities, including Turtle Bay Village at TRS (circa. 15,000 residents) and Amaala Construction Village (2,700 residents), generate additional waste from daily activities. Our operational waste streams will increase as we move closer to the operation phase. We remain committed to handling our waste streams according to international best practices for achieving our overarching objective, Zero Waste. This requires education, innovation, and continuous monitoring. RSG continuously invests, innovates, and adopts best practices to significantly reduce construction waste. As a real estate developer, we generate most of our waste during construction. We employ best practices during design and construction to minimize construction waste material, such as Building Information Modelling (BIM) design simulation and precast units to streamline and optimize construction work. This resulted in fewer errors, reduced consumption of raw materials, higher productivity, enhanced quality, and lower waste output attributable to faulty design. In the field, our Environment Compliance team works closely with our contractors to reduce waste. This includes extensive contractor training on waste management, and site inspections. Our Current Waste Management Facility In 2022, we continued to manage our waste stream at our temporary waste management facility at TRS. The facility collects and treats all waste streams, including construction and operational waste generated at our administration offices and residential facilities. All our contractors and operators are mandated to transfer their waste streams to the temporary waste management facility for final treatment and recovery. Solid Waste Collection and Management Services:
Construction waste
Organic waste
Dry Recyclables
Residual Waste
Construction waste includes concrete blocks, wooden pallets, steel, and other construction materials. They are sorted and processed using special machinery and transformed into smaller particles to be reused for other purposes, such as aggregate for building roads.
Organic waste comprises food from our village compounds and green waste from landscape maintenance. These streams are composted and used as a soil conditioner to improve soil conditions and moisture retention.
Our site offices are equipped with dedicated sorting bins for dry and recyclable waste, including glass, plastics, cans, paper, and cardboard. They are collected separately to avoid contamination and ensure value for licensed waste recycling centers downstream.
After recovering construction, organic, and dry recyclables, the remaining fraction of non-recyclable and non-hazardous residual waste is incinerated on-site. The resulting ash is collected and mixed with cement to produce concrete blocks.
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In 2022, almost 90% of our waste streams on site were recovered producing valuable byproducts. The facility received and processed 61,232 tons of waste including concrete (62%), other construction and demolition waste (25%), dry recyclables (7%) and food waste (6%). Additionally, our site produced 38 tons of hazardous waste. Those were stored separately and collected by an NCEC-approved waste contractor and transferred to an approved reception and treatment facility for hazardous waste. The cumulative impact of these processes is to minimize the amount of waste which goes to approved landfills. Compost curing at our composting facility before loading:
Our Future Integrated Waste Management Facility As we approach the operational phase of TRS, our Project Delivery team completed the construction of our permanent and state-of-the-art Integrated Waste Management Facility. Located at TRS near the temporary plant, the new facility will be operated as part of our 25-year DBOT concession agreement with ACWA Power. In Phase 1 (by 2024), it will handle up to 11,775 tons per year of operations waste, gradually reaching 37,639 tons in Phase II (by 2030). New Integrated Waste Management Facility at The Red Sea:
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The new facility is expected to be operational in 2023. It comprises a larger composting facility, a bigger holding capacity for sorted waste, weighbridges, and other equipment for handling special waste streams. All waste from our TRS destination assets will be collected by electric vehicles, and waste from the islands will be hauled to the mainland on electric barges. The electric vehicles will be fitted with sensors and tracked via a cloud-based platform, as part of our wider smart destination program.
Waste Guidelines for Hospitality Assets As we move closer to the operational stage, RSG has developed targeted waste guidelines for hotel and resort operators. These guidelines uphold two principal objectives: Zero Waste to Landfill, and Single-Use Plastic (SUP) elimination in the front-of-house. Our guidelines also provide practical information to asset operators on how to proactively manage their waste, and will be looking into food waste reduction practices.
The guidelines were developed based on:
The SUP Elimination guideline was based on:
United Nations Sustainable Development Goals,
Global Tourism Plastic Initiative,
International Finance Corporation guidelines,
SUP Free, and
and Green Key Certification.
Ellen MacArthur Foundation guidelines.
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The guidelines provide a systematic approach to implementing and maintaining effective waste management procedures, and elaborate on responsible purchasing, define the roles and responsibilities in waste management, and present several disposal methods. By continuously engaging with our asset operators, we aim to improve these guidelines to achieve our Zero Waste objective. A series of education and training activities will be implemented in 2023 and beyond. Looking ahead, we will continue to enhance our capabilities for waste management and recovery. We also assessed the construction waste management requirements for Amaala and started exploring alternative options, based on the learnings at The Red Sea. The outcomes and recommendations of a comprehensive operational waste management plan, to be tendered in 2023, will be implemented at the permanent facility and by all stakeholders, including hospitality operators.
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Our Alignment with the Saudi Green Initiative The Saudi Green Initiative (SGI) articulates an ambitious and comprehensive climate action plan in the Kingdom of 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. Red Sea Global alignment to the Saudi Green Initiative:
Target 1
Target 2
Target 3
REDUCING EMISSIONS
GREENING SAUDI
PROTECTING LAND AND SEA
The Kingdom of Saudi Arabia aims to reduce carbon emissions by 278 mtpa 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.
The Kingdom of Saudi Arabia aims to plant 10 billion trees across the Kingdom. 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.
Protecting 30% of the Kingdom 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 in the Kingdom of Saudi Arabia.
Our alignment:
Our alignment:
Our alignment:
• At least 75% of our destination assets will be LEED certified and the remainder will be Mostadam certified.
• Our nursery spanning 1 million m will produce thousands of plants per year, including local varieties and species.
• Our destinations will be 100% solar powered to help achieve Net Zero across our operations by 2030.
2
• RSG will plant 50 million mangrove trees by 2030 in carefully selected habitats, and in collaboration with the National Center for Vegetation Cover and other stakeholders.
• Achieving and demonstrating 30% net conservation value across our destinations • 75% of the destination islands will remain undeveloped (setaside for long-term protection and conservation) • Nine islands have so far been designated as special conservation zones
Material topics impacted
Material topics impacted
Material topics impacted
Climate Change and Resources Management
Natural Capital
Natural Capital
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Global Real Estate Sustainability Benchmark In 2022, we undertook our third GRESB assessment for The Red Sea and the first for Amaala. The assessment helps us understand how our sustainability performance compares globally, providing insights from a credible organization which aligns with multiple recognized reporting standards, such as GRI, PRI, SASB, DJSI, and TCFD, as well as global goals, including The Paris Climate Agreement and the United Nations Sustainable Development Goals (UNSDGs).
About GRESB GRESB is a mission-driven and industry-led organization that provides actionable and transparent environmental, social, and governance (ESG) data to financial markets.
In 2022, The Red Sea achieved a score of 94/100 (+3 pts compared to the previous rating in 2021), and Amaala achieved a score of 79/100 on its first assessment. RSG has once again been recognized as a 5-star rated entity and obtained a Green Star and Sector Leader Award for being one of the highest-scoring entities to undergo this assessment.
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LEED Certification Update RSG aims to achieve LEED certification for 100% percent of our hotels and resorts, as well as the airport terminal buildings at The Red Sea. Additionally, several residential buildings will achieve Mostadam (Saudi Arabia’s national green building rating system) to achieve our cumulative target:
75% of developments’ building areas are Green Building Certified.
These Green Building certifications help us to significantly reduce our water and energy consumption, as well as our carbon footprint, thereby positioning our organization and our assets on a Net Zero trajectory. In 2022, our LEED project portfolio grew to 47 assets, plus another 12 assets under Mostadam. This diverse portfolio includes hospitality, commercial, and residential assets across TRS and Amaala destinations.
Description
Master Plan
Hospitality
Residential
Commercial
TRS - LEED
1
18
9
4
TRS - Mostadam
-
1
2
1
AML – LEED
1
8
-
6
AML – Mostadam
-
-
8
-
The certification process is much more than a recognition of design and construction achievements. We have streamlined a process to enhance workflows and bring together diverse stakeholders around this goal: Pioneering the future of sustainable and regenerative tourism. Our accreditation team is actively involved in the design stage to ensure leadership in energy and environmental design, as well as in the construction stage.
