Redefining Growth About This Report

Sustainability Report 2014 Redefining Growth About this report

This is the second sustainability report Services (CPS) and Global Gumbo 8. Undertake initiatives to for Crescent Enterprises and our Group (G3). Our private equity and promote greater environmental group companies. other investments in various funds responsibility; and are excluded from the scope of this Building on last year’s baseline report, 9. Encourage the development year’s report as we have limited our this year’s theme of 'Redefining and diffusion of environmentally reporting to our operational group Growth' presents our roadmap friendly technologies. companies. Although we have not for improving our sustainability sought external assurance for the Anti-Corruption performance in the future as well report this year, we have verified our as providing an update on our 10. Businesses should work against data internally. performance on economic, social corruption in all its forms, and environmental initiatives in 2014. In July 2013 we joined the United including extortion and bribery. The roadmap with the vision of Nations Global Compact (UNGC) The content index for both the UNGC Enabling Sustainable Growth unites and this report serves as our and the GRI G4 can be found at the four main pillars of our performance: annual Communication on Progress end of this report. enabling ethical business, enabling a (COP) on how we are upholding stronger society, enabling talent and our commitment to the 10 UNGC enabling stewardship of the planet. principles. These four pillars were identified Human Rights by our stakeholders as material to our business during our materiality 1. Businesses should support analysis workshop at the start of the and respect the protection of We welcome your feedback on reporting cycle. internationally proclaimed human rights; and our sustainability commitments This report has three key sections. and progress. Please direct your The first section provides background 2. Make sure that they are not feedback to Ms. Ola Al Haj Hussin, to Crescent Enterprises and our complicit in human rights abuses. Manager, Corporate Citizenship at group companies. Full detail on our Labour [email protected]. sustainability roadmap, targets and plans for increased future disclosures 3. Businesses should uphold the can be found in the second section freedom of association and the of the report. Finally, the third effective recognition of the right to section of the report summarises our collective bargaining; sustainability performance between 4. The elimination of all forms of January and December of 2014. forced and compulsory labour; We have prepared this report using 5. The effective abolition of child the latest Global Reporting Initiative labour; and (GRI) G4 Guidelines for sustainability reporting and this report is based 6. The elimination of discrimination on elements of the ‘core’ reporting in respect of employment and requirements. The report covers occupation. Crescent Enterprises’ operations, Environment and includes case studies and 7. Businesses should support examples from our operational group a precautionary approach to companies: Gulftainer Group, Uruk environmental challenges; Contracting and Engineering, Gama Aviation Plc, Clinical Pathology Who we are and where we operate

Q&A with Badr Jafar, 02 Chief Executive Officer

04 About us

Governance at Crescent 08 Enterprises

Our sustainability roadmap 12 Managing sustainability

14 Our sustainability roadmap

16 Enabling ethical business

18 Enabling a stronger society

20 Enabling talent

Enabling stewardship of the 22 planet

Our performance 24 Our economic footprint

Local community impact and 28 benefits

30 The power of our people

36 Connecting with society

40 Environmental stewardship

44 GRI G4 Content Index

Sustainability Report 2014 1 Q&A with Badr Jafar Chief Executive Officer

What does sustainability As a global company, operating mean for Crescent across a diverse range of sectors and Enterprises? markets, we have always believed in the need to foster ethical practices in At Crescent Enterprises, we all aspects of our business through a are focused on creating and strong commitment to transparency sustaining long-term, integrated and accountability. Supporting our value – in terms of profit, people and society is also intrinsic to our work planet – in the present and for future ethos. From the very outset, corporate generations. In order to be successful citizenship has been a pillar of in today’s business world, companies Crescent Enterprises’ operations, and must look beyond the financials unsurprisingly through the years, has and address other areas that play emerged into one of the most valuable a significant role in its longevity and aspects of our work. success, such as economic and social development and environmental Moreover, we appreciate that our management. Operating sustainably greatest assets are our people and that has become a business imperative. without them we cannot achieve our Not only is Crescent Enterprises objectives and operate successfully. and its group companies striving Therefore their needs, hopes and to recognise our social, economic motivations are just as vital to the and environmental impact, we are overall success of our Company as cohesively adjusting our strategic any other area related to performance. direction to factor sustainability into our In our quest to become an employer day-to-day operations and business of choice, we are addressing these development. With this shift in mindset, needs and seeking eager and talented we are creating a long-term platform employees to join us on this life-long for sustainable growth, change and journey of sustainability. success for all of our stakeholders. Put Our final pillar, enabling stewardship of simply, it means ‘enabling sustainable the planet, is an area which requires growth’ – a core vision that we have strong collaboration and commitment defined to capture the essence of our within all levels of the Company, as thinking on sustainability. well as our group companies. We understand how global development What are your highest priorities megatrends such as the depletion for sustainability? of natural resources, air and water In our journey toward contamination, biodiversity loss, and sustainability, we have defined increased greenhouse gas emissions, four distinct pillars that are as vital to can affect the environment and our our internal as well as external goals: business operations in the long term. enabling ethical business, enabling a As our first step toward addressing stronger society, enabling talent and our environmental impact, we have enabling stewardship of the planet focussed our primary attention – each a driver for strengthening internally by rethinking our approach Crescent Enterprises’ competitiveness in certain areas, optimising our and building upon our core vision of operations and processes, and ‘enabling sustainable growth’. closely monitoring our progress.

2 Sustainability Report 2014 As we progress to the second What do you see as What is the main challenge for stage in establishing a baseline for Crescent Enterprises’ role 2015 and beyond? What is the environmental management, we will in the local economies of main target? seek opportunities to collaborate operation? Driving sustainability through with organisations that will help Like so many private sector business requires a long-term identify more tailored opportunities for organisations in the Middle East, and committed approach and is not broader improvement throughout our Crescent Enterprises plays its part something that can be addressed operations. in the economic development of the by one company alone. One of the region through our contribution to the biggest challenges is ensuring a clear How do the 2014 diversification of the economy and the understanding of sustainability across business results affect growth in the non-oil sectors. Crescent all levels of Crescent Enterprises and Crescent Enterprises’ role in Enterprises is committed to expanding our group companies. It will require sustainability? operations and investing in sectors that working together as a unit to drive this Good performance of our address the region’s socio-economic approach, from the board of directors businesses is inherent in the development requirements. to all our people. Our sustainability overall theme of sustainability – roadmap will ease this process and We also actively contribute towards strong financial performance cannot unify our approach to managing the socio-economic development of come at the expense of the society sustainability performance, while giving the countries in which we operate or environment or vice-versa. Our our group companies flexibility to by providing local employment financial strength allows us to continue implement customised initiatives and opportunities, prioritising, where investing in our sustainability progress, assigning Key Performance Indicators possible, utilisation of local contractors regardless of market conditions. (KPIs) to measure success. and suppliers and improving local Hence, short-term business results infrastructure. Our group company As CEO, I am committed to driving do not and will not change Crescent Gulftainer, for example, has invested our sustainability agenda across the Enterprises’ long-term commitment more than US$ 150mn in improving entire group. to sustainability. Ultimately, we aim for Iraq’s port, transport and logistic long-term inclusive growth alongside infrastructure to assist in the country’s the prosperity and wellbeing of redevelopment, enhancing trade and our stakeholders and as a private creating jobs. company, we will not be influenced by short-termism. We adhere to voluntary We have also implemented several international standards, such as the strategies and platforms to encourage United Nations Global Compact, that entrepreneurship in the region. In 2014, ensure this commitment. Additionally, we launched CE-Ventures, a new in 2013, we established our corporate division that serves as an Environmental, Social and Governance incubation hub for start-ups spanning (ESG) Principles, which ensure all a wide range of sectors across the ESG considerations are taken into Middle East. CE-Ventures internally account during investment evaluation, develops and transforms ideas into decision-making processes and our viable businesses that generate a management approach. We also use broad social impact. this policy as a way to demonstrate and communicate our commitment to ESG to our group companies and partners, encouraging them to adopt similar initiatives.

