Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Social responsibility
• Governance

Environmental Achievements

• 33% saved in water consumption using the latest flush systems in water closets
• Recycles natural raw materials
• Adopts clean development mechanism (CDM) projects to reduce carbon emissions

Social Achievements

• BDT 1.10 mn contributed to medical treatment, foster education, social and cultural activities
• Life insurance coverage for all employees
• Provident fund and gratuity scheme for all employees
• Workers’ profit participation fund
• Employee welfare fund

Governance Achievements

• Strengthened governance practices
• Triple assurance model to enhance assurance from management, internal audit, and external providers
• Compliance with corporate governance code 2018 of the Bangladesh Securities and Exchange Commission

Climate Goals & Targets

Environmental Challenges

• Extreme volatile forex currency in Bangladesh
• Intensifying competition in ceramics tiles and sanitary industry
• Controlled supply and significant price increase of natural gas
• Crude oil inflationary pressure

Mitigation Strategies

• Closely monitors market trends
• Unique brand propositions anchored on design, affordability, and after-sales service
• Strong supplier relationships and long-term contracts
• Sales pricing policy linked to purchasing policies
• Strong relationships with logistics partners
• Low dependence on external borrowings
• Strong retained earnings, cash and bank balances, and low debt-equity ratio
• Safe forward contracts to cushion against adverse foreign currency movements

Supply Chain Management

Responsible Procurement

• Strengthening supplier relationships
• Long-term contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting

Certifications: ISO 9001:2015, ISO 14001:2004, ISO 13006:2012 (E), BDS ISO 13006:2012, BDS 1162:2012, BSTI-approved

Third-party Assurance: ACNABIN, Chartered Accountants (an independent member of BAKER TILLY INTERNATIONAL)

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 15

Sustainable Products & Innovation

• Water-efficient closets

Awards & Recognition

• Silver Award 6th ICSB National Award- 2018
• 3rd Position ICMAB Best Corporate Award 2018
• Certificate of Merit 19th ICAB Award – 2018

Environmental Metrics

ESG Focus Areas

• Energy, climate change & emissions
• Water management
• Waste & recycling management
• Workforce wellbeing (including health & safety)
• Emiratization
• Investment in our employees
• Diversity and inclusion
• Community investment
• Anti-corruption
• Corporate governance, compliance and ethics
• Sustainable production & innovation
• Responsible & sustainable procurement practices
• Customer privacy
• Financial & economic performance

Environmental Achievements

• 3.62% decrease in energy consumption in relation to Tiles Production (M²) and 28.36% decrease in energy consumption in relation to SW (Piece)
• All water and effluent discharge from our factories, employees’ accommodations and corporate office was treated, recycled and reused.
• 2.65% decrease in energy consumption in relation to UAE sales
• Planted approximately 500 trees within the perimeter of our premises to offset emissions
• Installed feeder rubber curtains on raw material boxes to reduce dust emission

Social Achievements

• Increased percentage of Emiratis in administrative functions to 37%
• Provided free medical insurance and various healthcare initiatives to all employees
• Implemented COVID-19 mitigation measures including social distancing and work-from-home options
• AED 1.2 million community investment spending including combating against Covid-19

Governance Achievements

• No material incidents of corruption or non-compliance with applicable laws and regulations
• Regularly reviews corporate governance policies and practices to ensure compliance with UAE laws and SCA standards
• No claims raised against RAK Ceramics PJSC UAE for anti-competitive behavior

Climate Goals & Targets

Environmental Challenges

• Rising input costs and supply chain disruptions
• Increase in total energy consumption due to increased production and demand
• COVID-19 pandemic and lockdowns across markets
• Work-related injuries, particularly finger severances in factories
• Dust, noise, and silica contributing to employee ill-health

Mitigation Strategies

• Enhancing plants in UAE, India, and Bangladesh; initiating greenfield project in Saudi Arabia; increasing selling prices to offset increased freight costs
• Implementing energy-saving measures (LED lights, temperature limits)
• Forming a COVID-19 Command Center to assess risks and formulate response strategies
• Providing adequate hand protection equipment and educating employees on proper use
• Undertaking risk assessments, plant inspections, and monitoring to minimize dust, noise, and silica risks; supplying employees with dust masks and earplugs

Supply Chain Management

Responsible Procurement

• Supplier assessment questionnaire outlining minimum requirements for quality, environmental practices, health and safety, and ethical standards
• Commitment to using local suppliers where possible