In September 2022, RSG achieved Platinum LEED (v4.1) Homes for its “Coastal Village 200 Villas and Townhouses.” This is the first of many accreditations to come. Our Coastal Village asset is a mixed development housing our employees, partners, and guests and therefore positively impacts the organization and helps instill environmental stewardship.
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The Green Key certification
On December 1, 2022, the Turtle Bay Hotel, which is where many of our employees and partners stay while at TRS site, earned the Green Key Certification. The Green Key is an eco-label awarded to tourism and leisure establishments that fulfill a list of environmental requirements. Obtaining Green Key demonstrates Turtle Bay Hotel’s efforts to develop an environmentally friendly, sustainable, and responsible business. Turtle Bay is the First Saudi hospitality brand to achieve the certificate.
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Culture & Heritage
Sitewide Archaeological Survey in Amaala RSG is fully committed to preserve and celebrate the cultural heritage of our destination sites. Building on our previous work in TRS, we conducted a comprehensive survey of archaeological sites in Amaala which identified more than 800 sites, mapped historical and pilgrimage trade routes, and identified hundreds of inscriptions and artifacts. This wealth of information was captured in a GIS-based bilingual database which is now shared with master planners and designers. In the same way that we protect critical natural habitats, we also protect these important archaeological sites which ultimately enrich the experiential offering of our destinations, to authentically immerse our guests in the Red Sea culture. RSG had previously identified 1600 other archaeological sites at TRS, which brings the total number of sites across TRS and Amaala to more than 2,400. Archaeological Survey Findings in Amaala:
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Social Risk Management & Development
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We are laser-focused on transforming the nation’s future, benefitting the people of the Kingdom of Saudi Arabia by creating massive economic opportunities and actively enhancing its rich environmental and cultural heritage. We understand that the local communities where we operate play an important role in building a positive future for everyone, and our social development initiatives forged in line with Vision 2030 are specifically tailored to support these communities. We started with a comprehensive social, economic, and cultural baseline assessment to truly understand the challenges and opportunities facing our community. This assessment provided us with a clear understanding of the current situation in these areas. It also helped us to identify areas where our programs and initiatives could drive the most significant impact. We have divided our efforts into three pillars: socio-economic empowerment, socio-cultural value preservation, and awareness and outreach. Each pillar encompasses a wide range of activities and initiatives.
Socio-Economic Empowerment
Socio-Cultural Value Preservation
Awareness and Outreach
Socio-Economic Empowerment This pillar focuses on creating local jobs by providing bridging and upskilling programs for the local community, connecting them with jobs related to their skillsets in the destination. Additionally, we aim to empower existing small and medium-sized enterprises within the local community.
Souq Amerah We established Souq Amerah as a platform for local entrepreneurs to showcase their products and reach a wider customer base. The souq is a true representation of how we are empowering micro and small businesses in our project area and also providing an opportunity for visitors to experience the local culture. In only 12 events, Souq Amerah attracted an astounding 50,000 visitors - exceeding our expectations, and we look forward to building on its success.
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Developing local talent through our education programs We have developed multiple large-scale education programs targeting potential future employees who would be working on-site for RSG. This highly strategic initiative opens new doors for students to specialize in areas relevant to the current and future needs of the labor market and prepares them to enter the workforce at our organization when they graduate. We have sponsored a total of 779 talents in educational and vocational training programs to date.
Education RSG focuses on developing talent to meet international standards, while creating opportunities for young professionals. We provide a platform for trainees, particularly young Saudis, to enter the labor market with the tools they need to succeed and be a part of the changing Kingdom of Saudi Arabia. Our extensive programs therefore provide our destinations, the industry, and the country as a whole with a highly proficient intake of ambitious, young employees.
UPM Scholarship Program | Second Batch Exceeds 2,500 Applicants More than 2,500 high school graduates applied to our scholarship program as part of our ongoing partnership with the University of Prince Muqrin (UPM). Of this number, 50 successful applicants were selected as members of UPM Class of 2025, commencing their learning journey with an orientation day. Our UPM Class of 2024 students, who pioneered this learning opportunity, are currently in their fourth year of study and have successfully completed their second internship in prominent hotels across the Kingdom of Saudi Arabia. Students worked across Front Office, Housekeeping, Food and Beverages, and Kitchen Departments to fulfil the 2,000 hours required to complete the International Hospitality Management program. 94
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Vocational Training Program Our Vocational Training Program is divided into three tracks:
Hospitality
Technical services
Airport services
As of the end of 2022, students who have enrolled in RSG’s Vocational Training Program have successfully completed one year, with less than a year remaining until their graduation. This program has opened new doors for 500 ambitious young Saudis to shine in their new career paths. By July 2024, these talents will undergo their six-month internship at RSG.
RSG signs second agreement with Human Resources Development Fund RSG reached another key milestone geared toward upskilling young Saudi talent by signing a second agreement with the Human Resources Development Fund (HRDF) to deliver high-quality training programs. This partnership between RSG and HRDF helps local Saudi talent discover rewarding careers and creates a significant pipeline of qualified local professionals with the right skills and resources needed to establish a new and successful tourism sector in the Kingdom of Saudi Arabia. The first batch of the program ran from 2019 to 2021, with 500 students graduating. The second and third batch of 500 young Saudi students each will run in 2022 – 2024 and 2023 – 2025.
RSG Partners with Bunyan Academy to Train 100 Saudi Talents
Our first 100 young Saudis, chosen from a total of 21,000 applicants, recently started our vocational training program, delivered in partnership with the HRDF and Bunyan Academy. Accredited by the prestigious École Hôtelière de Lausanne Business School, this program offers valuable learning combined with practical experience and skills development. It supports trainees in pursuing a Luxury Hotel Operations Diploma or a Gastronomy and Restaurant Business Diploma and leads to solid career opportunities within our Group upon successful completion.
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RSG Signs MoU with King Saud University We recently signed a Memorandum of Understanding with King Saud University to cooperate in creating opportunities for young Saudis in local communities. In line with our other educational partnerships, including the University of Tabuk and UPM, this cooperation will continue to equip more young Saudis with the right skills. It will prepare and qualify them for the workplace and create new career paths to lead the future of tourism in the Kingdom of Saudi Arabia.
Creating Local Jobs for Local Talent We are creating and supporting local job opportunities in different positions, including but not limited to marine, nursery, security, and mobility jobs. We provide upskilling training programs and give candidates different employment opportunities to improve their lives, such as:
Marine Operations
Landscape Nursery
Trained and hired 40 maritime technicians from the local community (including boat captains, assistant boat captains, logistics coordinator, assistant logistics coordinator). We also partnered with the National Maritime Academy in Alkhubar and Tamkeen, a local NGO to support this program.
Working in collaboration with MEWA, this training initiative created new employment opportunities for the local community. We targeted more than 100 farmers, celebrating local farming knowledge while introducing new farming techniques and practices. We also focused on equipping them with the necessary skillsets to work in our RSG landscape nursery. At the end of the training, the top 40 farmers were hired by the RSG nursery.
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Online English for Tourism Program To meet future job market demands, we launched an online “English for Tourism” program, upskilling more than 600 young people from local communities who expressed interest in the tourism industry. By improving language proficiency, we increased their employability and created a pool of talented individuals for the growing tourism sector. We used an innovative augmentedreality application to mimic real-life tourism experiences.
OSHA Training Certificate for Professionals This initiative trained 60 local community members on Health and Safety measures (OSHA). Conducted in collaboration with RSG’s security team and the Technical and Vocational Training Corporation (TVTC), the trainees completed 25 training hours in Umluj and were awarded a completion certificate by TVTC. The program equipped the trainees with the requisite H&S knowledge and skills for the job market.
RSG Sustainability Report 2022
Awareness and Community Outreach We are deeply committed to developing and implementing community-engagement programs. Our focus is on initiatives that promote community integration, collaboration, and mutual support that address the needs of the local community. Through a variety of initiatives, we are working toward creating a sense of belonging and social cohesion among community members.
