Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Health, safety and the environment
• Community Investment
• Employee Engagement

Environmental Achievements

• AKOYA by DAMAC is being developed based on fundamental passive sustainable design principles, as well as innovative and active technologies that will reduce the running costs of homes.
• DAMAC Towers by Paramount development is another example of DAMAC’s use of high-end technologies to drive savings in energy.
• The Trump International Golf Club, Dubai development aims to conserve energy by harnessing solar energy for water heating in the villas and street/golf course lighting.
• All buildings will be equipped with a centralised building management system (“BMS”) in order to monitor and control the energy consumption of air-conditioning and other technologies.

Social Achievements

• Donated 10 apartments to the launch of the Dubai Cares initiative that were auctioned to raise funds for an education initiative that supported one million underprivileged children
• Provided AED 2 million to the UAE Red Crescent as part of the “Dress One Million Needy Children” campaign
• Donated AED 1 million to the UAE Autism Centre towards the construction of a new centre in Dubai
• Funded annual scholarships at the American University in Dubai to benefit UAE nationals
• Organised biannual blood drives at DAMAC’s head offices
• Formed an “Active Sports Committee” to arrange quarterly sporting events and tournaments
• Annual Suhoor Dinners for all staff and their families
• The provision of a fully equipped gymnasium and swimming pool for staff use

Governance Achievements

• Strengthened corporate governance structure in line with international best practices
• Established three key committees: Audit Committee, Nomination Committee, and Remuneration Committee
• Improved internal audit function
• Successful IPO on the London Stock Exchange

Climate Goals & Targets

Environmental Challenges

• Market changes in the Middle Eastern economic and political environment
• Dependence on contractors’ and subcontractors’ risks
• Planning, general construction and development risks
• Foreign exchange risk
• Credit risk
• Liquidity risk

Mitigation Strategies

• Comprehensive risk management plan continually monitored across the business
• Experienced management team with extensive knowledge of the Middle Eastern real estate market
• Diversified portfolio by development type and geographical location
• Focus on the hospitality sector to mitigate against cyclical nature of real estate industry
• Thorough contractor screening
• Regular monitoring of contractor operations and working practices
• Appropriate insurance policies
• Efficient liquidity management through timely monetization of land bank, structured contractual commitments, and diversification of debt and equity investor base

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Social contribution of AED 2,000,000 (US$ 543,000) in 2015

Governance Achievements

• Listing on the Dubai Financial Market (DFM)
• Established a Corporate Governance Manual
• Established an Audit, Compliance and Risk Committee (ACR Committee)
• Established a Nomination and Remuneration Committee (N&R Committee)

Environmental Challenges

• Challenging geopolitical phase in the Middle East coupled with low oil prices
• Volatile markets impacting demand
• Lower-than-expected housing supply in Dubai

Mitigation Strategies

• Continuous exploration of new markets
• Strong in-house sales force and extensive use of broker network
• Frequent sales events and roadshows globally

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte & Touche (M.E.)

Awards & Recognition

• 11 awards at the Arabian and International Property Awards

Environmental Metrics

Social Achievements

• Honored commitment to pay a cash dividend of AED 1.46 billion (US$ 397 million) for 2015. Recommended a higher cash dividend payout of AED 1.5 billion (US$ 412 million) (AED 0.25 per share) for 2016 (subject to approval of the shareholders).

Governance Achievements

• DAMAC acknowledges the importance of good governance and follows the corporate governance best practices in compliance with the Resolution No. 7 / R.M of 2016 Concerning the Standards of Institutional Discipline and Governance of Public Shareholding Companies (‘Corporate Governance Code’) issued by the Securities and Commodities Authority (‘SCA’)

Climate Goals & Targets

Environmental Challenges

• Challenging macro-economic conditions resulted in lower booked sales in 2016 vs 2015
• Overall, the market has cooled off since its peak in 2014. This is partly because of new regulations for the Dubai market implemented in late 2013 to stabilise markets, including a doubling of registration fees and a revision of mortgage caps. This, combined with macro-economic factors, has brought the market into a more stable and consolidated phase.
• The Middle East region continued to face rather challenging conditions in general, impacted by a combination of geopolitical and economic issues.

Mitigation Strategies

• adapted to market changes with successful product launches in the more mid-level market segment, to cater to evolving market and consumer appetites
• maintain our emphasis on a focused balance sheet underpinned by high levels of cash and development properties, while retaining a very conservative level of debt

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Golf Development’ in the world at the International Property Awards in London
• 'highly commended' recognition for Golf Development in the Africa and Arabia Property Awards hosted in Dubai
• AYKON Hotel & Hotel Apartments for “Best Hotel Architecture” and AYKON City for “Best Mixed-Use Architecture.”
• “Tower Project of the Year” at the Construction Week Awards in 2016

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility
• Emiratization

Social Achievements

• Cash contribution of AED 9,750,000 to the "One Million Arab Coders Initiative"
• Achieved more than 180 million safe working hours within Dubai projects

Governance Achievements

• Adopted a Corporate Governance Manual aligned with SCA standards
• Established an Audit, Compliance and Risk Committee (ACR Committee)
• Established a Nomination and Remuneration Committee (N&R Committee)

Climate Goals & Targets

Environmental Challenges

• Lack of women representation on the Board of Directors

Mitigation Strategies

• Opened the door for election of new directors, including women, but no woman obtained sufficient percentage to be a Board member in 2017.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Corporate Governance Code (SCA)