Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Management
• Occupational Health and Safety
• Community Engagement

Environmental Achievements

• Reduced emissions intensity across Steel Businesses by 19%
• Purchased clean energy certification for solar and nuclear energy totaling 7,272,000 GJ (13% of total direct and indirect energy consumed by Steel Businesses)
• Achieved an “A” grade in the Ministry of Environment and Climate Change’s annual assessment
• Planted 1,100 trees

Social Achievements

• Launched the Namaa’ cost reduction and transformation programme, contributing AED 400 million to EBITDA
• Delivered 161,414 hours of training in Steel Businesses (99% increase since 2021)
• Achieved 80% supplier satisfaction rating with zero complaints
• Spent AED 2,714 million with local suppliers
• 88% of local suppliers are ICV-certified

Governance Achievements

• Implemented a strong Code of Conduct and Business Ethics
• No monetary sanctions or cases of non-compliance with laws and regulations recorded
• Established a sustainability implementation plan covering targets and objectives for different materiality topics
• Implemented an Integrated Management System (IMS) conforming to ISO 9001, ISO 14001, and ISO 45001

Climate Goals & Targets

Environmental Challenges

• Deteriorating market sentiment
• Increasing volatility in commodity prices
• Mounting concerns about inflation risks
• Global supply chain uncertainties

Mitigation Strategies

• Diversified revenue sources by increasing export markets
• Boosted competitiveness of national products
• Encouraged local production in support of the “Make it in the Emirates” campaign
• Undertook measures to enhance the Group’s overall resilience including strategic organisational changes, investing in new environmentally conscious products, intensive marketing programming and a prudent approach to cost control

Supply Chain Management

Supplier Audits: Annual or as required

Responsible Procurement

• Supplier Code of Conduct
• Stringent environmental requirements
• ICV certification
• Social impact assessment criteria

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Green hydrogen production
• Low-carbon steel hub development

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs, Abu Dhabi's Economic Vision 2030, UAE Climate-Responsible Companies Pledge

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001 (Cement Businesses), CARES SCS Scheme, LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ES600 high-tensile steel rebar
• Green cement (planned)
• U-Pile and Z-Pile sheet piles

Awards & Recognition

• Safety excellence award from World Steel Association
• Climate Action Data Provider Certificate of Appreciation from WSA
• Electrical Tariff Incentive Programme (ETIP) certificate with “Excellent” rank

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Green Hydrogen
• Green Finance
• Emiratisation
• Community Investment
• Employee Well-being
• ResponsibleSteel

Environmental Achievements

• EMSTEEL’s carbon intensity is independently certified to be less than half of the global steel industry average, due to a range of decarbonisation initiatives and its carbon capturing facility.
• Reduced Group’s total carbon footprint by 2%
• ES600 high-strength rebar provides for 8% reduction of the total steel consumption in mid- to high-rise construction and 4% reduction in the emissions intensity of steel production.
• Reduced CO₂e emission per tonne of ES600 steel by 390 kg
• Signed a Memorandum of Understanding (MoU) with the Abu Dhabi Department of Economic Development (ADDED) and ITOCHU Corporation to pursue studies focused on the establishment of an integrated steel production complex in Abu Dhabi to produce low-carbon materials.
• Partnered with A³&Co.® to implement a cement decarbonisation roadmap at the Al Ain Cement Factory.
• Partnered with Masdar to start using green hydrogen to extract iron from iron ore (pilot project launching in 2024).
• Signed a Strategic Collaboration on Hydrogen Research and Development with Ohmium International and Khalifa University.
• Signed a MoU with First Abu Dhabi Bank (FAB) to identify strategies for hedging and trading carbon credits.

Social Achievements

• Achieved 90% customer satisfaction rate for Cement Business
• Emirati employee turnover reduced by 43%
• Emiratisation rate increased to 21%
• AED 516,746 community investment impacting 52,272 beneficiaries
• 0 fatalities recorded in 2023 across all businesses
• LTIFR in the steel business 0.05 (employees only)
• Hosted the 26th Fastmarkets Middle East Iron and Steel Conference 2023.
• Hosted its first Youth in Manufacturing and Technology Forum.

Governance Achievements

• Implemented a new operating model creating two separate business divisions: Emirates Steel and Building Materials.
• Became a member of ‘ResponsibleSteel’.
• Established an ESG Committee (meetings to commence in 2024).
• Female representation on the Group’s Board of Directors increased to 28%.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in global steel markets driven by geopolitical dynamics and economic shifts.
• Significant pressure on profitability across the steel industry due to adverse global market conditions.
• Significant over-supply in the domestic market impacting profitability of Emirates Blocks.
• Uncertainty associated with the longer-term operating model for the cement plant.
• Russia-Ukraine conflict impacting iron ore feedstock and consumable materials sourcing.

Mitigation Strategies

• Strategic focus on operational efficiency and a well-diversified product offering.
• Investment in advanced technologies and streamlined processes.
• Cost optimisation initiatives and enhanced sales prices.
• Identification of an alternate quarry in Al Ain to supply limestone feedstock for five years.
• Assessment of alternative sources of feedstock for longer-term operations.
• Establishment of alternate lines of supply for iron ore feedstock and consumable materials.

Supply Chain Management

Responsible Procurement

• AED 6.1 billion in total procurement spending (AED 2.4 billion on UAE suppliers, equivalent to 39%)

Climate-Related Risks & Opportunities

Opportunities

• Capitalising on the unprecedented demand growth for low carbon steel and sustainable building materials.

Reporting Standards

Frameworks Used: IFRS, Worldsteel Climate Action Programme, Worldsteel Sustainability Charter, UAE Climate-Responsible Companies Pledge

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

Sustainable Products & Innovation

• ES600 high-strength rebar

Awards & Recognition

• Award for the best level of Emiratisation in the industrial sector