Sustainable Art We continued to focus on raising the local awareness of plastic pollution. A beach clean-up initiative in celebration of Environment Week resulted in constructing an art mural from the collected plastic waste by local artist Thanwa Alqarawi. The initiative aimed to build environmental awareness among the local community, particularly about the harmful impact of plastic on the marine and coastal ecosystems. Alwajh volunteering group participated with members from different age groups, including child, youth, and senior volunteers. In total, the 76 local volunteers collected 300 kg of plastic waste during 608 volunteer hours.
Safety Culture Awareness Our Safety Culture Awareness campaign imparted general safety knowledge to 850 technical college students, online and inperson, in Umluj, Alwajh, and Duba. For five days, the safety culture introduced the technical college students to fundamental safety concepts and skills that they will need in their future professions.
Cultural Preservation We are deeply committed to preserving the socio-cultural values of local communities. We strive to promote the authenticity of the local area, such as folklore, storytelling, arts and crafts, traditions, and food. Preserving our cultural heritage was another important focus area in our social efforts. To promote cultural preservation, we conducted several initiatives, including Tent of Tales and Culinary Art Scouting.
Tent of Tales A series of 10 community activation seminars aiming to preserve and document the local intangible cultural heritage by inviting local experts and storytellers, to share their knowledge with 800 guests from the local community. The sessions focused on multiple themes, including traditional craftsmanship such as textiles, ship-making and net-making, traditional sports such as falconry and camel racing, and traditional music and dances.
Culinary Art Scouting To celebrate local culinary traditions, we created a booklet featuring local experts and their culinary art. Through this initiative, we aimed to raise awareness about our rich culinary heritage and support local talent in the culinary industry. A trip was arranged to the surrounding towns and villages of TRS and Amaala to explore and document the culinary culture and offerings of the area. The scouting activity identified and connected local chefs, local markets, and local food artisans.
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An employer of choice Our business is powered by extraordinary talent. As our business grows, we are investing in attracting, engaging, developing, and retaining passionate and talented employees who share our hunger to disrupt the status quo of global tourism and development. 2022 figures, including Amaala:
2020
2021
2022
Total number of employees
645
1,067
2,539
Total number of employees
Male
Female
Total Number of Nationalities
2,539
2,109
430
66
100% of employees are full-time
100% of employees are permanent employees
“In a world grappling with the challenges of climate change, sustainability isn't just an option anymore; it's a necessity. As a result, at the heart of our commitment, there lies the importance of green skills. With initiatives ranging from marine operations to farming, RSG has consistently emphasized the importance of transferring such critical skills to the youth. It's not just about the job; it's about shaping stewards for our planet.” Ahmad G. Darwish, Group Chief Administrative Officer 98
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We know that our people are the building blocks of our business, so it is vital that they take pride in where they work and combine the vision and technical expertise required to create a new blueprint for global tourism. Total number of new employee hires during the reporting period
1,127 509
277 2020
2021
2022
Breakdown by Gender Male
Female
984 410
230 2020
2021
47 2020
2022
143
99 2021
2022
Breakdown by Age Group Under 30
30 - 50
189
154
114
104 2020
2021
2022
Over 50
771 334
2020
167
2021
61
19 2020
2022
2021
2022
Actively working to retain our top talent 2022 was a year of growth for us, and it is our aim to further enhance the opportunities that we provide to our current and potential employees. We continue to work on developing employee-related programs and initiatives to engage and retain our people. Total number of employees leaving employment during the reporting period
47
112
139
2020
2021
2022
Turnover Rate (%) 7%
13%
12%
2020
2021
2022
Breakdown by Gender Male
Female 108
91
39 2020
2021
2022
31
21
8 2020
2021
2022
Breakdown by Age Group Under 30 18 2020
30 - 50 43 2021
19 2022
21
58
2020
2021
93
Over 50
2022
27
11
8 2020
2021
2022
Site-based contractors Category
Type of work
Number of workers
Contractors and Consultants
Construction and Consultancy
22,481
Facilities Management, Operations, Security, and Support staff
Staff who provide support services onsite
3,253
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Engaging with our employees To foster a positive working environment, we are constantly reviewing how to improve employee engagement across our organization via a robust HR policy that outlines our responsibility to deliver frequent, transparent communications. We want all employees to feel that they have an important role in shaping the future of the business, which is why we have created multiple taskforces in which employees play an active role in decision-making processes. This relationship of trust between RSG and its employees extends to the transparent communication of any organizational changes that could affect them.
Listening to our employees The results of our people engagement survey allow us to gain a deeper understanding of the views of our employees so we can identify actions and initiatives that will enhance their experience. We launched the survey in 2022 to gather inputs on different topics across the business, identify areas of priority, and drive informed decision-making.
95%
91%
82%
RSG Among Top 50 Inspiring Workplaces in EMEA We are proud to have been ranked among the Top 50 Inspiring Workplaces in EMEA 2022. Organizations across Europe, the Middle East, and Africa were selected to represent excellence across six categories: Culture and Purpose, Leadership, Well-being, Inclusion and Diversity, Communication, and Employee Experience. RSG performed most strongly within the ‘Well-being’ category. At RSG, we foster a community for better well-being and optimal health for our employees. We have a dedicated corporate wellness program, HAYAH, that equips employees with the tools and knowledge required to achieve their personal wellness goals.
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Providing attractive benefits Employee benefits and remuneration are important tools for ensuring that our employees feel appreciated and rewarded for their efforts and motivated to keep 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. For these reasons, we have developed an impressive and competitive benefits plan. • Medical and life insurance - for all employees and their dependents • Rewards Program • Educational Assistance • Relocation Benefits • Other Benefits - vacation leave, parental leave, disability coverage • Well-being Allowance • Turtle Bay Village Residences (for all employees on the construction site) - employee accommodation, recreational facilities
Prioritizing Parents
Total number of employees that took parental leave Male
Female 73
25
12 2020
2021
8 2022
12
6 2020
2021
2022
Number of employees that returned to work after parental leave ended Male
Female 73
25
12 2020
2021
5 2022
12
6 2020
2021
2022
Number of employees that returned to work after parental leave ended and that were still employed 12 months after their return to work Male
Female 69
25
1 2020
2021
2022
10
6
1 2020
2021
2022
Return to work rate of employees that took parental leave Male
100%
2020
100%
2021
95%
2022
Female
62.5%
2020
100%
2021
83%
2022
Diversity and Equal Opportunity We are proud of our diverse workforce which is a talented community of 66 nationalities comprised of all ages and genders and who are playing their part in the transformation of the Kingdom of Saudi Arabia. We know that different backgrounds encourage diversity in thinking and stimulate innovation, creativity, and growth. Our HR policies are in place to ensure that all our employees have equal opportunities and are treated fairly. The non-discrimination policy reinforces equal opportunity for male and female talent and covers the entire talent life cycle, from recruitment and financial compensation through to promotions. We are currently in the process of creating an improved enterprise-wide Diversity, Equity & Inclusion strategy in order to serve the business' objectives and tie into our core values, goals, and success metric.
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Building our female workforce
13 %
10 females
of new hires were females (+2.5pts vs 2020)
in senior management positions
Female employees account for 14% of the total workforce
18% in mid-level management 9% in senior and executive positions
Empowering female talent is essential to the health and social development of our organization and communities, and we actively advocate for our female workforce. Women are supported at every level of RSG, and we provide equal career opportunities for all female talent. We are proud of our pool of intelligent and bright women working in roles spanning every sector of the business, including risk and resilience, security, engineering, design, legal, and project management. As part of the Group’s recruitment practices, RSG ensures that at least one female candidate is on the shortlist of individuals being 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. Looking ahead as an equal-opportunities employer, we are determined to continue increasing female representation and to maximize their potential. Breakdown of all employees by gender % of Male
% of Female 21%
21%
79%
86%
14% 2022
2021
2020
79%
2020
2021
2022
Breakdown of employees below middle management by gender % of Female 31%
% of Male 16%
84%
93%
7% 2022
2021
2020
69%
2020
2021
2022
Breakdown of middle management by gender % of Male
% of Female 20%
31%
69%
82%
18% 2022
2021
2020
80%
2020
2021
2022
Breakdown of senior management by gender % of Male
% of Female 12%
11% 2020
102
89%
88%
91%
9% 2021
2022
2020
2021
2022
RSG Sustainability Report 2022
Supporting Saudi Talent
381
34%
Saudi nationals were
Saudization rate achieved across corporate functions.
hired in 2022.
