Aldar Properties PJSC
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:1,932,952 tCO2e
Scope 1 Emissions:7,201 tCO2e
Scope 2 Emissions:237,281 tCO2e
Scope 3 Emissions:1,688,470 tCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:631,540 MWh
Water Consumption:4,342,542 m3
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Economy
- Community
- People
- Environment
Environmental Achievements
- Portfolio-wide energy management retrofit project expected to remove 80,000 tons of carbon emissions annually
- Clean energy agreement with Emirates Water and Electricity Company to power all owned and managed operating assets with clean energy for up to five years
- 87% of projects under development were Pearl 1 rated using the Estidama Pearl Building rating system
Social Achievements
- Launched employee volunteering programme
- Developed Community Living Index (CLI)
- AED 25m Aldar investment on 2021 CSR initiatives
- 35% UAE Nationals in our corporate workforce up from 29% in 2020
- 42% Women in our workforce, up from 31% in 2020
Governance Achievements
- Improved ESG ratings reflecting stronger governance and publishing of 17 ESG-related policies
- Joined the United Nations Global Compact (UNGC)
Climate Goals & Targets
Long-term Goals:
- Achieving performance against credible Net Zero interim targets
- Pivoting towards new market demands (demand for sustainable real estate)
Medium-term Goals:
- Launching the most challenging sustainability initiatives (Net Zero-aligned design guide, Net Zero development pilots)
- Independent validation of emissions reduction targets by SBTi
Short-term Goals:
- Finalise full carbon, water, and waste data baseline
- Plan Net Zero pilot projects
- Begin delivery of quick-win sustainability initiatives
Environmental Challenges
- Data gaps in data collection
- Fragmented data across the Group
- Challenges with data collection, particularly tenants' data, recent acquisitions and the growing complexity of our portfolio
Mitigation Strategies
- Hired sustainability managers across Aldar and embedded sustainability performance KPIs
- Unified and streamlined fragmented data across the Group
- Launched Sustainability Data Management System
- Trained 500+ users, including suppliers and contractors
- Developing a three-year climate risk management plan
- Developing business-level ESG risk registers
Supply Chain Management
Supplier Audits: 280+ suppliers trained and surveyed on sustainability
Responsible Procurement
- ICV programme
- Sustainability-focused training sessions
- Sustainable procurement monitoring system
- Sustainability criteria into technical evaluations and supplier contracts
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (storms, sandstorms, severe rainfall, drought, flooding)
- Rising sea levels
Transition Risks
- Shareholder pressure
- Fines
- Declines in asset values due to non-compliance with enhanced policy and building requirements
- Significant financial market implications
Opportunities
- Development of energy-efficient products
- Investment in water efficiency measures
- Investment in flood defence measures
Reporting Standards
Frameworks Used: GRI Standards 2021
Certifications: ISO 45001
Third-party Assurance: KPMG Lower Gulf Limited
UN Sustainable Development Goals
- 3
- 4
- 5
- 8
- 9
- 11
- 13
- 15
See pages 134-135 of the report
Sustainable Products & Innovation
- Recycled plastic water bottles for staff uniforms
- Sustainable televisions
Awards & Recognition
- Appreciation Trophy from Abu Dhabi Municipality Health & Safety Division
- Sustainability Initiative of the Year award at IRECMS Dubai Awards 2021
- Sustainability award, Proptech category, at the Smart Built Environment Awards 2021
- Green Flag sustainability award status in two schools
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1,438,783 tCO2e/year
Scope 1 Emissions:3,690 tCO2e/year
Scope 2 Emissions:276,701 tCO2e/year
Scope 3 Emissions:1,158,393 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:743,430 MWh/year
Water Consumption:5,977,363 m3/year
Waste Generated:1,082,203 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Net Zero emissions by 2050
- Creating sustainable places
- Creating societal value
- Creating a responsible legacy
Environmental Achievements
- 64 suppliers signed the Real Estate Climate Pledge
- 100% suppliers screened on sustainability criteria
- 13% embodied carbon emissions avoided across 27 projects
- 87.5% construction waste recycling rate
- 100% Scope 2 emissions neutralised through Clean Energy Certificates (CECs)
- 12% expected increase in clean energy production through solar energy partnership
Social Achievements
- Customer satisfaction across all areas of the Group improved in 2023
- Launched Unity for Change, a sustainability alliance for the retail sector
- Expanded employee volunteering programme with 624 volunteers and 3,000 volunteering hours
- 346 UAE nationals hired in 2023
- Expanded Future Talent Programme to 94 participants
Governance Achievements
- Launched Net Zero Plan
- Updated Green Finance Framework
- Issued $500 million Green Sukuk
- Signed AED 4.8 billion in sustainable financing facilities
- Achieved 100% compliance with ISO 45001 requirements
Climate Goals & Targets
Long-term Goals:
- Achieve Net Zero emissions across all scopes by 2050
Medium-term Goals:
- Achieve 45% reduction in Scope 3 emissions intensity by 2030
Short-term Goals:
- Reduce emissions intensity to meet 2030 targets
Environmental Challenges
- Supply chain disruptions
- Increasing total emissions due to growth rate
- Managing Scope 3 emissions (80% of total emissions)
- Water scarcity
- Heat stress
Mitigation Strategies
- Developed alternative sourcing strategies
- Implemented eight Net Zero levers
- Retrofitting projects to reduce energy consumption
- Investing in innovative systems and technology to reduce water consumption
- Partnership with Johnson Controls for ‘Cooling as a Service’ (CaaS) project
Supply Chain Management
Supplier Audits: 100% of suppliers screened on sustainability criteria, 22 of 22 tier 1 contractors and sub-contractors audited against worker welfare criteria
Responsible Procurement
- Sustainable procurement policy
- Supplier training
- Environmental Product Declarations (EPDs)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Heat stress
- Water stress
- Sea level rise and coastal flooding
Transition Risks
- Increased building standards/requirements
- Increased energy demand and cost
- Grid decarbonisation
- Oil, coal and gas demand declines
- Energy technology innovation
Opportunities
- Development of energy-efficient products
- Investment in renewable energy
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UN SDGs
Certifications: ISO 14001, ISO 45001, ISO/IEC 27001:2022
Third-party Assurance: KPMG Lower Gulf Limited
UN Sustainable Development Goals
- 3
- 4
- 5
- 8
- 9
- 10
- 11
- 13
- 14
- 15
- 17
Aldar's initiatives contribute to these goals through various programs and strategies detailed in the report.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Middle East Technology Excellence Award (Darna)