SUSTAINABILITY REPORT 2019 REPORT SUSTAINABILITY ALDAR

TOWARDS A SUSTAINABLE FUTURE OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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We are proud to publish our second Our Chief Financial and Sustainability Sustainability Report, which provides a Officer, Associate Director of Sustainability detailed insight into Aldar’s 2019 journey and CSR and the Aldar Sustainability across our four strategic pillars: Economy, Council have reviewed it. For detailed Community, People and Environment. Environmental, Social and Governance (ESG) disclosures, see pages 78-89. The world is changing – and Aldar is too. WELCOME In the last 12 months, we have launched a new Corporate Mission and Strategy, which together reinforce that customers Our response to Covid-19 are at the very heart of what we do. We have updated our Sustainability Whilst Covid-19 did not directly impact Framework accordingly in this report, we the UAE and Aldar until March 2020, depict a business model that illustrates due to the significance of the event we how Aldar is enabling long-term have included a feature on our rapid sustainable growth for all stakeholders. response and ongoing preparedness on pages 80-81, in line with our wider We look forward to continuing to disclosures around risk and business shape the nation’s incredible story of continuity. regional growth and transformation as we strive to become a beacon for Coronavirus has had, and will continue responsible corporate citizenship in to have, profound impacts on our the (UAE). people, our communities and how we What’s inside? do business. Therefore, as well as Overview 03 About this report continuing to report regularly on this Economy 14 This report covers the period between issue through 2020, we will formally update on Covid-19’s impact on our Community 28 January and December 2019. It spans the full Aldar Group, including Development sustainability agenda in our 2021 33 People Management projects, Asset Management1 Sustainability Report. Environment 45 and our Adjacent Businesses of Provis, Governance and Risk 65 Khidmah and Aldar Education. Data coverage varies for different KPIs and We welcome all feedback on this report Assurance and Disclosure 76 the scope is explained within the report and our wider approach: GRI Content Index 85 where the coverage is not 100%. [email protected]

This report has been prepared in accordance with the GRI Standards: Core option. (see page 84) and is mapped to eight UN Sustainable Development Goals (SDGs).

1 Environmental data cover 7 Development projects, 19 Hospitality and Leisure assets, 23 Commercial and Residential assets and nine Retail assets. They also include six Aldar schools. For a list of all projects and assets, (see page 82) 2 GRI - 102-54 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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During the last 12 months, we have made significant progress across all four pillars of our sustainability strategy. On page 78 2019 and throughout the report, you can see detailed progress against our Sustainability Key Performance Indicators (KPIs) – below are just some of our proudest achievements across our four strategic HIGHLIGHTS sustainability pillars in 2019. ECONOMY COMMUNITY PEOPLE ENVIRONMENT +11% +AED54.3m 20% 79% increase, Group revenue strategic community investment female members of the Executive of developments 1 Pearl rated2 (direct + in-kind) Management Committee

Almost 33.3% 15% doubled 386,072 In-Country Value of direct employees involved training hours per employee tonnes CO2e Aldar Group certified suppliers3 in volunteering since 2017 carbon footprint 80%-100% +100 +8.9% 5.6% expected average return on investment community events increase in employee reduction in like-for-like from employee innovation ideas (BIG I), satisfaction since 2016 water use in 20195 and 24% from (Little I)4 Special Olympics 92% 2019 40% 89% Weighted Schedule official partner reduction in Serious Reportable recycling rate in Development Performance Index6 Safety Incidents (compared to 2018) Management7

Find out more about how we create Find out more about how we support Find out more about how we protect Find out more about responsible stable, responsible and diversified sustainable, healthy and inclusive and empower our diverse workforce on environmental stewardship on growth on pages 14-27. communities on pages 28-32. pages 33-44. pages 45-64.

2 As the first regional initiative of its kind and scope, the Estidama building design methodology – and its Pearl Building Rating System - has become a best practice benchmark for the entire Middle East. Pearl 2 is the mid-level of a three Pearl scale. Refers to developments planned or under construction. 3 Certified by In-Country Value (ICV) for local economic develop. 4 ‘Big I’ innovations (Ibtikar ideas that push the company into adjacent markets or novel technologies, and can generate the profits needed to close the gap between revenue forecasts and growth goals). ‘Little i’ innovations (Ibtikar ideas that presents incremental innovations in products and services that are necessary for continuous improvement) 5 Calculated by excluding assets that could not report 2018 water use. 6 Aldar ensures timely delivery of its Development projects by monitoring the Weighted Schedule Performance Index (SPI). This measures how close our projects are to being completed and handed over to our customers compared to the original plan. To ensure the SPI provides the most reasonable indication to all Aldar Development Management projects, it is weighted based on project cost, thus ensuring data reflect the size of the projects and cashflow. 7 Data not yet available for recycling rate across Asset Management 3 GRI - 201-1 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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the institutions that continue to govern for concerted action as part of a global continue to create positive value for all of our social, economic and environmental community, which is why our sustainability our stakeholders in the years ahead, as progress to this day. strategy include a specific focus on eight we strive to achieve our commitments. of the Sustainable Development Goals, Together, these constitute our pathway to The UAE has taken on the responsibility adopted by all member states of the sustainable growth – and I am proud to say of advancing a sustainable development United Nations in 2015. that we made great strides along it in 2019. model focused on inclusion, fairness and strong governance, which is enshrined Aldar has been a positive force in the H.E Mohamed Khalifa Al Mubarak within a series of national strategies and urban landscape of for 16 years, Chairman goals including Vision 2021, Ghadan 21, the and through our iconic communities and National Climate Change Plan and the UAE destinations, we have become one of the Green Agenda. most respected real estate developers Guided by the example and managers in the region. Ever mindful set by the Abu Dhabi Closer to home, Abu Dhabi has taken of our environmental responsibilities, our a proactive approach to sustainability extensive portfolio brings considerable Government and the through the ambitious agendas set out socio-economic benefits to the UAE and UAE’s leadership both within Economic Vision 2030, enacted we will continue to work closely with our through numerous supporting laws, partners to go even further. past and present, Aldar regulations and initiatives. The Emirate has developed its own also plays host to one of the world’s largest The real estate market in Abu Dhabi rests comprehensive approach and most influential sustainability forums, on strong fundamentals, thanks in large the Abu Dhabi Sustainability Week, where part to the supportive policies of the to sustainability. This various actors come together on an annual Government. As Aldar helps to forge a approach is designed basis to generate solutions to many of the sustainable future for Abu Dhabi and its to ensure both full world’s most pressing challenges. people, we will continue to demonstrate Shaping a positive future strong leadership, remain transparent alignment with, and our I am delighted to present Aldar’s second Guided by the example set by the and uphold our values, backed by best- robust contribution to, sustainability report, which demonstrates Abu Dhabi Government and the UAE’s practice governance. These are very the the Emirate’s vision of a strong progress against our priorities and leadership both past and present, Aldar cornerstones of our success, which are charts an ambitious roadmap through a has developed its own comprehensive enacted every day by our dedicated family sustainable real estate series of key commitments. approach to sustainability. This approach of employees. sector that promotes the is designed to ensure both full alignment wellbeing of residents Sustainability represents the most with, and our robust contribution to, the On behalf of the Board and Executive important topic of our time and is crucial Emirate’s vision of a sustainable real estate Management Team, I want to extend my and visitors alike. for ensuring that present day activities sector that promotes the wellbeing of gratitude to Abu Dhabi’s visionary leaders lead to shared value without compromising residents and visitors alike. and their Government for championing the ability of future generations to pursue sustainable cities of the future. their own development. In recognition Beyond Abu Dhabi and the UAE, Aldar’s of this fact, the United Arab Emirates focus on sustainability is also a mean for Finally, I must thank Aldar’s people, has always been a strong sustainability our company to contribute to regional partners and communities, each of whom advocate, led by the vision of the nation’s and international efforts in this regard. plays a vital part in our ongoing story founding father, the late Sheikh Zayed bin Such challenges as climate change of responsible growth. We have come a Sultan Al Nahyan, who developed many of and environmental preservation call long way and I am convinced that we will

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sensitive urban transformation. They also We have delivered more training hours Why sustainability is reflect the long and holistic view that than ever, while a new Diversity and business-critical has served us well in contributing to the Inclusion Board further scales our excellent The last year was one of renewal for Emirate’s growth since our formation in progress across talent, culture, race and Aldar in multiple ways. In addition to 2004. Our path of responsible, stable gender. Of course, we can only unlock refocusing our strategic priorities on and diversified growth is clearly the right full talent potential with a solid bedrock customer centricity, operational excellence one: in 2019 alone, we achieved record of safe, healthy workplaces. In 2019, lost and growth, we significantly elevated development sales of AED 4 billion, up 53% time injuries were well below our baseline the profile of sustainability across the year on year, while our Asset Management target, while Serious Reportable Safety organisation by creating a new role in business saw net operating income rise Incidents dropped by 40%. We continue to our Executive Management Team: a by six percent. If we want to see what remain vigilant and committed to our goal Chief Financial and Sustainability Officer. responsible, diversified and stable growth of zero harm to our people – including our Overseeing a dedicated Sustainability looks like in reality, we need look no further contracted workforce Department, we see ESG challenges being than . Its combination of addressed at the highest level, ensuring innovative design embedded in a local Supporting a greener UAE economy partnership model have enabled Aldar to greater consistency in our decision- Using resources efficiently and with their win a further AED 2 billion infrastructure making and integration of sustainability future availability at the forefront of mandate in 2019, with our Saadiyat Grove into all of our Group functions. We have our designs is helping Aldar respond to development alone injecting AED 8 billion also attached sustainability KPIs to all rising customer demands for sustainable into the local economy. Executive Committee members, including buildings and contribute to Vision 2021. In myself, thereby holding us all to account A people business this report, we disclose our Group carbon on this vital agenda. footprint for the first time, while also In line with the national strategy to significantly increasing the scope of our A Digital Transformation Strategy enrich customer experience as a pillar of water and waste data – all vital metrics for launched in 2019 is enabling us to enhance the UAE’s continuing development, our continual improvement. operational efficiencies and deliver Corporate Mission is to place customers outstanding customer experiences, while first by embedding sustainability, quality, Aldar has remained a resilient market ensuring the tightest privacy and security technology and innovation in everything leader in the face of challenging global controls. A further development has been we do. Overseeing this ambition is a headwinds and our strategic approach to the addition of a Sustainable Procurement new Head of Customer Centricity and a ESG challenges has played a vital role in Achievements such as team to extend our ESG priorities larger Customer Experience team. With this regard. It allows us greater agility these are not about to our supply chain and contractors. a refreshed Customer Promise, we also when faced with change, greater efficiency ticking boxes – they Achievements such as these are not about strengthened how we capture customer amid competition for scarce resources and ticking boxes – they enhance our resilience feedback in 2019, adopting world-class greater transparency before sustainability- enhance our resilience to risk and build our reputation as a Net Promoter and Customer Effort scoring. focused investors. These factors will remain to risk and build our trusted corporate citizen. In other words, critical in the year ahead and, as ever, we they are business-critical. Meeting the strategic goals laid out in look forward to taking our ESG agenda to reputation as a trusted Aldar’s Strategy relies on each of us at new heights. corporate citizen. Responsible growth Aldar to play our part. Our People, Culture Strategic milestones in 2019 further and Performance roadmap now tethers Talal Al Dhiyebi In other words, they individual job descriptions to our Corporate consolidated the Aldar narrative of Chief Executive Officer are business-critical. community-oriented, environmentally Strategy through KPIs and career mapping.

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Aldar: a real estate leader ALDAR Aldar Properties PJSC is the leading real estate developer, manager and owner in Abu Dhabi. Through our iconic developments, we are one of the most DEVELOPMENT MANAGEMENT ASSET MANAGEMENT well-known corporations in the UAE and the wider Middle East region. Property development Investment properties Since our formation in 2004, we have Aldar is one of the largest land bank owners Investment properties collectively hold shaped the urbanisation of the UAE’s in Abu Dhabi. This business is focused on Aldar’s retail, residential and commercial capital city by delivering desirable the activation of its land bank through properties. These assets are leased to destinations where communities can strategically developing land to support tenants and collect a rental income. work, live and visit. Those destinations the growth of the city. The business Collectively these assets contribute just include , , Al model is focused on off-plan residential over 80% of the Asset Management Raha Beach and now Saadiyat Island. development but also works closely with business’s net operating income. Each the Asset Management business to deliver year these assets are externally valued In addition to our central corporate some of their growth ambitions through by a third-party independent valuer to functions, the activities of the Group are build-to-lease development. ensure their values reflect current market split into two main divisions: Development conditions. Management and Asset Management. Development Management Hospitality Further to developing Aldar’s own land The hotel sector was Aldar’s top performing bank, the Development Management real estate asset class during 2019, business works closely with third parties, supported by an active events calendar predominantly the Government of that brought visitors into the Emirate. Abu Dhabi, to project manage external real Aldar’s hotel portfolio, which includes estate projects. This mandate captures over 2,900 hotel keys, witnessed a strong projects such as infrastructure, national average daily rate (ADR) and occupancy housing and strategic assets such as the growth, which translated into stronger new twofour54 media and entertainment revenues and profits. free-zone.

Adjacent Businesses Aldar owns several strategic businesses that work in parallel and support the broader offering of Aldar’s two principle businesses, Development and Asset Management. This segment, that forms part of the Asset Management business includes several key businesses within the education, property management, facilities management, district cooling and construction sectors. GRI - 102-2, 102-15 6 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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DEVELOPMENT MANAGEMENT Aldar is the largest developer within Abu Dhabi and since inception, has completed approximately 26,000 residential units across the Emirate. As of 31 December 2019, a further 8,000 residential units were under development.

ASSET MANAGEMENT Aldar owns and manages a diverse Asset Management SAADIYAT ISLAND portfolio of AED 20 billion of assets, all within Abu Dhabi. Mamsha Al Saadiyat The portfolio is predominately split across four main real Jawaher AL REEM ISLAND estate asset classes: residential, retail, commercial and Saadiyat Grove Meera hotels. Cranleigh Abu Dhabi The Bridges Saadiyat Beach Club YAS ISLAND Reflection Saadiyat Beach Golf Club West Yas Yas Links Sun & Sky Towers Saadiyat District Cooling assets Mayan W Marriott Shams, BOUTIK Saadiyat Retail Yas Acres Yas Mall The Gate Towers and The Arc Water’s Edge IKEA Boutik Gate Ansam Ace Hardware Reem Central Park Yas Plaza Hotels

Burj Mohammed Bin MAPRashid and WorldTrade Center Abu Dhabi Baniyas Towers Seih Al Sedeirah Khalidiya Village Al Ghadeer Nareel Island Al Mamoura Al Bateen Park Anantara Eastern Mangroves Al Murjan Tower Al Merief Daman House Al Gurm International Tower North Sas Al Nakhl Al Rayyana Park The Westin Abu Dhabi Golf Motor World Resort & Spa Alreeman Alreeman II AL AIN BEACH Boutik Al Ain Al Raha Beach Community Retail Al Oyoun Village HQ Building Shabhat Plaza Al Muneera Al Jimi Mall Al Zeina Remal Mall Al Hadeel Al Raha Beach West Gardens Plaza Al Merief

Find out more about our responsible business model on page 9. GRI - 102-2, 102-4, 102-6, 102-15 7 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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In many organisations, the CFO is thus a Salwa: Are you convinced we are In conversation with natural advocate for sustainability. At Aldar, we prioritising the right ESG issues? our Chief Financial and went a step further and changed our Finance Greg: With the Board and Executive Team Sustainability Officer Department to Finance and Sustainability. It verifying Aldar’s ‘materiality’ findings, we have encompasses ‘traditional’ finance, but also a very clear picture of where we need to focus In 2019, Aldar’s Chief Financial Officer of risk management, strategy, innovation and our efforts. The fact that stable, responsible eight years, Greg Fewer, became Chief investor relations. With a core team focused and diversified growth emerged as the most Financial and Sustainability Officer (CFSO). on sustainability now at the top of the critical issue reconfirms my previous point With accountability for our Sustainability organisation, we can cascade down policy about sustainability and commercial goals Framework now at the highest level, Aldar and accountability throughout the company. being developed and delivered in tandem. has an unprecedented opportunity to make As someone from a finance background, I look a strategic and meaningful impact across Salwa: How does our Sustainability for credible methodologies and meaningful the ESG agenda. Our Associate Director of Framework facilitate the communication data sets – with our most robust matrix yet Sustainability and CSR, Salwa Al Maflahi, of Aldar’s sustainability story? of focus topics, I am convinced that Aldar is caught up with Greg on how he sees Aldar Greg: Aldar’s Sustainability Framework is a following the right path and we are committed shaping a sustainable future for the UAE. visual representation of how we manage to delivering on our sustainability KPIs – sustainability and deliver shared value. reported on for the first time in this report. Salwa: 2019 was an important year at Aldar in terms of organisational change. How do The core foundation of our framework Salwa: How do you see Aldar’s you see the new Corporate Strategy marrying emphasizes on the interdependency between Sustainability Framework contributing Salwa Al Maflahi, with your Sustainability Framework? commercial and sustainability. With further to local and global challenges? Associate Director, Sustainability and CSR Greg: The more we thought as a Group about focus on our sustainability purpose, we Greg: One of Aldar’s unique advantages is its the principles of sustainability and how we ensure a genuine approach by embedding roots of trust in the region and we build on this apply them to our organisational structure, sustainability within our operations and trust each day. This may be in designing urban the clearer it became that central functions decision-making process. The Core ecosystems that nourish the social fabric of (finance, audit, corporate finance, legal, risk Sustainability Pillars are a core part of our society; it may be in managing assets to meet management, procurement etc.) and business sustainability strategy, which is built around evolving customer needs and to save energy and units make decisions that have to balance the them and dictates our action plan. water; or it may be in our community giving and needs of today against the needs of tomorrow, These Core Sustainability Pillars also allow environmental stewardship. Our Sustainability all from a multi-stakeholder perspective. It is us to communicate our sustainability Framework is designed to align with UAE Vision evident just how interconnected sustainability performance, within this report or 2021 and 2030 plans by supporting initiatives and ‘commercial’ issues are - whether it is other media. such as Ghadan 21, the national Climate Change enhancing Operational Efficiency through Plan and the UAE Green Agenda. At the other energy and water saving; building customer Above all, our key stakeholder groups, as end of the spectrum is a global Agenda for satisfaction with greener, healthier buildings; well as the national and global goals, guide Sustainable Development that we are beginning or boosting growth by managing our our approach to shared value delivery and to embrace through our alignment to eight assets in ways that enable connection and remain key to our sustainability framework. SDGs. I look forward to seeing our international inclusion – sustainability and commercial contribution unfold further through 2020. performance truly do go hand in hand.

Greg Fewer Chief Financial and Sustainability Officer

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A mission-driven The Aldar Business Model business model With a new 2020-2024 Corporate Strategy, Aldar’s business model is OUR VISION more agile than ever – positioning us Become a leading regional real estate developer and manager that creates memorable experiences and value to deliver long term value for a diverse for our customers and shareholders. range of stakeholders, with customers at the centre. Through this unique and mission-driven model, we seek to become an exemplar for responsible corporate OUR MISSION OUR STRUCTURE OUR MARKETS OUR STRATEGIC OUR STRATEGIC citizenship in the UAE and beyond. THEMES PROGRAMMES Place our customers first by Residential Operational excellence Customer Journey embedding sustainability, quality, Grow assets under management Framework & Automation Our Corporate Strategy across technology and innovation in DEVELOPMENT MANAGEMENT Retail everything we do. Leading ICV and worker welfare Development and Asset Management is Employee Development PROPERTY DEVELOPMENT Commercial Streamline processes DEVELOPMENT MANAGEMENT & Engagement to pursue operational excellence, customer Hotels centricity and growth and expansion by Leisure Customer centricity Data Transformation investing in People, Innovation and Digital Raise customer satisfaction & Analytics OUR VALUES ASSET MANAGEMENT Transformation. Supporting the Strategy Food & Beverage and deepen share of customer CUSTOMER CENTRIC Deliver in-demand products Operating Model & Process INVESTMENT ADJACENT are five Values and a Sustainability HOSPITALITY & services Efficiency Automation DIVERSE & INCLUSIVE PROPERTIES BUSINESSES Framework that help ensure we create a Achieve leading ESG rating lasting positive legacy on the Economy, AGILE Sustainability & CSR Community, People and the Environment. INNOVATIVE Growth and expansion Growth, Expansion & Best in class occupancy rate COLLABORATIVE Stakeholder Management Regional expansion Robust sales engine

People, innovation & digital transformation OUR SUSTAINABILITY PILLARS Great place to work Economy / Community / People / Environment Invest in innovation Automate services and processes

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Our material issues Our Sustainability Framework and reporting Jassem Saleh Busaibe are rooted in ESG issues that have been Chief Investment Officer identified by stakeholders through a rigorous annual materiality process. It involves a four-phase process of issue The materiality assessment exercise was identification, evaluation, prioritisation and important to learn how the different verification and in 2019 our focus was on stakeholders evaluate the relevant prioritisation and verification phases. environmental, social and governance topics, and the findings presented in From a universe of issues identified through the matrix on the following page tell a extensive research (and benchmarked positive narrative about how sustainability against best practice), in 2019 senior is increasingly becoming business-critical. executives from key departments prioritised issues in relation to their potential to affect At the top of the materiality matrix Aldar, both from their own perspective is ‘stable, responsible and diversified and from the perspective of their key growth’ which communicates big stakeholders. The results of these five commitments within. Sure we aim to workshops were then validated by Aldar’s grow and diversify our revenue streams CEO, our Executive Management Committee but we do it responsibly as we ensure and Sustainability Council. They are plotted ESG criteria is an essential part of our on the matrix on the following page. investment due diligence.