Sustainability Report 2014 3 About us

Crescent Enterprises, one of the UAE’s most prominent multinational companies, has succeeded in growing a diverse range of sustainable, scalable Ports and Logistics Media and Entertainment and profitable operating firms globally. In line with the GCC region’s goals Gulftainer Global Gumbo Group (G3) of diversifying into non-oil sectors, Momentum Logistics we have actively led diversification by establishing our presence across a range of sectors balanced between our traditional strengths in infrastructure- related industries and alternative sectors of the economy. Through entrepreneurial expertise, capital and experience, we aspire to build Power and Engineering New Ventures and prime our group of companies active in the fields of ports and Uruk Engineering and CE Ventures (division) logistics, power and engineering, Contracting Startup and business aviation, healthcare, private SME incubation division equity and business incubation. In support of entrepreneurship and innovation, Crescent Enterprises has also established a new division, CE-Ventures, to serve as an incubation unit for start-ups spanning a wide range of sectors, with a purpose of being socially conscious while ensuring Business Aviation Private Equity Investments financial sustainability of these ventures. Gama Aviation CE actively evaluates Crescent Enterprises is a subsidiary investment opportunities of the family-owned Crescent Group, across the regional and global one of the most progressive family landscapes with a view of business firms shaping the Middle East maintaining a balanced spread and North Africa (MENA) region over across geographies, sectors the last 43 years. and strategies. Some of our Crescent Group’s other main investments include: Healthcare subsidiary, Crescent Petroleum, is the • The Abraaj Group first and the largest independent, privately-owned upstream oil & gas Clinical Pathology Services • Growthgate Capital company in the Middle East. (CPS) • TVM Capital Healthcare Partners • Siraj Palestine Fund I • IBC-Duet MENA Real Estate Opportunities Fund Group companies (included in the report) • Samena Limestone Division (included in the report) Holdings Companies not included in the report

4 Sustainability Report 2014 Vision Fast facts & Mission Wholly-owned subsidiary of the We aspire to build a diversified group of Crescent companies that transcends Headquartered in the geographic and cultural Group borders, whilst delivering UAE sustainable value to all of our stakeholders. subsidiaries We strive for inclusive and affiliates leadership, global 20 competitiveness and Crescent Enterprises purpose in the business and its group sectors in which we operate companies employ 45 and in the communities that industry we serve. opportunities 5,196 reviewed in 2014 professionals

Employee profile at Crescent Enterprises corporate level 29% 14 different nationalities

54% Asian 18% European 14% MENA Region 11% Americas 4% South Africa 71%

Our global reach: Operating internationally across 22 countries

Sustainability Report 2014 5 We actively support operations across a variety of industries and service sectors including:

Ports and Logistics Power and Engineering Business Aviation

Gulftainer Group (Gulftainer), the Uruk Contracting & Engineering, a Gama Aviation Plc is a leading, London largest private and independent leading engineering, procurement and Stock Exchange (AIM)- listed global

About terminal operator in the world in construction company with operations business aviation services provider, terms of throughput volumes, in Iraq focused on the power sector that founded in 1983 in the United Kingdom. manages 10 port terminals in the has pioneered the rebuilding of Iraq’s The company offers business aircraft Middle East and globally. energy infrastructure. charter, aircraft management, Fixed Base Operations (FBO), engineering, design Momentum Logistics, a subsidiary and maintenance, aircraft valeting, and of Gulftainer, provides a complete business aviation software services. Gama suite of third-party logistics Aviation Plc has a network of 44 operating (3PL) and supply management locations across five continents, managing solutions. a fleet of more than 145 aircraft. The company’s global headquarters is located at Farnborough Airport in the UK, with regional headquarters in Connecticut, USA, Sharjah, UAE and Hong Kong, China. Crescent Enterprises Ownership: 50 per cent ownership and Crescent Enterprises Ownership: Crescent Enterprises Ownership: management control significant minority significant minority

Gulftainer was awarded a 35 year Completed contract to deliver the Consolidated its market presence in concession by the Canaveral Port design, engineering, procurement, the USA and the Middle East, and the Authority in Florida to operate the construction, installation and UK engineering businesses as well as Port’s first container and mixed- commissioning for the 724 MW Al reverse take-over with Hangar8 cargo facility in North America Mansuriya power plant, alongside its

Highlight for 2014 French partner Alstom

% Over 3,400 Annual growth in container US$ 800mn emergency medevac Key factsKey 8 throughput across all the invested in Iraqi missions conducted markets in which Gulftainer power sector in the operates last 5 years 25+ Aircraft ISO 9001-2008 and 2 type

ISO 14001:2004 approval ISO certifications certified 6.4 Twenty-Foot million Equivalent Units (TEUs) Gulftainer total throughput for 2014 300,000+ 23,000+ 6 million sq. ft. of maintenance Aircraft 18 million TEUs man-hours with space movements ten year target no major incidents

6 Sustainability Report 2014 Healthcare Media & Entertainment New Ventures

Clinical Pathology Services (CPS) is Global Gumbo Group (G3), a first-of-its- As an incubator of start-ups the first purpose-built, stand-alone kind cross-cultural music and entertainment spanning a wide range of private medical testing laboratory company, co-founded with Grammy Award- sectors and industries, CE- in Dubai. CPS is the Middle East’s winning music producer Quincy Jones and Ventures conceives and first laboratory to hold the Clinical based in the UAE and the US. G3 develops develops sustainable businesses Pathology Accreditation (CPA-UK) multimedia opportunities across several that are socially conscious, standard. It is also the first UAE entertainment platforms to nurture new Arab environmentally friendly and facility to achieve the accreditation of talent and acquire cross over content to launch financially sustainable. the General Civil Aviation Authority globally. (GCAA), for the purpose of carrying out drug and alcohol testing in the aviation industry.

Crescent Enterprises Ownership: Crescent Enterprises Ownership: Crescent Enterprises Ownership: 50 per cent 100 per cent ownership; internal majority with management control ownership and management control division of Crescent Enterprises

CPS became the first laboratory to World premiere of 'Bokra the Film' at the Dubai 2 concepts advanced to hold an import licence in the UAE, International Film Festival. The documentary incubation phase with launch in enabling it to broaden its coverage chronicles the effect that the song Bokra, 2015 in select African and Asian countries, Tomorrow had on young people in the region. including Yemen and Afghanistan. CPS All donations from the song went to charities can now offer specialised testing at including the United Nations World Food affordable prices to clients outside of Program, the Abu Dhabi Music & Arts Foundation the UAE and Save the Children HEART programme

CPS provides over US$ Over 1mn Donations raised launching the single Bokra, Tomorrow 5 2,000 ventures were tests added to the pipeline in 2014 for evaluation & from 5 different sectors

Bokra 40 Launched the Film profiles

Sustainability Report 2014 7 Governance at Crescent Enterprises

Our corporate aspiration to build a diverse group of companies is consistent with our motivation to deliver sustainable value to all of our stakeholders. Crescent Enterprises’ commitment to upholding the best global practices at every level of our operations, from human rights to labour standards, the environment and in anti-corruption measures has had a strong, positive social impact on our operations, both internally and externally. This is Neeraj Agrawal demonstrated by our commitment as a signatory to the United Nations Global Compact. Executive Director

Crescent Group Board of Directors

Hamid Jafar Majid Jafar Badr Jafar Razan Jafar Neeraj Agrawal Ravi Kumar Chairman Vice Chairman Managing Director Director Director Director

Crescent Crescent Crescent Enterprises Enterprises Enterprises Executive Investment Human Resources Committee Committee Committee

Badr Jafar Neeraj Agrawal Badr Jafar CEO Executive Director CEO

Neeraj Agrawal Ravi Kumar Ravi Kumar Executive Director Executive Director Executive Director

Ravi Kumar Tushar Singhvi Rene Hansen Executive Director VP, Corporate Development & Investments Director, Human Resources

Crescent Enterprises – Corporate Citizenship Committee

Ghada Abdelkader Ola Al Haj Hussin Raushanna Salhi Manager, Manager, Ananth Achanta Kirsty Smallman Manager, Corporate Corporate Head of Accounts Legal Counsel Communications Development & Citizenship Investments

8 Sustainability Report 2014 Our Values

Responsibility Entrepreneurship Excellence We are responsible We foster a culture of impact We constantly strive to and accountable to entrepreneurship and achieve the highest possible the communities and innovation by supporting the standards at every level of environments in which we exchange of knowledge. our operations. work and serve.

Integrity Diversity Cooperation We conduct business We respect individual and We work cohesively with our ethically, honestly and cultural diversity and have companies and partners, transparently, upholding compassion and respect for building strong relationships the highest standards of all of our stakeholders. based on mutual respect governance. and cooperation.