We are committed to empowering ambitious men and women in the Kingdom of 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 the Kingdom of Saudi Arabia. Breakdown of all employees by nationality % Saudis
51%
2020
47%
2021
37%
% non-Saudis 49%
2020
2022
53%
2021
63%
2022
Breakdown of employees below middle management by nationality % Saudis
88%
2020
78%
2021
55%
% non-Saudis
12%
2020
2022
22%
2021
45%
2022
Breakdown of middle management by nationality % Saudis
48%
2020
58%
2021
35%
2022
% non-Saudis
52%
2020
42%
2021
65%
2022
Breakdown of senior management by nationality % non-Saudis 80%
% Saudis 20% 2020
23% 2021
77%
76%
24% 2022
2020
2021
2022
RSG is developing top talent within the Kingdom of Saudi Arabia to help deliver some of the most visionary tourist developments in the world. We will continue to prioritize programs and activities that will enable us to achieve our Saudization goals and encourage nationals from the Kingdom of Saudi Arabia to join us and be part of driving a positive change for the country. For example, our Elite Graduate Program enrolls fresh Saudi graduates through a comprehensive system of placement and training programs and encourages individuals to achieve their highest potential via designated mentoring, coaching, and shadowing programs. We are also working to increase opportunities for the rising number of nationals from the Kingdom of Saudi Arabia in our workforce and enhance our Saudization performance, helping us to make Vision 2030 a reality. 103
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Breakdown of employees by age group 2020 % of employees under 30
% of employees 30-50
% of employees over 50
Total employees
23%
65%
12%
Employees below mid-level management
55%
45%
0%
Mid-level management positions
13%
82%
6%
Senior and executive positions
0%
72%
28%
2021 % of employees under 30
% of employees 30-50
% of employees over 50
Total workforce
20%
67%
13%
Employees below mid-level management
43%
55%
1%
Mid-level management positions
29%
67%
4%
Senior and executive positions
1%
72%
27%
2022 % of employees under 30
% of employees 30-50
% of employees over 50
Total workforce
17%
68%
14%
Employees below mid-level management
42%
54%
4%
Mid-level management positions
15%
71%
14%
Senior and executive positions
0
48%
52%
Training and Development We go above and beyond by setting new standards in training and development for our employees. As a vital enabler of the 2030 vision, we aspire to have the highest standards of training and attract and retain the very best talent within the region. We welcome expertise from all ages, genders, and nationalities, with representation from 66 countries among our workers. Therefore, we are investing significantly in training and development through our in-house programs as well as local and global learning providers.
• Total number of training hours:
17,136
• Total number of participants:
940
Refining our training approach Our Competency Framework captures the knowledge, skills, experiences, and behaviors that are required for employees across all organizational departments and levels and provides a valuable input into our training curriculums. This structured process enables us to identify training needs and evaluate training effectiveness in line with business needs.
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As part of our annual
Through our annual
Through 360-degree
performance cycle
functional Training
assessment
Needs Analysis (TNA) All employees undertake regular performance and career-development reviews. Our year-end performance review process includes a development plan to be implemented the next year which translates into training needs relevant to each employee, and feeds into our training calendar.
We collate, analyze, and prioritize the learning needs of each department, then prepare accordingly an organization-wide training plan and calendar.
Results of 360-degree assessment are consolidated at an organizational-level and shared with our L&D team to identify behavioral areas of improvement which translate into a training plan and calendar.
Spotlighting Our 360 Training Programs
•
Environmental management
•
Real estate
•
Sustainability
•
Leadership and soft skills
•
Accounting and taxation
•
Project management
•
Governance
•
English and Arabic language
•
Risk and compliance
•
Facility management
•
Auditing
•
Key performance indicators
•
Marketing
•
Health and safety
•
Digital transformation
•
Human resources
•
Finance
•
Legal
•
Business Continuity
•
Procurement
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Average hours of training 1 during the reporting period 2020
2021
2022
Male
15
40
25
Female
17
21
22
Average hours of training during the reporting period Breakdown by Gender
Breakdown by Employee Category Senior Management
7
28
25
Middle Management
11
20
22
Entry Level Employees
21
59
24
Year
2022
Breakdown by Gender Male
25
Female
22
Breakdown by Employee Category Senior Management
25
Middle Management
22
Entry Level Employees
24
1.
Training includes internal and external programs, exams, and other learning events. We consider eight hours of classroom-based training, and five hours of e-learning, to be equivalent to one day of training.
Our Elite Graduate Program
For its third edition, we were excited to introduce our 49 new Elite Graduate Program participants, who have successfully completed the screening, interviews, and final selection stages from among more than 30,000 applications. 106
Elite Graduate Program
2022
Male
35
Female
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Employee welfare
The rise of physical and mental health issues is not something that is happening “out there.” It is reflected in our organization. This is why we strongly encourage and promote a culture of wellness to help our employees lead happier and healthier lifestyles. RSG’s corporate wellness program ‘HAYAH’, the Arabic word for ‘life’, incorporates the holistic pillars of mental and emotional well-being, nutrition, physical fitness, and movement.
HAYAH Wins CIPD’s Best Health & Well-being Program Award Our Corporate Wellness Program, HAYAH, received the Best Employee Well-being Program Award at the CIPD Middle East People Awards. A member of the judging panel commented that the HAYAH program differed from the other shortlisted candidates through its holistic and strategic approach to corporate well-being, with a special mention for the team of mental health first aiders that are included in the program.
Employee Assistance Program Our Employee Assistance Program (EAP) is a holistic program that will give all our employees access to professional psychologists, dieticians, financial, legal, and career advisors. The service is offered through ICAS, an independent, external organization that gives access to free and impartial personal support services that all employees and their immediate (household) family members over the age of 16 can use.
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New Partnership with the Saudi Cricket Federation In line with our ongoing efforts to build a strong sense of community and to ensure that our destinations' developments are a “home away from home” for our colleagues, partners, and workers, we announced the signing of a Memorandum of Understanding with the Kingdom of Saudi Arabian Cricket Federation. The MoU intends to bring cricket to the forefront of our workers’ lives. Putting a cricket training program in place, as well as forming the Red Sea Cricket League at TRS and Amaala, will foster healthy competition among our different partners’ teams.
This partnership was initiated due to recognition of the central role that cricket plays in the lives of many of our workers. It is part of our commitment to create an environment that provides our workers with all their essential needs, enabling them to live and thrive.
“This partnership comes as a natural extension of RSG’s efforts towards creating a healthy and happy workforce onsite. The Red Sea Cricket League will encourage our workers to take up or reconnect with one of the world’s oldest and most popular sports, and we hope to see plenty of talents emerging from this partnership." Tim Williams, Head of People Strategy and Culture 108
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Focusing on health and safety The safety and well-being of our people and the communities in which we work, is a key priority for our Group. We are proud of our safety record, with performance well above industry averages, and we strive for Zero Harm in the workplace. Overseen by our Health and Safety (H&S) Division, our commitment to creating a positive safety culture extends to our offices, operations, and construction sites. The H&S team works closely with all functions and departments to guarantee the safe delivery of our projects across all our operations and completed assets. We are continuously looking for ways to improve and provide a safe and healthy work environment. This includes: Involving - all of our employees and wider stakeholders in identifying hazards and assessing risks Educating - the workforce using Point of Work Tool Box Talks Preparing - for negative events by conducting regular emergency drills Reviewing - conducting regular Life Crucial Audits to ensure that we eliminate fatal risks
Building on the successful certifications of our Health and Safety Management System, we extended our scope this year to include our Amaala destination. Additionally, we started work on a gap analysis of our food safety management system, preparing us for the implementation of the ISO22000:2018 Food Safety Management System. The scope covers food-service provision at our operational sites and in future will be extended to include our destinations. Other areas of focus during the year: • Accredited as a Highfield International approved center for delivering health and safety training, such as first aid, fire, and Hazard Analysis Control Critical Point for catering and risk assessment.