Conducting regular materiality reviews The other material topics falling under the is vital to ensuring our focus is relevant most important part of the matrix also tell and targeted. Aldar’s Sustainability an important lesson that it is not all about Department continually monitors current generating financial value, but the social and emerging issues based on industry dimension should remain high on the and sustainability intelligence, as well as agenda of each organization. GRI recommended disclosures. Over the next year, we will further engage external Our second sustainability report highlights stakeholders as we review the topics that positive results as well as short-term and matter most. Find out more on page 69-70. mid-term commitments where we are responsible for taking bigger steps

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All issues in the matrix are considered important; this was a relative exercise to understand which of these important 9 issues were the most critical. The issues were ranked as follows (those in italics 5. Operational Excellence 6. Governance, Ethics & Transparency 18. Human rights represent amendments following 16. Health and Safety Executive verification). 8.5 4. Exceptional Experience and Loyalty 17. Employee Wellbeing and 1. Stable, Responsible Decent Employment and Diversified Growth Most important topics • Stable, Responsible and Diversified Growth • Governance, Ethics and Transparency 2. Local Economic 7. Operational Resilience Development • Health and Safety 8 15. Develop & Recognise Our People

• Developing and Recognising our People 12. Community Wellbeing • Human Rights & Inclusion 10. Innovation 22. Waste Management and Recycling 13. Communities Engagement and Awareness 21. Water Conservation Very important topics 20. Energy Management and Emissions 7.5 • Operational Excellence 9. Digital Transformation 11. Strategic Community 3. Responsible Supply Chain • Operational Resilience Investment 8. IT Infrastructure & Cyber Security • Exceptional Experience and 19. Sustainable and Loyalty / Customer Experience Healthy Buildings • Employee Wellbeing and Decent Employment 7 • Innovation 14. Diversity and Inclusion • Local Economic Development • Digital Transformation to Importance stakeholders 23. Biodiversity Protection • IT Infrastructure and Cyber Security • Responsible Supply Chain 6.5 • Energy Management and Emissions

Important topics

• Community Wellbeing and Inclusion 6 • Community Engagement and Awareness • Waste Management and Recycling 6.5 7 7.5 8 8.5 9 9.5 • Water Conservation • Sustainable and Healthy Buildings • Strategic Community Investment Importance to Aldar • Diversity and Inclusion • Biodiversity Protection

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Sustainability framework Our Sustainability Framework Become a leading regional real estate developer Place our customers first by embedding and manager that creates memorable experiences sustainability, quality, technology and In 2019, we re-mapped our Sustainability VISION and value for our customers and shareholders. innovation in everything we do. Framework to Aldar’s new Mission and MISSION Corporate Strategy. Whilst the refreshed Framework continues to be structured SHAPING A BETTER FUTURE around four sustainability pillars (Economy, We aim to create a business culture where sustainability is at the heart of everything Community, People and Environment), it SUSTAINABILITY PURPOSE we do, and where the concept of sustainability informs the way we operate, is now framed within Aldar’s Corporate collaborate, innovate and grow. Vision and mapped against eight SDGs.

By strategically addressing 23 material issues (see page 11) and engaging with stakeholders to build trusted partnerships CORE SUSTAINABILITY PILLARS (see page 69), the Framework directly Economy Community People Environment supports Aldar’s Mission. It will be reviewed regularly in accordance with ongoing stakeholder engagement, annual materiality reviews and analysis Our People / Shareholders and Investors / Local Communities / Partners / of best global practice and standards. STAKEHOLDERS Rating Agencies and Media / Government and Regulators / Customers / Subsidiaries / Suppliers and Contractors / Banks and Lenders Accountability Behind our Sustainability Framework is a clear structure of accountability. The last year marked a landmark for sustainability Board of Directors / Executive Management / Sustainability Department / governance at Aldar. As well as bringing SUSTAINABILITY GOVERNANCE it under the oversight of our CFSO, we Sustainability Council / Sustainability Champions also added ESG metrics into performance systems of the Executive Management Team and we established a Sustainability Council. Together, these developments mean sustainability and financial GLOBAL GOALS (SDGS) performance are more interdependent than ever, with visibility both within and outside Aldar. Find out more about accountability for sustainability and our wider corporate governance on pages 66-68. National Climate Change Plan of the United Arab Emirates The UAE Green Agenda SHARED VALUE 2017-2050

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The SDGs Impact we can have on Impact of the issue on Aldar strategic priority the goal our business In updating our Sustainability Framework in 2019, we conducted a mapping exercise Health and wellbeing *pg. 29, 41, 48, 78-79 against the SDGs, assessing each of the 17 Goals against our Corporate Strategy, the impact we can have on them and the Quality education *pg. 16, 27, 31, 32, 35, 38 impact they have on Aldar. As a result, we have selected eight Goals to focus on. Gender equality *pg. 37 As well as being at the core of our Decent work and *pg. 15, 25-27, 39-40 Sustainability Strategy, the four Framework economic growth pillars of Economy, Community, People and Environment are the backbone of this Infrastructure *pg. 15, 16, 27 report. The following chapters describe our strategic position for each pillar, alongside Sustainable cities *pg. 27, 30-32 2019 performance against our material and communities issues. Finally, we outline our future commitments to continue to raise the Climate action *pg 46-48, 52-55 bar, inspire others and become a sustainability leader. Life on land *pg. 63-64

Impact was assessed based on whether there was a clear and immediate impact on the business (or a direct and substantial impact on the goal), rated as High (three squares); or little direct business impact (or little contribution), rated as Low (one square) *2019 report reference

13 GRI -103-1, 103-2, 201-1 provides the mostreasonable indication to all Aldar Development Management projects, itis weighted based onproject cost, thus ensuringdata reflects the size of the projects andcashflow. 10 Aldar ensures timely delivery to itsDevelopment projects by monitoring the Weighted Schedule Performance Index (SPI). This measures how closeour projects are to being completed andhandedover to our customerscompared to the originalplan. To ensure the SPI innovations inproducts andservices that are necessary for continuous improvement) 9 ‘Big I’innovations (Ibtikar ideas that push the company into adjacent markets or novel technologies, andcan generate the profits needed to close the gap between revenue forecasts and growth goals). ‘Littlei’innovations (Ibtikar ideas that presents incremental 8 Certified by In-Country Value (ICV) for localeconomic development. OVERVIEW 80%-100% expected average return 24% employee innovation on investment from + 11% increase ingroup ideas (BIGI),and revenue from (Littlei)9

ECONOMY 33.3% Performance Index10 Weighted Schedule certified suppliers8 92% In-Country Value

COMMUNITY Find outmore abouthow we mapour approach to the SDGsonpage13 Digital Transformation; andInnovation. Transparency; Operational Resilience; IT Infrastructure &Cyber Security; Experience andLoyalty; Operational Excellence; Governance, Ethics and Growth; Local Economic Development; Responsible Supply Chain;Exceptional These SDGsspanour material issuesof: Stable, Responsible andDiversified CONTRIBUTION OUR WIDER By helping to enablea thriving economy, Aldar iscontributing to the SDGs. PEOPLE ENVIRONMENT GOVERNANCE &RISK ECONOMY • • • • • • innovative operations. and supportedby optimised, ethics andaccountability – standards of governance, by applying the highest growth. This isenabled responsible anddiversified economystable, through a thriving contribute to Aldarendeavours to Our guidingprinciple DIRECTION OF TRAVELDIRECTIONOF Emiratisation. development, jobcreation and and growth, includinginfrastructure Support localeconomic development mutual sustainability. and engagesuppliers to deliver for Manage our supply chainsresponsibly towards excellence. Continuously optimise operations the diversity of innovation enabling tools. Foster a culture of innovation andensure to drive loyalty. Strive for uniquecustomer experiences Diversify revenue while growing responsibly. DISCLOSURE

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» Section overview / Growing responsibly / Unique customer experiences / Innovation / Operational excellence / Responsible supply chains / Local economic development

our commitment to local jobs, training Growing responsibly Creating a new ‘culture and supply chain opportunities – now How are we doing? Stable, responsible and diversified of living’ enhanced further under the ICV partnership KPIs/progress growth has underpinned our pivotal Saadiyat Island is rapidly becoming a (see page 27). Indeed, we predict that role in Abu Dhabi’s economy since compelling example of how innovative, Saadiyat Grove will pump a further eight Focus area KPI Performance 2004. This trajectory continues today responsible investment can support billion Dirhams into the local economy. 2019 through our portfolio of mature, broader economic development goals. In income-generating assets, alongside Stable, Group revenue +11% 2019, we invested a further 722 million Saadiyat Grove is set to transform the responsible, change well-planned developments that create Dirhams in 306 infrastructure-enabled urban landscape of Abu Dhabi. The project diversified surplus capital to drive further expansion. land plots to add to our existing Beach is of strategic importance for the capital growth Across both Development and Asset Gross profit +2% Club, Golf Club, retail units, district at both cultural and social levels. Saadiyat Management, we continue to show that a change cooling assets and Cranleigh Academy Grove embodies our leadership’s future responsible approach to commerce pays on the island. vision of how people can live, work and Off-plan +54% dividends in the long term – not only to enjoy everyday life in the City, reflecting development sales shareholders – but to wider society. change Recognising our track record for socio- the diverse social and cultural fabric of economic regeneration, the Abu Dhabi the Emirate. It is also in line with Aldar’s Development growth 2019 Government awarded us a further two strategy which is focused on creating and In 2019, we reported record development billion Dirham infrastructure mandate to delivering exceptional and memorable Commitments sales of four billion Dirhams, a 53% increase create a new ‘culture of living’ at Saadiyat customer experiences, while building • Assess ESG risks and their financial on the previous year. A series of new Grove. In the heart of the city’s Culture responsibly and ensuring the highest implications on the business. launches, combined with strong progress District, this mixed-use development is standards of sustainability possible across our development pipeline, illustrate designed to appeal to residents, start- • Integrate sustainability into investment the ongoing demand for ‘total solution’ up businesses and tourists alike. Winning Find out more about responsible criteria and due diligence. infrastructure developments on page 27. communities that blend residential living this investment was in part based on • Report on the percentage of investment with entertainment, commerce, shopping, opportunities assessed based on schools, hotels and leisure. Saadiyat Island, sustainability criteria. Yas Island, Al Raha Beach and Al Reem Island are four iconic destinations that Ramy Zaghloul have paved the way and contributed to David Duddly Sustainability Council Member and Sustainability Council Member the Emirate’s status as one of the most Executive Director, Development and Executive Director, liveable cities in the world11. Management Investments & Partnerships.

Always looking to the future, the As the master developer, Aldar is development business is very well responsible for the long-term vision and placed to take advantage of new development of its land banks. Bringing opportunities for growth in our home in third-party developers to support this market of Abu Dhabi, as well as through vision reduces our long-term destination partnerships in other promising markets. development risk and widens the array of products for end-users and investors. DEVELOPMENT MANAGEMENT DEVELOPMENT

11 Economist Intelligence Unit, 2020

GRI - 103-2, 203-1, 203-2 15 ASSET MANAGEMENT GRI -203-2 » OVERVIEW FY 2019 revenue splitby sector Sectionoverview /Growing responsibly /Unique customer experiences /Innovation /Operational excellence /Responsible supply chains /Local economic development 28% 21% 17% 17% 14% 20% ECONOMY Adjacent Business Hospitality Commercial Retail Residential relationships. high-quality assets with long-term tenant testament to our strategy of combining Etihad Airways Centre to our portfolio was economic uncertainty inreal estate, adding occupancy rate in2019. Duringa periodof square meters of office space, with a92% Our page 23). occupancystrategieswithin Aldar tourism market, as well asoptimising hotel to the sustainablegrowth of Abu Dhabi’s 31% increase innet operating profit due Commercial assets Hospitality andLeisure Diversified growth 2019 in operational excellence (see page23). and diversification, as well asour agility stable growth to our uniqueplatform, scale Al Jimi Mall expansion. We attribute our and Investment Company, as well as the Airways and the Tourism Development a result of joint ventures with Etihad above. We alsoaddednew assets as income in2019, asshown in the chart six percent growth innet operating Asset Management achieved a robust Management andDistrict Cooling), Aldar Education, Properties, Facilities and Adjacent Businesses (Hospitality, Spanning Residential, Retail, Commercial Asset and Adjacent Asset in 2019. the acquisition of 789-unitEtihad Plaza to a broad customer range. We alsoadded 5,620 apartments or properties to appeal COMMUNITY 5,620 Residential units Business portfolios PEOPLE occupied 318,074 experienced a comprised (see ENVIRONMENT

School ofthe Year School 22,000, also winning International last two overyearsin the to numbers Aldar Education has tripled student properties under management, while business, Provis, now has15,000 in 2019. Our real estate management Aldar’s Adjacent Businesses alsogrew local economic development onpage27. about how Aldar Retail contributed to visiting our mallsin2019. Find outmore more than 70%, with 40million people Al Ain reflect a market penetration of Our Retail assetsacross Abu Dhabi and grow our portfolio. assets with more attractive returns to potential andreinvesting cashflow into exiting assets that have reached their full value of surrounding assets.It alsoincludes increasevalue-added the amenities that activities within the asset,or developing new services,businesseslinesor other within them. This may involve introducing investing or unlocking pockets of value competitiveness of our assets through Our strategy is to strengthen the Jahed Rahman Investment Management and Executive Director, Sustainability Council Member (see page29). GOVERNANCE &RISK economies. economies. maintain vibrant communities andlocal is thriving in Abu Dhabi andhelping to online shopping trends to show ‘real retail’ total of 200stores, Al Jimi Mall counters additional brands andrestaurants anda Al Ain’s prime retail destination. With 100 asset andsecures Al Jimi Mall’s positionas square meters to our second largest retail million Dirham renovation adds30,000 Al Jimi Mall and the Retail Park. The 400 In 2019, we completed a large expansion of destination Al Ain’s primeretail DISCLOSURE GRI 16 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Growing responsibly / Unique customer experiences / Innovation / Operational excellence / Responsible supply chains / Local economic development

Unique customer At the heart of our strategy At Aldar, we ensure that the customer How are we doing? experiences is central to everything we do. This KPIs/progress Our customer focus has always been means continuously enhancing customer one of our points of difference in the service and delivering unique experience, market, enabling us to forge lasting Focus area KPI Performance with journeys tailored to satisfy Aldar 2019 relationships that can bring positive customer needs. The last year saw Exceptional Retail tenants 360 impacts to communities for generations customer centricity elevated strategically to come. Aldar customers are as wide- experience engaged in to the heart of our Company Mission and and loyalty sustainability12 ranging. Understanding the lives and Strategy. In doing so, we aspire to be a aspirations of those who engage with our leading example of service excellence in the Average retail 76% assets is therefore fundamental to how region by putting customers first; ensuring retention rate at Yas Mall, Al Jimi we grow and improve as a business. consistent delivery of exceptional customer Rashed Al Omaira, Mall and the Mall at experience; creating customer intimacy; Sustainability Council Member World Trade Center Who are Aldar’s customers? and being agile to adapt to the evolving and Executive Director, Abu Dhabi needs of customers. Commercial +1,355,000 hotel guests (2019) Customer 78% +17,000 residential tenants (2019) satisfaction rate, We have implemented a number of +10,000 property development Adding value to our clients has always parents survey, investors (since inception) strategic initiatives to deliver on our been a priority. Being able to provide Aldar Academies aspiration, supported by the Digital +20,500 Aldar Academy students13 (2019) specialised offerings will make us more Transformation Strategy, to drive customer competitive, more responsive and better +40 million people visited our shopping satisfaction and retention. These included poised for future growth. We will be malls (up from 37 million in 2018). launching a new Customer Charter – a focusing on every touchpoint throughout Commitments promise to our customers that we will the customer journey and integrating • Launch a Customer Loyalty programme always strive for service excellence (see technology solutions to ensure a seamless to include all portfolios in terms of benefits, opposite), supported by a five-module customer experience in line with our value propositions and points. commitment to exceptional customer training programme to embed Aldar’s service, efficiency and long-term values into customer-facing roles and asset value. responsibilities. Today, these programmes are being scaled up by our new Head of Corporate Customer Centricity.

12 Defined by the number of entries to our Green Tenant Award 13 Includes Charter/governmental Schools and ADNOC Schools managed by Aldar GRI - 203-2 17 ASSET MANAGEMENT GRI -203-2 retention inour Asset Management business. of how service excellence leads to client Center) of 76%. This isjustoneexample largest malls(Yas, Al Jimi and World Trade a tenant retention average across our three timeframe of 48hours.In turn, we achieved retailourconcerns tenantwithin targeted for instance, we responded to 100%of is oneof our highest priorities–at Yas Mall Responding efficiently tocustomer feedback of Aldar with friendsandfamily. advocates who share positive experiences excellence andultimately, create brand highest standards of customer service It alsomeans we canimplement the and create attractive value propositions. decisions around what drives loyalty of the customer, we canmake informed customer needs.Inunderstanding the voice Experience by listening to andunderstanding the mostintuitive andefficient Customer Across Aldar assets, we strive to offer The voice of the customer » OVERVIEW Sectionoverview /Growing responsibly /Unique customer experiences /Innovation /Operational excellence /Responsible supply chains/Local economic development ECONOMY visitors: visitors: Shopping mall in 2019? How satisfied were Aldar customers KPIs andcascaded to allemployees. which will now beembedded within Group effort CX and Net Promoter Scores (NPS), such asCustomer Satisfaction, Customer incorporates globalbenchmarkingmetrics the entire customer journey with Aldar and improve our offer. This programme spans to better meet their expectations and us to understandour customersneeds shared their experience with us,enabling assets, 22,000+ customershave sofar across allcustomer ‘touchpoints’ and Aldar customer feedback programme. Now active in 2019 we began the rollout of a real-time To realise our customer experience vision, COMMUNITY 76% World TradeCenter Mall and the Mall at rate at Yas Mall, Al Jimi average retail retention Abu Dhabi

PEOPLE School students: School students: Aldar Academies rate, parents survey, customer satisfaction 78% ENVIRONMENT

consider their role insolvingglobalissues. students to encourages curriculum that we’ve developed a future-focused To continue excelling into tomorrow, goals of Abu Dhabi’s Vision 2030Plan. globally, butalsosupporting the economic generation to excel as the next leaders We are not only shapingour next extensive landscapingandgreen spaces. retail centres, a community centre and schools, three mosques,sportsfacilities, access Westable to those Yas’s two we further broaden the spectrumof making homeownership more inclusive, duration of the rent-to-own period.By set at 15,000 Dirhams per year for the annual rent. Management fees are also while paying only 220,000 Dirhams in home equity over a five-year period, customers are now able to buildup their four andfive-bedroom villas. Residential West Yas Island, a development of 1,000 we launcheda rent-to-own schemeat home ownership in Abu Dhabi, in2019 Recognising the challengeof affordable Rent-to-own on Yas Island and CEO ofCEO Aldarand Academies Sustainability Council Member Sahar Cooper GOVERNANCE &RISK

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Seamless customer experiences Process Automation systems in our Innovation Below are just some of the ways in which Accounts Payable and Treasury teams. How are we doing? At Aldar, trying and testing new ideas digital technologies made for a more The pilot proved to be a success with KPIs/progress has been an integral part of our history seamless customer experience in 2019: Artificial Intelligence software performing and it remains so today. Our innovations • We enhanced our social channels, high-volume repetitive tasks, 24/7, at a in building design (see page 48-50), with a unified messaging solution much higher speed and accuracy level. Focus area KPI Performance construction and management also support that integrates customer interactions. For example, the time taken for the daily 2019 Vision 2021 and 2030 national plans. cash report was cut from an hour to four Chatbots, WhatsApp and live chat Innovation Employee 192 features were all expanded and minutes, freeing up Finance colleagues to innovation ideas Digital transformation improved, making it even easier for refocus on critical tasks such as customer submitted The last 12 months saw us scale up our servicing. The Finance Department has customers to receive a clear and direct Ideas implemented 6% technological innovation with the launch response to their questions, wherever since established a Centre of Excellence of an ambitious Digital Transformation they are and at any time of day. for Robotics Process Automation in order New partnerships 6 Strategy. Designed to span Aldar’s to encourage other Corporate teams to related to • We created an improved Call Centre core priorities of customer centricity, identify areas in which robotics might disruptive solution, using digital services for technologies operational excellence and growth and streamline their own processes. enhanced Customer Management. expansion, it has focused our efforts on disruptive technologies to position Aldar • Workflows for buyers, residents and Across the Group, Aldar colleagues saw significant improvements to the employee Digital Number of 6 at the forefront of stable, responsible contractors were automated. transformation transformational and diversified growth. app. ALDAR HOME2.0 now means more initiatives delivered Regardless of how sophisticated than 70% of human resources services to improve the technology, the Aldar Customer are accessible by phone, including operational Privacy Policy sets out how we ensure submitting leave applications, monthly excellence HP Aengaar the highest levels of privacy and data pay slips, accommodation loan requests, Number of 5 Sustainability Council Member security (see page 77). Find out more Ibtikar applications, confidential feedback transformational and Chief Executive Officer, about how technologies are supporting (including Whistleblowing) and news/ initiatives delivered Provis customers across Development and Asset events. We are continually adding more to enhance customer centricity Management on the following pages. capabilities to ALDAR HOME and are Aldar’s adjacent properties and facilities currently looking at health and wellness management businesses, Provis and Optimising corporate functions features. These technologies increase Khidmah, apply innovative solutions and In 2019, digital technologies enabled employee engagement and reduce cutting-edge technologies to add tangible Commitments us to automate procurement sourcing, administration time allowing staff to value at every stage of the property • Implement engagement plan that will enhance data visualisation and add self- spend more time on value adding work lifecycle. Our aim is to become a one-stop- increase awareness, transparency and service business analytic solutions – all or getting home earlier. Find out more shop estate management offering. buy-in on all innovation matters. of which have streamlined our corporate about how we support and engage our • Equip staff with innovation tools to test functions. We also piloted Robotic colleagues on page 36. business concepts, validate models, and demystify innovation.

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A culture of innovation 24% At Aldar, we recognise that the creative expected average return on investment ideas that have transformed our from ‘Little i’ innovations (Ibtikar ideas that presents incremental innovations in business to date must be continually products and services that are necessary fed by a pipeline of new ideas. To propel for continuous improvement) homegrown employee innovation, each year we run the Ibtikar challenge. Any In early 2019, we ran a GIMI Organization employee is welcome to submit an idea Maturity Certification assessment that tackles issues faced by Aldar and our to understand our maturity level for stakeholders and participation counts having advanced capabilities to sustain towards employee performance reviews. growth through business innovation. Implementing ideas within our business The assessment identified our current is a significant step, requiring extensive position and the action plan ahead to research, development and investment. improve our position from Potential In 2019, we received 44 ideas, with eight Enabler for Innovation to Potential Driver selected for implementation. for Innovation against the GIMI Index. We have also certified 25 of our innovation The winning idea came from Yara Al Jundi. champions in GIMI level 1 and level 2 Her custom-made composting machine Associate and Master level. turns food waste from retail outlets into nutrient-rich soil that can be applied to the Find out how innovation is improving the local landscape. Yara estimates that each Customer Experience on page 17. machine could save 50,000 kilograms of CO2 emissions per year, while also reducing landfill burden and associated refuse truck Maan Al Awlaqi mileage. The prototype is currently being Sustainability Council Member and Executive Director, Strategy piloted in Yas Mall, with a view to rolling it and Transformation Office out to more malls and wider assets. For Aldar to remain agile, responsive and competitive, innovation must be a key 80% to 100% pillar of our strategy. This does not expected average return on investment from only mean rolling out cutting-edge ‘Big I’ innovations (Ibtikar ideas that push the company into adjacent markets or novel technologies; it also means creating technologies, and can generate the profits a culture that empowers creative and needed to close the gap between revenue forecasts and growth goals). inclusive decision-making.