Managing corporate corporate mission and values. While the evaluation and decision-making we do not have a sustainability process. Crescent Enterprises plans governance committee in place at the moment, we to commit to the UNPRI framework The Board of Directors of Crescent are governed by our Environmental, in 2015, which will help mitigate ESG Group oversees the activities of Social and Governance (ESG) related risks in future projects and Crescent Enterprises and Crescent Principles. The set of principles investments and create long-term Petroleum and evaluates the strategic ensures that ESG considerations are value from our business operations. taken into account during project direction and risk management of the Our Corporate Citizenship Committee and investment evaluation, decision- Company, adhering to the principles was established in 2014 to develop making processes and further of sound corporate governance. a structured and focused approach management approach. Through We are currently embarking on a study towards achieving Crescent the principles, we also focus on at the Crescent Group level in order Enterprises’ corporate citizenship communicating ESG topics within to assess the governance framework objectives. The Corporate Citizenship our existing group of companies and address adequate succession Committee is responsible for driving and encouraging implementation of planning. In addition, we intend to add the social aspect of our sustainability these principles throughout their own independent members to the board in agenda by planning, establishing, operations and regions. The principles the coming years. initiating and engaging in and reviewing further safeguard our commitment to Crescent Enterprises committees the impact of corporate citizenship the United Nations Global Compact serve as an integral part of our activities to serve the needs of the by encouraging a precautionary operations, fulfilling our commitments community. Internally, the Corporate approach to environmental challenges to both internal and external Citizenship Committee also supports (Principle 7). Our ESG principles have stakeholders. Our committees have other departments by recommending ultimately shaped the development been established to oversee policies the development of policies on of this year’s sustainability roadmap, and procedures in specific areas employment issues, social investment, which was developed through across our companies. and compliance with ethical business stakeholder engagement and and other corporate citizenship-related The Crescent Enterprises Executive endorsed by the Executive Committee. matters. Committee oversees the activities The Investment Committee assesses of Crescent Enterprises group of decisions related to investment, companies, which includes performing Combating corruption divestment, joint ventures and other strategic reviews, assessing capital strategic partnerships within Crescent The Human Resources Committee resources, and evaluating investment Enterprises and its group companies. manages all employee-related and operational opportunities. The Part of the Investment Committee’s policy matters, supporting our Executive Committee also defines risk-management responsibility is pledge to the United Nations Global overarching Company policies to to implement the UN Principles for Compact (UNGC) to provide safe ensure the group delivers on our Responsible Investment (UNPRI) within and fair working conditions. Ensuring

Sustainability Report 2014 9 compliance with our Code of Conduct Pearl Initiative case study competition, in which over is a critical role of this committee. The 500 students submitted research on As a Founding Partner of the Pearl Code outlines the responsibility of integrity and transparency across UAE Initiative, the private sector-led not- each employee to combat corruption companies. for-profit organisation developed in in all its forms, an objective of the partnership with the United Nations UNGC Principle 10. We plan to further United Nations Global Compact Office of Partnerships, Crescent enhance our policy and training on Enterprises continues to advocate for Crescent Enterprises has taken its anti-bribery at Crescent Enterprises greater transparency, accountability adherence to transparency one step and cascade this down through the and best business practises in the Gulf further through its membership with group companies. Moreover, in a Region. By actively working alongside the United Nations Global Compact, a cross-industry collaborative effort Pearl Initiative’s management team, strategic policy initiative for businesses towards combating corruption, we we play a vital role in engaging with that are committed to aligning their have become members of PACI and encouraging the private sector operations and strategies with 10 (Partnering Against Corruption and stakeholders to adopt and spread universally-accepted principles in Initiative), a World Economic Forum these principles across the region. the areas of human rights, labour, Initiative. environment and anti-corruption. We In 2014, the Pearl Initiative conducted We strive to embed a culture of have committed to working toward research on best business practices strong corporate governance at the the United Nation Global Compact’s with a range of stakeholder groups. management level, within our group vision of a sustainable and inclusive Through its Women in Leadership companies and in the economies global economy, which delivers Programme, over 800 women in where we operate. We engage with lasting benefits and is a step toward senior positions across the Gulf region governments, corporate leaders and continued performance improvement were interviewed. The Pearl Initiative academic institutions through our for Crescent Enterprises. This also held 22 high-level forums and involvement in the Pearl Initiative and report provides an update on our roundtables with the government and commitment to the UNGC to build performance within the 10 UNGC civil society to discuss topics such as stronger understanding of leading principles. governance in family firms. To engage corporate governance practices. students on corporate governance, the Pearl Initiative launched the inaugural UAE university student good practice

Case study Anti-corruption initiatives at Crescent Enterprises’ group companies

Updating Gama Aviation’s risk Gulftainer’s anti-corruption policy the OECD Guidelines for Multinational register Enterprises, as well as the United To strengthen transparency and Nations Global Compact Principles. The company’s management system accountability, Gulftainer has made is currently being enhanced to its anti-corruption policy available Gulftainer has continually improved support the evolving compliance and for public review on the company’s its compliance requirements towards governance requirements. Within website. The policy describes a social and economic regulations. this, the corporate risk register zero-tolerance approach in relation to The company ensures that the will include anti-corruption and all forms of corruption and ensures documented policy is reviewed anti-bribery and the annual plan will compliance with a series of national every year or upon the updating include appropriate objectives. Any and international laws, among which of any laws or regulations in the current intelligence or incidents could are the Organisation for Economic respective countries of its operations be reported using the local reporting Co-operation and Development to comply to current requirements systems. (OECD) Convention on Combating and accommodate changes in Bribery of Foreign Public Officials in regulations. International Business Transactions,

10 Sustainability Report 2014 Compliance We take compliance with national and No incidents of non-compliance international laws and regulations very have arisen to date, but any non- seriously at Crescent Enterprises. compliance cases would be dealt We are audited against the with very severely, up to and including International Financial Reporting termination. Standards on an ongoing basis.

Case study Maintaining compliance at Crescent Enterprises’ group companies

Clinical Pathology Services’ Gama Aviation’s compliance and Non-compliances are managed stringent compliance system audit programme using a standard template which Monitoring compliance is critical for Gama Aviation is subject to UK directs responsible managers to Clinical Pathology Services (CPS) Health, Safety and Environmental follow a step by step process, due to the precise nature of testing HSE regulations applying to identifying the corrective action, services and the critical role the environmental management, root cause and preventative test results play in diagnosis. CPS Waste Electrical and Electronic action. Non-compliances can only has fully implemented the UK’s Equipment (WEEE) directive and be closed when the compliance Clinical Pathology Accreditation waste management. Gama Aviation’s monitoring manager (or appropriate (CPA) Ltd system which ensures regional regulatory departments regulatory body) is satisfied that compliance with local and/or for safety and compliance in each these actions and mitigations have international legislation. The Dubai region cover Flight Safety, Security, been implemented effectively, Health Authority (DHA) and Dubai Health and Safety and Regulatory and that the residual risk rating is Municipality inspections ensure compliance. To ensure monitoring acceptable. Departmental managers compliance with all local legislation. at the highest level, KPIs, including are responsible for the quality control CPS has devised a range of Key risk management and assurance of their units’ functionality and the Performance Indicators (KPIs) to performance indicators, are now company maintains both an internal monitor compliance and maintains reported on a monthly basis to Gama and independent compliance system a full internal audit programme Aviation’s Board from across the for quality assurance. In addition, the covering all aspects of the quality regions. Gama Aviation Engineering industry is regulated by a variety of management system to maintain Limited is ISO 9001 certified and external regulators to ensure financial, compliance with CPA-UK standards. the company is planning to roll safety and legal compliance. All The General Civil Aviation Authority out ISO 14001 and OHSAS 18001 audit results are managed through (GCAA) external audits are implementation programmes for the standard template process and conducted annually and the CPA-UK all of Gama Aviation’s UK limited require actions to be implemented audits once every two years. CPS companies in May 2015. prior to closure. plans to work towards full inspection At a company level, Gama Aviation Gama Aviation's Safety in Numbers in 2017 for ISO 15189 Quality has developed a Safety Improvement campaign highlights ten critical Management Accreditation (Medical Plan that contains Departmental areas of safety, operational and Laboratories — requirements for Performance Indicators focused on environmental risks, including data quality and competence). improving performance, addressing security. The campaign promotes the precursor events and assessing the message that safety, security the effectiveness of the risks on its and exceptional service delivery risk register. are central to everything that Gama Aviation delivers.

Sustainability Report 2014 11 Managing sustainability

At Crescent Enterprises, we endeavour Stakeholder engagement with our stakeholders, through internal to operate in a manner that balances and external meetings, publications, With operations on almost every economic, social and environmental newsletters and community events, continent, we measure our success impacts. Having mapped the to align expectations and understand by our ability to positively affect the foundation of our triple bottom line their views. communities in which we operate by (people; planet; profit) performance stimulating growth. We hold ourselves In addition to our regular in 2013, this year we have developed accountable to our stakeholders, from communication channels with a strategic roadmap to embed young entrepreneurs, to shareholders stakeholders, we conducted a specific sustainability further across the group and government regulators. annual engagement session on and create a strategy framework to Transparent and genuine dialogue with sustainability. We convened a group manage our sustainability performance our stakeholder groups enables us to of internal stakeholders; executive in the future. In developing this better understand the expectations management and representatives report, we have been guided by the placed on us and how we can address of our group companies across Global Reporting Initiative’s (GRI) G4 them through our corporate strategy our core functions — talent guidelines for sustainability reporting aimed at creating multiple drivers of development, corporate development and the ten principles of the United growth. We regularly communicate and investments, legal, information Nations Global Compact (UNGC).