• Provisionally accredited with Corporate Learning Partner status by the National Examination Board in Occupational Safety & Health (NEBOSH).
• To evaluate and test emergency response capabilities, RSG and its contractors performed regular emergency drills, including medical emergency response, emergency rescue, and fire response.
Engaging with the local community on safety and their health • OSHA 30 hours training session delivered to the local community at Umluj Technical College as part of the Group’s H&S community engagement initiative. • Rolled out blood-donation campaigns themed ‘Keep Marching to Keep Living,’ in collaboration with the Ministry of Health as a part of our participation in community service.
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Hazard management: We employ a 6-step approach for incident management
Health & Safety Incident Statistics Our people are our priority, and we create a safe environment for our team to flourish. RSG continues to act quickly in identifying challenges or weaknesses in our safe systems of work and mitigating them, while recognizing and celebrating our many repeat successes.
Our recordable Incident rates recorded for 2022 are in line with industry best practice, showing our commitment to ensuring worker health and safety
Zero
Zero
recorded cases of work-related
fatalities as a result of work-related
ill-health for all employees and
ill-health for all employees and
contractors in 2020, 2021, and 2022
contractors in 2020, 2021, and 2022
2020
2021
20221
0
0
0
Number of high1 consequence work-related injuries (excluding fatalities)
2
3
Rate of high-consequence work-related injuries (excluding fatalities)2
0.15
0.17
0.14
Number of recordable injuries
3
2
9
Rate of recordable workrelated injuries 3,4
0.45
0.17
0.42
Hours worked
1,339,565
2,344,981
4,335,326
Work-related injuries for all employees Number of fatalities as a result of work-related injury
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2020
2021
20221
Work-related injuries for all workers who are not employees but whose work and/or workplace is controlled by RSG Number of fatalities as a result of work-related injury
0
1
1
Number of high2 consequence work-related injuries (excluding fatalities)
6
25
Rate of high-consequence work-related injuries (excluding fatalities)2
0.05
0.04
0.07
Number of recordable injuries
7
30
71
Rate of recordable workrelated injuries 3, 4
0.16
0.19
0.19
Hours worked
8,618,421
31,516,455
74,581,086
1 2022 figures include Amaala 2Rate of High-consequence work related injuries: Number of high-consequence work related injuries (excluding fatalities) x 200,000 / Number of hours worked 3Total Recordable Injuries (TRIR): The sum of total number of work related fatalities + Lost Time Injuries + Restricted Workday Case + Medical Treatment Cases) x 200,000 /total number of hours worked 4Despite the increase in number of injuries of workers who are not employees, the rate of recordable injury rate has only shown a marginal increase over the last three years.
Despite our commitment to prioritizing health and safety, we regret to report that an electrical incident occurred at one of our construction sites resulting in the fatality of one of our contractors in 2022. A contract electrician was conducting work on a live electrical installation when the incident occurred. Our investigation determined that the work was not carried out in accordance with our robust safe working procedures and that the recognized safe system of work was not followed. Following this fatality, a comprehensive review of the management of electrical energization and work was conducted. Improvements were made to our electrical Permit to Work system and competency requirements for electrical workers.
Upskilling our vehicle operators As a result of a number of vehicle related incidents, we initiated a Group-wide program focusing on driver safety. We have also introduced a series of engineering controls, including camel fencing, additional speed humps, improved road traffic signage and lighting, and levelled roadside embankments to improve the overall experience for road users.
The Group deployed a site-wide driving safety campaign and organized a three-day Defensive-Off Road Driving program to improve the knowledge and safe-driving techniques of employees. The defensive driving program focused on collision prevention through hazard recognition and the application of collision-avoidance techniques. 111
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Data responsibility and customer privacy
“RSG is innovating a world-leading visitor experience that seamlessly embeds the latest technology. Protecting data privacy is a priority, which is why we meticulously follow international information security procedures.” Sultan Moraished, Chief Information Security Office
Employees, suppliers, business partners, and other external stakeholders entrust us with their personal data on a regular basis, and we take our responsibility to protect it very seriously. As RSG begins to progress to the operational stage of becoming a smart destination, data security and personal data privacy are critical aspects for us to gain the trust of future customers and to encourage their fast adoption of our digital technologies. We have developed and continue to enhance a robust data management and personal data protection program which covers the end-to-end lifecycle of data planning, collection, storing, processing, use, sharing, archiving, and destruction. The program is comprised of technical controls and industry standardized policies and procedures for data management, alongside pre-defined mechanisms to report data breaches to local and global regulatory bodies, as well as awareness campaigns for our employees. To keep guest data safe, we will request explicit consent prior to collecting customer data and offer transparent information on how data will be stored, processed, used, shared, archived, and destroyed and on the legal basis for collection while also making customers aware of their data rights. The customer data that we obtain is the minimum needed to provide our services and is then disposed of in accordance with customer data regulatory requirements.
ISO20000-1:2018 certification In 2022, we were awarded ISO20000-1:2018 certification, the international standard that outlines best practice for IT service management. The certification demonstrated RSG’s ability to manage the end-to-end delivery of IT services.
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Helping to construct the economic future of the Kingdom of Saudi Arabia We are uniquely placed to accelerate progress toward Vision 2030. The world-class destinations that we are creating will build the Kingdom of Saudi Arabia’s tourism industry, aiding the diversification of the economy while creating new jobs in tourism, hospitality, and recreation, particularly in the area of the Red Sea coastline.
Green Financing We are generating increased interest from investors in both our destinations and the Kingdom of Saudi Arabia more broadly. Entering our first joint-venture agreement, achieving financial close on a USD 3.76-billion green financing, and partnering with a consortium led by ACWA Power in 2022 all point toward RSG becoming an increasingly exciting investment opportunity.
Growing Investor Confidence In 2022, RSG achieved commercial close on a financing agreement to support our joint venture with Almutlaq Real Estate Investment Co. (AREIC), a subsidiary of the Al Mutlaq Group (AMG). The agreement was valued at over SAR 1.5 billion and means both RSG and AREIC will develop Jumeirah The Red Sea, a 159-key luxury resort situated on The Red Sea destination’s hub island Shura, currently under construction and expected to open open in 2025.
“Achieving commercial close for our debt financing so swiftly after signing our joint venture with AREIC demonstrates private-sector confidence in the long-term success of our destinations and appetite in the Kingdom of Saudi Arabia’s Vision 2030. Our projects present promising business opportunities to many, with the ability to leverage key strategic assets and drive economic growth and diversification as outlined by Vision 2030." John Pagano, Group CEO of RSG, on the Al Mutlaq Joint Venture
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Partnerships, Research, and Innovation The wealth of world-class hospitality brands demonstrated the industry confidence in RSG and a growing appetite from global leaders to participate in the expansion of the Saudi tourism market.
Hotel brand partnerships In 2022, we added Ritz-Carlton Reserve, Miraval, and Rosewood to our stellar line-up of globally renowned brands to operate at the Red Sea. Our latest list of hotel brand partners now consists of:
Signed in 2022
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New Smart Technology Innovations Deal with SDAIA We signed a memorandum of understanding (MoU) with Saudi Data & Artificial Intelligence Authority (SDAIA). The MoU signing indicates our joint intention to establish an innovation center for data and Artificial Intelligence (AI) and support new talents in AI, data, and cooperating areas related to digital governance.
We Won the Data Driven Organization Award Red Sea Global won the ‘Data Driven Organization Award’ during 2022’s Informatica World Tour in Dubai. This award recognized RSG’s world-class data driven processes and dashboards developed by our Business Intelligence (EPMO) team, in collaboration with our Technology department.
We Won Top Go Live Development Company Award RSG’s website won the ‘Top Go Live – Development Company’ award during the Sitecore Symposium, with recognition for our innovative digital experience. The award reflected our efforts toward digital best practices and signified the growing confidence that field experts have in RSG and our projects and in the Kingdom of Saudi Arabia as a tourism destination.