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Technologically-enabled Aldar’s developments VDC/BIM Vision In the last 12 months, we implemented • EXISTING FACILITY SCANNING •• EXISTINGAS-BUILT BIM FACILITY CREATION SCANNING Qualtrics software to enhance the • AS-BUILT BIM CREATION • DEPLOYMENTDEPLOYMENT STRATEGY STRATEGY •• 4D SIMULATIONS SIMULATIONS •• FM DIGITAL DIGITAL MANUALS MANUALS customer experience in our Development • VDCVDC CONSULTANCY CONSULTANCY •• LOGISTICSLOGISTICS ANALYSIS ANALYSIS •• SPACE MANAGEMENT MANAGEMENT • CORPORATE STANDARDS • CONSTRUCTABILITY • ASSET DATA INTEGRATION business. We also designed an online • CORPORATE STANDARDS • CONSTRUCTABILITY • ASSET DATA INTEGRATION • BIM PROTOCOLS • RISK ANALYSIS • CAFM BIM INTEGRATION portal to make transactions easier for our • EXECUTIONBIM PROTOCOLS PLANS •• LIFERISK ANALYSIS CYCLE COST ANALYSIS •• LIFECAFM CYCLEBIM INTEGRATION COST MONITORING / OPTIMIZATION third-party developers and, alongside • EXECUTION PLANS • LIFE CYCLE COST ANALYSIS • LIFE CYCLE COST MONITORING / OPTIMIZATION Abu Dhabi Digital Authority, we launched Kickoff Pre-Construction Operation an initiative to digitise the home-buying experience. Now, engineering drawings, financing, completion statements and utilities set-up is a rapid, smooth and transparent process for all involved. 3D 4D 5D 6D 7D

We have further developed our Building Information Modelling (BIM) capabilities by expanding to Virtual Design and Construction techniques to improve build Design Construction Sustainability efficiency. We are now extending BIM • VALUE ENGINEERING • 5D EARNED VALUE ANALYSIS • LIFE CYCLE COST ANALYSIS • VALUEDESIGN MANAGEMENT ENGINEERING • 5D4D CONTROLEARNED & VALUEMONITORING ANALYSIS • LIFEENERGY CYCLE OPTIMIZATION COST ANALYSIS across the value chain to procurement and • DESIGN MANAGEMENT • 4D CONTROL & MONITORING • ENERGY OPTIMIZATION • LIFELIFE CYCLE CYCLE COST COST ASSESSMENT ASSESSMENT • AS-BUILTAS-BUILT vs. vs. PLANNED PLANNED • BIMBIM && IoT IoT asset management. We also started work • FMFM DESIGNDESIGN REVIEW REVIEW • INSTALLATIONINSTALLATION PROGRESS PROGRESS QTO QTO on our first 3D printed building project • ENERGYENERGY MODELING MODELING • SNAGGINGSNAGGING & COMMISSIONING& COMMISSIONING • SYSTEMS COORDINATION • TRANSITION TO OPERATION - the halfway house on Yas Acres golf • CHANGESYSTEMS COORDINATION MANAGEMENT • TRANSITION TO OPERATION course will be printed at an investment • 3DCHANGE QTO MANAGEMENT of three million Dirhams. We will report • 3D QTO back on all of these innovations in 2021. PROPOSED VDC VISION On our construction sites, we became the first property developer to adopt a UAE SmartPass in 2019, in collaboration with the Telecom Regulatory Authority. The digital card can instantly verify the identity of individuals entering construction sites via an electronic chip that securely stores the card holder’s personal information. This will further support our Worker Wellbeing agenda (see page 39-40). DEVELOPMENT MANAGEMENT DEVELOPMENT

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Optimised Asset and From seed to success: Manassah Development Management 47million The Manassah entrepreneurship social media impressions In 2019, our Commercial team in competition offers budding start-ups for Manassah campaign Development Management introduced a platform to pitch their ideas, with the a new online portal to serve property chance of winning a year’s rent-free brokers more efficiently and transparently. commercial space from Aldar Asset Saoud Khoory The platform, which includes performance Management. In line with its goal to Sustainability Council Member dashboards, automated invoicing, empower young people to unlock their and Executive Director, transparent processing, real time full career potential, Aldar’s Youth Council Retail Asset Management inventories, marketing collateral and supports the programme, alongside news, promotions, launches and events, startAD, the UAE’s accelerator to help It is really exciting to see homegrown is already making it easier for brokers to seed-stage technology start-ups. concepts become part of our thriving retail sell properties on our behalf. Furthermore, portfolio, take their plans to the next level it is estimated that more than 20,000 In 2019, we received 148 entries, with and identifying the best ways for them to pages of paper invoicing have been seven joining the shortlist. These ranged grow. Initiatives such as Manassah enable avoided thanks to digitising broker from artisan coffee houses and bakeries, entrepreneurs to test out their concepts services. to community education and sustainable and refine them before bringing them to fashion. All seven finalists have been the market and as such we are committed For Asset Management, digital working with our retail experts to identify to support such programmes across our transformation highlights included a suitable space to develop their concepts, assets to help them succeed. launching a specialised operating while also accessing six weeks’ free business planning and legal advice from Find out more about the Aldar Youth platform in our retail units and rolling Council on page 38. out an online analytics solution Aldar. The winning ideas will be revealed across our hotel portfolio. in the final quarter of 2020. ASSET MANAGEMENT ASSET

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Operational excellence Michael Wallace How are we doing? Behind our agility in the marketplace is Sustainability Council Member a strategic commitment to operational and Executive Director, KPIs/progress excellence. This means not only ensuring Corporate Finance efficiency in our operations and supply Focus area KPI Performance chains, but also embedding responsible Our strategy focused on maximising 2019 ESG practices that make us leaner and operational excellence and maintaining Operational Average 89% reduce risk. In this way, we help to deliver growth momentum has enabled us to excellence occupancy of our developments on time and within deliver robust financial and operational assets budget; we maximise and unlock the performance in 2019. This dedication to Weighted Schedule 92% potential of our assets; and we drive excellence across our diverse businesses Performance Index value through responsible investments. is reflected in another year of uninterrupted dividend growth. Administration 12,000 hours time saved Maintaining our agility During 2019, Aldar’s CEO commissioned Integrated sustainability six programme groups to tackle critical When ESG considerations are at the challenges and, in turn, future-proof forefront of how we operate day-to-day, Commitments our business. One such programme was we protect our most important assets – • Implementation of improved asset Operating Efficiency, now known as the our people and the natural resources we management solution/platform across Agility Committee. The Committee is depend on. This in turn reduces our risk key assets within the portfolio to improve chaired by the CFSO and is tasked with exposure and enhances our operating business intelligence, efficiency and identifying inefficiencies across the Group efficiencies. In the last 12 months, we have decision making. and systematically implementing solutions. integrated and elevated sustainability • Activate systematic predictive maintenance Thus far, the Committee has identified across Aldar more than ever. With CFSO and digital inspection. more than 51 initiatives and saved an accountability, a new Sustainability Council estimated 12,000 hours of administrative spanning Aldar’s businesses, Executive • Develop a new development project time in targeting them. Overall, the Management KPIs for sustainability and a management digital platform at Committee has achieved 76% of its goals. new Sustainability Procurement function, sub-contractor level. we are demonstrating that commercial success and sustainability go hand-in- hand. Find out more on page 68.

23 ASSET MANAGEMENT » OVERVIEW Sectionoverview /Growing responsibly /Unique customer experiences /Innovation /Operational excellence /Responsible supply chains/Local economic development 0 10 20 30 40 50 60 70 80 90 100 sustained an89%occupancy rate. in long-term partnerships. In2019, we attract top-tiercontinues to tenants and operated commercial office portfolio Our highquality, optimally designed its leverage within the market. we are proud of how Aldar hasmaintained comparison with a 2018rate of 90%), a periodof economic uncertainty (in rate of 89%across our assets. During in 2019, we saw anaverage occupancy families occupying our apartments – to tourists staying at our resorts and retailers tenanting our shoppingmalls, is the occupancy of our assets. From One indicator of our operational excellence Measures of success Asset occupancy 2019, % ECONOMY Residential 88% Commercial Portfolio Management and Executive Director, Sustainability Council Member Meqdad Al Mubarak 92% COMMUNITY Retail 89% Hospitality 75%

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» Section overview / Growing responsibly / Unique customer experiences / Innovation / Operational excellence / Responsible supply chains / Local economic development

in prequalification, tender and vendor 4. DEMAND MANAGEMENT Efficient Responsible supply assessment processes. Thus far, the operation of procurement through How are we doing? chains team’s focus has been on quantifiable identifying resource management targets and KPIs KPIs/progress Supporting our suppliers to adopt environmental metrics, with labour issues being monitored and advised Applying the principle: use of existing responsible practices is one way in which stock, assessing the need for purchase. we scale our ESG impact through the local upon through the Worker Welfare Focus area KPI Performance 2019 economy, while also helping Aldar achieve programme. It has also established 5. FAIR AND EQUAL OPPORTUNITY operational excellence and reduce risk Principles of Sustainable Procurement Promoting equality and fairness through Responsible Contracted 6% as a lead-in to a formal Sustainable the procurement process and ensuring supply chains suppliers exposure. From supplier pre-qualification, integrating Aldar’s Procurement Policy makes Procurement Strategy in the year ahead. equal opportunities for all when procuring goods, works or services. sustainability clear our expectations around ethical, transparent conduct. Suppliers are also Principles of Sustainable Applying the principle: local and small business purchasing. expected to adhere to our environmental, Procurement safety and health requirements, via Our five Principles of Sustainable Commitments detailed questionnaires and interviews. Procurement are based on a review of Khaled Al Rajhi • Report on the percentage of suppliers international best practice and Aldar’s screened against sustainability/ESG Sustainability Framework: Sustainability Council Member Currently, only six percent of our and Executive Director, criteria by 2021. contracted suppliers formally integrate Procurement • Report on the percentage of items our sustainability requirements into their 1. TRANSPARENCY Fairness, integrity, procured with sustainability ratings. operations. This is because we are relatively transparency ensuring all vendors are early in our sustainable procurement treated equally and that the process It is becoming increasingly important features clear evaluation criteria. journey (we only began auditing suppliers for corporations to have visibility of what at the end of 2019, setting a target to Applying the principle: monitoring is happening in their supply chains and and reporting, vendor assessments audit all primary contractors against the great strides made in 2019 to unify and supplier benchmarking. Worker Welfare Principles by 2021). Aldar’s sustainability and procurement Furthermore, our expectations of suppliers 2. SUPPLIER ENGAGEMENT Establishing functions will be transformational in how are rigorous – we require evidence of communication streams with suppliers to we manage risk. Our approach is not to a sustainability policy, report, point of upskill the supply chain and create new punish suppliers for poor performance contact and ICV certification as a minimum. opportunities to meet sustainable goals but to work together to find solutions – and objectives. For development contractors, we also we can often learn a great deal from the expect adherence to ten Worker Welfare Applying the principle: internal training companies we do business with. and awareness, enhanced prequalification principles (see page 39), as well as a list of processes and improved supplier feedback. sustainable materials, data on waste, water and energy following project approval. 3. SUSTAINABLE SOURCING Integration of social, environmental and ethical Recognising that we need to accelerate performance factors into the development our sustainability requirements into process the supply chain, in 2019 we created Applying the principle: lifecycle costing, a dedicated Sustainable Procurement sustainable materials, end of life planning and value engineering. function. We now have a resource to oversee risk management and alignment with best practice sustainability standards

GRI - 102-9, 102-10, 203-2, 308-1, 308-2, 414-1, 414-2 25 DEVELOPMENT MANAGEMENT GRI -102-9, 102-10, 203-2, 308-2, 414-2 » OVERVIEW Sectionoverview /Growing responsibly /Unique customer experiences /Innovation /Operational excellence / Responsible supply /Local chains economic development ECONOMY COMMUNITY PEOPLE ENVIRONMENT see page39-40 For information on worker welfare andICV, hotline to our contractors (see page72). communicate our Whistleblower Policy and As partof our procurement procedure, we of raw materials, products andequipment. projects extend to the purchase andsupply management. The requirements for all equipment, andprogressive OSH/EHS and maintenance, personalprotection supervision, training, equipment control Questions cover management and (OSH), as well asenvironmental issues. on Occupational Safety andHealth It includesa questionnaire andinterview and Worker(EHSMS) Welfareprocesses. Health, Safety, Management System criteria appliedfrom Aldar’s Environment, chain pre-qualification involves further In our construction operations, supply sponsored projects. and content are delivered for Aldar which ESGcompliant policies,procedures better control andinfluence the ways in purchase orders and work orders we can sustainability clausesinour contracts, and transportation services. By inserting outsourced management, labour, materials projects. Via these companies, we procure that manageour individualdevelopment procurement spendgoes to contractors A significant proportion of our Engaging contractors . GOVERNANCE &RISK performance. improve continually suggestions inorder to will bebetter able to capture and these a new SustainableProcurement team, we welcome their ideasandsuggestions. With dialogue with our suppliersand we always to maintain anopenandinteractive Experience tells us that itisimportant involvement in these procedures. claims, including the necessary authorities’ protocols for grievances, disputesand actions where necessary. We alsoidentify identify goodpractices and take corrective our contractors and their partners to projects across their lifecycle. This enables We usea performance matrix to evaluate Monitoring anddialogue sustainable construction practices. and champion sectoral changefor more to continue to engage with our partners repeating the Supplier Forum annually workshop aims and we lookforward to delivered many of our own actionsagainst measurable actionplans. We have already were proposed, as well ascommitments to many improvement recommendations workshop was received positively and land access andhealthsafety. The contract terms and labour laws, to Delegates debated issuesranging from adding sectors. regulatory frameworks andhigh value- against the UAE’s vision for innovation, on construction sector challengesandset consultants andsuppliers, with a focus attended by 27 Aldar contractors, Forum.inaugural workshop The was In 2019, we delivered our firstSupplier Our firstSupplier Forum DISCLOSURE GRI 26 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Growing responsibly / Unique customer experiences / Innovation / Operational excellence / Responsible supply chains / Local economic development

ICV will create employment opportunities Local economic for UAE Nationals and private sector How are we doing? development growth in addition to being a key part KPIs/progress Globally, the building and construction of our procurement sustainability sector is estimated to provide up to 10% strategy which addresses worker welfare, of employment and up 15% of national environmental and societal impacts. Focus area KPI Performance GDPs on average15. At Aldar, we are proud 2019 of the contribution we have made to the Empowering local talent Local economic ICV certified 33.3% economy of Abu Dhabi over 16 years. Building on Aldar Youth Council’s outreach development suppliers to the community, in 2019 we signed a Government AED 5 billion With Sustainable infrastructure being one Memorandum of Understanding with of six national priorities, in 2019, Aldar was infrastructure UAE University to enhance public-private awards selected to execute three social, economic knowledge transfers that make it easier and infrastructure projects for a number for young Emiratis to access jobs and Proportion of 98% of government agencies in Abu Dhabi. training. With our own Youth Council procurement The five billion-dirham investment included contracts awarded members working closely with university to local suppliers14 three major development projects: a counterparts, a number of initiatives were 900-unit national housing development piloted to identify and develop future at Al Falah; a twofour54 media and talent, while forging stronger links between entertainment free-zone; and key academia and the private sector. We look Commitments infrastructure works at Saadiyat Island. forward to report back on the outcomes in • Support small and medium enterprises, Aldar’s 2020 Sustainability Report. Boosting jobs and supply chains the local economy and ICV. Supporting local economic development Find out more about Emiratisation within is a strategic priority both in our direct our Diversity and Inclusion agenda on workforce and via our contractors and page 37. suppliers. In 2019, we joined up with ADNOC, Abu Dhabi Department of An Emirati-friendly housing market Economic Development and Abu Dhabi Abu Dhabi’s property market has matured Ports to create the unified ICV formula over the last decade, supported by the that would stimulate local opportunities, introduction of regulations aimed at as a member of the ICV Committee and protecting both landlords and tenants. Key ICV Council. to this has been the 2016 Abu Dhabi Real Estate Law, which aims to create a more We are delivering on our commitments via transparent and professional property our Worker Welfare programmes (see page market. Over the past five years, Aldar has 39) and, more recently, dedicated supplier launched over 9,000 off-plan residential programmes (see page 25). units across 19 developments catering to all segments of the market. We also offer rent-to-own schemes and mortgage assistance for lower-income customers. DEVELOPMENT MANAGEMENT DEVELOPMENT 14 We define ‘local’ in this context as having a UAE trade licence 15 UN Environment Programme

GRI - 203-1, 203-2, 204-1 27 GRI -102-8, 103-1, 103-2, 413-1, 413-2 OVERVIEW +54.3m strategic community + 100 community events (direct +in-kind) investment

AED Olympics 2019 ECONOMY 15% official partner of employees volunteering Special involved in COMMUNITY Find outmore abouthow we map our approach to the SDGs on page13. Community Wellbeing &Inclusion;andCommunities Engagement and Awareness. These SDGsspanour material issuesof: Strategic Community Investment; By investing in thriving, inclusive communities, Aldar iscontributing to the SDGs CONTRIBUTION OUR WIDER PEOPLE ENVIRONMENT GOVERNANCE &RISK COMMUNITY • • • inclusive communities. sustainable, healthy and support partnerships that government andcommunity heritage isrooted in trusted of our decision making.Our stakeholders at the heart we put the prioritiesof these of a wider community and we believe Aldar isamember Our guidingprinciple DIRECTION OFDIRECTION TRAVEL to deliver better impact. Strategically invest in the community delivering better sustainability results. Engaging our neighbours towards ensuring inclusiveness andprosperity. Develop andmanagecommunities DISCLOSURE

GRI 28 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Inclusive, thriving communities / Engaging our neighbours / Community investment

We were particularly proud to see one Fit for the Future Inclusive, thriving of our Academies, Cranleigh Abu Dhabi, Commitments communities named International School of the Year Aldar Provis’s Lifestyle and Recreation • Develop an Aldar Community Lifestyle Department is committed to providing By supporting the UAE’s Vision 2021 and in 2019 (Times Educational Supplement). Index for our residential communities. wellness solutions that engage residents other federal and Emirate level plans, Aldar Highlighted in the award was Cranleigh’s • Develop social inclusion criteria and and keep them involved, entertained is making a marked contribution to the ambitious arts and cross-curricular project ensure they are mainstreamed into the and fit. For each residential community, region’s sustainable urban developments, ‘Water in the Desert: A Zayed Legacy’. design and operations of all assets. the Living by Provis Fitness Journey social cohesion and knowledge- The project is the result of collaboration encompasses a four-pillar approach to driven economies. As well as enabling with two other educational bodies, the wellness: mindset, movement, nutrition empowerment through education, our Ministry of Tolerance, NYU Abu Dhabi and recovery. In 2019 alone, 20 class assets promote healthy lifestyles and and the British Council and is designed options were offered, ranging from support People of Determination. to enable Year 2 and above students to explore themes of heritage, identity and group exercise, to personal training and kids’ camps. Together with the Government, sustainability. It also involved an eco- tourism proposal, radio adverts for water Aldar Education conservation, sustainable architecture 15,000+ As the leading education group in design and ‘cultural memory’ documenting. people took part in fitness classes Abu Dhabi, Aldar Education provides inclusive and innovative learning As well as its fitness solutions, Provis also opportunities that inspire the next offers wider lifestyle opportunities. In generation and empower wider Resident feedback 2019, 704 people from three communities participated in either children’s ballet, communities. Its Academies have Villa 348 become a regional case study for their “Very good arrangement”. ‘Kindermusik’, healing sound therapy and holistic approach, informing the UAE’s - Ali Azhar Bollywood dance or skating. In total, 33 Education 2020 Strategy. Together Villa 76 community events designed to catalyse with the Government, Aldar Academies “Thanks for organizing a lovely afternoon community cohesion welcomed more than for the kids”. 5,000 people. support national values of citizenship and - Ana responsibility; equality and justice; and Villa 711 science, technology and innovation. “Very nice, Like it”. Always looking ahead, Provis is set to - Al Yasmeena launch Living by Provis, a 360-degree Villa 175 mobile app to connect community “It is a great event, kids enjoyed it a lot. members with leading service providers Fun activities and safety precautions as a curated offer for happier, healthier International were available”. - Loyal Youssef lifestyles. School of the Year, Villa 262 Cranleigh Abu Dhabi “It was perfect”. - Ahmad Villa 136 ASSET MANAGEMENT ASSET “This work or function is very good for kids”. - M. Awais Villa 317 “Good initiative, more organize outside activity for kids”. - Ramdy GRI - 103-2, 413-1, 413-2 29 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Inclusive, thriving communities / Engaging our neighbours / Community investment

Engaging our neighbours Capturing the nation’s How are we doing? Through well-designed developments heritage in urban art KPIs/progress and exceptional Asset Management, Aldar As part of our ongoing efforts to has become a trusted regional partner in enhance Abu Dhabi’s urban landscape creating unique living experiences where with public art, in 2019 we partnered with people feel connected and engaged. We Focus area KPI Performance Abu Dhabi Art (part of the Department 2019 deepen our community engagement of Culture and Tourism) to commission through an ‘open door’ approach and Community Community events +100 a series of public artworks at our Reem engagement CSR activities that promote inclusion, Central Park development. Acclaimed local and awareness sustainable lifestyles and cultural heritage. artists Mohammed Ahmed Ibrahim and Employees 15% During 2019, Aldar carried out more than the collective of Ramin Haerizadeh, Rokni engaged in 100 such activities. Haerizadeh and Hesam created pieces volunteering16 More than inspired by the park’s multicultural visitors, as well as pre-Islamic poetry, Arabic 100 CSR activities folklore and motifs found on items from Commitments in Aldar communities the collections of the • Launch initiatives and engagements and the Etihad Museum. The new artworks to encourage customers to achieve Employee volunteering now adorn 24 pillars surrounding the environmental savings. Our employees represent the communities 2,400-square metre skate park, staircases, we serve. Their involvement in our CSR four playgrounds and four bollard walls. • Report on community participation activities is thus critical to achieving a rate in sustainability initiatives. positive impact. Aldar’s Group Volunteering • Systematically develop and launch Policy offers five days of annual paid sustainable products and services volunteering leave for directly employed and report progress. staff17, an offer taken up by 15% of eligible staff in 2019. This tells us that we need to further raise awareness internally of opportunities available to support causes within our neighbourhoods and we will focus on this in 2020.