Mapping Material Aspects

Anti-corruption and bribery Financial performance Social partnerships Governance Market presence Supporting entrepreneurs and SMEs Regulatory compliance Material Material aspects* The benefits of economic Ensuring healthy financial performance We aim to contribute to the national growth will be transferred is integral to our sustained growth development agendas where we

to a much broader range of and is essential for us to stimulate operate by stimulating indirect stakeholders over a sustained other indirect benefits. We evaluate economic benefits. We can build period if corporates have strong all investment options within a strong communities through our core

matter governance structures in place framework of environmental, social operations by partnering and nurturing

Why they to prevent corruption. and governance criteria to ensure the local entrepreneurs who will drive the longevity of our financial growth. economic growth of the future.

Our Economic Connecting with Governance Footprint society How we responded

Enabling ethical Enabling a Enabling a Enabling Enabling Enabling ethical business a stronger stronger society a stronger stronger society

plans business society society Future

*As we are still in the early stages of standardising our sustainability reporting mechanisms, only those aspects highlighted in bold are linked to a GRI KPI due to current availability of data. Our roadmap in the following sections outlines how we will increase the scope and depth of our reporting in future years. We currently only map material issues at parent company and subsidiary level. In the future, we plan to analyse material issues across our value chain.

12 Sustainability Report 2014 technology (IT), supply chain, finance, evaluating and contributing to our achieving our strategy; how strongly accounts, corporate citizenship, and 2015-2017 sustainability strategy. the aspect affected our external new ventures — in an interactive Information from our group companies stakeholders and whether our peer sustainability workshop. The aim of was used to further refine the strategy. group deems them material enough the workshop was to collect direct to report on. After filtering the most feedback from our stakeholders on Identifying material aspects material aspects, we grouped them the current state of economic, social Given our diverse operations across according to the 6 themes reported and environmental management at various sectors, stakeholders expect on last year. The materiality table Crescent Enterprises and how we us to report on our performance below summarises material aspects can realistically improve our future across a broad range of aspects. according to each stakeholder groups’ performance. Led by a specialist During the workshop, stakeholders concerns, why these aspects matter, external consultant, various group ranked material aspects on a scale how in this report we responded to exercises were conducted and to prioritise which ones would be these concerns and our future plans to participants were tasked with providing reported on this year. In prioritising manage them. feedback on last year’s sustainability aspects, we considered the report, ranking the most material importance of the topic in terms of aspects for 2014 and critically whether it had a strong impact on

Employment and well-being Infrastructure development Energy Occupational Health and Safety Local hiring Waste Training and career development Water

Some of our group companies’ We operate in a number of emerging Managing our environmental impact employees, such as those working markets where we are keen to build is critical to maintain our license to in logistics and business aviation strong local partnerships to deliver operate and mitigate future risks operations are exposed to potentially infrastructure projects with long-term related to climate change and resource risky environments. It is our respective economic, social and environmental scarcity. group companies’ duty to protect benefits. We are committed to them on the job. Training and career developing local talent to sustain and development are key drivers to grow our operations around the world. achieving our corporate strategy and retaining talent. Employees | Crescent Enterprises Communities around our operations | Impact Investment Institutions | group companies Politicians and decision makers | Customers | Government regulators | Crescent Enterprises’ group companies | Communities around our operations Suppliers

The power of our Local communities Environmental people impact and benefits stewardship

Enabling a Enabling stewardship Enabling Enabling talent Enabling Enabling talent a stronger stewardship of society stronger society the planet of the planet

Sustainability Report 2014 13 Our sustainability roadmap

Introduction to the roadmap 3. Enabling talent: creating a positive The roadmap provides and safe work environment, We are very proud of the progress we us with a clear attracting talented people and have made since we launched our first direction of what we building local capacity sustainability report for 2013, but we want to achieve with know we have much more to do if we 4. Enabling stewardship of the our sustainability are to truly integrate sustainability into planet: we are conscious about programme. It is a our businesses. With this in mind, we our environmental impact and aim way for us to create have conducted an in-depth materiality to set clear targets to be able to awareness about what review. As part of this process we contribute towards the reduction sustainability means for developed our sustainability vision: of greenhouse gas emissions and Crescent Enterprises and Enabling Sustainable Growth. other environmental impacts its group companies and what targets we need It is our vision to enable sustainable We have set broad goals for 2017 to to achieve to enable growth, not only through our help us deliver in these areas, including true sustainable growth. own businesses and for our the following: own employees, but also for the Addressing the needs • To establish common systems and countries, economies and societies of our stakeholders is policies related to governance, in which we operate. Moreover, we central to our success transparency and accountability hope to establish best practices in and as such we continue across Crescent Enterprises’ group sustainability and encourage our to actively engage them of companies in discussion throughout stakeholders to join us in this journey. • To create a measurable positive this journey. Through We aim to achieve sustainable growth impact in the communities in which this cohesive effort, we through four pillars, areas that we we operate are working towards believe will give Crescent Enterprises ingraining sustainability a significant competitive advantage. • To be recognised as an employer within every aspect of The key areas around which our overall of choice our business. sustainability approach is shaped • To establish a baseline for our consist of: environmental performance and 1. Enabling ethical business: manage our impact establishing ‘ground rules’ Each of these goals will have specific and systems across Crescent KPIs, both for Crescent Enterprises as Enterprises and its group well as our group companies, which Ravi Kumar companies that will enhance our will be rolled out in the coming years. Executive Director transparency and accountability Details about each of our sustainability 2. Enabling a stronger society: pillars are provided in the following through our economic and social sections of the report. contributions and impacts, we will continue to make a difference, wherever we operate across the world

14 Sustainability Report 2014 Our Vision Our Pillars Our Themes Our Goals

Enabling • Governance To establish Enabling responsible • Anti-corruption common systems ethical business and policies related • Complaince business operations to governance, through strong • Supply chain transparency and commitment to management accountability transparency and across Crescent accountability Enterprises’ group companies

Driving the • Direct/indirect To create a Enabling socioeconomic economic value measurable a stronger development of generation positive society our countries of • Local employment impact in the operations • Corporate communities citizenship we operate in programs and inclusive policies to strengthen society Enabling • Local procurement sustainable • Social growth entrepreneurship

Being an • Employee safely To be Enabling employer of and well-being recognized as talent choice and • Building a high an employer of supporting young performance choice people and culture entrepreneurs • Employment practices (diversity, gender equity)

Understanding • Quality To establish Enabling Crescent Management a baseline for stewardship Enterprises’ Systems environmental of the planet impact and • Energy, water, performance identifying waste, biodiversity and manage opportunities for our impact improvement

Sustainability Report 2014 15 Enabling ethical business

Enabling responsible business operations through strong commitment to transparency and accountability

Industry trends and establish trust both within the workplace as well as with external challenges stakeholders, including society. Ethical and responsible business The rapid development of corporate practice is about establishing trust governance rules around the world is and generating value and growth, also prompting companies to focus all while managing the business on anti-corruption measures as part with a strong commitment to of their mechanisms to protect their transparency and accountability. reputations and the interests of their It involves adhering to good practices shareholders. Corporate internal “As a Founding Partner of of corporate governance, establishing controls are increasingly being the Pearl Initiative, Crescent policies and procedures to prevent extended to include a range of issues Enterprises appreciates corruption, creating a common level of of ethics and integrity. A growing that good corporate understanding to recognize where the number of investment managers are governance, accountability biggest impacts lie in the supply chain, looking to these controls as evidence and transparency are values as well as compliance with national that the companies undertake good that are essential for building and international legislation. business practice and are well a healthy and competitive business environment that There are persistent challenges in managed. fosters economic growth the Middle East and North Africa At Crescent Enterprises, we are and job creation. Crescent (MENA) region to implement ethical committed to effective corporate Enterprises is on a journey business practice, including corporate governance, adherence to the law, with us, in upholding and governance standards. These and propagation of a culture of ethics promoting integrity good challenges include poor understanding and compliance. We believe that practices across the region.” of the purpose of corporate through our group companies we have governance; misperceptions of the Imelda Dunlop the opportunity to set the stage and respective roles and responsibilities Executive Director, establish best practices in the region, Pearl Initiative of boards and management; failure and can create a positive trend with in corporate transparency and a trickle-down effect to strengthen accountability and a 'natural resistance ethical business conduct in the region. to change within businesses that do not easily adhere to new norms of decision-making, due to continued reliance on legacy frameworks. The MENA region must overcome these challenges if it wants to continue to stand out as a region in which foreign companies are confident to invest. Companies — large and small, including start-ups — should seek to invest in establishing appropriate ethical and responsible business practices, in order to increase their appeal to investors. This would

