Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ensuring compliance with legal obligations and employee safety
• Driving socio-economic development
• Championing a sustainable future for the power and desalination sectors

Environmental Achievements

• Avoided emitting 857 ktCO2 (257 ktCO2 ACWA Power's share) due to technology advances and improved efficiency.
• Renewable power portfolio grew to more than 1 GW as of Jan’15.

Social Achievements

• 21 community-based projects with an investment of SAR 6.75M.
• 97% localization of employees for international operations (excluding KSA & UAE).

Governance Achievements

• Established a group-wide CSR Committee and structure.
• Received a special commendation for corporate governance by the 2014 King Khalid Foundation’s business awards in Saudi Arabia.

Climate Goals & Targets

Environmental Challenges

• Maintaining a cohesive approach to key sustainability risks across the asset portfolio.
• Ensuring sustainability and HSE performance standards throughout the supply chain, particularly with Tier 2 suppliers.
• Managing HSE performance across the asset portfolio with mixed performances.
• Effectively implementing and sustaining a near-miss reporting procedure.

Mitigation Strategies

• Regular travel to ProjectCos and assets by senior management to communicate values.
• Driving performance expectations further into the supply chain in cooperation with Tier 1 partners.
• Implementing remediation measures for technical issues and improving reporting transparency.
• Focusing on near-miss reporting in 2015, especially on construction sites.

Supply Chain Management

Supplier Audits: 90% of suppliers screened in Morocco in 2014.

Responsible Procurement

• Local procurement as a contractual obligation
• Emphasis on long-term relationships with suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Framework (Core level)

Awards & Recognition

• African Renewable Developer of 2014
• African Community Project of the Year Award (Bokpoort CSP Project)
• King Khalid Foundation Responsible Competitiveness Rating and Awards (4th place)

Environmental Metrics

ESG Focus Areas

• Social and economic development
• Environmental sustainability
• Health and safety

Environmental Achievements

• Avoided emitting 1,500 ktCO2 (453 ktCO2 ACWA Power's share) due to technology advances and improved efficiency.
• Reduced carbon intensity of electricity to 480 kgCO2/MWh

Social Achievements

• Funded 45 community projects with a value of SAR 6.74 Mn.
• Reduced employee turnover from 15.8% in 2014 to 10.1% in 2015.
• 95.6% local employment rate for international (excluding KSA & UAE) operations.

Governance Achievements

• Established a robust governance framework founded on engagement and transparency.
• Implemented a risk management framework based on ISO 31000 within 18 months of formation for each project company.

Climate Goals & Targets

Environmental Challenges

• A fatality resulting from a serious incident at the Noor III project construction site in May 2016 (reported in the 2015 report).
• Availability of quality local skills.
• Managing HSE issues across a large international portfolio.

Mitigation Strategies

• Incident management team activated and thorough investigation underway.
• Stringent requirements on local recruiting and training of local workers in development contracts.
• Integrated HSE management system meeting IFC’s guidelines, ISO 14001 and OHSAS 18001 certifications.

Supply Chain Management

Responsible Procurement

• Aim to ensure 30% to 40% of project value sourced through local suppliers.
• Local procurement included as a contractual obligation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Framework (Core level)

Third-party Assurance: Environmental Resources Management (ERM)

Awards & Recognition

• 2015 Asia sustainability reporting awards: Best first time sustainability report

Environmental Metrics

ESG Focus Areas

• Energy transition
• Low-carbon product leadership
• Water management
• Health and safety
• Corporate governance

Environmental Achievements

• 77 percent of the total gross capacity of our portfolio consisted of clean and low-carbon power technologies, including assets under construction or in advanced development.
• Despite a 7 percent increase in gross electricity production, the total emission intensity decreased from 0.053 kg/ kWh in 2019 to 0.52 kg/kWh in 2020.
• Bokpoort CSP plant became the first renewable facility on the African continent to complete a full week of continuous, round-the-clock operation.

Social Achievements

• Spent SAR 21 million on COVID-19 relief initiatives and a further SAR 50 million to support national health endeavors and efforts in the Kingdom of Saudi Arabia.
• Supported programs that provide access to education, better community infrastructure, opportunities for livelihood enhancement, and women’s empowerment.
• Delivered the Nujood Medical Center – a 100-bed hospital equipped with the latest medical equipment and supplies needed to treat COVID-19 cases – in record time.

Governance Achievements

• Established ESG responsibilities at Management-level with the creation of the Chief Risk, Strategy and Sustainability Officer (CRSSO) position, as well as formation of a Sustainability and CSR team to drive implementation.
• Updated and strengthened HSSE Policy and program to protect human health and safety, and the natural environment.
• Achieved lowest ever LTI (Lost Time Injury) records in 2020.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruption
• Increasing water scarcity in water-scarce regions
• High water demand driven by population growth and industrialization

Mitigation Strategies

• Implemented measures to ensure secure and reliable electricity and desalinated water production, complying with all operational and financial measures to guarantee the continuation of essential services.
• Aligned resources with potential scenarios and enforced principles enshrined within core values of ‘Safety, People, and Performance’.
• Actively increasing the efficiency levels of desalination plants and employing innovative technologies to reduce costs and mitigate environmental impacts.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Society's transition to a low-carbon economy

Opportunities

• Growth of renewable energy portfolio

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 13

ACWA Power aligns with the SDGs as a strategic lens at the core of its operations.