Up to 5 days’ paid volunteer leave offered

16 Directly-employed personnel only 17 Non-consecutive days, or the equivalent of 40 hours per year. These must be taken at the discretion of the individual’s line manager. GRI - 413-1, 413-2 30 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Inclusive, thriving communities / Engaging our neighbours / Community investment

Community investment entrepreneurship and cohesion, in line researchers in the fields of healthcare, with the national vision for sustainable water management, the ‘fourth How are we doing? As well as helping to create thriving, development. Aldar has been a major industrial revolution’ and aerospace inclusive communities through sensitively- donor for two years, giving a further and defence. We have also supported KPIs/progress developed and managed assets, we 36 million Dirhams in 2019 (taking our the ReThinkBrine Challenge - providing also give directly to important causes total investment to 120 million Dirhams). a 2.5 million Dirham grant to the that resonate with Aldar’s Community Aldar’s investment has benefited winner. This competition aims to Focus area KPI Performance Commitments, while contributing to the 2,554 young people across three key develop technologies that produce 2019 UAE’s Vision 2021. focus areas that resonate with our commercially viable construction Impactful Strategic social +AED 41m own priorities around Emirati talent material from brine discharge – a corporate investment In 2019, we continued to support development and innovation. topic of great interest to Aldar’s citizenship Sandooq Al Watan’s social cohesion and In-kind AED 13.3m 1. Identifying and nurturing gifted Development specialists. entrepreneurship work and the Special contributions Olympics World Games. In addition, students Our 2019 funding included 3.5 million Number of 2,554 individual Aldar assets made their own The Emirati Coder Programme is a fun and interactive way of teaching basic Dirhams to fund research grants into beneficiaries of financial and in-kind donations for causes Aldar-supported computer coding to children aged water management, a material issue resonant with their local communities. for Aldar and a key feature of the UAE’s Sandooq Al Watan seven to 14. Covering nine cities across initiatives the UAE, our sponsorship has enabled National Innovation Strategy.

Number of beneficiaries by Aldar-funded programme 1,950 students to graduate. Based 3. Promoting Innovation and on the success of the programme, Entrepreneurship Sandooq Al Watan aims to expand the Fostering Innovation and Commitments initiative in 2020, with two advanced entrepreneurship is important. With • Develop a social impact measurement programmes for high performers and a our 2019 sponsorship, seven innovative framework to maximise social impact. university level course. start-ups were commercialised, all cofounded by Emirati entrepreneurs: In addition to the Coder Programme, our funding also supports Mawhibatna, an • Supported and funded 4 startups initiative to nurture science, technology, (Referbility, Chartyn, Baaqah, Ara engineering and maths skills such Bee Education) through the Emirati as problem solving, astronomy and Innovator Program with one of the Mahibatna (14%) UAE Talent (1%) engineering design. The 206 participants incubators. UAE Coder (76%) Khalifa Innovation improved their scores from 21% to 66%, • Provided pre-seed funding to 3 Center (0.4% ) UAE innovator (0.3%) with 96% highly satisfied and would startups (Mabany, School Voice, Yacob) Jusoor (4% ) Researcher platform (4%) definitely recommend the programme to In 2020, we will continue funding their peers. to leading innovative start-ups in the UAE. Social cohesion and 2. Promoting applied research and entrepreneurship: Sandooq development Al Watan Sandooq Al Watan’s Researcher. 2 Patents ae platform is a one-stop shop for generated from the ReThinkBrine challenge One of the world’s largest social academia and industry. In 2019, they initiatives, Sandooq Al Watan (the UAE reached 105 beneficiaries, with 32 ‘National Fund’), aims to champion social research grants benefiting 85 local

GRI - 413-1, 413-2 31 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Inclusive, thriving communities / Engaging our neighbours / Community investment

Inclusion and acceptance: A lasting legacy Wider community giving • Working with the Zayed Bin Sultan Al The Games’ legacy programme has In addition to our two strategic Nahyan Charitable and Humanitarian Special Olympics 2019 included the establishment of specialist investments, Aldar and our Adjacent Foundation and other organisations, In 2019, we became an Official Partner of schools for People of Determination Businesses make pro bono contributions we established a training programme the Special Olympic World Games – the managed by Aldar Education; Unified to a number of causes. Below are just a dedicated to those with special needs. largest sporting and humanitarian event Champion Schools that connect public few examples from 2019. As part of a wider Corporate Integration in the world. As well as 7,500 athletes programme, our funding will train 16 school pupils (with and without disabilities) • Aldar funded the rent for the Federal competing from 195 countries, the Games people each year. through sports and other activities; and a Youth Authority’s Abu Dhabi Youth were supported by the world’s largest Mothers of Determination Association to Hub, to the value of two million Dirhams • Yas Island, Westin Gulf Resort and volunteer workforce of more than 20,000 support the needs of families of children per year. Here, young people gain free Courtyard supported Marriott’s TakeCare people, including 1,500 Emiratis. The event with intellectual disabilities. access to a space for connection, learning Relief Fund and Road to Awareness has been described as the largest public and innovation, with state-of-the-art campaign through employee giving. health movement for people with learning At Aldar, we continue to provide office equipment. • A multi-faith prayer room was added by difficulties and the largest schools-based and retail space for legacy teams to social inclusion programme in the world. • In partnership with UAE Red Crescent Provis at the Sun and Sky Resort, the first continue their vital work. The space in of its kind in Abu Dhabi. our headquarters alone is worth the and Zayed Higher Organisation for equivalent of 300,000 Dirhams per year. Humanitarian Care and Special Needs, We also offer pro bono legal advice and we funded home modifications for 10 World’s largest have strengthened our own recruitment households that have a member with volunteer workforce of 20,000 and development processes in line with special needs. the Olympics’ ethos of acceptance and • In the spirit of the UAE’s Year of As a key sponsor, Aldar not only made a inclusion. The 2019 Special Olympic World Tolerance, Aldar’s Youth Council joined direct financial sponsorship of 3 million Games continue to have a profound impact forces with UAE Red Crescent to deliver Dirhams, but we also provided value-in on our people, galvanising awareness and Eid gift boxes to 200 orphans and kind sponsorship worth 11 million Dirhams support for our wider acceptance and disadvantaged children. through the provision of several venues, inclusion initiatives. • Also celebrating the Year of Tolerance, hotels, convention facilities, retail space, Provis convened communities and advertising and community branding, employees at its Golf Gardens site to and many more. Furthermore, by plant Ghaf trees – the national tree of the engaging our own teams as volunteers UAE that can live for up to 120 years. and disseminating the Olympics message of acceptance and inclusion to customers and partners, we helped leverage the impact of the Games as a humanitarian event.

With a particular focus on building public understanding around People of Determination, the Games supported the UAE Vision 2021 and echoed our own Community Commitments.

GRI - 413-1, 413-2 32 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

Our guiding principle we work to attract and retain the best talent through a culture of inclusion, growth and empowerment. We are dedicated to offering safe, healthy and fair working conditions for all employees and contract workers in line with the leading international practices. DIRECTION OF TRAVEL • Invest in developing our people. • Ensure flexible workplace to work, to drive productivity, innovation and satisfaction. • Ensure a diverse and inclusive workplace. PEOPLE • Monitor and improve employee wellbeing. • Always prioritise and improve the safety Almost OUR WIDER CONTRIBUTION and healthy of work environment. doubled By supporting healthy workplaces and enabling our people to grow, 20% Aldar is contributing to the SDGs female members training hours per of the Executive employee since 2017 Management Committee

40% +8.9% These SDG’s span our material issues of: Diversity and Inclusion; Develop reduction in serious employee satisfaction & Recognise our People; Employee Wellbeing and Decent Employment; reportable safety since 2016 Human Rights; and Health and Safety. incidents (compared to 2018) Find out more about how we map our approach to the SDGs on page 13

GRI - 103-1, 103-2 33 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Aldar’s people / Growing with Aldar / Diversity and inclusion / Worker welfare / Safe, healthy workplaces

Aldar headcount 2017-2019 (directly employed staff) Employee distribution Aldar’s people 400 In 2019, Aldar employed a core team 0.9% 1.6% of 389 across its corporate operations, 390 389 development projects and assets , of 380 376 whom 27% were UAE nationals. A further 370 1.7% 10,919 people worked in our subsidiaries 360 Adjacent Businesses, directly and Adjacent Businesses18, 19% of whom employed staff: 8,982 350 were employed indirectly as contractors Corporate: 156 333 or consultants19. On average across our 340 Development Management: 151 different businesses, the Aldar family was 320 Asset Management: 82 made up of more than 61 nationalities20. 310 95.8% 300 2017 2018 2019

UAE nationals at managerial level, % Gender balance, % Male Employee turnover, % Female 22 29% 21.3 28 80 28% 70 70 20 70 27 27% 60 18 50 26% 16 40 25 30 30 14.921 25% 30 14 20 13.8 24% 12 10 23% 0 10 2017 2018 2019 2018 2019 2017 2018 2019

Data exclude Adjacent Businesses Data exclude Adjacent Businesses Data exclude Adjacent Businesses

For more People data, including historic trends, see page 82.

18 Adjacent Businesses: 3,338 in Khidmah/Provis; 3,129 in Hospitality and 2,515 in Aldar Education 19 165 in Corporate and Asset/Development Management; 313 in Hospitality; and 1,624 in Aldar Education. 20 61 nationalities represent an average between Asset and Development Management and Corporate: 41 nationalities; and Adjacent Businesses: 68 (47 in Khidmah/Provis, 82 in Hospitality and 75 in Aldar Education) 21 The increase in turnover can be attributed to Aldar adopting a different employment model for certain job families such as Document Control and Finance Administrators. These are now hired through our subsidiaries thus no jobs have been lost but they no longer come under Aldar’s direct employment. GRI - 102-8, 103-2, 401-1 34 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Aldar’s people / Growing with Aldar / Diversity and inclusion / Worker welfare / Safe, healthy workplaces

Growing with Aldar Bayan Al Hosani How are we doing? Our Talent and Culture Strategy was Sustainability Council Member refined in 2019 to fully align to Aldar’s new and Executive Director, People, KPIs/progress Corporate Strategy. It sets out how we will Culture and Performance recruit high-calibre individuals including Focus area KPI Performance attracting Emirati talent and supporting By realigning our People Strategies with 2019 UAE national objectives, while retaining Aldar’s 2024 goals and cascading KPIs Developing Average training 33 existing talent through KPI-linked training from department to individual, employee and hours per and development aligned to rewards. career journeys now map directly to recognising employee our people commercial success. This not only builds Employee 76.2% Continuous learning productivity, but it also reinforces satisfaction individual buy-in to the Aldar strategy - The learning and development journey making us all feel part of an Aldar family. Employee turnover 14.9% starts from day one at Aldar. As well as an overview of People Policies and services, new joiners undertake mandatory Talent analytics gender equality and role-specific training. At Aldar, our Talent Analytics system Commitments Throughout their career, we offer varied assesses a wide range of data points to • Define sustainability key competencies opportunities to build ‘soft’ skills such create a holistic picture of how people learn for all employees. creativity, innovation, agile thinking, and develop. Feeding into this system, communication and collaboration, balanced scorecards offer a fair and supported by a comprehensive offer of near real-time evaluation that can even ‘hard’ skills development such as technical calculate the return on investment from and job-specific competencies. All training training. All employees with a performance is linked to individual KPIs. In 2019, each review score of three and above (out of employee undertook 15% more training five) are eligible for discretionary bonuses, hours on average compared to 2018 and rewards or salary increases. At any time, over the last three years, we have seen employees can request a bespoke career training hours per employee almost double. development plan from their line manager, in coordination with the Learning and Average hours of training per employee Development team.

35 33 30 28 100% 25 of employees received regular performance and career development reviews 20 17 15

10 2017 2018 2019

Data exclude Adjacent Businesses

GRI - 404-1, 404-2, 404-3 35 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Aldar’s people / Growing with Aldar / Diversity and inclusion / Worker welfare / Safe, healthy workplaces

Driving forward this mission, we invested Here for our colleagues Commitments A great place to work further in our workspaces so that they • Develop and launch a Wellbeing Calendar Our vision is for Aldar to be regarded support cross-collaboration and wellbeing in challenging times based on financial, mental, physical, as a great place to work, both by our (see page 50). We also ran more employee We all face personal challenges throughout sustainability & CSR wellbeing parameters. colleagues and by external stakeholders. town hall meetings and focus groups, while our careers. At Aldar, employees are Following robust results in the 2018 empowering staff via expansion of the encouraged to share their difficulties with Great Place to Work® audit, we have ALDAR HOME app (see page 19). Problem- their line manager who is empowered focused on improving communication, solving competitions such as Ibtikar to put in place supportive workplace engagement, development, retention, continued to be popular as teams worked measures. These may include reducing empowerment and recognition strategies together in the knowledge they can workloads and/or working hours, flexible within Aldar. To this end, in 2019 we genuinely make a positive change to our arrangements or even pro bono help set a mission to inspire a healthier and business and wider society (see page 20). with legal documentation if required. For happier workforce by creating a unique concerns relating to misconduct in the employee experience for Aldar staff. We are confident that we are steadily workplace, our Whistleblower system is making Aldar a great place to work - in available as a confidential, 24/7 option to 30 2019, our People Survey revealed an report any irregularities and/or violations annual leave days for employees with more average satisfaction score of 76.2%, up against Company policies, specifically than one year’s service 0.8% on 2018 and an increase of 8.9% Aldar’s Code of Business Conduct (see since 2016. People Survey outcomes are page 71). Flexible reflected in departmental KPIs to ensure working hours and we learn from what our colleagues tell Find out more about Aldar’s health and us and continually improve. 2 hours’ wellbeing benefits on page 44. personal leave per month22

Employee satisfaction 2016-2019 (%) Recognising talent 77% Appreciating the dedication and hard work 75.4 76.2 of our staff is an important part of our 75% People strategy, we make sure to celebrate colleagues who demonstrate Aldar Values, 73% drive innovation and help others. Alongside 72.8 the Ibtikar Innovation challenge, our Year 71% of Services recognition programme celebrates five, ten, and fifteen-year 69% anniversaries of service. 67.3 67%

65% 2016 2017 2018 2019 Data exclude Adjacent Businesses

Note: Split by gender, satisfaction rates were broadly equal in 2019, with an average of 71% satisfaction reported by men and 68% by female.

22 This is in addition to annual leave to offer further flexibility for employees to manage ad hoc personal issues 36 GRI - 404-2 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Aldar’s people / Growing with Aldar / Diversity and inclusion / Worker welfare / Safe, healthy workplaces

Diversity and inclusion • Maternity leave increased from 45 to 60 Aldar’s Gender Pay Gap How are we doing? calendar days; paternity leave increased In line with our commitment to Our commercial success depends on a from three to five working days. KPIs/progress rich diversity of thought and a workforce transparency and reporting to the highest that is representative of our customer • Residence visas, medical examinations/ levels of international best practice base and wider society. Aldar’s Code of insurance and UAE ID is now facilitated disclosure, we share our Gender Pay Gap Focus area KPI Performance 2019 Business Conduct and our People Policies by Aldar for married female, also data. Different to equal pay, which Aldar make clear an unequivocal commitment sponsoring their spouse and up to three practices as standard, the Gender Pay Gap Diversity and Female in the 30% to equal opportunities and we have been children up to the age of 18. Aldar will is a measure of the difference between inclusion workforce working closely with the Government on also pay child airfare costs for eligible men’s and female’s average earnings across married female (grade 1-8). Female in senior 17% a number of initiatives that help make an organisation. leadership23 this a reality – for instance, increasing • Diversity and inclusion requirements residency visa programmes for non- were embedded within the new In 2019, we calculated our Gender Pay Gap UAE nationals 27% UAE nationals so they are vested in employee probation evaluation sign-off. ratio as 3:2 male to female. This means that for every three Dirhams earned by men People of 3 (0.7% of the country’s long-term interests. (excluding those employed in Adjacent Determination directly Businesses). at Aldar, female earn two. It is important employed to reemphasise that this does not reflect staff)24 A governance milestone discrepancies in pay; it is an indication of In 2019, Aldar welcomed its first female Female on the Executive Management Committee % the workforce gender balance. With fewer Executive Management Committee Female on the Board of Directors, % female in Aldar as a whole, including in member – Bayan Hassan Al Hosani. high-paid senior management positions, Commitments 25% She brings 20 years’ experience to the pay ratios are currently skewed towards • Develop and Implement an Emiratization 20 Committee and is also on the Board of 20% men. Rebalancing our gender distribution Strategy aligned with the succession 17 Directors for Aldar Education. A further 15 at Aldar is an issue we have been planning framework and Career 15% 14 14 governance milestone for our inclusion strategically focusing on. There is a time lag Development Plans. agenda was the formation of a Diversity 10% as it can take a number of years to bring • Develop Diversity and Inclusion Strategy. and Inclusion Board. An expansion of 5% more female into Aldar and develop them Aldar’s Female Initiative Network, the through to leadership roles – this is why • Development of Employee Engagement 0% Policy. Board’s mandate is to build a culture 2017 2018 2019 governance bodies such as the Diversity that embraces differences, celebrates and Inclusion Board and other initiatives • Rollout a formal Culture programme. uniqueness and unleashes the potential of are so critical. our diverse workforce – from female and youth, to People of Determination and minorities. The Board currently has five passionate members who work closely with Aldar’s People and Performance Department, as well as external experts. Below are just some of the Board’s achievements in its first 12 months:

23 Calculated as the mean average of female on the Executive Management Committee and female on the Board of Directors 24 Excludes Adjacent Businesses GRI - 401-3 37 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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Youth empowerment Unlocking talent among Aldar Education have also been working Emiratisation with local partners to extend equal Now in its third year, the Aldar Youth People of Determination As a private sector employer, we already Council goes from strength to strength, learning opportunities to young People of exceed national requirements for local empowering those under 32 both within At Aldar, we have always been committed to Determination. Alongside Atmah College, training, with a Staffing Policy that and outside Aldar. In 2019, highlights providing jobs and skills training to enable they are delivering vocational education prioritises progression of UAE nationals included launching a new professional People of Determination to reach their full and training placements to young adults up the organisation. Seeking to further development training programme, signing potential. We have been gradually increasing to build work readiness skills and ultimately support the UAE’s national Advanced an MoU with UEA University (see page 27), the number of People of Determination secure long-term, rewarding employment. Skills Strategy for life-long learning, our enabling young entrepreneurs to develop employed (an increase of 33.3% in 2018-19) updated Learning and Development their businesses via the Manassah initiative but we recognise we need to do more. Policy mandates exclusive UAE eligibility (see page 22) and working with the Red to Aldar-supported scholarships and Crescent to support vulnerable children Our real estate management businesses, study leave, as well as bespoke career (see page 32). The Council is governed by Khidmah and Provis, have been working development planning sessions. We also three Committees (Tender, Management together with the Future Rehabilitation prioritise work placement and internship and Investment) and it now includes a Centre to provide vocational training and opportunities for UAE national Strategic Transformation Programme student work placements for People of undergraduate students. to accelerate youth empowerment. Determination. As part of the MoU, they will offer on-the-job training, with expert mentor guidance so students are equipped with the UAE Nationals as a proportion of our right tools and skills to enter the job market. direct workforce, 2017-2019 (%) 2017 2018 2019 Abdulla Al Wahedi 27.3 28.2 27.3 Sustainability Council Member and Data excludes Adjacent Businesses Chief Executive Officer, Khidmah

Find out more about Emiratisation as part We believe that inclusion of all members of our Diversity and Inclusion agenda on of the society in the work environment page 37. is everyone’s responsibility. Thus, we’ve signed an MoU to provide vocational training to People of Determination and enable them to benefit from our Work Placement Programme which aims to develop practical skills and prepare trainees for the job market. ASSET MANAGEMENT ASSET

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How are we doing? Worker welfare Principles of Worker Welfare KPIs/progress Aldar fully endorses International Labour Organization (ILO) standards on labour and human rights, as ratified by the UAE. Focus area KPI Performance Whether it is working hours, overtime 2019 payments and access to a passport; or safe Wellbeing Welfare audits 125 accommodation and transport, access and decent completed to grievance mechanisms or paid annual employment leave – Aldar will always strive to exceed local laws and we support our contractors to do the same. Commitments Upholding global standards • Audit 100% of prime contractors against Our Worker Welfare Programme outlines our Worker Welfare Policy by end of 2021. how we will uphold the health, safety and • Report on the percentage of completion dignity of all those working for Aldar, either of the welfare inspection plan. directly or indirectly. We have developed 10 Principles of Worker Welfare based on ILO Fundamental Conventions and other recognised international frameworks, including the SDGs and the Dhaka Principles developed by Institute of Human Rights and Business. They also reflect Aldar’s Code of Business Conduct and OSH management system (see page 41).

With a new Sustainable Procurement function introduced in 2019, we will be implementing these principles in all contracts and projects in phases, in collaboration with all concerned stakeholders. Find out more about Sustainable Procurement on page 25. DEVELOPMENT MANAGEMENT DEVELOPMENT

25 Implementation only began fully in the final quarter of 2019 GRI - 403-3, 403-6, 403-7, 403-8, 408-1, 409-1, 412-1, 412-2, 414-2 39 DEVELOPMENT MANAGEMENT GRI -403-3, 403-4, 403-6, 403-7, 403-8 » Sectionoverview / Aldar’s people/Growing with Aldar /Diversity andinclusion/Worker welfare /Safe, healthy workplaces OVERVIEW on page37-38 Find outmore aboutequalopportunities and high-quality internet services. services, recreation andsportsfacilities cuisine catering, housekeeping/laundry certified siteoffers a clinic,gardens, multi- by HirmasandMayer, the ISO9001 living for all20,000 residents. Managed Dirhams to create a highstandard of Aldar hasinvested more than 12million acquiring Al Saadiyat Village in2018, communities for skilled workers. Since the Emirate’s vision of sustainable accommodation villages, inline with standards are adhered to inour worker We continue to ensure the very highest Protectingconstruction workers ECONOMY WorkerWelfare conducted Audit 1st . COMMUNITY PEOPLE extending audits to further sitesin2020. practices for site teams. We will be are beingused to further improve working Worker Welfare principles. The findings audit was conducted against Aldar’s 10 construction sitecontractor, ACC, the Island Media Zone. Working with our first Worker WelfareSaadiyat at Audit In November 2019, we conducted our available inmore than 150languages. telephone languageinterpretation globally accessible 24/7/365, with or feedback. The Contact Centre will be confidentially report concerns, misconduct party, it will enableanyone to easily and Hotline. Hosted by anindependent third we are alsolaunchingNAVEX Global procedures (see page72)andin2020, staff have access toour Whistleblowing Wherever they are working, alloutsourced Grievance mechanisms ENVIRONMENT GOVERNANCE &RISK DISCLOSURE GRI 40 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Aldar’s people / Growing with Aldar / Diversity and inclusion / Worker welfare / Safe, healthy workplaces

Safe, healthy workplaces How are we doing? Our OSH Policy and wider Environment, KPIs/progress Health and Safety Management System (EHSMS) help us to systematically protect our people and support their wellbeing. Continually updated in line with international Focus area KPI Performance 2019 standards OHSAS 45001 (for occupational injuries and diseases); and ISO standards Health Lost Time Injury 0.07 and safety 9001, 19011 and 31000 (for quality, Frequency Rate auditing and risk respectively), they cover (LTIFR) against Development and Asset Management 0.35 target operations, while also extending to principal contractors and outsourced staff. Fatalities, including 3 contract workers

Compliance with 100% Nader Al Awlaqi OSHAD and ISO Sustainability Council Member and Executive Director, 45001 QHSE

During the last 12 months, I saw the dedication of our teams across Commitments Development and Asset Management • Develop a Health and Safety management to create an ‘all eyes’ culture of system for Asset Management. awareness and vigilance, so colleagues feel empowered to keep one another safe and well.