16 Sustainability Report 2014 Our themes and goals Corruption impedes economic growth, distorts competition Anti- and represents serious corruption Governance legal and reputational In order to effectively manage and coordinate our risks. Our commitments sustainability activities, we aim to establish roles and to combat corruption include: regularly updating our responsibilities for sustainability governance, appoint employee handbook and Code of Business Conduct, sustainability members as well as set up a formal as well as establishing an anti-corruption policy to stakeholder engagement process and a sustainability reflect our corporate values. We will be investing in policy. Moreover, we have started to incorporate anti-corruption training and awareness sessions across Environmental, Social and Governance (ESG) the Company in order to encourage our employees to principles in our new investments, with our aim to sign uphold the highest standards of business ethics. up to the UN Principles for Responsible Investment KPIs to monitor our progress in 2015: (UNPRI) in 2015. • G4-SO4 – Communication and training on KPIs to monitor our progress in 2015: anti-corruption policies and procedures • G4-34 - Define committees responsible for • G4-SO5 – Confirmed incidents of corruption decision-making on economic, environmental and actions taken and social impacts • G4-SO8 – Fines and non-monetary • G4-56 - Describe updates on Cresent sanctions for non-compliance Enterprises’ values, principles, with laws and regulations standards and norms of Our behavior such as codes of conduct and codes of ethics 2017 Goal To establish common systems and policies related to governance, transparency and accountability across Crescent Enterprises’ Supply chain group companies management Compliance

We aim to create value through relationships based It is our aim to set an example in the region, not just on trust. We intend to map out our supply chain in to comply with local law, but to go beyond that and order to expand our values and sustainability efforts. set the standard for sustainability management. We Additionally, we would like to influence our wider aim to accomplish this by evaluating our current supply chain by introducing a Crescent Enterprises risk management and due diligence procedures, in supplier evaluation questionnaire. In order to ensure order to identify gaps, as well as to start country- our suppliers will be adhering to our policies and wide risk assessment studies to be able to identify procedures, we shall perform supply chain audit sustainability-related risks in each of our countries of readiness assessments and evaluate how we should operation. move forward to ensure compliance.

• Establish a formal stakeholder engagement process and report feedback system: »» Internal: create internal awareness through training, workshops, etc. to encourage a systemic approach to reporting »» External: establish a formal approach to stakeholder engagement. Continue to focus on academic, corporate governance and economic partnerships to understand regional and global pressing issues Stakeholder engagement • Organize awareness sessions and training for specific stakeholder groups, such as a stakeholder engagement workshop and annual event

Sustainability Report 2014 17 Enabling a stronger society

Driving the socioeconomic development of our countries of operation

Industry trends and (SMEs) and entrepreneurs. For many of our specialised requirements we must, challenges however, look to foreign suppliers. A stronger, inclusive society is Yet, it is our goal to work closely with envisioned as one where positive our reliable local suppliers to increase socioeconomic conditions make it their efficiency and flexibility to meet possible for people to lead productive our requirements and standards. This, and fulfilling lives. As a private sector in turn, will enable them to expand their corporation, we can stimulate these customer base. Another challenge in conditions by using our entrepreneurial the region is human rights violations “The Emirate of Sharjah expertise to make operating and within the supply chain, which we is witnessing incredible investment decisions in sectors with tackle by having strict supplier infrastructure and economic potential for sustainable growth evaluation mechanisms in place. development and it is and which increase the economy’s The third conduit through which with the support of home- resilience. In addition, spending on grown companies, such we create a stronger society is infrastructure and local suppliers as Crescent Enterprises, by partnering with socially driven creates multiplier effects for economic that the Emirate is able institutions to deliver community to reach new levels of growth, while our active participation projects. Targeted community achievement and optimism and commitment towards social spending remains a challenge in the for its future. Through programs strengthen the community, region, where philanthropic initiatives its diverse operations, enabling further contribution to growth. tend to dominate social responsibility. exemplary business The economy of the MENA region is With this in mind, we are currently conduct and corporate largely based on fossil-fuel resources, defining an increasingly strategic, governance leadership, impact-based approach to guide our Crescent Enterprises and with long-term diversification plans corporate citizenship spending and its subsidiaries continue in place at the national level. We to demonstrate their are leading the drive towards partnerships in the future. commitment to Sharjah as diversifying economies where we an ideal hub for business operate by investing and expanding and investment. Crescent in non-oil sectors. Political risk has Enterprises has been an been a long-standing challenge active player in the UAE’s to sustained economic growth in thriving business sector, and the region, however opportunities is one of the key companies remain as a result of the region’s that have contributed young demographics and strategic greatly to boosting Sharjah’s geographic location. Our investments economy and the national economy in general. We in infrastructure projects will serve are proud to have Crescent future generations and drive economic Enterprises as an entity growth in the long term. that started from Sharjah Developing a local supply chain is and developed into a global another way in which we stimulate player.” economic growth within our host nations. Wherever possible, we try to H.E. Marwan Al Sarkal procure goods and services from local CEO of Shurooq sources, particularly looking to support (Sharjah Investment and Development Authority) small and medium-sized enterprises

18 Sustainability Report 2014 Our themes and goals Direct/indirect Corporate economic value citizenship generation programs We are headquartered in Sharjah, UAE, and embody We ensure long-term impact of our corporate the national development agenda of diversification to citizenship programs by partnering with social and ensure long-term growth by operating and investing academic institutions to create a positive impact on in non-petroleum related sectors. Guided by our ESG the community and to empower the youth by building policy, we aim to ensure that we are strategically leadership skills within future generations. During managing our operations world-wide to ensure 2014, we focused our community spending plans by sustained economic growth for our stakeholders. defining three areas of immediate need for investment: Our plans to implement UNPRI will further strengthen ‘Entrepreneurship’, ‘Environment,’ and ‘Education and our long-term risk management, the basis for driving Community’. We aim to support social entrepreneurship value creation for generations. and youth development wherever possible. Our corporate citizenship budget remains at a minimum of Our new CE-Ventures serves as an incubation hub for 5 per cent of our annual net cash flow. Going forward, start-ups. The start-ups span a wide range of sectors we plan to take a more proactive and strategic role and industries across the Middle East. Through a in regards to our corporate citizenship spending, focused strategy, each venture is led through four by conducting community needs assessments and phases of development and pre-defined milestones, eventually implementing criteria for social investment. ensuring its long-term success as a viable and sustainable business generating broad social impact. KPI to measure our progress in 2015: KPIs to measure our progress in 2015: • G4 – EC7 – Development and impact of • G4 – EC1 – Economic value generated infrastructure investments and services and distributed supported • G4 – EC7 – Development and impact of infrastructure investments and Our services supported 2017 Goal To create a measurable positive impact in the communities in Local which we operate procurement “IFC aims to encourage private sector development in developing countries Building the competency of local suppliers takes time. We plan to evaluate to boost socio-economic growth. opportunities for corporate partnerships to encourage supply chain Our partnership with Crescent development. This will help us achieve our target of increasing the local Enterprises, through Gulftainer, is a content within our supply chain year after year. prime example of this. Gulftainer’s Iraq projects, which focus on developing the country’s ports and • Community – we plan to conduct stakeholder engagement with logistics infrastructure, have had a community members and carry out needs assessments before significant impact on the country’s investing in corporate citizenship initiatives transport system, turning around • Government – we will continue our engagement with governments more than two decades of under- to ensure alignment with broader governmental goals investment. Gulftainer has helped Stakeholder

engagement integrate Iraq into the regional and • Academic and social partnerships – we will conduct regular global economy, create new jobs events with partners to identify solutions to sustainability challenges and develop skills.” • Engagement with entrepreneurs and SMEs – we will engage Dimitris Tsitsiragos with SMEs and entrepreneurs to develop talent Vice President Global Client Services, IFC

Sustainability Report 2014 19 Enabling talent

Being an employer of choice and supporting young people and entrepreneurs

Industry trends and programmes and launching various initiatives to encourage local challenges participation in the workforce.