Sustainable Products & Innovation

• Green hydrogen production
• Energy-efficient water desalination plants

Awards & Recognition

• Water Project of the Year for Shuaibah – Middle East Economic Digest (MEED) Projects Award 2020
• Desalination Company of the Year 2020 – Global Water Intelligence (GWI)
• Desalination Plant of the Year 2020 – Global Water Intelligence (GWI)

Environmental Metrics

ESG Focus Areas

• Climate change
• Water
• Health and safety
• Governance
• Community development

Environmental Achievements

• Reduced CO₂ intensity of gross electricity generation (0.42 t CO₂/MWh in 2022 vs 0.49 t CO₂/MWh in 2021)
• 2,400 MW Hassyan IPP conversion from clean coal to natural gas – projected 30 million tonnes CO2 emission saving by 2030
• Sale of Shuqaiq IWPP (oil-fired asset) – permanently reducing carbon footprint by ~1.9 million tonnes of CO2 per year
• Conversion of Shuaibah 3 IWPP to an RO desalination plant – reducing carbon footprint by ~3.5 million tonnes of CO2 per year
• Addition of five new renewable projects to the portfolio
• 87% reduction in Specific Power Consumption (SPC) of desalination plants since 2009

Social Achievements

• Launched a new People Strategy focusing on agility, employee value proposition, performance management, leadership development, and wellbeing
• Employed 2,446 local nationals (65% of total workforce)
• Implemented ASPIRE performance management process
• Provided over 109,124 learning hours through Mishkaty learning management system
• Launched training programs for Saudi youth at the Higher Institute for Water and Power Technologies (HIWPT)
• Rabigh 3 IWP, the world’s largest reverse osmosis desalination facility, with 100% Saudi workforce

Governance Achievements

• Board overseeing ESG
• Updated governance and management processes
• Established a Safety Task Force to drive towards zero harm
• Implemented a Compliance Management Framework
• Developed mandatory e-learning modules on ethical decision-making and code of ethics

Climate Goals & Targets

Environmental Challenges

• Three fatalities in 2022
• Two notable spillages (Shuqaiq IWPP and CEGCO decommissioning project in Jordan)
• Increased fly ash from Rabigh Power Company project

Mitigation Strategies

• Established an Executive Safety Committee and a Safety Task Force
• Engaged an independent third party to review policies and procedures
• Increased investment in safety training
• Developed a HSSE strategy framework
• Implemented an integrated waste management procedure
• Digital transformation of HSSE performance reporting

Supply Chain Management

Responsible Procurement

• Procurement policy considering environmental, social, and economic consequences

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Green hydrogen production

Reporting Standards

Frameworks Used: GRI 2021, TCFD

Certifications: ISO 14001:2015, ISO 45001

UN Sustainable Development Goals

• SDG 7
• SDG 11
• SDG 13
• SDG 8

Initiatives contribute to affordable and clean energy, sustainable cities and communities, climate action, and decent work and economic growth.

Sustainable Products & Innovation

• Green hydrogen production

Awards & Recognition

• Guinness World Records™ for Rabigh 3 IWP
• Excellence in Water Desalination award by the International Desalination Association (IDA)

Environmental Metrics

ESG Focus Areas

• Climate change
• Water
• Health and safety
• Governance

Environmental Achievements

• Reduced CO2e intensity of gross electricity generation by 2% compared to the 2020 baseline.
• Reduced Specific Power Consumption (SPC) at desalination plants by 87% since 2010.
• Planted 200,000 trees in Saudi Arabia and 3,280 trees in other countries.
• Jazlah IWP water desalination project, partially powered by 42 MW of captive renewable power.

Social Achievements

• Increased proportion of women in workforce from 7.2% in 2022 to 10.1% in 2023.
• Ended the year with 2,074 local employees (56% of total workforce).
• Achieved zero fatalities with a Lost Time Injury rate (LTIR) of 0.01 (22% lower than 2022).
• Continued investment in Energy and Water Academy (EWA), graduating over 15,000 young Saudis.

Governance Achievements

• Implemented a robust Enterprise Risk Management (ERM) system.
• Established a Compliance Management Framework.
• Implemented a whistleblowing programme and grievance procedure.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Geopolitical tensions
• Increased costs (commodities)
• Inflation risk
• Climate-related risks (physical and transition)
• Maintaining high safety standards across diverse operations.

Mitigation Strategies

• Robust supply chain management
• Diversified portfolio across 12 countries
• Comprehensive risk management framework
• Inflation protection in long-term contracts
• Reliability of Supply (RoS) enhancement programme
• Implementation of Third-Eye AI technology for safety monitoring.

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements
• Know Your Customer (KYC) procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Water stress

Transition Risks

• Regulatory changes
• Market shifts
• Increased costs

Opportunities

• Growth in renewable energy
• Development of green hydrogen

Reporting Standards

Frameworks Used: GRI (2021), SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 27001, ISO 22301

Third-party Assurance: KPMG Professional Services (limited assurance for selected indicators)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 6 (Clean water and sanitation)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

ACWA Power's initiatives contribute to these goals through renewable energy projects, water desalination, job creation, and sustainable practices.

Sustainable Products & Innovation

• Green hydrogen
• Renewable energy powered desalination plants

Awards & Recognition

• Sustainable Energy Company of the Year
• Desalination Plant of the Year
• Hydrogen Impact Investment Awards
• The Sustainability Award
• Global Green Deal of the Year
• ESG Programme of the Year