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Safety on site Safety performance, employees and contractors

In 2019, we extended OSH objectives and 0.14 0.13 targets to site-level development projects. 0.12 0.10 We also introduced a monitoring system 0.10 0.09 to further reduce hazards, with internal 0.08 0.07 and third-party audits for compliance 0.06 0.05 0.04 0.043 with OSHAD-SF and ISO standards. We 0.04 continue to deliver regular OSH training, 0.02 0.015 campaigns, alerts and management walks 0 to maintain a safety awareness culture. 2017 2018 2019 For instance, our Safety in Heat Campaign LTIFR26 was commended by the Abu Dhabi Fatality frequency rate Municipality as an inspiring example for Total Recordable Injury Frequency Rate other businesses, while the Department of Urban Planning and Municipalities Note: Total worked man hours during 2019 was 68.6 million. In 2018, it was 65.0 million. announced Aldar as a Strategy Partner for safety culture in construction during 2019. +100 management Safety Walks and 78 OSH and fire audits conducted Performance data 15 million 10 million During 2019, we achieved a 40% reduction Al Mamsha project; on the Yas Acres project in Serious Reportable Incidents compared working hours with zero lost time injuries on the to 2018. Our Lost Time Injury Frequency Rate (LTIFR) also remained well below our target of 0.35 – standing at a rate of 0.07 per million man-hours worked. While experiencing an increase in the rate of injuries in 2019, we also added six percent more man hours (68.6 million in 2019 versus 65.0 million in 2018). Regardless of expanding operations, we take any safety incident extremely seriously, as explained on the following page. DEVELOPMENT MANAGEMENT DEVELOPMENT

26 LTIFR is defined as the number of Lost Time Injuries x 1,000,000. GRI - 403-1, 403-2, 403-5, 403-6, 403-8, 403-9, 403-10 42 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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Serious reportable incidents In analysing our Serious Reportable Incidents (see opposite), we see that vehicle traffic and falls from height remain areas of greatest concern. In 2019 we saw a slight increase in Serious OSH incident “Reportable Incidents” accidents relating to hands. We have since Cardiac arrest / traffic Equipment/mobile crane- enhanced protocols and emphasised just how incident - LTI - Mechanical Failure – DO critical protective equipment is. Our Hand Falling Object - LTI Traffic – Vehicle / Equipment Safety Campaign will extend through 2020. - Overturned – DO Falling From Height - LTI Temporary structure collapsed 1 1 2 1 2 1 Fatalities / adverse weather - LTI It is with great regret that we report three fatalities within our subcontracted workforce during 2019. The first occurred in August when a precast worker had a cardiac arrest; the second was in September when a worker fell from a mast climber (which was fully compliant Strategic safety target 2019 progress with all safety standards); and the third LTIFR below 0.35 0.07 was in October when a worker was trapped 0 under a wall that collapsed in high winds. Zero occupational illnesses/diseases Reduce Dangerous Occurrences 40% All three deaths are personal tragedies and Zero OSH non-compliances Achieved we send our deepest condolences to the 10% of staff are first aiders/fire marshals Ongoing loved ones of these individuals. We have worked with the contractors to rigorously investigate and report in line with Abu Dhabi OSH requirements. We have also conducted our own detailed investigations and a review of method statements, while increasing OSH alerts and delivering specific safety trainings and project-level awareness campaigns. DEVELOPMENT MANAGEMENT DEVELOPMENT

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Managing incidents in our assets Speak Up is our 24/7/365 call out service to deal with incident investigations. It offers those working within our assets and Adjacent Business a direct line (phone or email) to the Head of Audit for the relevant subsidiary. It is clearly advertised via posters on bulletin boards and a box is also placed in each staff camp to report concerns anonymously. Results from all Speak Up audits are collated on a central OSH system, which is monitored daily.

Occupational health Among the many employee benefits at Aldar is our provision of health, critical illness and accident insurance. Health insurance extends to physiotherapy and psychological support services. In 2019, we also launched ‘Happiness Initiatives’. So far, these have included monthly ‘Feel Good’ challenges that further incentivise uptake of our free physical fitness classes, Body Mass Index checks, wider health MOTs and mindfulness exercises.

Find out more about how Aldar’s developments support healthy living on page 48-49. ASSET MANAGEMENT ASSET

GRI - 401-2, 403-1, 403-2, 403-3, 403-6, 403-8, 403-9, 403-10 44 GRI -102-11, 103-1, 103-2 reduction inlike-for-like 29 Data not yet available for recycling rate across Asset Management 28 Calculated by excluding assets that could not report 2018wateruse planned or under construction. 27 OVERVIEW As the firstregional initiative of itskindandscope, the Estidama buildingdesignmethodology –anditsPearl Building Rating System -hasbecome a best-practice benchmarkfor the entire MiddleEast.Pearl 2is the mid-level of a three Pearl scale.Refers to developments of developments are water usein201928 5.6% 1 Pearl rated27 79%

ECONOMY 386,072 Aldar Group carbon 89% in Development Management29 recycling rate tCO footprint 2e COMMUNITY Find outmore abouthow we map our approach to the SDGs onpage13 Management andRecycling; andBiodiversity Protection Energy Management andEmissions; Water Conservation; Waste These SDGsspanour material issuesof SustainableandHealthy Buildings; By protecting and enhancing the environment, Aldar iscontributing to the SDGs. CONTRIBUTION OUR WIDER PEOPLE ENVIRONMENT . GOVERNANCE &RISK ENVIRONMENT • • • • overneutral longer the term. and we aspire to becarbon reduction isakey priority sensitive region, carbon Operating inaclimate- including in the supply chain. the lifecycle of our assets, stewardship throughout responsible environmental we practice proactive and Our guidingprinciple DIRECTION OFDIRECTION TRAVEL Protect biodiversity andecosystems. footprint. Always aim to minimiseour environmental environment. and tothe that delivers positive impact to communities Develop sustainableandhealthy buildings and practices. robust environmental management systems Ensure environmental stewardship through DISCLOSURE

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» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

How are we doing? Accountability Environmental KPIs/progress Ultimately, our CEO has accountability stewardship for Environment, Health and Safety (EHS) The UAE’s Vision 2021 and its Green performance. Through a structured system Economy for Sustainable Development of governance controls, each month Focus area KPI Performance Initiative seek to position the country individual development project teams 2019 as a global model for green growth. report progress against their KPIs to the Environmental Number of 0 This aspiration is shared by Aldar in Director of Infrastructure and Government stewardship and environmental management non-compliances our pursuit of Responsible, Stable and Relations who, in turn, updates Aldar’s Diversified growth. By designing and Executive Director of Project Management. developing assets and communities with a long-term horizon – and managing them in eco-efficient ways – we protect Commitments the planet for future generations. • Develop Environmental Management Chief Executive Officer system for Asset and Development As well as the health, safety, quality, Management. auditing and risk management standards covered on pages 41-42, our EHSMS Chief Development Officer incorporates ISO 14001 standards for environmental excellence. Each project is responsible implementing its own Executive Director Executive Director proactive and reactive monitoring QHSE Project Management system against EHSMS Group guidelines, which include environmental hazard identification and risk assessment; legal compliance; operational controls; emergency preparedness Projects OHS/EHS and response; incident reporting and investigation; and internal and external communications, including training. Overall, this system of accountability enables multiple points of intervention Development projects must also if projects are not performing against meet the additional requirements of their KPIs – enabling Aldar to address Abu Dhabi’s Estidama building design environmental risks before they become methodology. This Urban Planning issues. We are continuously evolving our Council framework seeks to improve life EHSMS to reflect changing and emerging quality by supporting urban developments risks and going forward, we will broaden that create positive environmental, the scope of the EHSMS to capture water, economic, social and cultural impact. waste and energy use in more detail. DEVELOPMENT MANAGEMENT DEVELOPMENT

GRI - 102-11, 102-12, 103-2 46 ASSET MANAGEMENT » OVERVIEW Sectionoverview /Environmental stewardship /Sustainable&healthy buildings/Environmental performance &energy / Water / Waste &recycling /Biodiversity ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE &RISK our 2020report. forward to reporting backonprogress in as well asa training programme. We look processes, permitsandreporting systems, Currently, itisdeveloping policies, and processes of schoolsandnurseries. needs accreditationaligns tothe that roadmap to attain itsown ISO14001 embarked onanambitious three-year unique requirements. The businesshas management systems that meet itsown Like Khidmah, Aldar Education isdeploying outsourced service providers. for itsmanagedfleet of vehicles under its carbon emissionsreduction programme new Head Office, where italsooperates a Provis, Khidmahalsoapplies them at its to the community assets managedby 14001. As well asapplying these standards 50001 (energy management) andISO For example, Khidmahiscertified to ISO at a sitelevel. customise andexpand systems that work is to empower individualbusinesses to Businesses are sodiverse, our approach However, since our assets and Adjacent processes to our assets andsubsidiaries. management principles,policiesand We extend Aldar’s environmental management Devolved environmental DISCLOSURE GRI 47 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

• adaptability to natural climatic and Sustainable and healthy man-made stressors in buildings, How are we doing? buildings cities and their communities; KPIs/progress The world over, evidence is growing that • respecting the environmental character sustainable buildings could be one of and climate of the region; the most effective means of tackling global challenges such as climate change, • coordinating with clients to establish Focus area KPI Performance 2019 community cohesion and economic net zero energy strategies, water growth30. Operating in the UAE, where and carbon reduction goals; Sustainable Percentage of 79% (remaining and healthy 21% is 2 Pearl) high environmental building standards are • enhancing social interaction and 1 Pearl-rated buildings developments mandatory by law, we often go further with promoting physical and mental wellbeing our eco-efficiency and wellbeing innovations. through acoustics, thermal comfort, lighting and outdoor links; and • applying Estidima standards as a minimum. Commitments Ibrahim Al Maghribi Sustainability Council Member • Apply new construction methods and and Executive Director, Estidama building design material in our projects. Project Management methodology As the first regional initiative of its kind From concept, design and construction, and scope, the Estidama building design to ongoing asset management, Aldar’s methodology has become a best-practice contribution to Abu Dhabi’s urban benchmark for the entire Middle East. landscape echoes the Emirate’s philosophy Its Pearl Building Rating System (PBRS) of cultural and natural resource assesses seven categories of impact: preservation. Many of our buildings development, natural systems, liveable now exceed the Estidama standards of communities, water, energy, materials resource efficiency and are proactively and innovation. In Abu Dhabi, all buildings managed to enable comfortable, safe must achieve a minimum 1 Pearl rating and and productive lifestyles. all government-funded buildings must achieve a minimum 2 Pearl rating, out of a Designing-in sustainability total of three Pearls on the PBRS scale. Our goal is to ensure our designs align with and strengthen the cultural identity Aldar also targets all developments to and traditions of Abu Dhabi, while achieve a 70% Estidama score, which delivers blending with our unique landscape. better efficiencies beyond 1 Pearl rating. To this end, our design guidelines Since 2010, 84% of Aldar developments have specify our commitment to: attained 1 Pearl and 16% 2 Pearl ratings. In 2019 alone, we achieved three 2-Pearl ratings • innovation in the selection and use of on the following projects: Lea at Yas Island, construction materials and products; Yas Media Zone and Yas Acres, with 1 Pearl achieved on a further 11 projects, including DEVELOPMENT MANAGEMENT DEVELOPMENT our staff accommodation on Yas Island. 30 World Green Building Council GRI -416-1 48 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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Developments with Estidama Pearl ratings

Project Name Pearl Rating Yas Acres (rating obtain before 2019) 2 Yas Media Zone 2 Lea Yas Island 2 Al Falah Town Center (rating obtained before 2019) 1 Al Ghadeer Phase 2 1 Al Gurm Resort Phase-2 1 Al Reeman 1 1 Al Reeman 2 1 Mayan (rating obtained before 2019) 1 The Grove 1 Saadiyat Reserve 1 Shams development (rating obtained before 2019) 1 Reflection 1 Staff accommodation at Yas Island – Zone RA 1

To push ourselves even further to exceed Estidama standards, we have developed our own Bronze, Silver and Gold ratings: • Aldar Bronze/Silver, the equivalent to 1 Pearl: minimum 12% overall energy reduction31; minimum 14% interior water use reduction32; and interior reductions of minimum 5% energy and 3% water (Estidama baseline). • Aldar Gold/Platinum, the equivalent to 2 Pearl: minimum 22% energy reduction, 35% interior water usage reduction33; and interior reductions of minimum 15% energy and 15% water.

31 Against ASHRAE 901-2007 baseline (American Society of Heating, Refrigerating and Air-Conditioning) DEVELOPMENT MANAGEMENT DEVELOPMENT 32 Against Estidama baseline 1 Pearl 33 Against Estidama baseline 2 Pearl GRI -416-1, 417-1 49 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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In designing our developments, we pay Spaces for wellbeing close attention to how buildings are Numerous studies have shown a oriented to promote natural ventilation relationship between buildings and and a sense of connection to the natural public health34 and the ‘green’ building environment. On average, more than 21% movement has become far more holistic in of our developed land is dedicated to open recent years, incorporating social criteria spaces. These green areas, public parks in addition to eco-efficiency. At Aldar, and even street agriculture are carefully acoustic technologies and strategies are designed to take into account community adopted in our building designs to reduce needs and support mental wellbeing and external noise stress such as that from community interaction. Trees and plants roads or construction. Laminated glazing are integral to our open spaces in in 2019, is one such technology that eliminates we planted a further 9,308 trees across six unwanted sounds. With regard to lighting, development projects. we make specific provisions for the highest possible levels of natural lighting, while minimising direct sunlight that created in internal heat gain. Trees planted on development projects, 2019

Platinum for Provis and Khidmah’s new HQ In 2019, Provis and Khidmah’s new headquarters in Abu Dhabi were awarded international Leadership in Energy and Environmental Design (LEED) Platinum Certification. Achieving the world’s fourth highest LEED rating with 90 points, assessors commended the building’s 35 percent natural lighting levels, which were achieved via multiple innovations, including modifying facades and creating skylight domes. West Yas: 6,000 Bridges: 77 Yas Acres: 800 Mamsha: 1,040 Jawaher: 526 Central Park: 865 DEVELOPMENT MANAGEMENT DEVELOPMENT

34 UN Environment Programme GRI -416-1 50 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

Healthy schools Wellbeing and sustainability are key themes for Aldar Education. In 2019, schools and nurseries across the portfolio continued to make their learning environments even healthier and more sustainable for children. Many schools created eco-gardens – at Al Mamoura Academy for instance, the garden includes solar panels, a compost bin and a wind turbine, while the Pearl Academy has established a hydroponic garden that uses no soil and instead plants are grown in a solution of water and nutrients. Al Forsan Nursery is adding more sustainable gardening areas, with plant-based produce offered in its dining room. These gardens not only provide vegetables for healthy lunches, but are also a source of learning about plant biology and hydrology. ASSET MANAGEMENT ASSET

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Environmental Energy and emissions The UN Environment Programme reports How are we doing? performance that the building and construction sectors KPIs/progress In 2019, external experts conducted a account for 39% of global energy and rigorous process to gather a wide range process-related carbon dioxide equivalent of environmental data from across Aldar Focus area KPI Performance (CO2e) emissions35. Operating in the UAE, 2019 and our Adjacent Businesses. Unless our electricity and gas needs are met by otherwise stated, data in the following Abu Dhabi Power Corporation, which is Energy Total carbon 386,072 (tco2e) pages cover all seven active development management footprint committed to help the nation increase and emissions projects (materially in construction) and clean energy to 50% by 2050, while Carbon footprint 54,012 (tco2e all 51 assets across Retail, Residential, reducing the carbon footprint of power intensity by Group /bn AED) Commercial and Hospitality and Leisure generation overall by 70%36. revenue portfolios. Going forward, we are committed to expand our environmental Group carbon and energy performance data coverage by including more of our In a significant step towards our Adjacent Businesses, including Aldar Commitments commitment to carbon neutrality, in 2019 Education. Finally, going forward, we also • Develop a Group Carbon Neutral we expanded our carbon footprinting to aim to incorporate more fuel types beyond Action Plan. cover seven of our active Development purchased electricity, cooling and diesel. projects (in construction phase) and all • Fully transition to LED lighting in Asset Management sites. The total of existing buildings. Among our Adjacent Businesses, Aldar 386,072 tonnes CO2e includes our primary Education reported environmental data • Develop a policy to mandate all new energy sources of purchased electricity and for the first time. However, they have not developments to have a solar component. cooling (‘Scope 2’ emissions) and generator been aggregated into the Group totals • Develop energy efficiency and waste diesel (‘Scope 1’ emissions)37. Compared to for 2019 due to the small number of management plans in Asset and 2018, we achieved a 0.51% decrease in our schools and Academies able to capture Development Management. carbon footprint (across sites we can track data at this stage. We look forward to compared to 2018 data)38. • Achieve 20% reductions in asset adding Aldar Education to our Group portfolio energy intensity and associated totals in 2020, alongside other Adjacent greenhouse gas emissions intensity by Businesses that are starting their own 2025, against our 2019 baseline. environmental reporting journeys. 386,072 tCO2e Finally, going forward, we also aim to Aldar Group carbon footprint, the equivalent • In 2020, double financial savings to to 54,012 tCO2e per billion AED revenue39 incorporate more fuel types beyond 4.5 million Dirhams in residential and commercial assets managed by Provis purchased electricity, cooling and diesel.

35 UN Environment Programme 36 Abu Dhabi Government 2050 Strategy 37 The emissions factor applied is 0.433 (MWh to tco2e). Scope 1 and 2 emissions are defined using the global GHG Protocol. 38 0.55% decrease represents the 2018 total of 334,498tCO2e divided by the total that incorporates assets that did not report in 2018: 332,650 tCO2e. 39 Based on 2019 revenue of AED7.1 billion

GRI -302-1, 302-3, 302-4, 302-5, 305-1, 305-2, 305-4, 305-5 52 DEVELOPMENT MANAGEMENT GRI -302-1, 302-3, 302-4, 302-5, 305-1, 305-2, 305-4,305-5 » OVERVIEW Sectionoverview /Environmental stewardship /Sustainable&health innovations. generator usageandapply energy-saving Initiatives are underway to minimisediesel average CO2e emissions were 6,346 tonnes. 44,425CO 2e. Per tonnes project, in2019 and the associated carbonfootprint was consumption was 3.64 milliongallons In Development Management, our diesel Our constructionemissionsin2019 ECONOMY COMMUNITY PEOPLE y buildings/Environmental performance &energy / Water / Waste &recycling /Biodiversity ENVIRONMENT GOVERNANCE &RISK DISCLOSURE GRI 53 ASSET MANAGEMENT GRI -302-1, 302-3, 302-4, 302-5, 305-1, 305-2, 305-4,305-5 40 » OVERVIEW Sectionoverview /Environmental stewardship /Sustainable&healthy buildings/Environmental performance &energy / Water / Waste &recycling /Biodiversity We have not made a total comparison year-on-year asonly 34assets could report for 2018. ECONOMY measures, with a focus oncooling energy. areas on which to focus our eco-efficiency year, as well asmore accurately targeting look forward to reporting progress year on now incorporates allof Aldar’s assets, we our buildings. With this new baseline that approximately 45%isusedfor cooling consumption, itisimportant to note that perOfenergy asset in201840. thetotal tonnes CO2e –compared to 8,432 tonnes in 2019. Per asset, this equates to 6,699 341,647emissions totalled CO2e tonnes commercial assets, Scope 2carbon Across retail, hospitality andresidential, of our assets Energy andcarbonperformance Carbon footprint, Asset Management (tons CO 2 COMMUNITY Hospitality Residential /Commercial Retail PEOPLE 93,610 215,200 32,837 ) ENVIRONMENT reported data. consumption per schoolor academy that CO which was responsible for 11,245 tonnes for25,972first time,totallingMWh the Schools reported energy consumption data In 2019, six Aldar Academies andCharter Aldar Education to establisha business-wide EMS. 2021 reporting – this also ties in with Aldar Education’s goals forward to including the full Aldar Education portfolio inour As oneof our mostprominent Adjacent Businesses, we look Electricity consumption asa proportion of all Aldar Academies, % West YasAcademy Pearl AcademyThe Al Rayana Charter School Muna AcademyAl Bateen AcademyAl Al AinAcademy 2e. The chartbelow compares energy 32% 7% 21% 7% 25% 8% GOVERNANCE &RISK DISCLOSURE GRI 54 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

Sl. A win-win for people Powering down our Name of Project Electricity Savings (AED) No and planet shopping malls 1 Gates and Arc 715,349.88 Provis always strives to optimise resources In 2019, Aldar Retail saved seven percent on behalf of its residential customers. In of its total energy spend at Yas Mall, 2 Sun and Sky 6,509.26 2019, a range of energy efficiency measures Remal Mall and Al Falah Plaza through achieved savings of 8,332 tonnes CO2e. implementing several energy conservation 3 Al Zeina 369,749.23 When combined with water reductions measures. Like Provis, many of these savings 4 Al Ghadeer 170,471.63 (see page 59), customers saw their utility were attributed to relatively simple changes. bills drop by 3.8 million Dirhams collectively. At Yas Mall for instance, Facilities teams: 5 Al Bandar 105,704.39 Below is a breakdown of savings for each • reduced air conditioning cooling by 6 Al Raha Gardens 8,385.4 of the 12 sites under management. one degree; For each project, the Technical Team 7 Golf Gardens 35,756.92 • removed 50% of external car park selected the most appropriate 8 Muneera 240,186.27 conservation measures, many of which lighting (while maintaining safety); were simple and low-cost interventions. • replaced all manual operated timers 9 Al Gurm 350,259.64 for external lighting with digital time Total 2,002,372.62 For example, at Reem Island, Provis switches; and yielded savings of approximately 687,000 • turned off cove lights on Dirhams for its customer, Gate and Arc lower ground levels. Towers. Energy interventions included: • rescheduling controls on 630 fan coil units, 65 air handling units and AED 665,456 88 parking extractor fans; savings in energy efficiency at Yas Mall, Remal Mall and Al Falah Plaza • installing door stoppers for building exit doors in order to prevent These small changes have been welcomed indoor air leakages; and by customers who increasingly expect • monitoring and controlling differential to see environmental responsibility chilled water temperature in embedded into public spaces, without conjunction with district cooling. compromising their experience.