Our people are our biggest assets. Diversity is another key challenge in It is because of our talented people this part of the world. Although women that we have developed into the are extremely well educated, often successful, multinational business out-performing their male peers at that we are today. However, we are “We aspire to be an employer universities, their participation in the aware of the challenges we face, workforce remains low. In addition, of choice, and in doing so, such as developing new talent, in we take pride in our ability only a very small number of women keeping up with the fast pace of the to provide opportunities ultimately advance to senior executive region and the world. The Middle to each of our employees positions and board levels within that allow them to develop East region in particular has seen organisations. Research by the Pearl the career path that is a major transformation in the past Initiative, UN and other international geared towards their unique few decades and continues to face bodies such as the World Economic capabilities. By offering international pressure to guarantee Forum (WEF) has shown that the GCC educational support, employee rights. Although legislation is one of the most challenging regions defining clear developmental with regards to employee health in the world for ambitious women. goals and supplying an and safety, human rights, diversity, Fewer women enter the workforce optimal work environment, and welfare and benefits is slowly we have witnessed in the GCC, and fewer make it to evolving, we are conscious that it senior positions, than in almost any incredible success in is our responsibility to proactively identifying, rewarding and developed region, because too many establish policies and practices that promoting talent.” women opt out of their career before go beyond regulatory compliance and they get that far. Rene Hansen satisfy the expectations of our talent Director, Human Resources pool. This includes providing a safe Taking the above regional challenges work environment, along with high into consideration, we are committed quality training and educational growth to enhancing our current practices and opportunities for our employees. policies in order to cater to the needs of the new generations to come, and The large expatriate population working towards establishing a more in the Gulf Cooperation Council diverse workforce, which will recognise (GCC) countries has created some us as an employer of choice. region-wide apprehension about unemployment amongst nationals, predominantly amongst the rapidly expanding younger population. Across the region, governments are urging the private sector to play an important part in integrating the local community into their industries by providing job opportunities, developing experiential

20 Sustainability Report 2014 Our themes and goals

Building a high Employee safety and performance culture well-being We are committed to ensuring and continuously In order to be able to benchmark and evaluate improving the safety, health and well-being of our the effectiveness of our training and development employees. As part of our planned initiatives, we activities, we aim to track employee training data, aim to track our occupational health and safety move towards a competency based development performance in more detail and develop a strategy system, improve our employee development and for working towards zero harm. Moreover, we plan performance management processes and provide all to identify opportunities to increase employee of our employees with regular performance feedback. engagement within Crescent Enterprises, conduct In addition, we are evaluating the opportunity to an employee satisfaction survey, maintain our conduct sustainability awareness sessions for our existing corporate wellness program and update our employees. employee benefits and welfare program. KPIs to measure our performance in 2015: KPIs to measure our performance in 2015: • G4-LA1: Total number and rates of new • G4-LA6: Type of injury and rates of injury, employee hires and employee turnover occupational diseases, lost days, absenteeism • G4-LA2: Benefits provided to full-time and total number of work-related fatalities employees that are not provided to • G4-PR2: Total number of incidents of non- temporary or part-time employees compliance with regulations and voluntary codes concerning the health and safety impacts of products and services • G4-HR3: Total number of incidents of discrimination and corrective actions taken Our 2017 Goal To be recognised as an employer of choice Employment practices (diversity, gender equity) and local hiring We plan to assess our current performance in order to determine how we can improve our localisation and diversity performance, this includes gender equity practices described in our Employee Handbook. We will establish realistic targets for the near future, taking into account the realities on the ground.

• Employee engagement activities to spread • Employee satisfaction survey awareness, receive feedback and identify opportunities for improvement Stakeholder engagement

Sustainability Report 2014 21 Enabling stewardship of the planet

Understanding Crescent Enterprises’ impact and identifying opportunities for improvement Industry trends and rolling out across the Middle East, but there remains a great deal to be done challenges to create awareness about reduction of waste at the source. Ultimately, Environmental degradation poses one effective management of our natural of the greatest threats to development resources and waste can only be for the next century. The challenge achieved if businesses and residents is complex: how can we meet the make a conscious effort to change basic needs of a growing population their current behaviour and habits. “We understand that it is in an increasingly vulnerable natural our duty to safeguard the system? The Middle East is exposed In order to change this mentality, it natural resources that not to many environmental risks, including only belong to us, but that is important to communicate to all water resource scarcity, high energy are the inheritance of future stakeholders how global development generations. Correctly requirements, climate change and megatrends — such as natural disposing of CPS’ clinical desertification, unmanaged waste and resource depletion, air and water waste is of paramount biodiversity loss. The region’s harsh contamination, biodiversity loss importance in preventing climate makes it challenging to live and increased greenhouse gas damage to the environment, and operate a business with minimum emissions — affect the environment avoiding contamination, impact on the environment. and business operations over the long and in preserving the health term. Furthermore, corporate players Rapid urbanisation, industrialisation of our society. We have can lead the way in creating positive partnered with leading and increasingly intensive agricultural change by incorporating environmental environmental solutions practices in the region are putting risk management within their existing providers to ensure that all even more pressure on already scarce financial growth strategies. clinical waste is disposed water resources and land availability. of in accordance with both In parts of the region — including We believe it is our responsibility to local and international Yemen, Iraq, parts of the UAE and ensure our activities have a positive standards, and in line with Saudi Arabia — water scarcity effect on the environment. We can environmental and safety poses a serious risk to development, regulations.” enable this by systematically managing especially for the millions who already the impact of our processes and Masood Ahmed lack access to sanitary water. The actions. In order to take an action, Commercial Director, CPS amount of energy, in the form of we first need to establish a baseline fossil fuel, used for indoor cooling, and be able to adequately collect and manufacturing, desalination of water, calculate our energy, water, and waste and transport across the region is consumption, as well as our impact enormous. This fossil fuel consumption on biodiversity wherever we operate. in turn contributes to global warming Through the use of environmental and increases the risk of severe global and quality management systems, climate changes. The region’s fast- we would like to be able to determine paced economic development has and minimise how our operations also impacted consumption patterns. negatively affect the environment (i.e., Corporates and residents all dispose cause adverse changes to air, water, much higher volumes of waste than or land); comply with applicable laws, before, contributing to the risk of soil regulations, and other environmentally- contamination and further depleting oriented requirements, and continually natural resources. Institutionalised improve on the above. waste management programs are now

22 Sustainability Report 2014 Our themes and goals Energy, emissions, water, waste and biodiversity

In order to be able to compare, benchmark KPIs to measure our progress in 2015: and continuously improve our environmental • G4-EN3 – Energy consumed within the performance, we would like to put processes in organisation place to track energy, waste and water data. We aim to establish energy and water baseline figures and • G4-EN23 – Total waste by type and disposal need to be in a position to receive regular updates method on marine conservation programs. Moreover, we • G4-EN29 – Fines and sanctions for non- plan to involve and motivate our employees by compliance with environmental laws and creating and rolling out employee environmental regulations awareness programs across our businesses.

Our 2017 Goal To establish a baseline for environmental performance and manage our impact

Quality Management Systems

We would like to make sure that we have the to measure our environmental impact and improve appropriate framework to manage our impacts on resource efficiency, reduce waste and drive down the environment. Therefore, we aim to have our costs. In an effort to further increase our compliance, group companies comply with ISO 9001 (quality we intend to implement actions to correct any non- management) and ISO 14001 (environmental conformities, if any were raised in ISO audits. management) standards, wherever applicable. We believe these management systems will enable us

• Engagement with local/international environmental organisations (e.g. Emirates Wildlife Society -World Wildlife Fund (EWF-WWF); European Union Emissions Trading Scheme (EU ETS)) • Collaboration initiatives to initiate waste management (e.g. Bee’ah) Stakeholder engagement

Sustainability Report 2014 23 Our economic footprint KPI update

This past year has been a strong one for us despite the mixed business climate and market environment across the sectors we operate in. Our core focus was directed towards building on our existing businesses and consolidating the sizable investments and projects executed in the last couple of years. Following a three pronged strategy – organic profitable growth, business-led collaboration, and relentless execution, in 2014, Crescent Enterprises delivered a strong performance with 40 per cent revenue growth as compared to 2013, while keeping the balance sheet size steady. We plan to continue with this approach in 2015, in line with our efforts to create value for all of our stakeholders, while striving for leadership, global competitiveness, and purpose in the sectors and communities we operate in. Financial performance In addition to new projects and ventures, our focus this year has We strive for leadership, global been on enhancing organic growth competitiveness and purpose in and guiding our group companies on the sectors we operate in and in strengthening their market position. the communities in which we serve, Tushar Singhvi Milestones achieved this year included: while delivering value to all of our VP, Corporate stakeholders. As the parent company, • Focused business development Development & within group companies Investments Crescent Enterprises focuses on performance management by actively • Implementing the post-acquisition engaging with its group companies to integration plans for Gulftainer’s drive value creation. Saudi operations

24 Sustainability Report 2014 • Providing strategic guidance to Our performance Gulftainer for its strategic expansion Value (US$ Mn) into the USA through a 35 year concession • Supporting Gama Aviation on a reverse merger transaction that was Growth in payments to announced in December 2014 Total assets government • Guiding Uruk on various projects 2014 2014 including a comprehensive 1,461 66% corporate governance exercise 2013 2013 * • Actively managing our healthcare 1,438 297% business to capitalise on the 2012 2012 current and future potential of the 977 38% healthcare diagnostics market in the UAE As a result of these efforts, we realized US$ 412mn in revenue, representing a 40 per cent increase on our 2013 performance. In addition to providing Projects and strategic support and oversight investments executed Revenue to our group companies, we have 2014 2014 also invested in 2 funds, Samena 177 412 Limestone Holdings and Duet-IBC 2013 2013 MENA Real Estate Opportunities. 714 294 Our ability to generate sustainable 2012 2012 returns in the long-term depends on 250 157 how best we leverage our expertise in evaluating new business and industry opportunities. Our five-stage evaluation process incorporates ESG performance screening to better manage long-term risks such as Employee wages climate change, corruption and supply Community and benefits chain violations. In 2014, a total of 45 investments industry opportunities were reviewed, 2014 Crescent Enterprises and 12 were evaluated in detail, 92 pledges a minimum of based on their compliance with our 2013 5% evaluation criteria. Going forward, we 74 of its projected annual net cash flow plan to strengthen our evaluation of 2012 ESG performance by implementing 45 toward its corporate citizenship budget. the United Nations Principles for Responsible Investment framework.