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Events and engagement We participated in 35 prominent industry events and road shows, including the World Travel & Tourism Council Global Summit, Arabian Travel Market, and Skift Forum Europe. Through these events, our spokespeople delivered powerful presentations that reached high-profile audiences, while RSG-hosted panels advanced our ambitions to become industry thought leaders.
We delivered 35 high-profile events and road shows
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And we are telling our story to the world
4,700 Media Mentions
216B Impressions
4.2
Sentiment (Out of 5)
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The Ocean Race We announced that we are sponsoring The Ocean Race - known as ‘sailing's greatest round-the-world challenge’ - for its next two editions, partnering with Warner Bros. Discovery (WBD) who will amplify their stories around the world. We intend to use this partnership to promote this sport and to help inspire the next generation of Saudi sailors. Beyond the race itself, TOR acts as a global platform to raise awareness of the environmental challenges facing the world’s marine environment and to drive positive change. Over the years, it has brought together like-minded partner organizations from across the globe with a shared vision of protecting and enhancing our oceans, seeking to mobilize policymakers and industries in host countries to take action on sustainability issues.
“We are proud to become the Regenerative Project Partner of The Ocean Race. Sustainability sits at the very heart of our work at RSG, so The Ocean Race – and its impressive ambitions when it comes to ocean health – makes them a natural fit as a partner” John Pagano Group CEO of RSG on partnering with The Ocean Race
Stories for people and planet In 2022, WBD produced a series of short films to reveal the stories of The Red Sea. From the sea to the sky and beyond. This series revealed how we are exceeding expectations to positively shape the places in which we live, work, and travel. Corals
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Dark Skies
Survey Heritage
RSG Sustainability Report 2022
GCC BDI Summit We participated in the 8th GCC BDI Chairman Summit, which was themed around ‘Sustainable Development and Investment’ and examined how to develop the economy while setting new standards in sustainable development in the region and globally. RSG’s esteemed Secretary General and Board Member, H.E. Dr. Fahad bin Abdallah Toonsi, received the prestigious Honorary Fellowship award, using his keynote address to focus on corporate governance.
Our Group Takes Part in UN World Ocean Conference ‘Blue Saudi’ Our Group participated in the second UN Ocean Conference that was co-hosted by the Governments of Portugal and Kenya in Lisbon. The theme was: ‘Scaling up Ocean Action Based on Science and Innovation for the Implementation of Goal 14: Stocktaking, Partnerships and Solutions.’ During the conference, we highlighted the importance of the tourism sector’s role in environmental sustainability, since we are leading the development of luxury and regenerative tourism destinations.
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Customer Experience GALAXEA Dive Centers Alongside providing customers with world-class hospitality brands, RSG has launched the diving brand ‘Galaxea’ to offer customers bespoke recreational scuba-diving experiences at RSG properties along the Red Sea coast. The first two dive centers to open have attained the 5 Star Dive Centers rating from PADI (the Professional Association of Diving Instructors – the world’s most popular recreational training agency). Galaxea will offer the full range of PADI recreational courses as well as our bespoke specialty diving program. It will also embrace environmental responsibility, underlining our commitment to sustainability, regenerative tourism, and breathtaking visitor experiences.
Engagement through such events and experiences translates into a positive impact on the economy through awareness creation among different types of stakeholders. 124
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Circular Economy Approach As part of its commitment to setting new standards for responsible development, RSG has adopted several measures to minimize, reuse, and regenerate resources at every stage of development. From the design phase through to construction and operation, all development aims to reduce emissions, improve water quality, and work toward achieving zero waste to landfill.
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Looking Ahead Driven by our ambition to lead the world toward a more sustainable future, we are committed to putting people and planet first, via responsible development that uplifts communities, powers economies, and enhances the environment. With an ever-expanding mandate, we are overseeing the creation of two luxury tourism destinations in the Kingdom of Saudi Arabia – TRS and Amaala – and we will continue to increase our focus on sustainability: For our nation, we will continue to reimagine the Kingdom of Saudi Arabia’s profile on the world stage by driving economic diversification and growth through the expansion of our portfolio. For our people, we will further develop training programs, employee engagement, and corporate wellness offerings. For our workers, we will advance our occupational health and rigorous safety programs through multiple enablement and capacity-building initiatives. For our local communities, we will implement more engagement initiatives and educational programs to further support sustainable development and positively shape the places where we operate. For our planet, environmental sustainability will continue to be core to our strategy and we will be implementing world-class programs across our sites. While working for people and planet, we will continue to pursue international certifications to get an independent perspective on our performance and set new global standards in responsible development. Transparency to our stakeholders is key; we are committed to continue reporting to our external stakeholders on our sustainability goals and performance. Sustainability is the defining issue of our time. RSG is spearheading a new approach to responsible development that puts sustainability at the core of our corporate vision. It is in our DNA.
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Board of Directors Led by H.R.H. Mohammed bin Salman bin Abdulaziz AlSaud, our Board represents the best talent from the corporate and institutional realms. Each of the 10 Board members are experienced and impressive visionaries, committed to establishing RSG as a forward-thinking leader in regenerative luxury tourism and contributing to the Saudi Arabia’s Vision 2030. The full list of RSG’s Board of Directors are:
“Our real wealth lies in the ambition of our people and the potential of younger generations.” H.R.H. Mohammed bin Salman bin Abdulaziz AlSaud
H.R.H. Mohammed bin Salman bin Abdulaziz AlSaud Chairman
H.H Prince Badr bin Abdullah bin Mohammad bin Farhan Al Saud
H.E. Dr. Majid bin Abdullah Al-Qassabi
H.E. Mr. Ahmed bin Aqeel Al-Khatib
Board Member
Board Member
Board Member
H.E. Eng. Abdulrahman bin Abdulmohsen Al-Fadley
H.E. Mr. Majed bin Abdullah Al-Hogail
H.E. Mr. Yasir bin Othman Al-Rumayyan
Board Member
Board Member
Board Member
H.E. Dr. Fahad bin Abdullah Toonsi
Eng. Nadhmi bin Abdrab Alnabi Al-Nasr
Board Member and Secretary General
Board Member
Mr. John Pagano Board Member and Group Chief Executive Officer
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Advisory Board Our Advisory Board brings together a talented group of experts who provide our Board, Group CEO, and RSG’s management team with cutting-edge thinking and strategic guidance. They are also our global ambassadors, shining a light on The Red Sea and AMAALA and therefore helping to position Saudi Arabia on the global tourism map.
Ms. Aradhana Khowala
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
Mr. Frits Dirk Van Paaschen*
Chair
Mr. William McDonough* *Board of Directors approval on the non-renewal of memberships of the following two Advisory Board members on June 26th, 2022. 1. Mr. Frits Dirk Van Paaschen 2. Mr. William McDonough 130
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Audit Committee
H.E. Majed bin Abdullah Al-Hogail
H.E. Abdulaziz bin Salih Al-Furaih
Committee Chairman
Member
Mr. Yousef bin Mohammed Al-Mubarak Member
Subsidiary Governance Committee As our ambitions have grown, so too have the number of subsidiaries, rising from six to its current fifteen. As such, we created a Subsidiary Governance Committee to bring experience and knowledge to help ensure our subsidiaries are integral to our future success.