In 2020, Provis is aiming to double financial savings to 4.5 million Dirhams. Its proactive and innovative approach to resource optimisation is a clear example of a win-win for people and planet. ASSET MANAGEMENT ASSET

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» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

Water conservation Aldar operates in a region of water scarcity that also has among the highest levels How are we doing? of water consumption in the world41. KPIs/progress Although 42% of the UAE’s potable water needs are met from desalination, there remains a strong imperative to conserve Focus area KPI Performance and reuse water. These are emphasised 2019 in the national Water Security Strategy, Water Total water 9.06m (m3) which aims to reduce demand by 21% conservation consumption and increase recycling to 95% by 203642. Water consumption 1.26m (m3) With our water supplied by Abu Dhabi intensity by Group Distribution Company, we welcomed revenue the launch of its 2019 Recycled Water Policy to provide enabling measures to achieve the 95% national goal. Commitments We measure and manage water • Increase the consumption of treated consumption via monthly KPIs for all water, focusing on treating the grey Development Management projects water produced from our assets. and sites. Across Asset Management, • Achieve a 10% reduction in asset each site takes its own approach, portfolio water intensity by 2025 deploying innovations appropriate to against our 2019 baseline. its infrastructure and customer base.

Water consumption In 2019, total water consumption across Asset and Development Management was 9,064,967 million cubic meters (m3)43. Of this total, 96% was consumed in Asset Management – and 90% of this proportion was attributed to three golf courses alone, 9.06m m3 primarily for irrigation purposes44. We have total water consumption, the equivalent to 1.26m m3 per billion Dirhams Group revenue long recognised the priority of innovating to reduce and reuse irrigation water – find out how we are making progress on page 58. Overall, the water picture is a positive one as we see a 5.68% reduction in like for like water consumption across sites we can track between 2018 and 2019.

41 World Resources Institute; and Abu Dhabi Environment Agency 42 Abu Dhabi Government 43 Water consumption is defined by water supplied by Abu Dhabi Distribution Company or, on development projects, water supplied by tank and does not include site use of rainwater/ or recycled water. 44 Our three golf assets alone consumed 5.7m m3 of water, of which only 115,000 m3 was used for non-irrigation purposes. Likewise, residential/commercial data is skewed by Al Raha Gardens, Golf Gardens, Gates & Arc and Eastern Mangrove assets that consume on average 10 times more than other properties due to their extensive landscaped areas. 56 GRI -303-1, 303-2, 303-3, 303-4, 303-5 DEVELOPMENT MANAGEMENT GRI -303-1, 303-2, 303-3,303-4, 303-5 » OVERVIEW Sectionoverview /Environmental stewardship /Sustainable&healthy buildings/Environmental performance &energy /Water / Waste &recycling /Biodiversity innovations on-siteare having a positive impact. reduction per project suggests that water efficiency measures and in 2018. Notwithstanding changesinproject size, this 20%average year, anaverage project consumed 49,498 m3 construction) in2019, we consumed 445,481 m3 Across allseven active development projects (materially in Water consumption inour 2019development projects 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Water consumption, Development Management (m3 ECONOMY 369,726 2018 COMMUNITY ) 445,481 in2019 versus 61,621 2019 PEOPLE of water. Year on ENVIRONMENT GOVERNANCE &RISK DISCLOSURE GRI 57 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

Water consumption in our assets Innovation in irrigation Irrigation volume usage Our 2019 water consumption for all 51 In our golfing assets, up to 99% of 250,000 assets was 8.73 million m3 of water, the water consumption can be attributed 200,000 equivalent to 171,082 per asset, compared to irrigating the landscape. We have to 251,989 per asset in 201845. This 32% been taking actions to reduce water 150,000 reduction in water consumption per asset use on our golf courses and Saadiyat suggests that innovations to reduce water Beach Golf Club is leading the way. 100,000 use, primarily in irrigation, are having a Here, teams have deployed a range 50,000 positive impact. With a new baseline, we of innovations that have reduced will be able to target very specifically where irrigation water usage by an average 0 we need to focus our water conservation of 46.8% between 2016 and 2019. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec measures. Interventions have included: • ‘pogo stick’ reading tools to assess moisture, temperature and salinity 2016 on greens; 2017 Water consumption, Asset Management (m3) • site-based weather stations to measure 2018 evapotranspiration to inform optimal 2019 Retail 449,884 irrigation times; Residential and Commercial 1,970,947 • optimised turf root depth for drought Hospitality 6,304,339 tolerance; • wetting agents to enable the sand to hold more moisture and flush unwanted salts through the root zone; • adjustable sprinkler heads and the removal of isolated sprinklers on golf course boundaries; • power washers for machinery wash down areas; and • overnight timings for all automatic irrigation watering.

Thanks to these measures, the Golf Club has not only realised substantial water reductions (and associated electrical pump and utility bill savings), but it has also reduced invasive non-native weeds

ASSET MANAGEMENT ASSET and increased drought tolerant native grasses. Overall, the golf course condition is improved, creating a more enjoyable and visually appealing landscape for golfers.

45 31 assets reported 2018 water data, with a total water consumption of 8.8 million m3. GRI -303-1, 303-2, 303-3, 303-4, 303-5 58 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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Conserving water in homes and offices Aldar Education As well as making significant energy savings on behalf of its In 2019, four schools (out of 20) reported residential customers, Provis also reduced chilled water water consumption, totalling 89,641 m3. consumption by an average of 5.5% across its assets in 2019. We look forward to including the full Aldar Education portfolio in our 2020 reporting, in line with its EMS goals. Sl. water savings Chilled water Irrigation Water Name of Project No (AED) savings Savings (AED)

1 Gates and Arc 206,349.85 985,760.31 Water quality and recycling We undertake regular water risk 2 Sun and Sky 26,666.71 (331,091.13) assessments and quality testing at our 3 Al Zeina 28,134.00 8,265.44 residential properties. We also conduct daily swimming pool water tests in our 4 Al Ghadeer 11,338.93 474,300.00 Hospitality business. All effluents are 5 Al Bandar 13,233.37 managed by the Abu Dhabi Sewerage Services Company (ADSSC), which holds 6 Al Raha Gardens 38,000.89 (9,093.78) triple ISO Certifications (ISO 9001, ISO 14001 and OHSAS 45001), as well as a 7 Golf Gardens 83,183.04 207,975.53 Silver Award in the International Awards 8 Muneera 7,047.38 99,194.34 for Liveable Communities. Through its state-of-the-art wastewater treatment 9 Al Gurm 39,848.00 plant, ADSSC converts 98% of effluent Total 453,802.17 762,128.96 673,181.75 into recycled water for irrigation use and biosolids. ASSET MANAGEMENT ASSET

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» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

Waste and recycling Each development project has its own Waste Management Plan, assessed against Most of the waste generated within How are we doing? a construction phase checklist to meet our assets are not considered direct KPIs/progress OSHAD-SF standards and in compliance with environmental impact of Aldar’s operations Abu Dhabi Law No.21, Federal Law No. 24 but rather falls within the environment and the Abu Dhabi OSHAD Code of Practice Focus area KPI Performance footprint of our customers. However, 54 on waste management. We also abide 2019 our report still includes the total waste by Estidama requirements for the minimum Waste Total solid waste 237,141 (t) generated within our assets as we diversion rates set for construction and management generation aim to contribute towards reducing our operation. For our seven active development and recycling customers’ footprint by collecting the Solid waste 33,176 (t) projects (materially in construction) in 2019, we waste and promoting its recycling. generation produced a total of 87,806 tonnes of waste, intensity by Group the equivalent to 12,543 tonnes per project revenue In 2019, a total of 237,141 tonnes (t) of on average. Given the lack of comparable Recycling rate 89% solid waste was generated within our data for 2018, we are unable to make year Development assets and development projects, of on year comparisons and we will use this as a Management which 63% was generated by our assets. baseline for future monitoring going forward. We achieved an average recycling rate Recycling rate 14% of 89% in Development projects. Asset Management 93.4% retail46 recycling rate achieved on 237,141t the Mamsha project, against solid waste generated, the equivalent to our 70% target 33,176t per billion Dirhams Group revenue Commitments • Enhance waste segregation for new Reducing construction waste and existing buildings. As part of our Group EHSMS, the Aldar • Achieve an 80% average waste diversion Waste Management Policy sets out our from landfill for Development Management. approach to prevent, reduce, reuse and recycle waste, both in the assets we manage and also in their construction. It therefore extends to our contractors and supply chain. All of our waste is managed by Tadweer, Abu Dhabi’s Waste Management Centre and as part of this relationship, we must submit a Waste Reduction Action Plan, contracts with approved environmental service providers and a manifestation system. Also, as part of our commitment to Estidama, we must ensure that high levels of waste recycling. DEVELOPMENT MANAGEMENT DEVELOPMENT

46 This represents only three assets which, while recycling rates remain low, have improved since 2018: Yas Mall (2019: 29%; 2018: 24%), Al Jimi Mall (2019: 9%; 2018: 2%) and WTC (2019: 5%; 2018: 4%) GRI - 301-1, 301-2, 306-2 60 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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Solid waste generation, Asset Management (tons) Enabling tenants and customers From plastic bottle to PE kit In addition to our Simply Bottles partnership, to reduce, reuse and recycle each school has its own resource-saving Retail 11,382 In Asset Management and our Adjacent Each year, 10 million water bottles are initiatives. Below are just a few examples: Residential and Commercial 133,315 Businesses, each site takes its own produced in the UAE, yet recycling Hospitality 4,638 • Al Yasmina Academy has created approach to raising awareness among rates remain very low. As part of Aldar Education’s commitment to become more a ‘Community of Practice’ to drive tenants and end users around reducing recycling among pupils. and recycling waste. In 2019, total solid sustainable, more than three quarters waste generated from 48 out of 51 assets of Academies have teamed up with D • Al Ain’s Eco-Warrior Initiative seeks to totalled 149,335 tonnes. Per asset, this Grade’s Simply Bottles initiative. The idea rally the school community to reduce equates to 2,928 tonnes. is to raise awareness for environmental usage of paper and single-use plastics. sustainability and encourage behavioural • Al Bateen Academy has embedded change; reduce plastic pollution; help the topic of single-use plastic recycling drive a circular economy; and support within its Moral Education curriculum UAE Vision 2021 objective to divert and discarded plastic is turned into art. 75% of all waste from landfill. • Abdulla Bin Otaiba Charter school ran a ‘Trashion Show’ in 2019, showing how clothes can be given a new life. Recycling rates were only reported by 10,800 three retail assets in 2019 averaging plastic bottles collected in 2 months alone • The Pearl Academy has introduced at Al Mamoura Academy 14% (compared to an average of 10% a Reduce Plastic Act to engage for 2018 for the same assets47). Despite the whole school community. Across our schools, D Grade collection the challenges in drawing 2018-19 bags are available to collect plastic bottles • Al Budoor KG waste-free lunch days aim comparisons, the current data are and up-cycle them into clothing and to avoid food waste in the dining hall. extremely valuable in accurately accessories, including school uniforms targeting areas on which to focus our and PE kits. By Participating in this eco-efficiency measures. For example, initiative our school can help children to as part of its ongoing campaigns to raise better understand the impact of plastic environmental awareness among tenants pollution and the benefits of recycling. and the wider community, the Yas Mall Environment Team has been running Green Tenant Awards since 2017. The awards recognise tenants that are going the extra mile to reduce, reuse and recycle their waste – and they inspire other tenants and mall visitors to take action. In 2019, 360 tenants entered the awards, with three winners: Kidzania, Candylicious and

ASSET MANAGEMENT ASSET Dickeys.

47 Yas Mall (2019: 29%; 2018: 24%), Al Jimi Mall (2019: 9%; 2018: 2%) and WTC (2019: 5%; 2018: 4%) GRI - 301-1, 301-2, 306-2 61 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

Towards plastic-free hotels We are working closely with our hotel customers, including Marriott and Hilton, to find innovative ways to eliminate single- use plastics and to engage end users in supporting this goal. Below are just some of the measures implemented in 2019: • replacing plastic room cards, wrist bands and pens with fabric/bamboo alternatives • switching from plastic water bottles and cups to glass • offering toiletries in refillable dispensers • ensuring refuse and linen bags are paper • replacing plastic coffee capsules with biodegradable alternatives ASSET MANAGEMENT ASSET

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» Section overview / Environmental stewardship / Sustainable & healthy buildings / Environmental performance & energy / Water / Waste & recycling / Biodiversity

Biodiversity Species translocation The post-translocation report commends Commitments the effectiveness of Aldar’s Construction • Develop conservation and monitoring When it comes to protecting the desert and protection Management Plan and Waste Management and marine ecosystems in and around strategies to protect natural habitats Located in Seih Sdeirah, Al Ghadeer Phase Plan in ensuring the site is clear of debris and biodiversity. our developments, we fully endorse the 2 is a project to create 707 residential that may negatively impact native flora very high standards set by the Abu Dhabi land plots. Our main contractor, Arcadis, and fauna. It does however, recommend Environment Agency (EAD). From has been working closely with the EAD further contractor engagement around the project scoping to construction, rigorous and conservation experts to identify Plans, particularly with regard to ensuring environmental assessments include and translocate vulnerable species to no vehicles cross the Protected Area biodiversity criteria and once a site is an EAD Protected Area close by. Having boundary. It also recommends a specific under our management, we conduct successfully relocated seven species in Aldar/EAD strategy to ensure Spiny- regular monitoring, in partnership with 2018 (the Ethiopian Hedgehog, Arabian tailed Lizards are protected throughout expert organisations. We also raise Toad-headed Agama, Crowned Leafnose the development phase. We strongly awareness among our customers and Snake, Horned Viper and three types welcome these recommendations and engage communities in our various of Gecko), the last year has involved are working with Arcadis to re-emphasise initiatives to conserve local flora and fauna. extensive post-translocation monitoring. waste and vehicle protocols and also with the EAD to roll out an action plan The teams have made a number of for Spiny-tailed Lizard conservation. 9,308 significant biodiversity observations at the trees planted on our development projects relocation site. These include sightings of three Sand Gazelles (defined as Critically Our developments on Saadiyat Island, Endangered by the EAD and on the IUCN Yas Island, Al Reem Island and Al Raha Vulnerable list due to historic hunting), Beach all fall within EAD Environmentally the confirmed presence of Spiny-tailed Protected Areas, defined as areas of high Lizards (an IUCN Vulnerable species), a rare biodiversity value We therefore prioritise Pannicum turgidum grass and a bat roost. monitoring and protection programmes within our developments in these locations. For instance, our West Yas development, located within the Mangrove Protected Area, has been implementing a Mangrove Management Plan since 2017. DEVELOPMENT MANAGEMENT DEVELOPMENT

GRI - 304-1, 304-2, 304-3, 304-4 63 ASSET MANAGEMENT GRI -304-1, 304-2, 304-3, 304-4 » OVERVIEW Sectionoverview /Environmental stewardship /Sustainable&healthy buildings/Environmental performance &energy / Water / Waste &recycling /Biodiversity ECONOMY COMMUNITY PEOPLE ENVIRONMENT Saadiyat beach Bird andgazelle monitoring, Near-Threatened. further seven speciescategorised as the Conservation of Nature -IUCN)anda Threatened by the International Union for Socotra Cormorant (categorised asGlobally compared2018.included the June to This species were recorded, an increase of 16 global bird database. In2019alone,170 available to the UAE Bird Database, andare also early May. Their data have beensubmitted of September to October;and March to visits during the mainmigration seasons detailed observations, with more frequent During 2019, ornithologistsmaderegular Programme for Golf Courses in2019. by the Audubon Cooperative Sanctuary Cooperative Sanctuary, asdesignated Golf Clubisnow a Certified Audubon ourenvironmentvisitors. Thewinged to sites andcreate aneven more attractive identify where we might create nesting The programme isalsohelping us to impact to bird nestingor migrations. Aldar’s presence hasnodetrimental numbers around the Golf Club to ensure ornithologists have beenmonitoringbird which are endangered. Since 2017, expert of bird andmammalspecies–someof protected Saadiyat Island, home to a range Saadiyat BeachGolf Clubislocated on the 10% an annualincrease of bird species recorded, 170 on our own ‘hotspot’ at eBird , the

GOVERNANCE &RISK

no further road incidents involving gazelles. installing these barriers, there have been hindering their grazing regimes. Since the animalsfrom roadways without fencing close to our Golf Club to protect Joining forces with the EAD, we erected significant risks to themselves anddrivers. onto the busy Saadiyat Highway –posing Gazellesconcerned were thatstraying the organisations and the EADhadbecome Gazelle protection project., local wildlife Beach Golf Clubin2019 was our Sand Another biodiversity initiative at Saadiyat Cooperative Sanctuary Designated a Certified Audubon DISCLOSURE GRI 64 GRI -103-1, 103-2, 205-2 OVERVIEW Ofemployees trained 100% Board of Directors Business Conduct 14% Femaleon the in the Code of

ECONOMY protection, IT systems ISO/IEC employees completed 27001 the cyber security 73% for information training COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE &RISK GOVERNANCE AND RISK MANAGEMENT • • • • foundation. risk managementframework asits Commission’s COSO enterprise widely-acceptedthe Treadway to our businessmodel,using Management Framework isadapted our license to operate andour Risk management isfundamental to stock companies.Diligence inrisk and governance of publicjoint standards of corporate discipline Authority No. (7/RM) of 2016on the the SecuritiesandCommodities the decisionof the Chairmanof Aldar iscommitted to adhere to making at allorganisational levels. are incorporated intodecision- and sustainability requirements sustainability risks are managed, To accomplish this, itiscrucial that shared value to allstakeholders. and therebyensuring that wecreate compliance, investor protection, to maintaininglegalandregulatory and robust riskmanagement are key Transparent corporate governance DIRECTION OFDIRECTION TRAVEL ESG risks. Proactive riskmanagement including Always prioritisebusinessethics. stakeholders andensure effectiveness. Practicetwo-way engagements with moreEnsuretransparency yearafter year. DISCLOSURE GRI 65 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Governance / Stakeholder engagement / Business ethics / Risk management / Principle risks / Performance against KPIs / Social responsibility during Covid-19 / Data annex

Transparent governance governance framework and ensuring its effective implementation. In the context Brett Scrymgeour How are we doing? As explained in the Overview chapter, of constant monitoring efforts to measure 2019 was a milestone year in terms of Sustainability Council Member KPIs/progress the effectiveness of the application and Aldar General Counsel Sustainability Governance – elevating of the governance system, the Board accountability to our CFSO and embedding of Directors periodically reviews the Focus area KPI Performance Ensuring that Aldar is compliant across ESG scoring into the KPIs of executive governance framework and amends its 2019 the full risk spectrum, including ESG risks, management. This section covers Aldar’s elements (where necessary) to ensure its Governance, Female on the 14% requires regular and systematic dialogue wider corporate governance, reflecting consistency with the regulatory controls ethics and Board of Directors across the organisation. Aldar’s new our Corporate Governance Report for and changing business environment. transparency the year ended on December 31, 2019, Sustainability Council enables this dialogue Employees 100% and adds a further layer of resilience to formally certifying published in Aldar’s Annual Report. The Company annually issues a Corporate Aldar in the face of business continuity risk. compliance with Governance Report, which reflects the the Code of Aldar follows the standards of corporate Company’s keenness on the optimal Business Conduct discipline and governance of public joint and proper application of governance stock companies as stipulated in the Employees 73% rules, and clearly demonstrates completing cyber decision of the Chairman of the Securities joint efforts and synergy among the security training and Commodities Authority (SCA) No. 7/ Company’s Board of Directors, Executive RM of 2016. The first step in implementing Management and employees. an effective governance system was the preparation and development of the Commitments • Incorporate ESG risks into corporate risk management framework. Chairman • Integrate sustainability criteria into management performance review,

Executive Committee remunerations and incentives. • Implement a centralised Sustainability

Internal Control Data Management System. Board of Directors Internal Audit Committee Department

Nomination and remuneration Committee

Chief Executive Officer

Finance and Sustainability Asset and Investments Development Management

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» Section overview / Governance / Stakeholder engagement / Business ethics / Risk management / Principle risks / Performance against KPIs / Social responsibility during Covid-19 / Data annex

Board of Directors Audit Committee Executive Management The Board of Directors is accountable to The Audit Committee contributes to the Aldar’s new Sustainability Council reports the shareholders for ensuring that the performance by the Board of Directors progress to Aldar’s Executive Management Company’s objectives are in line with of the responsibilities imposed by the Committee, which comprises of the Chief shareholders’ expectations and aspirations. Company’s governance with respect Executive Officer and Executive Officers of They are also responsible for ensuring to risk management, Internal Control its departments and divisions). Members the effectiveness of the Company’s Systems, accounting policies, financial are responsible for managing the day-to- management in managing the Company’s reporting and internal and external audits. day operations of the Company and key businesses, with the emphasis that the The Audit Committee ensures that the business issues, in line with the strategic Company’s objectives are consistent with main objectives of the Company are plan framework of the Company. It should the legislative requirements and codes achieved effectively and efficiently, within be noted that in the absence of the Chief of professional conduct defined by both a tight framework of internal controls, Executive Officer for any reason, the the Securities and Commodities Authority risk management and governance. Management Committee shall follow up and Abu Dhabi Securities Exchange. all operations and activities of the The Audit Committee consists of three Company, as this Committee holds its As of December 31, 2019, Aldar had seven non-executive independent members. meetings weekly. members on its Board of Directors, including The charter of the Audit Committee one female Member48. Their backgrounds requires that all members of the The Chief Executive Officer has the including their position, independence Committee shall be familiar with financial authority to act within the framework of status, role, educational qualifications, aspects, and at least one of its members the operational plan and the budget of experience, year of appointment, meetings shall have experience in accounting operating income and expenses discussed and attendance are all fully detailed from and finance. On the other hand, the and approved by the Board, according pages 76 to 79 of Aldar’s 2019 Annual Chairman of the Committee shall hold to the authorities granted thereto under Report published in May 2020 and available periodic meetings with the Executive the Delegation of Authority. The Chief on our website. The independence of Management and the Head of Internal Executive Officer may delegate some of each Board Member is assessed annually Audit department to ensure that the his duties to the Executive Management by the Nominations and Remunerations members of the Committee are informed Team, according to the current policies Committee against detailed criteria. of the main issues. The Committee shall of the Board, the Delegation of Authority also meet with the external auditor, and legal requirements that determine without the presence of the Members the powers of such delegations. of the Executive Management, as the Committee deems appropriate.