* Value has been updated since last year’s reported value to reflect a minor restatement exercise conducted out for 2013

Sustainability Report 2014 25 Market presence Crescent Enterprises has identified three core geographies — Our investment of US$ 100mn in infrastructure, the Middle East and North Africa Region, Sub-Saharan Africa equipment and locally-sourced human capital and Developing Asia — and sectors within these areas that to strengthen our operations at Port Canaveral offer significant growth potential to pursue opportunities. in Florida will provide an encouraging boost to the economic development of the region. Not only is the new container and cargo terminal expected to generate US$ 280mn of revenue for Port Canaveral, but it will also contribute more than US$ 630mn to Florida’s economy and generate upwards of US$ 350mn in tax contributions.

Peter Richards Managing Director, Gulftainer Group

Case study

Gulftainer’s growth highlights Gulftainer registered strong growth across all of its terminals in eight countries and increased throughputs by 8 per cent, from 6 million (annualised figure) to 6.4 million twenty-foot equivalent units (TEUs). Individual facility highlights include a significant combined growth of 46 per cent at the company’s Case study Iraq Container Terminal and Iraq Project Terminal at the Umm Qasr Port in Iraq. Gulftainer’s royalty payments in the Uruk – Growth in Iraq and countries they operate increased significantly in 2014. beyond Gulftainer is primarily concentrating on developing growth Uruk’s commitment to Iraq over the past markets such as Africa, India, and South America, as seven years as a leader in the country’s most well as looking at mature markets including the US and important power projects was highlighted Western Europe. The company aims to triple its volume by in 2014, upon the completion of its most 2020 through organic growth within existing businesses, recent US$ 540mn 728 MW power plant investing in new green field opportunities, as well as through project in Al Mansuriya. Not only was Uruk inorganic growth. In 2014, Gulftainer made strides toward the first EPC contractor to complete a its growth goal by signing a 35 year concession agreement Ministry of Electricity Fast Track project, with Canaveral Port Authority, marking the company’s first it also completed the 728 MW project in venture into the USA. record time. The firm’s efforts — executing Port Canaveral is one of the busiest cruise ports in the over US$ 800mn worth of contracts — also world that offers world-class facilities for vacationers, local culminated with an impressive Environmental visitors, cruise lines, cargo shippers and tenant businesses. Health and Safety record, with 6 million The agreement is for Gulftainer to operate and further man-hours recorded without major incident develop Port Canaveral’s container and multipurpose cargo on-site at the company’s projects in Taji, terminal, which will help position Port Canaveral as the most Qudus and Mansuriya. economical and convenient ocean gateway for containerised While Iraq will remain Uruk’s core market, the cargo in central Florida. company also plans to expand its operations across the Middle East by establishing consortiums with international companies.

26 Sustainability Report 2014 Socio-economic impact of Gama Aviation’s Sharjah Executive Aircraft Terminal

2.5% 29% increase in increase in revenue per 32% contribution per increase in departure departure Case study departures for handling services for handling services since 2012 in 2014 vs. 2013. in 2014 vs. 2013. Gama Aviation’s 53% increase 58% increase since since 2012 2012 market expansion In July 2014, Gama Aviation unveiled its exclusive executive terminal at Sharjah International Airport, creating a full service business aviation hub serving 1,113 1,302 Sharjah, Dubai and the northern VIP crew passengers members emirates. The terminal is in 920,000 the first phase of a US$ 15mn used the new used the new litres lounge between lounge between investment, creating a new lounge of fuel sold in 2014 August 2014 and August 2014 and facility that will supplement Gama year end year end Aviation’s dedicated hangars, maintenance facilities and fuel services. The new facility has already performed above its target for weekly movements and is also set to generate new 8% employment opportunities and up 9% 2% increase increase skill the region’s aviation talent. increase in the proportion of in the proportion of in the proportion of Gama has strategically extended heavy jets handled aircraft stayovers in aircraft turnarounds its market reach this year by (13+ tons) in 2014 2014 vs. 2013. 22% in 2014 vs. 2013. vs. 2013. 27% increase since 2012 12% increase since partnering with Wheels Up, the increase since 2012 leading membership-based 2012 private aviation company, which reduces the upfront investment needed to fly privately. The partnership has also created 156 new pilot jobs. Gama will further strengthen its market share on finalisation of a reverse 765% take-over and share-placement increase 67% increase in maintenance with London Stock Exchange’s in hangar revenue support revenue in AIM-listed Hangar8, a leading UK comparing 2013 to 2014 vs. 2013 private jet operator, managing 48 2014 business aircraft. Under the terms of the takeover, the new company Gama Aviation Plc will have an expansive footprint, offering 146 aircraft operating out of 44 locations across 15 countries.

Sustainability Report 2014 27 Local community impact and benefits KPI update

Uruk has developed a clear understanding of the challenges confronting Iraq’s power sector. Our experience in the Iraqi market has enabled us to retain a position at the forefront in addressing these challenges, with a specific focus on power plant construction and rehabilitation. The strength of our commitment and the transparency of our dealings have resulted in strong engagements with government officials at all levels including the highest. Similarly, our dealings with our Developing long-term Providing local associates and suppliers in the benefits where we communities with skills private sector resulted in mutual trust and excellent cooperation in operate and job opportunities surmounting all obstacles. Over Through our diverse group of Crescent Enterprises and its group the past several years, Uruk has companies, we aim to create sustained companies employ 5,196 people added 1150 MW of dependable growth in the communities in which around the world, a reduction from new power generation capacity we operate. Delivering infrastructure 6,038 employees in 2013. While to Iraq’s national grid and another is one of our long-term strategies Crescent Enterprises and the increment of 820 MW is foreseen for multiplying our impact on the majority of our group companies to be added within the next economy by enabling trade, attracting increased their number of employees, couple of years. Uruk will continue investments, and creating jobs for the a proportion of our workforce is its endeavor to work diligently local community. contractual/project related and hence to overcome challenges until varies with the timing of project Iraq’s power needs are fulfilled by Uruk has completed delivery of its execution, particularly in Uruk. Each providing sustainable electricity most recent power plant project in company within the group aims to hire on 24/7 basis at the lowest cost Al Mansuriya Iraq, and plans are locally wherever possible, as well as to and with the least environmental in place to continue investing into empower communities with knowledge impact. local talent to deliver rehabilitation and transferrable skills. projects for existing power plants. Iraq’s existing power infrastructure will require significant repairs, maintenance or expansion in order to optimise efficiency. Putting additional areas Dr Jafar D. Jafar of the country back on the grid will CEO, Uruk support development of the industrial sector and social stability.

28 Sustainability Report 2014 Local hiring initiatives at our group companies

Case study Gulftainer’s local employment focus in Iraq and the USA

Within Gulftainer’s operations in Iraq’s Basra and Umm Qasr regions, where the vast majority of employees are Iraqi nationals, the company takes a special interest in supporting the local community’s activities. Notable examples include sponsoring In all of its facilities the Al Mina Football club in Basra. The company also donated water purifiers to Gulftainer uses residents in Umm Qasr last Ramadan, to help with the lack of potable water. 85-90% Gulftainer’s US$ 100mn investment in Port Canaveral’s infrastructure, equipment and locally-sourced human capital is expected to create up to 2,000 jobs, including local suppliers for its 550 direct jobs initially. Further, the investment will create an ecosystem that is procurement expected to generate economic benefits to the local businesses and stimulate indirect employment.

Case study Gulftainer investing in infrastructure that meets stakeholder needs

Prior to starting any projects, Gulftainer conducts assessments of the needs of the business community. These needs are evaluated by engaging in dialogue with customers and stakeholders to identify the optimum levels of infrastructure development required for future business needs. Gulftainer collaborates with port authorities in its areas of operations to deliver all the port’s or terminal’s infrastructure inside each port facility. Any infrastructure development, such as access roads outside the port facility, is managed and developed by the local government authorities. This year, Gulftainer’s major investments included a US$ 60mn upgrade of equipment at Khorfakkan Container Terminal, a US$ 100mn investment into Port Canaveral in Florida and the Umm Qasr Logistics Centre in Iraq. Gulftainer’s 750,000 sqm logistics corridor in Iraq will supplement the port operations by providing value-add services, as well as serviced plots to attract diverse industries such as commercial, fabrication and the oil and gas sector.