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards’ ‘Core’ option, Abu Dhabi Stock Exchange’s 31 Key Performance Indicators (KPIs), UN SDGs, UAE National Vision 2021

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 13006, EN 1441, ANSI A137.1, ISO/IEC 17025, ISO 27001 (Feb 2022)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 12
• Goal 13
• Goal 5
• Goal 16
• Goal 8
• Goal 9

Sustainable Products & Innovation

• RAK Slim (50% less raw materials)
• RAK Antimicrobial (reduces microbial contamination)
• RAK Joy (FSC certified wood)

Awards & Recognition

• Best Tiling Brand (BKU Awards)
• Best Sanitary-ware Brand (BKU Awards)
• Best Ceramic Bathroom Ware Supplier (UAE) (MEA Business Awards)
• Best Specialised Manufacturer (The Design Middle East Awards)
• 2nd Place in Environmental Sustainability Award (EPDA)
• Best Innovative Product Award for LUCE

Environmental Metrics

ESG Focus Areas

• Environmental Impact
• People & Community
• Governance
• Responsible Business & Responsible Employer

Environmental Achievements

• Reduced energy intensity of Tiles production by 3.37% compared to 2022 (per GJ/m2)
• Reduced energy intensity of Sanitary Ware sales by 20.46% (GJ / 000 AED)
• Increased use of treated wastewater in Tiles production by 75% compared to 2022 (over 70% since 2020)
• 100% of all non-hazardous waste is either reintroduced in production or recycled by 3rd parties
• Reduced volume of non-hazardous waste generated by 34.24% compared to 2022
• Avoided CO2e emissions by reducing imports of 276,265 tons of raw materials annually
• Increased use of treated wastewater in Tiles production by 80% compared to 2022
• 36,297.8 tons of all our packaging is recycled and/or recyclable

Social Achievements

• 120,822 hours of training completed by employees in UAE
• 10% Emiratisation Rate in 2023
• 29.93% Females in administrative roles

Governance Achievements

• Successfully passed the ISMS surveillance audit, demonstrating continued adherence to international security standards
• Significant security enhancements were made, including enabling disk encryption for endpoints and implementing Multi-Factor Authentication for remote access

Climate Goals & Targets

Environmental Challenges

• Increase in energy consumption due to shift in product mix towards more resource-intensive GP tiles
• Increase in water intensity of sales due to shift to production of more resource-intensive GP tiles
• Uncertain political situation in Sudan resulting in delays in recovery of receivables

Mitigation Strategies

• Investments in technologies that enhance energy efficiency of production processes
• Initiatives to reduce water consumption, reuse water and reduce spillages and wastage of water
• Provision of AED 27.6 million against the carrying value of receivables from Sudan

Supply Chain Management

Supplier Audits: Audits of all strategic suppliers

Responsible Procurement

• Supplier Assessment Questionnaire for all key suppliers
• Focus on increasing % of local suppliers and raw materials
• R&D to reduce volume of imports
• Focus on procuring recycled or recyclable packaging material

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 9000, ISO 14000, EcoLabel Certification

UN Sustainable Development Goals

• 3
• 5
• 6
• 7
• 8
• 10
• 12
• 13
• 16

Alignment with UN SDGs 3, 5, 6, 7, 8, 10, 12, 13 and 16

Sustainable Products & Innovation

• Porcelain: Reuse Quartz (100% recycled material)
• RAK Reel Flush (water-saving flushing system)
• MICA finish (artistic glaze using Mica minerals)
• RAKSOLITE (innovative lighter solid surface material)
• Cooking-RAK (hidden induction cooktop)

Awards & Recognition

• Stevie Gold Honorary Award for Excellence and Good Reputation
• Stevie Silver Award for Excellence in Innovation in Manufacturing Industries
• Best Sanitaryware Brand at the BKU Awards 2023
• Outstanding Leadership in Manufacturing, UAE from CEO Today
• Ceramics and Tiles Brand of the Year at Construction Innovation Awards 2023
• Fitting Specialist of the Year and Ceramics and Tiles Brand of the Year at Design ME Awards
• Silver Impact Seal from Majra
• Archiproducts Design Awards 2023 for CookingRAK
• Eco Label Sustainability Certificate from RAK EPDA
• Mixology Bathroom Product of the Year for RAK-Petit
• Living Etc Style Award for RAK-Valet bathroom range
• Ideal Home Best Kitchen Surface accolade for Luce product line