Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Water Management
• Energy and Climate Change
• Waste Management
• Health and Safety
• Diversity and Inclusion
• Community Engagement and Investment
• Product Quality and Innovation
• Sustainable Procurement
• Governance, Compliance and Ethics
• Economic Development

Environmental Achievements

• Ghitha improved energy consumption by increasing reliance on renewable materials (9% increase in 2020 compared to 2019).
• Ghitha recycled an estimated 5,040 liters of vegetable oil per annum.
• Al Ajban uses environmentally friendly chemicals and ammonia-based refrigeration.
• Al Ajban recycled an estimated 336,000 kilograms of packaging waste in 2020.
• Asmak installed 29 solar streetlights, reducing electrical consumption by 43,800 kWh per annum.

Social Achievements

• IHC Food and Industrial verticals maintained minimum employee total recordable injuries.
• Food and industrial verticals hired 308 new employees (over 23% female).
• Increased UAE Nationals in Food and Industrial verticals workforce by 60% in 2020 (over 62% female).
• Al Ajban donated 23,850 kg of chicken to the Emirates Red Crescent.
• Zee Stores produced sanitisers and provided food packs to non-profits.
• Palms Sports held community engagement initiatives, including a swimming tournament for students of determination.

Governance Achievements

• Al Ajban increased local procurement to 31% in 2020 (9% increase from 2019).
• Palm Sports increased local procurement by 26% from 2019.
• Eltizam adopted its first Sustainable Procurement Policy in 2020.

Climate Goals & Targets

Environmental Challenges

• 8% increase in water consumption from IHC food verticals in 2020 compared to the previous year.
• 12% increase in water consumption intensity in 2020 compared to 2019.
• 13% increase in direct and indirect energy consumption in 2020 compared to 2019 for the Food vertical.
• 18% increase in GHG emissions in 2020 compared to 2019.
• 10% increase in employee turnover rate in 2020 compared to 2019 due to COVID-19 impacts.

Mitigation Strategies

• IHC food verticals regularly recycle wastewater for reuse.
• Over 85% of wastewater from IHC Food verticals was recycled and reused in 2020.
• Various initiatives to recycle and reuse office supplies, packaging materials, used vegetable oils, and fish waste.
• Implementing Occupational Health, Safety and Environment system to minimize environmental footprint.
• Regular inspections and audits by external consultants to ensure compliance with EAD requirements.

Supply Chain Management

Supplier Audits: Al Ajban routinely carries out supplier audits.

Responsible Procurement

• Supplier Code of Conduct at Ghitha ensuring safe working conditions and environmentally friendly production processes.
• Eltizam aims to prioritize eco-friendly suppliers and eradicate single-use plastic by the end of 2021.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), Abu Dhabi Stock Exchange (ADX) ESG Guidance, UAE Vision 2021

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-packaging and green buildings

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Several measures were taken to protect the health and safety of employees; technology-driven new product innovations to support the UAE Government’s fight against the COVID-19 pandemic situation and improve the speed and accuracy of COVID-19 assessments helped create a positive impact on society as a whole and enabled business continuity in a sustainable, responsible manner.

Governance Achievements

• Strengthened governance practices; IHC’s Board of Directors and IHC senior management acted proactively and continuously monitored all components of the business to ensure minimal disruptions and impact on the Group’s business due to COVID-19.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic situation

Mitigation Strategies

• Several measures were taken to protect the health and safety of employees; technology-driven new product innovations to support the UAE Government’s fight against the COVID-19 pandemic situation and improve the speed and accuracy of COVID-19 assessments helped create a positive impact on society as a whole and enabled business continuity in a sustainable, responsible manner.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Economic Development
• Technology
• Product Quality and Innovation
• Sustainable Procurement
• Health & Safety
• Diversity and Equality
• Waste Management
• Water Management
• Energy and Climate Change
• Environmental Management
• Community Engagement and Investment

Environmental Achievements

• Reduced carbon emissions by over 100tCO2e through switching from generator power to mains power at Arena Group sites.
• Reduced carbon emissions by more than 90% using Hydronated Vegetable Oil (HVO) at Arena Group.
• Asmak invested AED 2.45 million to develop a dedicated 1.200 KW solar power system, expected to offset around 1.5 million tonnes of CO2 emissions.
• PAL Cooling commissioned the first chiller in the GCC to use Hydrofluoroolefin (HFO) refrigerant R-1233zd(E), with zero-ozone depletion potential and 80% lower global warming potential compared to HFCs.
• Arena Group's UK division devised a water recycling system saving 12,000 litres of water per day.