48 As per the decision of the Chairman of the SCA No. 7/RM of 2016, we are committed to having at least 20% female representation at Aldar Board level GRI - 102-18, 102-26, 102-28, 102-32, 102-33 67 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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Sustainability Salwa Al Maflahi governance Sustainability Council Chair and Associate Director, At Aldar, transparent governance and Sustainability & CSR business integrity are fundamental to how we deliver on our strategic priorities. The formation of a Sustainability Council in 2019 was an important step in Aldar’s sustainability journey. In representing 18 Greg Fewer of Aldar’s Executive Management teams CFSO (including our subsidiaries), we have a unique opportunity to embed sustainability across Aldar’s diverse businesses. We also ESG criteria are now not only formally gain a more holistic understanding of how entrenched within my role but they are ESG issues impact commercial delivery also within the performance scorecards and we build accountability against our of all senior executives – a development sustainability commitments and KPIs. in 2019 which truly holds Aldar’s leadership to account as we seek to become a role model for responsible Cascading sustainability corporate citizenship in the region. In order to cascade sustainability throughout our diverse businesses, the Sustainability Council has appointed Sustainability Council champions from across Aldar. Sustainability Aldar’s Sustainability Council was is also formally part of the employee established in 2019 in order to accelerate induction process and we deliver awareness the integration of ESG topics across events and workshops throughout the year Corporate, Development and Asset to engage employees in what sustainability Management divisions. Chaired by Salwa Al means at Aldar. In 2019, we reached 30% of Maflahi, Associate Director of Sustainability employees with these sessions and we are and CSR, the Council consists of 17 senior confident that we will reach 100% in 2020. executives from each business function and reports directly to Aldar’s Executive 30% Management Committee. In 2019, the of employees received sustainability Committee met monthly to debate awareness training key topics including the Sustainability Framework, a Mandate and Charter for Find out more about how sustainability the Council and roles, responsibilities and delivers operational excellence on governance. Also recorded in meeting page 18. minutes were updates on specific initiatives and CSR programmes.

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Stakeholder engagement ENGAGEMENT APPROACH 2019 HIGHLIGHTS Regular constructive dialogue with Customer portal and call centre; social media • Expanded our Customer Experience function with a new Head of Customer Strategy key stakeholder groups underpins and WhatsApp groups; Connect Community and a new Customer Promise our reputation as a trusted corporate portal; Surveys and events • Expanded app, chatbot and live chat services citizen in the communities we work in. • Qualtrics technology introduced to analyse and report the voice of our customers

CUSTOMERS • Automated workflows for customers, including buyers and residents. Whether it is customers or suppliers, non-governmental organisations or the Town hall meetings; surveys; focus groups, • +16% increase in training hours per employee media – two-way feedback mechanisms Ibtikar; Youth Council; Awards; Whistleblower • People of Determination49 youth training partnerships at Provis, Khidmah and Aldar enable us to make decisions informed by system Academies • People Survey average satisfaction score of 76.2%, up 0.8% on 2018 those impacted by our presence – and • Diversity and Inclusion Board established

those who influence our operations. These PEOPLE OUR • Youth Council university partnerships systematic stakeholder engagements play a vital role in shaping Aldar’s strategic Market disclosures; quarterly and yearly investor • Unanimous approval of three clauses relating to voluntary community contributions direction on the sustainability agenda, presentations; Annual General Meeting; Annual, was made at our General Assembly meeting on 21 March 2019 Governance and Sustainability Reports; • Unanimous approval to reduce the number of Company Directors from nine to seven particularly with regard to defining roadshows; one-one meetings (7) Members and verifying our material issues. • 1,000+ investor meetings across equity and debt through comprehensive programme of shareholder engagement. Find out more in our Annual Report, page 105. AND INVESTORS AND SHAREHOLDERS SHAREHOLDERS

Fahad Al Mahmood Site tours; Annual General Meeting; • Partnered with the Department of Urban Planning and Municipalities on the representation on committees and boards of ‘Buy A home’ initiative Sustainability Council Chair and various authorities and industry bodies; Annual, • A partner in Ghadan 21 for small business growth Executive Director, Stakeholder Governance and Sustainability reports; • Awarded five billion Dirhams from the Government of Abu Dhabi for national Management conferences/forums; market disclosures housing and infrastructure • Worked with the Department of Culture and Tourism on public art installations Creating wider value for society requires at Reem Central Park AUTHORITIES us to identify and engage with those who GOVERNMENT • Ministry of Tolerance engagements via Aldar Education • A member of the ICV Council and ICV Committee are most impacted by, or influencers of, our presence. We maintain open lines of CSR activities; procurement; civil society • Donated AED 36 million to Sandooq Al Watan, the UAE’s national fund communication with relevant stakeholders partnerships; community newsletters • Progress towards a 2020 agreement with the Authority of Social Contribution at all phases of a project’s lifecycle. As (Ma’an) to develop social impact bond projects • More than 100 CSR activities we evolve our materiality analyses, we • Cranleigh Abu Dhabi partnered with two other schools, the Ministry of Tolerance, will more systematically engage external NYU Abu Dhabi and the British Council on a cross-curricular programme stakeholders on priority sustainability • Yas Island hotels, Westin Golf Resort and Spa, World Trade Center and Courtyard all COMMUNITIES topics. supported Marriott’s TakeCare Relief Fund and Road to Awareness campaign • Commissioned four local artists at Reem Central Park

Tender and pre-award interviews and • Working with Ghadan 21 and ICV to deliver in-country value questionnaires; daily, weekly and monthly onsite • Engaged contractors and suppliers on our Worker Welfare Policy and Principles meetings; environmental, safety, health and • Launched ICV to promote local businesses and investments sustainability training sessions • 99% of suppliers held Abu Dhabi-based commercial licenses • Five Principles of Sustainable Procurement identified and implementation strategies established for each • Launched an annual Supplier Forum, with the inaugural workshop attended by 27

CONTRACTORS contractors, consultants and suppliers SUPPLIERS AND AND SUPPLIERS • Extended the Whistleblower system to contractors

49 The UAE refers to the people with special needs or disabilities as People of Determination in recognition of their achievements in different fields: https://u.ae/en/information-and-services/social-affairs/special-needs GRI - 102-21, 102-40, 102-42, 102-43 69 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

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ENGAGEMENT APPROACH 2019 HIGHLIGHTS

Regular meetings on local topics; • NYU Abu Dhabi and the British Council worked with Aldar Education Attendance at workshops and events • Partnered with UAE university on a youth learning programme • Partnered with ADNOC, Abu Dhabi Department of Economic Development and to create the new unified ICV formula • Official Partner, Special Olympics World Games • Key sponsor, Sandooq Al Watan • Asset Management worked with eBird to track 170 bird species at Saadiyat PARTNER PARTNER Beach Golf Club ORGANISATIONS • Aldar Retail has a three-year agreement with WWF, is a member of the Green business network within the Environment Agency of Abu Dhabi and supported Make a wish Foundation in its 2019 Christmas donation campaign

Committees meetings; working groups • Our subsidiaries, Khidmah, Provis, Aldar Education and Pivot, alongside associates such as Abu Dhabi Finance PJSC and Iskandar Holdings Limited, conduct their own Board meetings with a total of 17 Aldar employees represented ALDAR ALDAR SUBSIDIARIES

Rating agencies frequent ranking reviews; • 2019 Annual Report addressing enquiries on ESG; frequent • Aldar press releases 2019 spokesperson interviews; market disclosures; • Annual Sustainability Report Sustainability, Annual and Governance reports • 2019 Corporate Governance Report • Moody’s annual review of AIP AND MEDIA AND RATING AGENCIES AGENCIES RATING

Market disclosures; Annual General Meeting; • Engaged with lenders to offer homebuyers low interest mortgages Annual, Governance and Sustainability Reports; • Issued the first 10-year sukuk offering by an Abu Dhabi-based issuer. one-one meetings It was more than six times oversubscribed, with global investors accounting

LENDERS for 71% of the final allocation BANKS AND AND BANKS

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• Integrity and Insider Trading, described • The prohibition of collective bargaining Business ethics as profiting from undisclosed information agreements, child labour, and At Aldar, our business operations adhere relating to Aldar or any other company. forced labour, as per UAE law. to strict codes of conduct, which are • Gifts, described as the offering, giving, communicated to our staff and internal and Any employee can access our Code external stakeholders. The Aldar Code of soliciting or receiving of any form of bribe or kickback or offering or giving anything of Conduct at any time so they can Business Conduct is intended to promote understand their rights and position with ethical conduct and compliance with laws of value to any person. The Code clearly defines what is considered as a gift. regard to any concerns. Employees can and regulations, to provide guidance with find guidance with People and Performance respect to the handling of ethical issues, to • Business Entertainment, in the context and Legal, and if employees suspect that implement mechanisms to report unethical of conducting business discussions or anyone is violating the Code, they are told conduct, to foster a culture of honesty and advancing business relationships. to contact Legal or People and Performance, accountability, to deter wrongdoing and to • Anti-Money Laundering, in which Aldar which can be done anonymously ensure fair and accurate financial reporting. states that it will not knowingly do through a dedicated email address. business with existing or perspective Executive Management is charged by customers whose money or activity is the Board of Directors with ensuring that believed to be derived from or used to the Code will govern, without exception, support criminal or terrorist activity. all business activities of Aldar. The Legal department ensures strict compliance, • Occupational Safety and Health, in coordination with the People and to provide a safe and healthy work Performance Department and the Internal environment to each employee. Control Department regarding staff training • Reporting of Malpractices, Illegal and communications. Training is part of or Unethical Behaviours, describing the mandatory induction for everyone the responsibility of employees to joining the Company and is reviewed by all report incidents of misconducts. employees on a yearly basis by signing an • Reporting of Shareholders and Media Interest Declaration Form, which confirms Relations, committing to maintain our employees’ understanding of their excellent relationships with the public. responsibilities in relation to the Code. • Electronic Media and Other Aldar Covering all Aldar operations and extending Properties, regarding the protection to all suppliers, contractors and consultants, of information concerning Aldar. key areas covered by the Code include: • Audit, Investigation and Disciplinary • Conflict of Interest, defined as any actions, describing the duty of activity, agreement, business investment, employees of Aldar with regard interest, role or other situation that to all internal investigations. could be construed as divergent to or in • Dealing with Government and Public competition with Aldar’s business or as an Officials, prohibiting any activity that interference with such Employee’s primary seeks to bribe, corrupt or improperly duty to serve Aldar at all times to the best influence a public official, either of their ability. The Code provides clear directly or indirectly. examples of cases of conflict of interest.

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Whistleblower Policy department in coordination with Legal, if Launched in 2012 and managed by needed, or through a qualified third party the Head of Internal Audit department, appointed by the Audit Committee. If Aldar’s Whistleblower Policy applies to anomalous activities have occurred, the any irregularity, or suspected irregularity, Audit Committee and/ or the CEO receives involving employees, officers and a report and decides on appropriate directors, as well as shareholders, disciplinary actions in consultation with consultants, contractors, suppliers and/ the concerned Chief, Head of People and or any other parties with a business Performance and Head of Legal. The Audit relationship with Aldar. This includes Committee decides whether prosecution but is not limited to: incorrect financial or referral to law enforcement is necessary. reporting; unlawful activity; corruption involving illegal gratuities, bribery, Fraud Policy kickbacks, bid rigging, etc.; conflict of Launched in 2012 and managed by the interest in purchasing or sales; misuse Head of Legal in coordination with the of company information; fraudulent Internal Control department (ICD), Aldar’s disbursements; activities that are not in Fraud Policy sets a framework and internal line with Aldar policies and procedures, controls to be followed for managing including Aldar’s Code of Business activities against fraud. Our Fraud Policy Conduct; and activities which otherwise applies to any irregularity or suspected amount to serious improper conduct. irregularity involving employees, executive management, directors, shareholders, In 2016, the Policy was strengthened by consultants, contractors, suppliers and/ appointing a completely independent, or any other party having any business third party (based in Europe, where relationship with Aldar. the strictest confidentiality laws apply) to automate the receipt and follow-up Fraud is defined as the intentional act mechanism for anonymous complaints. or omission designed to deceive others, Employees submit their concerns entirely resulting in the victim suffering a loss anonymously via a secure web portal and/or the perpetrator achieving a gain. or confidential 24/7 hotline. These Examples of actions constituting fraud concerns are then securely sent on are available in the Aldar Fraud Policy. to Aldar’s Internal Audit department Investigation responsibilities and reporting for corresponding action. procedures are described in detail in the Policy, as well as consequences based on To ensure the effective resolution of the results of the fraud investigations. grievance cases and fair discussion, the relevant parties and departments are required to gather supporting data. All reported allegations are thoroughly investigated, either by the Internal Audit

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Risk management Aldar has an established Enterprise Risk Board Governance • Sets the tone and culture towards effective risk management Risk Management (ERM) function to • Approves ERM framework ensure effective management of all risks • Agrees on the entity’s risk appetite that have the potential to hinder the Company from achieving its strategic objectives. A dedicated ERM team is Top-down Three level Risk Executive Audit committees Management Management Committee (AC) responsible for helping the Company’s Committee (RMC) Committee (MC) business units to identify, assess and Identification, • Develops Risk • Reviews high • Reviews critical risks put in place control plans for existing assessment, Management and critical risks • Monitors the effective mitigation and Framework • Evaluates the functioning of the and emerging risks. It regularly conducts oversight of • Reviews the existing action RMC comprehensive reviews of best practices risk at Company presented plans and • Provides key level risks along the proposed highlights to the and benchmarks against other companies with relevant mitigation plans Board as part of the in the market with robust ERM activities. assessments and • Assists in AC’s annual report mitigation plans identification • Monitors the of principal and Primarily, a bottom-up approach is used effectiveness emerging risks and progress of • Reviews and for business unit-specific risks, while mitigation plans internal controls • Approves in endorses enterprise-wide risks rely on a top-down deliverables and treatment plans approach. Each risk is identified and recommendations for operational to the MC effectiveness assessed through an impact and likelihood • Makes requisite matrix to prioritise its importance. recommendations The identified risks with their relevant to the AC mitigation plans are escalated to different hierarchical committees according to pre- defined criteria and mandates. The ERM team continuously monitors, liaises and follows up with risk owners for updates Framework management Risk and progress on mitigation plans until the risk matches the agreed risk appetite. Bottom-up Risk Business ownership units and risk owners Aldar has a Board-approved ERM Charter Identification, • Identify and and Policy & Procedure documents in assessment and assess risks mitigation of risk • Monitor the risks place, which are periodically reviewed and at a business • Ensure effective updated. The meetings of the various unit and andtimely functional level mitigation plans mandated committees are convened periodically, which has helped to improve the function across the Company. Aldar’s Board and management firmly believe in continuous improvement and will persist to build on this solid foundation to strengthen risk management. GRI - 102-15 73 OVERVIEW ECONOMY COMMUNITY PEOPLE ENVIRONMENT GOVERNANCE & RISK DISCLOSURE GRI

» Section overview / Governance / Stakeholder engagement / Business ethics / Risk management / Principle risks / Performance against KPIs / Social responsibility during Covid-19 / Data annex Principal risks The Risk Risk Analysis Treatment Plan Each year, Aldar conducts an assessment Strategic: High-level risks that can have a direct impact on the Company’s strategic objectives. of principal risks (see page 58 of our Annual Report). In 2019, the five most significant risks were identified as market 1. MARKET • Ability for Aldar to effectively respond The Board mitigates market risk through the review CYCLICALITY to local and regional changing market of the Group’s strategy on a regular basis and cyclicality, geographical concentration conditions. discussions are held to ensure the strategy is still in the Emirate, cyber threats, talent appropriate or if it needs updating. retention and health and safety. Consequences The Company is also actively implementing the risk • Potential negative impact on launching treatment plan: of new developments and performance of asset portfolio. Developments Projects • Potential negative impact on sales • Ensure accurate and appropriate business plans are revenue, cash flows, asset valuations, in place to anticipate customer preferences. debt/capital and credit rating. • Launch projects in phases to reduce cash flow exposure. • Product diversification. • Enhanced market readiness to capitalise on any opportunity via infrastructure enabled lands.

Asset Portfolio • Combined focus on tenant selection and improving their trading performance through proactive leasing and targeted marketing initiatives. • Full merchandising strategy in retail assets; zoning and category optimisation, sustainable pricing and innovative re-purposing. • Continued focus on corporate deals to provide long term revenue visibility and de-risk residential portfolio revenue streams. • Sustainability initiatives leading to cost saving through energy audit and energy saving initiatives. • Enhancing customer experience through cross- selling across asset classes and introduction of loyalty programmes.

2. GEOGRAPHICAL • Geographical concentration from only The Company realises the inherent risk of CONCENTRATION operating in Abu Dhabi. geographical concentration of operations and is IN THE EMIRATE OF steadily mitigating it by: ABU DHABI Consequences • Entering joint ventures within the wider UAE and • Exposure to Abu Dhabi as a single in Gulf Cooperation Council markets. market will potentially constrain Aldar’s • Developing regional and international sales and ability to grow and achieve its strategic marketing capability to expand the investor pool. objectives to deliver sustainable returns for shareholders.

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The Risk Risk Analysis Treatment Plan

Operational: Risks related to performance, customers, and the effective and efficient use of resources.

3. TALENT • Ability to attract and retain a talented The People and Performance strategy and treatment RETENTION pool of employees with the right skills plan encompasses: and experience. • Long term incentive programme to assist retention Consequences of critical personnel. • Succession planning and career path programmes • Potentially a negative impact on for high potential personnel. Company’s ability to deliver the • Organisation-wide Employee Satisfaction business plan. Survey conducted annually to identify areas for improvements. • Exit interviews to identify critical areas of improvement for People and Performance policy and practices. • Proactively identifying employee’s satisfaction parameter by conducting annual survey ‘Great place to work’ to identify potential gaps.

4. HEALTH • Serious OSH (Occupational The Company has a comprehensive and integrated AND SAFETY Safety and Health) incident. health and safety strategy and implementation plan:

Consequences • All PMCs, consultants and principal contractors must register with OSHAD (Abu Dhabi • Potentially a negative impact on Occupational Safety and Health Centre), comply Company’s vision and brand locally with Aldar OSH Policy and abide by their standards. and internationally with consequential • Produce monthly OSH statistics to monitor financial implication due to project performance across the projects and the portfolio delays, civil suit and fines. of assets, develop lesson learnt and analyse trends to ensure and promote safest practices. • Proactive integration between QHSE (Quality, Health, Safety & Environment) and project teams for an effective implementation of the OSH monitoring programme, i.e. internal and external OSH audit, committee meeting, OSH meeting and periodic inspections. • Raising staff awareness by conducting training and OSH campaigns, updating and communicating the Company’s OSH/EHS (Environment, Health and Safety) Management System (EHSMS) and regulatory requirements. • Publishing OSH alerts to prevent incident.

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The Risk Risk Analysis Treatment Plan

Operational: Risks related to performance, customers, and the effective and efficient use of resources.

5. INFORMATION • System vulnerabilities and control The information Security & Compliance function SYSTEMS AND weaknesses are exploited by malicious continues to assess and strengthen the security CYBER THREAT actors over the internet. and compliance readiness of its IT function. The unit undertakes but not limited to the tasks below: Consequences: • DT achieved ISO 27001 certification in 2017. ISO • If digital assets are not adequately 27001 surveillance audit is conducted by the Lead protected from cyber threats, this Auditors annually. can lead to disruption of business • Security Baseline controls implemented and operations, financial losses and loss regularly reviewed to mitigate threats from known of reputation. vulnerabilities. • Advanced Threat Protection deployed to detect and mitigate cyber threats based on artificial intelligence and machine learning. • DNS Security controls in place to proactively identify, block and mitigate targeted threats such as malware, ransomware, phishing and data exfiltration. • Security monitoring system, including Data Loss Prevention control, in place to correlate security events and trigger alerts. • Disaster recovery strategy and plan in place, reviewed and tested on regular basis. • Organisation-wide mandatory security awareness training programme in place. • Vulnerability management programme in place to identify and mitigate system weakness.

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Internal controls Aldar has implemented a robust security Our internal control system contributes to architecture and has deployed up-to-date reducing risks related to our operations, security technologies to prevent cyber finances and compliance. The annual threats and detect security incidents. review and assessment of internal These include a vulnerability management controls is managed by the Internal Audit programme, security enhancements as part department, which reports to the Audit of our risk assessments to, need-to-know Committee. Key elements of the internal and need-to-have principles for data control system include policies that access, Domain Name System security regulate Aldar’s activities and contribute controls, an Advanced Threat Protection to reducing ESG risks, such as the Social layer deployed on endpoints and Responsibility Policy, the Code of Business perimeters, a Disaster Recovery Strategy Conduct, the Whistleblower and Fraud and organisation-wide end-user security Policy; the External Auditor, the Internal awareness training programme. Audit department and management are in charge of overseeing the effectiveness of the internal control system; and 73% continuous market disclosure to analysts, of employees and investors and shareholders. Further 75% details on our internal control system are of external stakeholders provided on page 97 of the Annual Report. completed cyber security awareness training Data security Cyber-attacks are a further scenario that we rigorously prepare for on an ongoing basis. Aldar has defined a comprehensive information security policies framework to mitigate cyber threats. All policies and IT Risk Management Framework are aligned with CObIT, ISO27001 and NIST. Aldar’s IT services have been awarded ISO/IEC 27001:2013 certification, which recognises the existence of systems and processes to protect all its corporate and client information assets. ISO 27001 surveillance audit is conducted by the Lead Auditors annually.

