Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 100% of wastewater reused for industrial purposes at Deco and Carrara MidEast
• 840,995 kWp of electricity generated annually via solar system at Vedder's German facility
• Participation in Dubai Municipality's "Your Old Computer…can give them a New Life!" program
• Participation in Clean Up the World campaign
• Several LEED and Estidama certified projects completed

Social Achievements

• Implementation of worker welfare programs including accommodation and transportation in the Middle East and China
• Monthly safety awards promoting safe work practices
• Annual Iftar Banquet and other employee engagement events
• Annual Sports Tournament (Sportfest)
• Group Internship Program
• Annual Blood Donation Drive

Governance Achievements

• Implementation of Depa Standards, a world-class Quality Management System
• Implementation of ISO 9001 for Quality Management System
• Implementation of ISO 14001 for Environmental Management System
• Implementation of OHSAS 18001 for OH&S Management System
• Establishment of Board Committees (Nomination and Remuneration, Audit and Compliance, Investment and Risk)
• Implementation of Enterprise Risk Management program
• Implementation of a robust Internal Audit Function
• Implementation of a Compliance and Governance Function
• Implementation of a digital transformation strategy including Oracle ERP system and DOQS QHSE system

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritising local vendors
• Including sustainability in vendor assessment criteria and prequalification process
• Using timber from sources that meet Forest Stewardship Council (FSC) standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (aiming for compliance by 2019)

Certifications: ISO 14001, OHSAS 18001, ISO 9001, ISO 27001, FSC (Design Studio and Eldiar)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Enterprise IT Architecture Award 2014 by ICMG
• Top 100 Global CIO Award - Ali Katkhada by CMS
• Data Centre Dynamic Best Could Journey Award Depa Group
• Oracle Middle East Award 2013
• Oracle Middle East Award 2014
• Oracle Middle East Award 2016
• Best Subcontractor Award (twice) on the W Hotel and Residences project

Environmental Metrics

Governance Achievements

• Implemented a share listing currency conversion from US dollars to UAE dirhams on Nasdaq Dubai.
• Completed disposal of non-core assets worth AED 7.0mn.
• Consistently worked on implementing efficiency and productivity improvements, encouraging collaboration and innovation.

Climate Goals & Targets

Environmental Challenges

• Underutilisation of factories in DSG.
• Cost overruns from delays on a Dubai-based project in DSG.
• Restructuring charges relating to the closure of DSG’s Malaysian factory and showrooms.
• Recovery of long-outstanding receivable balances.

Mitigation Strategies

• Closing of DSG’s Malaysia factory and consolidating manufacturing operations into its China factory.
• Expansion into new markets for DSG.
• Right-sizing of DSG’s workforce.
• Actively pursuing the recovery of remaining long-outstanding receivable balances.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Governance Achievements

• Implemented a Share Trading Policy for Directors, Management and Group employees.
• Established a Related Party Policy.
• Implemented an Investor Relations and Disclosure Policy.
• Established an Employee Conduct and Whistleblowing Policy.
• Implemented an Anti-Bribery and Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Challenging trading environment in the Middle East.
• Delays in project wins due to Covid-19.
• Delays in project awards in Deco and Carrara due to Covid-19 lockdowns in Europe and difficulties in project financing.
• Cautious approach by UAE banks towards the construction sector.
• Overall market conditions in the Middle Eastern construction sector remain challenging.
• Uncertainty regarding the consequences of the Ukraine war and related Russian sanctions.

Mitigation Strategies

• Focus on cash collection and successfully collected legacy receivable balances.
• Increased focus on the Kingdom of Saudi Arabia as a key growth market.
• Securing new wins in Saudi Arabia.
• Transaction with the Public Investment Fund (PIF) providing AED 150 million cash investment for expansion plans, business recapitalization, and additional working capital.

Supply Chain Management

Climate-Related Risks & Opportunities