H.E. Dr. Fahad bin Abdullah Toonsi
H.E. Mr. Majed bin Abdullah Al-Hogail
H.E. Mr. Ahmed bin Aqeel Al-Khatib
Committee Chairman
Vice-Chairman
Member
H.E. Eng. Abdulrahman bin Abdulmohsen Al-Fadley
Mr. Mazen bin Abdullah AlFuraih*
Mr. John Pagano
Member
Member
Member
*Replaced Mr. Asim bin Mohammad Al-Suhaibani on June 14th, 2022
Nomination and Remuneration Committee
H.E. Eng. Abdulrahman bin Abdulmohsen Al-Fadley Committee Chairman
H.E. Mr. Majed bin Abdullah Al-Hogail Member
H.E. Dr. Fahad bin Abdullah Toonsi Member
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Executive Management
Mr. John Pagano
Mr. Ahmad Darwish
Mr. Douglas Ludwig
Group Chief Executive Officer
Group Chief Administrative Officer
Group Chief Financial Officer
Mr. Ian Williamson
Mr. Nicholas King
Dr. Maryam Ficociello
Group Chief Projects Delivery Officer
Group Chief Development Officer
Group Chief Governance Officer
Mr. Tareq Musmali
Mr. Raed Albasseet
Mr. Benjamin Edwards
Group Chief Internal Audit Officer
Group Chief Environment and Sustainability Officer
Group Head of Cost, Commercial and Procurement
Dr. Omar Al-Attas
Ms. Tracy Lanza
Mr. Gregory Djerejian
Head of Environmental Sustainability
Group Head of Global Branding & Marketing
Group Head of Investments and Legal
Mr. Anton Bawab
Mr. Brian Spraker
Group Head of Operations
Head of Health and Safety
*To note, Ian Williamson, Anton Bawab and Brian Spraker have since left the Group
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Habitats Found at TRS and Amaala TRS
Habitat type
IFC category (Critical, Natural, Modified)
Conservation value
Description
Coral and coral reefs
Critical
High
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
Critical
High
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
Sandy beaches
Critical: Hawksbill turtle nesting beaches
Natural: Other beaches
Critical
Sandy beaches offer nesting sites to the IUCN Critically Endangered Hawksbill turtle (Eretmochelys imbricata).
Terrestrial vegetation
Natural
Medium
Mangrove stands are present throughout the Al Wajh bank and the adjacent coastline. They are among the most extensive in the Red Sea.
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.
*
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Marine biomes • The outer reef that lies on the outside of the lagoon, with moderate to very 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 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.
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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 very 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 very 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.
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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.
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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 • Sooty falcon (Falco concolor): IUCN category: Vulnerable, HCP-1
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Terrestrial habitats 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 Plains The Coastal Plains in the Amaala region are marked by flat terrains with distant rocky hills. Comprised mainly of interbedded sands and gravels, the area includes coastal sabkhas with limited vegetation, due to saline conditions, and coastal mesas formed from fossilized coral reefs. The vegetation that does exist is dominated by dwarf shrubs like Haloxylon salicornicum and specific grass and shrub species. Despite the extensive occurrence of certain plants, perennial grassland communities are notably rare in the region.
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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.
Broad Wadis, Wadi Mouths, Mudflats, and Mangroves 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.
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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 also house 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.
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GRI Content Index For the Content Index - Advanced Service, GRI Services reviewed that the GRI content index is clearly presented, in a manner consistent with the Standards, and that the references for all disclosures are included correctly and aligned with the appropriate sections in the body of the report. The service was performed on the English version of the report.
Statement of use
Red Sea Global has reported in accordance with the GRI Standards for the period 1 January to 31 December, 2022.
GRI 1 used
GRI 1: Foundation 2021
Applicable GRI Sector Standard(s)
Not Applicable
GRI STANDARD/
DISCLOSURE
PAGE NUMBER(S) AND/ OR DIRECT ANSWERS
OTHER SOURCE
REQUIREMENT(S) REASON OMITTED
General Disclosures GRI 2: General Disclosures 2021
142
OMISSION
2-1 Organizational details
7, 22
2-2 Entities included in the organization’s sustainability reporting
7
2-3 Reporting period, frequency, and contact point
7, 155
2-4 Restatements of information
Our portfolio will be expanding substantially in 2023. 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
13-27, 58, 116-117, 120121
2-7 Employees
98-104
2-8 Workers who are not employees
99
EXPLANATION
RSG Sustainability Report 2022
GRI 2: General Disclosures 2021
2-9 Governance structure and composition
30-32, 129-132
2-10 Nomination and selection of the highest governance body
31-32
2-11 Chair of the highest governance body
10-11
2-12 Role of the highest governance body in overseeing the management of impacts
31-32
2-13 Delegation of responsibility for managing impacts
31-32, 36
2-14 Role of the highest governance body in sustainability reporting
31-32, 36. Our sustainability report is reviewed and approved by our Group CEO
2-15 Conflicts of interest
53
2-16 Communication of critical concerns
32
2-17 Collective knowledge of the highest governance body
31-32
2-18 Evaluation of the performance of the highest governance body
Not reported on due to confidentiality constraints
Information has not been disclosed as RSG is not a listed entity.
2-19 Remuneration policies
Not reported on due to confidentiality constraints
Information has not been disclosed as RSG is not a listed entity.
2-20 Process to determine remuneration
Not reported on due to confidentiality constraints
Information has not been disclosed as RSG is not a listed entity.
2-21 Annual total compensation ratio
Not reported on due to confidentiality constraints
Information has not been disclosed as RSG is not a listed entity.
Specific legal prohibitions.
Labor unions are prohibited in KSA
2-22 Statement on sustainable development strategy
23, 42, 46
2-23 Policy commitments
35, 38, 39, 48, 50, 5355, 100-101
2-24 Embedding policy commitments
47, 52-55
2-25 Processes to remediate negative impacts
55
2-26 Mechanisms for seeking advice and raising concerns
55
2-27 Compliance with laws and regulations
We did not identify any significant instances of non-compliance with laws and regulations
2-28 Membership associations
120-123
2-29 Approach to stakeholder engagement
42-45
2-30 Collective bargaining agreements
143
RSG Sustainability Report 2022
Material Topics GRI 3: Material Topics 2021
3-1 Process to determine material topics
42-46
3-2 List of material topics
43, 46
Economic Contribution GRI 3: Material Topics 2021
3-3 Management of material topics
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed
116-125
201-2 Financial implications and other risks and opportunities due to climate change
49, 76-77
201-4 Financial assistance received from government
None
Confidentiality constraints.
For reasons of confidentiality, direct economic value generated and distributed cannot be publicly disclosed
Confidentiality constraints
All employees have a basic salary above the minimum wage. For reasons of confidentiality, we do not publish the ratio of standard entry level wage by gender compared to local minimum wage. We are committed to the right of equal pay for equal work for our female and male employees.
Economic Contribution GRI 3: Material Topics 2021
3-3 Management of material topics
GRI 202: Market Presence 2016
202-1 Ratios of standard entry level wage by gender compared to local minimum wage
202-2 Proportion of senior management hired from the local community 144
94-96, 103
103
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Economic Contribution GRI 3: Material Topics 2021
3-3 Management of material topics
92-97
GRI 203: Indirect Economic Impacts 2016
203-1 Infrastructure investments and services supported
92-97
203-2 Significant indirect economic impacts
92-97
Governance Excellence GRI 3: Material Topics 2021
3-3 Management of material topics
52-53
GRI 205: Anticorruption 2016
205-1 Operations assessed for risks related to corruption
54
205-2 Communication and training about anti-corruption policies and procedures
52-55
205-3 Confirmed incidents of corruption and actions taken
55
Governance Excellence GRI 3: Material Topics 2021
3-3 Management of material topics
32, 47, 52-53
GRI 206: Anticompetitive Behavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
None
145
RSG Sustainability Report 2022
Resources Management, Destination Development, Climate Change GRI 3: Material Topics 2021
3-3 Management of material topics
87, 76-77
302-1 Energy consumption within the organization
Information unavailable
Our quantitative data is not complete for several key assets and therefore we are not including herein.
302-2 Energy consumption outside of the organization
Information unavailable
Our quantitative data is not complete for several key assets and therefore we are not including herein.