Social Achievements

• Launched an internal digital disruption educational program at Multiply Group.
• Implemented an operational excellence program across Multiply Group subsidiaries.
• Palms Sports launched a digital platform for sports e-learning and implemented “Odoo” accounting software.
• EasyLease is focused on implementing mobility technology solutions to enhance fleet tracking, driver and rider management, road safety, and safeguarding vehicles.
• ADH developed a group-wide Code of Conduct and Business Ethics.
• ADH subsidiary Aldar Properties launched the ‘Emirati Innovator’ initiative.
• EasyLease mobilized over 500 workers for flood relief efforts in Fujairah.
• Palms Sports delivers tailored Jiu-Jitsu classes for students with special needs.

Governance Achievements

• IHC conducted a full review of its ESG Integration Framework.
• IHC identified 22 material ESG topics for its most significant subsidiaries.
• Established three Board Committees: Audit Committee, Nomination and Remuneration Committee, and Insider Trading Supervision Committee.
• Developed key corporate governance policies (Corporate Governance Manual, Delegation of Authority Policy, Code of Conduct and Business Ethics, etc.).
• Implemented robust risk management and internal control systems.

Climate Goals & Targets

Environmental Challenges

• Vast and rapidly expanding portfolio of over 400 subsidiaries, making group-wide ESG reporting challenging.
• Managing the risks and opportunities arising from climate change.
• Integrating ESG into the investment analysis and decision-making process across the portfolio.

Mitigation Strategies

• Refining Group-wide ESG reporting strategy to focus on integrating ESG into operations and investment decisions.
• Embedding climate change considerations into risk management framework, operations, and investment analysis.
• Strategic investments in renewable and clean tech sectors.
• Collaboration, local and global partnerships, and alliances to enhance ESG integration.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Codes of Conduct
• Local procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Renewable Energy Storage
• District Cooling
• Investments in clean tech and renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2021 Update, ADX ESG disclosure guidelines, Abu Dhabi Vision 2030, Sustainable Development Goals (SDGs)

Certifications: ISO 22000:2018, HACCP, HALAL, ISO 9001:2015, ISO 45001:2018, ISO 14001: 2015, ISO 50001

Third-party Assurance: Reputable third-party consulting firm

UN Sustainable Development Goals

• Not disclosed

Each section of the report is aligned with relevant SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GESS Education Awards Winner 2020 (Palms Sports)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Circular Economy
• Employee Wellbeing
• Community Investment

Environmental Achievements

• Launched Proseed Sustainability Hub
• Multi-subsidiary showcase at COP28 with 20 partnerships and initiatives announced, focusing on green finance, carbon capture, and circular economy.
• Portfolio companies committed to achieving Net Zero by 2050 (some by 2040).

Social Achievements

• Hosted UAE Women’s Cycling Champions meet and greet.
• Partnered with LVL Wellbeing for staff wellness programs.
• Eltizam collected donations for Syria and Turkey earthquake relief.
• Total amount contributed towards community investments: AED 36,077,703

Governance Achievements

• Updated Delegation of Authority Policy Framework.
• Established Board Committees (Audit, Nomination & Remuneration, Follow-up & Insiders Transaction Supervision).
• Outsourcing of internal audit function to Protiviti.

Climate Goals & Targets

Environmental Challenges

• High market and macroeconomic volatility.
• Global geopolitical issues and predicted slowing down of global annual real GDP.

Mitigation Strategies

• Proactive and robust response to changing dynamics.
• Pursuing opportunities to deliver increased shareholder value.
• Disciplined cost management, prudent financial decision-making, and effective risk mitigation strategies.

Supply Chain Management

Climate-Related Risks & Opportunities