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Performance against KPIs FOCUS AREA KPI PERFORMANCE Group revenue change +11%

Stable, responsible, diversified growth Gross profit change +2%

Off-plan development sales change +54%

Retail tenants engaged in sustainability50 360 Average retail retention rate at Yas Mall, Al Jimi Mall and the Mall at World Exceptional experience and loyalty 76% Trade Center Abu Dhabi Customer satisfaction rate, parents survey, Aldar Academies 78% Employee innovation ideas submitted 192 Innovation Ideas implemented 6% New partnerships related to disruptive technologies 6 Average occupancy of assets 89% ECONOMY Operational excellence Weighted Schedule Performance Index 92% Administration time saved 12,000 hours Number of transformational initiatives delivered to improve operational excellence 6 Digital Transformation Number of transformational initiatives delivered to enhance customer centricity 5 Responsible supply chains Contracted suppliers integrating sustainability 6%

ICV certified suppliers 33.3%

Local economic development Government infrastructure awards AED 5 billion

Proportion of procurement contracts awarded to local suppliers51 98%

Community events +100 Community engagement and awareness Employees engaged in volunteering 15%

Strategic social investment +AED 41m

Impactful corporate citizenship In-kind contributions AED13.3m COMMUNITY

Number of beneficiaries of Aldar-supported Sandooq Al Watan initiatives 2,554

Average training hours per employee 33

Developing and recognising our people Employee satisfaction 76.2% PEOPLE Employee turnover 14.9%

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FOCUS AREA KPI PERFORMANCE Female in the workforce 30% Female in senior leadership52 17% Diversity and inclusion UAE nationals 27% 3 (0.7% of directly People of Determination employed staff)53

PEOPLE Wellbeing and decent employment Welfare audits completed54 1 Lost Time Injury Frequency Rate (LTIFR) against 0.35 target 0.07 Health and safety Fatalities, including contract workers 3 Compliance with OSHAD and ISO 45001 100%

Environmental stewardship and management Number of environmental non-compliances 0 79% (remaining 21% Sustainable and healthy buildings Percentage of 1 Pearl-rated developments is 2 Pearl) Total carbon footprint 386,072 (tco2e) Carbon footprint intensity by Group revenue 54,012 (tco2e/bn AED) Energy management and emissions Proportion of emissions from Development Management 11% Proportion of emissions from Asset Management 89% Total water consumption 9.06m (m3) Water conservation ENVIRONMENT Water consumption intensity by Group revenue 1.26m (m3) Total solid waste generation 237,141 (t) Solid waste generation intensity by Group revenue 33,176 (t) Waste management and recycling Recycling rate Development Management 89% Recycling rate Asset Management retail 14%

Female on the Board of Directors 14%

Governance, ethics and transparency Employees formally certifying compliance with the Code of Business Conduct 100%

Employees completing cyber security training 73% GOVERNANCE

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Social responsibility during Covid-19

When Covid-19 was confirmed as a Keeping our people and Leveraging digital global pandemic in March 2020, Aldar communities safe transformation reacted immediately. A special business From 24 March, we implemented continuity taskforce was set up to ensure strict protocols based on 16 separate Aldar was among the first private a consistent response across our diverse World Health Organisation, Abu sector organisations in Abu Dhabi to businesses. A hotline has been established Dhabi Municipality and UAE Federal implement a remote working policy. to respond to employee and contractor guidelines. These included a work from Employees have access to a dedicated concerns, specifically ensuring safe working home scheme, mandatory personal web portal that addresses their concerns and transportation conditions, as well as protective equipment usage where relating to the virus. They can also repatriation support for contract workers relevant, two-metre spacing, one- access a free mental wellbeing support (working closely with the Indian Embassy). For way stairway flows for operating line and can sign up to live sessions direct employees, we have enabled working buildings, hourly bathroom cleaning, with health authority professionals. at home by supplying the right technologies capacity limits and automated (no- (including Wi-Fi where required) to ensure touch) water coolers. Ongoing, thermal people feel fully supported to continue The first company cameras temperature checks monitor in Abu Dhabi’s to host its Annual General their role. employee risk and we are currently Meeting as a video conference working with contractors to ensure staff accommodation has adequate isolation Across our Asset Management and AED 190 million measures and that hygiene protocols Adjacent Businesses, we also saw digital committed in March 2020 to assist tenants, technologies being scaled up to support homebuyers, students and business partners are strictly enforced with inspections. weather the immediate pandemic crisis. customers. In retail, Yas Mall launched a ‘We Shop For You’ service for all essential items available from Carrefour and pharmacies, with expansion to the entire Talal Al Dhiyebi Yas Mall retail offer in progress. Aldar Chief Executive Officer Education has invested AED 10 million in a sophisticated distance learning blended model, extending support to Abu Dhabi’s leadership has been other schools in Abu Dhabi also; while proactive and resolute in safeguarding Retail has virtualised its property tours the health of its residents and the economy. for interested buyers and tenants. As an industry leader, Aldar will continue to play a transparent role towards a more sustainable future.

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» Section overview / Governance / Stakeholder engagement / Business ethics / Risk management / Principle risks / Performance against KPIs / Social responsibility during Covid-19 / Data annex

Social responsibility during Covid-19

Financial assistance to customers Wider support to society Recognising that Covid-19 is adding We have made available over 2,000 rooms pressure to family finances, across our across our portfolio of hotels for individuals residential portfolio we have introduced required to quarantine and more than 100 monthly payment plans to support and rooms for medical professional use. All non- ease rental commitments until the end essential hotel staff are working from home of 2020. We have also set aside AED while those who remain on site continue 60million to offer prospective tenants to receive regular training and guidance at Yas Acres, the Bridges, Mamsha and on the precautionary measures they need Jawaher low interest (1.99%) fixed- to take while performing their duties. rate mortgages for three or five years, with no application or valuation fees. AED1 million donated by Aldar Employees to public Across Education, we have allocated AED Together We Are Good programme to 50 million to enable school continuity. We support the community and promote have also reduced fees by 20%, introduced social responsibility. monthly payment options with zero Deepening our partnership with Sandooq interest for the 2020-21 academic year Al Watan, we have given a further AED and refunded all catering and transport 5 million to distribute 10,000 laptops expenses for term 3 of the current academic to school and university students in line year. An ‘all in this together’ fund has been with the Ministry of Education’s distance set up to support families who are expected learning programme. The initiative will to be significantly impacted financially. ensure students are able to continue their education journey and acquire the knowledge and skills they need to be the 20% next generation of leaders. reduction in Term 3 Fees

With our retail sites closing in line with the Finally, Aldar has allocated AED 20 law, we have stepped in to support business million to various national initiatives tenants with rent suspension and an AED including national sanitation efforts and 60 million package focused on smaller waiving all administrative fees associated businesses and start-ups. with transacting with Aldar. We remain committed to paying all stakeholders, including shareholders and contractors on time.

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» Section overview / Governance / Stakeholder engagement / Business ethics / Risk management / Principle risks / Performance against KPIs / Social responsibility during Covid-19 / Data annex

Data annex Workforce data: Adjacent Businesses

Headcount 2017 2018 2019 Aldar Education Direct employees 975 1490 2515

Indirect employees 934 1234 1624

Number of nationalities (direct employees) 42 54 75

% Emiratisation (direct employees) 10.05% 6.71% 4.21%

% female (direct employees) 76.10% 78.26% 79.17% Provis and Khidmah Direct employees 2,773 3,042 3,338

Indirect employees

Number of nationalities (direct employees) 46 47 47

% Emiratisation (direct employees) 0.25% 0.16% 0.21%

% female (direct employees) 16.23% 16.90% 16.99% Hospitality and Leisure Direct employees 2113 2430 3129

Indirect employees 234 323 313

Number of nationalities (direct employees) 85 74 82

% Emiratisation (direct employees) 0.14% 0.16% 0.29%

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GRI Content Index For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for Disclosures 102- 40 to 102-49 align with appropriate sections in the body of the report.

The document has been prepared in accordance with GRI Standards: Core option. The GRI Standards is an internationally recognised sustainability reporting framework used widely for reporting on sustainability performance including economic, environmental and social impacts. The GRI Standards emphasise the importance of materiality in sustainability performance evaluation and reporting. An index of GRI disclosures is included below.

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» GRI / Index / Principles GRI 101: Foundation 2016 GRI Standard Disclosure Reference Organizational Profile 102-1 Name of the organization P91 102-2 Activities, brands, products, and services P6, P7, P9 102-3 Location of headquarters P91 102-4 Location of operations P7 102-5 Ownership and legal form AR P109 102-6 Markets served P7, P9 102-7 Scale of the organization P78-79, AR P3 102-8 Information on employees and other workers P34, P28 102-9 Supply chain P25-26 102-10 Significant changes to the organization and its supply chain P25-26, no significant changes 102-11 Precautionary Principle or approach P45, P46, P66 102-12 External initiatives P4, P12, P46, Aldar participates in national and international industry associations which promote and advance sustainable principles. Aldar is a founding member of the Abu Dhabi 102-13 Membership of associations Sustainability Group and since the formation of the Sandooq Al Watan National Fund in 2016, Aldar has been one of the initiative’s largest individual donors (see P31) GRI 102: General Disclosures 2016 Strategy 102-14 Statement from senior decision-maker P4-5 102-15 Key impacts, risks, and opportunities P6-7, P8, P10-11, P73-76, AR P56-60 Ethics and Integrity 102-16 Values, principles, standards, and norms of behavior P9, P71-72 102-17 Mechanisms for advice and concerns about ethics P72 Governance 102-18 Governance structure P66-68, AR P82-103 102-19 Delegating authority P68, AR P106-107 102-20 Executive-level responsibility for economic, environmental, and social topics P68 102-21 Consulting stakeholders on economic, environmental, and social topics P10, P69-70 102-22 Composition of the highest governance body and its committees AR P82 102-23 Chair of the highest governance body AR P84-85 102-24 Nominating and selecting the highest governance body AR P82-103 (especially P99-100) 102-25 Conflicts of interest P71 102-26 Role of highest governance body in setting purpose, values, and strategy P10-11, P66-68, AR P84-85, P92-93 102-27 Collective knowledge of highest governance body AR P80-81, P87

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GRI Standard Disclosure Reference 102-28 Evaluating the highest governance body’s performance P67 102-29 Identifying and managing economic, environmental, and social impacts P10-11, P68 102-30 Effectiveness of risk management processes AR P56-60 102-31 Review of economic, environmental, and social topics P8, P10-11 102-32 Highest governance body’s role in sustainability reporting P8, P10-11, P66-68. 102-33 Communicating critical concerns P66-68, P71-72 102-34 Nature and total number of critical concerns Not yet disclosed 102-35 Remuneration policies AR P89-90. AR P92, AR P99-100 102-36 Process for determining remuneration AR P89-90. AR P92, AR P99-100 102-37 Stakeholders’ involvement in remuneration AR P89-90. AR P92, AR P99-100 102-38 Annual total compensation ratio Not yet disclosed 102-39 Percentage increase in annual total compensation ratio Not yet disclosed Stakeholder Engagement 102-40 List of stakeholder groups P69-70 102-41 Collective bargaining agreements P71 GRI 102: General Disclosures 2016 102-42 Identifying and selecting stakeholders P69-70 102-43 Approach to stakeholder engagement P69-70 102-44 Key topics and concerns raised P10-11 Reporting Practice 102-45 Entities included in the consolidated financial statements AR P132-134 102-46 Defining report content and topic Boundaries P10-11, P91 102-47 List of material topics P10-11 102-48 Restatements of information No re-statements made in this report 102-49 Changes in reporting P10-11, P91 102-50 Reporting period P90 102-51 Date of most recent report 2018 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report P91 102-54 Claims of reporting in accordance with the GRI Standards P2 102-55 GRI content index P83-P89

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GRI Standard Disclosure Reference P90 (Boundaries), P10-11 (Material topics), P14 (Economy), P28 (Community), 103-1 Explanation of the material topic and its Boundary P33 (People), P45 (Environment), P65 (Governance & risk) GRI 103: Management Approach P9 (Approach/ integration in business model), P12 (Approach/ sustainability 2016 103-2 The management approach and its components framework), P14-15 (Economy), P28-29 (Community), P33-34 (People), P45-46 (Environment), P65-66 (Governance & risk), P91 (Reporting Principles) 103-3 Evaluation of the management approach P8-11 201-1 Direct economic value generated and distributed P3, P14, AR 124-129 Aldar is committed to: - Assess ESG risks and their financial implications on the 201-2 Financial implications and other risks and opportunities due to climate change GRI 201: Economic Performance business. - Integrate sustainability into investment criteria and due diligence. 2016 201-3 Defined benefit plan obligations and other retirement plans AR P130, 134 201-4 Financial assistance received from government AR P143 202-1 Ratios of standard entry level wage by gender compared to local minimum wage There is no minimum salary stipulated in the UAE Labour Law GRI 202: Market Presence 2016 202-2 Proportion of senior management hired from the local community P38, P79

GRI 203: Indirect Economic Impacts 203-1 Infrastructure investments and services supported P5, P15, P27 2016 203-2 Significant indirect economic impacts P15-22, P25-27 GRI 204: Procurement Practices 204-1 Proportion of spending on local suppliers P27, P78 2016 205-1 Operations assessed for risks related to corruption Being checked GRI 205: Anti-corruption 2016 205-2 Communication and training about anti-corruption policies and procedures P65, P71-72 205-3 Confirmed incidents of corruption and actions taken No cases of corruption-related incidents were detected / observed in 2019 GRI 206: Anti-competitive Behavior 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices None 2016 301-1 Materials used by weight or volume Not yet disclosed; some discussion of materials P60-62 GRI 301: Materials 2016 301-2 Recycled input materials used Not yet disclosed; some discussion of materials P60-62 301-3 Reclaimed products and their packaging materials Not yet disclosed 302-1 Energy consumption within the organization P52-55. Total 2019 Energy consumption (including cooling): 825,747 MWh 302-2 Energy consumption outside of the organization Not yet disclosed GRI 302: Energy 2016 302-3 Energy intensity P52-55. Total 2019 energy intensity: 116,000 MWh/billion AED 302-4 Reduction of energy consumption P52-55 302-5 Reductions in energy requirements of products and services P52-55

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GRI Standard Disclosure Reference 303-1 Interactions with water as a shared resource P56-59 P56-59. Local municipalities are in charge of water discharge for commercial 303-2 Management of water discharge-related impacts and residential assets GRI 303: Water and Effluents 2018 303-3 Water withdrawal P56-59 303-4 Water discharge P56-59 303-5 Water consumption P56-59 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and P63-64 areas of high biodiversity value outside protected areas 304-2 Significant impacts of activities, products, and services on biodiversity P63-64 304-3 Habitats protected or restored P63-64 P63-64. All development projects in Abu Dhabi require No Objection Certificates (NOCs) from the EAD. The EAD requests environmental studies to be undertaken for development project prior to starting construction. Terrestrial surveys are undertaken GRI 304: Biodiversity 2016 as part of these environmental studies to document the flora and fauna present within a proposed project area. These habitats are classified as per the IUCN list, and anything of significance that is present will require specific mitigation measures or, 304-4 IUCN Red List species and national conservation list species with habitats in at times, relocation to ensure the protection of biodiversity in the Emirate. Potential areas affected by operations projects in areas of high biodiversity value may not be receive NOCs from the EAD and will therefore be required to change location or halt the project. Aldar owns a large landbank and has a large number of development Projects undertaken. Therefore, although a comprehensive IUCN list is not presented within this Report, it is available for each individual development project as part of the environmental studies carried out for the EAD. This is mandatory for all Projects in Abu Dhabi. 305-1 Direct (Scope 1) GHG emissions P52-55 305-2 Energy indirect (Scope 2) GHG emissions P52-55 305-3 Other indirect (Scope 3) GHG emissions Not yet disclosed GRI 305: Emissions 2016 305-4 GHG emissions intensity P52-55 305-5 Reduction of GHG emissions P52-55 305-6 Emissions of ozone-depleting substances (ODS) None 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions Not yet disclosed Local municipalities are in charge of water discharge for commercial and 306-1 Water discharge by quality and destination residential assets 306-2 Waste by type and disposal method P60-61 GRI 306: Effluents and Waste 2016 306-3 Significant spills No cases of significant spills were found in 2019 306-4 Transport of hazardous waste None All water consumed by Aldar operations is received form desalinated water 306-5 Water bodies affected by water discharges and/or runoff grid GRI 307: Environmental Compliance Aldar did not receive any penalties for non-compliance with respect to 307-1 Non-compliance with environmental laws and regulations 2016 environmental laws and regulations in 2019

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GRI Standard Disclosure Reference GRI 308: Supplier Environmental 308-1 New suppliers that were screened using environmental criteria P25 Assessment 2016 308-2 Negative environmental impacts in the supply chain and actions taken P25-26 (approach to supplier poor performance) 401-1 New employee hires and employee turnover P34 401-2 Benefits provided to full-time employees that are not provided to temporary or GRI 401: Employment 2016 P44 (benefits provided to full time employees) part-time employees 401-3 Parental leave P37 GRI 402: Labor/Management 402-1 Minimum notice periods regarding operational changes Per law Relations 2016 403-1 Occupational health and safety management system P41-44 403-2 Hazard identification, risk assessment, and incident investigation P41-44 403-3 Occupational health services P39-40, P44 403-4 Worker participation, consultation, and communication on occupational health P40 and safety

GRI 403: Occupational Health and 403-5 Worker training on occupational health and safety P42-43 Safety 2018 403-6 Promotion of worker health P39-40, P41-44 403-7 Prevention and mitigation of occupational health and safety impacts directly P39-40 linked by business relationships 403-8 Workers covered by an occupational health and safety management system P39-44 403-9 Work-related injuries P41-44 403-10 Work-related ill health P41-44 404-1 Average hours of training per year per employee P35 GRI 404: Training and Education 404-2 Programs for upgrading employee skills and transition assistance programs P35-36 2016 404-3 Percentage of employees receiving regular performance and career P35 development reviews 405-1 Diversity of governance bodies and employees P79, P82, AR P88

GRI 405: Diversity and Equal Aldar has a compensation structure which allows a specific minimum and maximum of pay for each grade, therefore the variance in pay. Additionally, Opportunity 2016 405-2 Ratio of basic salary and remuneration of women to men the difference would also be affected by salary negotiation during recruitment phase, progression of staff within the company over a long period of time. Aldar did not face any legal action or any recorded incident in relation to GRI 406: Non-discrimination 2016 406-1 Incidents of discrimination and corrective actions taken discrimination within the organisation in 2019 GRI 407: Freedom of Association 407-1 Operations and suppliers in which the right to freedom of association and P71 and Collective Bargaining 2016 collective bargaining may be at risk GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor P39, P71

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GRI Standard Disclosure Reference GRI 409: Forced or Compulsory 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory P39, P71 Labor 2016 labor GRI 410: Security Practices 2016 410-1 Security personnel trained in human rights policies or procedures Not disclosed GRI 411: Rights of Indigenous 411-1 Incidents of violations involving rights of indigenous peoples Not disclosed Peoples 2016 412-1 Operations that have been subject to human rights reviews or impact P39, Aldar HR policy assessments 412-2 Employee training on human rights policies or procedures P39, Aldar HR policy GRI 412: Human Rights Assessment 2016 Aldar HR policy, Aldar operates in the UAE and complies with the Rule of 412-3 Significant investment agreements and contracts that include human rights Law and Human Rights. Aldar has also committed to audit 100% of prime clauses or that underwent human rights screening contractors against our Worker Welfare Policy by end of 2021 and to report on the percentage of completion 413-1 Operations with local community engagement, impact assessments, and P28-32 development programs GRI 413: Local Communities 2016 413-2 Operations with significant actual and potential negative impacts on local P28-32 communities

GRI 414: Supplier Social Assessment 414-1 New suppliers that were screened using social criteria P25 2016 414-2 Negative social impacts in the supply chain and actions taken P25-26, P39, No known incidents during 2019 GRI 415: Public Policy 2016 415-1 Political contributions None 416-1 Assessment of the health and safety impacts of product and service categories P48-51 GRI 416: Customer Health and 416-2 Incidents of non-compliance concerning the health and safety impacts of Safety 2016 No known incidents during 2019 products and services 417-1 Requirements for product and service information and labeling P49 GRI 417: Marketing and Labeling 417-2 Incidents of non-compliance concerning product and service information and No known incidents during 2019 2016 labeling 417-3 Incidents of non-compliance concerning marketing communications No known incidents during 2019 418-1 Substantiated complaints concerning breaches of customer privacy and losses of No breaches identified in 2018. No complaints received regarding this matter GRI 418: Customer Privacy 2016 customer data in 2019 GRI 419: Socioeconomic Compliance Aldar did not suffer any legal action or fine for non-compliance with social and 419-1 Non-compliance with laws and regulations in the social and economic area 2016 economic laws or regulations in 2019

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» GRI / Index / Principles Principles for defining departments prioritised issues in relation Accuracy & reliability to their potential to affect Aldar, both Data assumptions are set out in footnotes report content and from their own perspective and from the and on relevant pages. quality perspective of their key stakeholders. The results of these five workshops Balance & comparability Stakeholder inclusiveness were then validated by Aldar’s CEO, our Executive Management Committee Previous years’ trend data is presented This report draws upon the outcomes of and Sustainability Council. alongside current year data for comparison regular, constructive dialogue with key where available. stakeholder groups. This dialogue informed For more information on materiality the selection of topics in our materiality see pages 10-11. Emphasis on reporting topics has been exercise. More information on engagement informed by the group-wide materiality with stakeholders is available on Completeness and boundaries exercise. page 69-70. This report includes technical data that Our report is aligned with the GRI Sustainability context we have collated across Aldar using Standards outlined in our GRI Context relevant regulatory guidelines. Data for Sustainability is an intrinsic part of our Index, including the principles for defining sustainability KPIs is gathered throughout report quality and content. business strategy and is designed to the year and collated annually. align with the national Vision 2021 and Clarity 2030 plans by supporting initiatives The boundaries of our reporting cover, such as Ghadan 21, the national Climate unless otherwise stated, seven active Due consideration has been given to Change Plan and the UAE Green Agenda. development projects (materially in conciseness during the development of this At a global level we have aligned our construction) and all 51 assets across report while seeking to ensure all material approach with eight of the Sustainable Retail, Residential, Commercial and issues have been covered. Development Goals that are most relevant Hospitality and Leisure portfolios. Going The report is designed to be easy to use for our business. For more information on forward, we are committed to expand our and navigate with hyperlinked navigation the integration of our sustainability and environmental data coverage by including and cross-references. The report can be business strategy, including how economic, more of our Adjacent Businesses, including downloaded at www.aldar.com. enviornmetnal and social topics related to Aldar Education. long-term strategy see pages 9 and 68. Timeliness This report covers Aldar’s corporate The information presented in this Materiality sustainability activities during 2019 and, Sustainability Report was developed to In line with GRI Standards we have due to its materiality some activities in the reflect our performance from 1 January undertaken a materiality assessment early part of 2020 relating to Covid-19. to 31 December 2019 in line with our across our business to understand the All data relates to the calendar year 2019, Annual Report and Consolidated Financial key issues that are important to our unless stated otherwise. All issues assessed Statements covering the same period. stakeholders and which could impact to be material in the materiality exercise Aldar is committed to report on its business performance. have been reported. sustainability performance annually.

From a universe of issues identified through extensive research (and benchmarked against best practice), in 2019 senior executives from key

GRI - 102-50, 103-1 90 Join the conversation [email protected] www.aldar.com

This document is issued by: Aldar Properties PJSC, including Aldar Academies Provis & Khidmah Address: Al Raha beach, Abu Dhabi

GRI - 102-1 , 102-3, 102-46, 102-49, 102-53, 103-2