302-3 Energy intensity
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
302-4 Reduction of energy consumption
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
302-5 Reductions in energy requirements of products and services
Not applicable
We did not sell any products or services in 2022. We will report on this data when we become commercially operational and collate the required data
GRI 302: Energy 2016
146
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Resources Management, Destination Development GRI 3: Material Topics 2021
GRI 303: Water and Effluents 2018
3-3 Management of material topics
78-79
303-1 Interactions with water as a shared resource
78-79
303-2 Management of water discharge-related impacts
78-79
303-3 Water withdrawal
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
303-4 Water discharge
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
303-5 Water consumption
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
Natural Capital GRI 3: Material Topics 2021
GRI 304: Biodiversity 2016
3-3 Management of material topics
58-69, 84
304-1 Operational sites owned, leased, managed in, or adjacent to protected areas and areas of high biodiversity value outside protected areas
134-141
304-2 Significant impacts of activities, products, and services on biodiversity
60-69
304-3 Habitats protected or restored
60-69, 134-141
304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations
67, 134-141
147
RSG Sustainability Report 2022
Climate Change GRI 3: Material Topics 2021
GRI 305: Emissions 2016
148
3-3 Management of material topics
70-73, 76, 84
305-1 Direct (Scope 1) GHG emissions
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
305-2 Energy indirect (Scope 2) GHG emissions
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
305-3 Other indirect (Scope 3) GHG emissions
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
305-4 GHG emissions intensity
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
305-5 Reduction of GHG emissions
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
305-6 Emissions of ozone-depleting substances (ODS)
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
RSG Sustainability Report 2022
Resources Management GRI 3: Material Topics 2021
GRI 306: Waste 2020
3-3 Management of material topics
80-83
306-1 Waste generation and significant waste-related impacts
80-83
306-2 Management of significant waste-related impacts
80-83
306-3 Waste generated
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
306-4 Waste diverted from disposal
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
306-5 Waste directed to disposal
Information unavailable
Our data is not complete for several key assets and therefore we are not including herein.
Resources Management GRI 3: Material Topics 2021
GRI 308: Supplier Environmental Assessment 2016
3-3 Management of material topics
35, 41, 59, 80
308-1 New suppliers that were screened using environmental criteria
41
308-2 Negative environmental impacts in the supply chain and actions taken
41
149
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Human Capital Development GRI 3: Material Topics 2021
GRI 401: Employment 2016
3-3 Management of material topics
98-104
401-1 New employee hires and employee turnover
99
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees
101
401-3 Parental leave
101
Human Capital Development GRI 3: Material Topics 2021
GRI 402: Labor/Management Relations 2016
150
3-3 Management of material topics
98
402-1 Minimum notice As part of our commitperiods regarding opera- ment to transparency, tional changes 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.
RSG Sustainability Report 2022
Health, Safety and Security GRI 3: Material Topics 2021
3-3 Management of material topics
109-111
403-1 Occupational health and safety management system
109-111
403-2 Hazard identification, risk assessment, and incident investigation
110
403-3 Occupational health services
109
403-4 Worker participation, consultation, and communication on occupational health and safety
109
403-5 Worker training GRI 403: Ocon occupational health cupational and safety Health and Safety 2018 403-6 Promotion of worker health
109-111
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
109-111
403-8 Workers covered by an occupational health and safety management system
109-111
403-9 Work-related injuries
110-111
403-10 Work-related ill health
110-111
109-111
Human Capital Development GRI 3: Material Topics 2021
GRI 404: Training and Education 2016
3-3 Management of material topics
105-106
404-1 Average hours of training per year per employee
106
404-2 Programs for upgrading employee skills and transition assistance programs
106
404-3 Percentage of employees receiving regular performance and career development reviews
105
151
RSG Sustainability Report 2022
Human Capital Development GRI 3: Material Topics 2021
3-3 Management of material topics
101-104
405-1 Diversity of governance bodies and employees
101-104, 129-132
405-2 Ratio of basic salary and remuneration of women to men
Confidentiality constraints
GRI 405: Diversity and Equal Opportunity 2016
Governance Excellence GRI 3: Material Topics 2021
GRI 406: Non-discrimination 2016
3-3 Management of material topics
53-55
406-1 Incidents of discrimination and corrective actions taken
55
Human Capital Development GRI 3: Material Topics 2021
GRI 409: Forced or Compulsory Labor 2016
152
3-3 Management of material topics
53-55
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor
55
We do not publish the 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
RSG Sustainability Report 2022
Social Risk Management and Development GRI 3: Material Topics 2021
GRI 413: Local Communities 2016
3-3 Management of material topics
89, 92-97
413-1 Operations with local community engagement, impact assessments, and development programs
89, 92-97
413-2 Operations with significant actual and potential negative impacts on local communities
92-97
Health, Safety and Security GRI 3: Material Topics 2021
GRI 416: Customer Health and Safety 2016
3-3 Management of material topics
109
416-1 Assessment of the health and safety impacts of product and service categories
Not applicable
Our operations were not open for customers in 2022
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services
Not applicable
Our operations were not open for customers in 2022
Not applicable
Our operations were not open for customers in 2022
Health, Safety and Security GRI 3: Material Topics 2021
3-3 Management of material topics
50-51, 112
418-1 Substantiated complaints concerning GRI 418: breaches of customer Customer Privacy 2016 privacy and losses of customer data Stakeholder Experience GRI 3: Material Topics 2021
3-3 Management of material topics
42-45, 55, 120-124
153
RSG Sustainability Report 2022
Abbreviations and Acronyms AI
Artificial Intelligence
MCDA
Multi-Criteria Decision Analysis
BEV
Battery Electric Vehicle
MEWA
Ministry of Environment, Water and Agriculture
BSI
British Standards Institution
MOH
Ministry of Health
CEO
Chief Executive Officer
MoU
Memorandum of Understanding
COP
Conference of the Parties
MSP
Marine Spatial Planning
COSO
Committee of Sponsoring Organizations
MW
Megawatt
DJSI
Dow Jones Sustainability Indices
MWh
Megawatt hour
DLP
Data Loss Protection
NEBOSH
National Examination Board in Occupational Safety & Health
EA&GR
External Affairs and Governance Relations
NCEC
National Center for Environmental Compliance
EAP
Employee Assistance Program
NCVC
National Center for Vegetation Cover
EMS
Environmental Management System
NELC
National e-Learning Center
ERM
Enterprise Risk Management
ODS
Ozone-Depleting Substances
E&S
Environment & Sustainability
OHS
Occupational Health and Safety
ESG
Environmental, Social, and Governance
OSHA
Occupational Safety and Health Administration
ESIA
Environmental and Social Impact Assessment
PADI
Professional Association of Diving Instructors
GDP
Gross Domestic Product
PIF
Public Investment Fund
GHG
Greenhouse Gas
PPP
Public-Private Partnership
GO
Green Office
PM
Particulate Matter
GRC
Governance, Risk and Compliance
PRI
Principles for Responsible Investment
GRESB
Global Real Estate Sustainability Benchmark
RSG
Red Sea Global
GRI
Global Reporting Initiative
RSZA
Red Sea Zone Authority
GJ
Gigajoule
SAR
Saudi Arabian Riyal
HACCP
Hazard Analysis Control Critical Point
SASB
Sustainability Accounting Standards Board
H&S
Health and Safety
SACF
Saudi Arabian Cricket Federation
HAWSA
Health and Safety at Work Act
SDAIA
Saudi Data & Artificial Intelligence Authority
HR
Human Resources
SDGs
United Nations Sustainable Development Goals
HRDF
Human Resources Development Fund
SLR
Sea Level Rise
HQ
Headquarters
SPMS
Sustainability Performance Management System
HRH
His Royal Highness
STP
Sewage Treatment Plant
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HSE
Health, Safety and Environment
SWRO
Sea Water Reverse Osmosis
IFC
International Finance Corporation
TCFD
Task Force on ClimateRelated Financial Disclosures
ISO
International Organization for Standardization
TNA
Training Needs Analysis
IUCN
International Union for Conservation of Nature
TRIR
Total Recordable Incident Rate
KPI
Key Performance Indicator
TRS
The Red Sea
KSA
Kingdom of Saudi Arabia
TVTC
Technical and Vocational Training Program
KSU
King Saud University
UN SDGs
United Nations Sustainable Development Goals
L&D
Learning and Development
UPM
University of Prince Muqrin
LEED
Leadership in Energy and Environmental Design
USD
United States Dollar
LTI
Lost Time Incident
VDA
Value-Driven Approach
LTIR
Lost Time Incident Rate
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 2022. 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.
Find out more Please visit https://www.redseaglobal.com to find out more
Please visit https://www.redseaglobal.com/en/about-us/sustainability to find out more about our sustainability ambitions
For questions about this report or its content, please reach out to us: sustainability@redseaglobal.com
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