Case study

Gama Aviation’s plans for future local hiring Gama’s executive terminal at Sharjah International Airport, which opened in July 2014, will generate new employment opportunities and up-skill the region’s aviation talent. The executive terminal creates increased passenger flow through Sharjah, which has indirect benefits for the community. The 9 per cent increase in the proportion of aircraft stayovers in 2014 vs. 2013 could create opportunities for Sharjah’s hotel and real estate market to host overnight flight crews. The 765 per cent increase in maintenance support revenue in 2014 vs. 2013 from the new terminal demonstrates a possible future demand for hiring technicians to deliver Gama Aviation’s maintenance services at the new terminal.

Sustainability Report 2014 29 The power of our people KPI update

Crescent Enterprises values the need for workplace equality and diversity, and is committed to ensuring a consistent level of fair opportunities for advancement. I am proud to have grown into a senior role in a company that encourages women to realise their fullest potential, empowering us with the ability to develop career paths that allow our best competencies and interests to shine.

Ghada Abdelkader Manager, Corporate Development & Investments

Understanding and of days for maternity leave from 45 (as per the UAE labour law) to 50 days and providing for our introducing a five day paternity leave peoples’s needs for male employees (in comparison: there is no paternity leave in the UAE We care about our employees and labour law). In order to continuously their families. Our people are provided improve our performance in employee with all the benefits expected from a satisfaction, we regularly analyse leading global organisation. In 2014, qualitative and quantitative employee we updated our maternity/paternity feedback gathered through our on- leave to enhance employee morale and boarding and exit surveys. productivity by increasing the number

30 Sustainability Report 2014 Diversity and equal Training and career In 2014, we have further opportunity development developed our job family competency based Through our Equal Opportunities As per our training policy, we aim to management curriculum. policy, we are committed to selecting provide all our people with training Specifically, we have: and treating our people on the appropriate to their role in order to basis of their relevant merits and ensure that all have the technical skills Reviewed all existing job families, abilities. The aim is to ensure that required and are suitably prepared for and updated existing job no job applicant or employee should any responsibilities assigned to the descriptions receive less favourable treatment on job. Direct supervisors are responsible any grounds not relevant to good for identifying and monitoring ongoing Introduced the Company’s 12 core employment practice. It is our policy training and development needs. behavioural competencies as an employer to treat all people We provide our people and leaders Conducted competency gap equally, irrespective of race, ethnic with the development activities assessment for all existing roles origin, gender, marital or parental required to adequately assess their to ensure each job role has the status, faith, disability, age or political annual performance. We conduct an required behavioural and technical belief. In line with our stated policy, annual performance review process, competency employees of same grades are paid which consists of customised equally irrespective of their gender. Introduced the Company’s learning performance management workshops, & development model: “70 – 20 – Our future goal is to design and launch meetings to discuss individual 10” (70% development on the job, a ‘Women Leadership Programme’, performance and developing personal 20% self-study and 10% training) which aims to strengthen leadership development plans, goals and skills for female employees, enhance competencies. Reviewed our performance management process in order to the skills constantly identified for In 2014, we rolled out our new ‘Training add some of our core competencies women leaders, and female leaders’ Requisition Request’ software that to the annual performance review ability to communicate the Company’s was developed internally to track all progress in 2015 vision and manage career transitions. training activities. The new software Created personal development is used to initiate training requests in plans for employees based on the a more structured manner, capturing identified and required competency our job families and providing ongoing for each job family/role workshops of our identified core values and behavioural competencies. of our Talent Development Cycle, Case study thereby enhancing our training and During 2014, we conducted around career development activities and 20 workshops, designed and Diversity at CPS performance: delivered in-house by the Operational CPS continues to provide equal Development Team. The workshops opportunities regardless of • Quarterly ‘health of the organisation focused on performance management, gender or nationality, without meeting’ with Crescent Enterprises goal planning, effective leadership, having a formal policy in place. directors and heads of departments as well as employee engagement. CPS currently employs a to review departmental goals and These workshops were attended by balanced mixture of male and objectives, ensuring that employees around 60 per cent of the employees female employees. are reviewing and updating their and because they were provided goals regularly, gathering feedback in-house, we managed to achieve CPS employee gender diversity about individual performance and 48 per cent decrease in the cost per development needs. training hour. Moreover, in order to • Completed the department training 40% 56% improve our occupational health and safety performance, we conducted fire needs analysis and budget. 60% 44% warden training for employees who • Conducted customised workshops volunteered as Fire Stewards for their prior to the roll out of our annual respective floors. performance review cycle, where 2013 2014 During 2014, we took steps to employees where introduced to ensure the effective implementation the changes for our Performance Manual form and process.

Sustainability Report 2014 31 • Development of our competency rights violations or discrimination. In management approach for all addition to guaranteeing these basic functions. rights, we have conducted specific initiatives in 2014 to engage our • Increasing the number of in-house employees and enhance their wellness: workshops that addressed key learning/development areas. • Crescent Enterprises First • Introducing Crescent Career Corporate Community Day – Development playbook, which A town-hall community day was addressed personal/Company attended by all employees to Case study development needs. update them on the companies’ achievements and share the We are keen to work with young future goals and aspirations of the Employee training talent and have started structuring Company. The day consisted of our internship programme in order to at CPS information presentations by Senior attract suitable candidates. In 2015, Management and the 'Marshmallow It is vital for healthcare we expect to roll out an internship Challenge' team-building event. professionals to stay up to date handbook that will include internship with current trends in order guidelines, on-boarding process, an • Ya-Hala Day – a comprehensive to provide leading diagnostic overview of the performance review bi-annual re-introduction methods and care to clients. process conducted at the end of the programme called 'Ya-Hala', To enhance employee training, internship, an intern feedback survey, 'welcome' in English, was CPS will conduct an Annual and criteria for assessing the interns' introduced in 2014. Throughout Joint Review to assess each closing presentations. The intern an entire afternoon of department employee’s training needs for presentation judging panel will consist presentations and a short the coming year. The review is of members from the intern’s relevant team building activity, Crescent an integral part of CPS’s quality department and representatives from Enterprises new joiners were management system to ensure the Human Resources department. reminded of and introduced to the that each employee pursues key areas and protocols within the Continual Medical Education Employee engagement Company, department roles, and (CME) and is kept up to date policies. with current trends in clinical/ and wellness • Over 90 per cent of our people diagnostic fields and laboratory We uphold all international and participated in the Wellness management. To ensure national human rights, labour laws and Programme Day. This free on-site full transparency, we also regulations, including our commitment wellness day had live educational conduct external competency to the UNGC principles 1 to 6 relating interaction with medical experts assessments and tests. Any to human rights and labour rights. and a number of free tests that learning deficiencies identified Guaranteeing our employees a helped to assess employees’ during the assessments will safe, healthy and productive work current health. It was organised help determine the learning environment is a top priority for in coordination with the Canadian requirements for the employee Crescent Enterprises and our group Specialist Hospital and Health through in-house or external companies. We have strict policies factory. Services provided included programmes. preventing discrimination, child labour, blood pressure, blood sugar, and forced labour and compulsory labour, diabetes screening, a vision test, which are reflected in our Code of dietician and lifestyle advice, and Conduct and Employee Handbook. an introduction to the health food Employees are encouraged to programme. share any concerns with the Human Resources department in line with the open door policy. To date, no concerns have been raised regarding human

32 Sustainability Report 2014 Case study

Crescent Enterprises’ film festival

In 2014, the Company introduced ‘Crescent Workplace Film Festival’, an initiative to focus on building our workforce and getting leaders engaged in developing their team members to prepare them for the future of the business. It is specifically aimed at introducing the Company’s core behavioural values in an educational and fun manner, to engage staff through the illustration of film and group interaction on the core corporate competencies that need to be intertwined into day to day activities. The Operational Development Team conducted 3 sessions attended by more than 70 per cent of the employees in 2014. ‘Effective Communication’, ‘Diversity’ and ‘Teamwork’ competencies were introduced twice over the course of 3 months. During each session, we presented either a movie or a show that tackled these behaviours, followed by a short exercise to discuss what they learnt and how a particular behaviour can be applied to the workplace. We aimed to let employees experience the real taste of a movie/show by offering popcorn. The feedback received was very positive and it highly served our purpose of increasing employee engagement and satisfaction, in addition to fulfiling learning/development needs by constantly reintroducing the Company’s core values. In 2015, we aim to introduce the rest of our core values in the same manner/experience.

Our performance

The reduction in employees since last year is due to the departure of a large number of project-based employees who completed various projects, particularly for Uruk. Excluding project-based employees, the number of employees increased at Crescent Enterprises and the majority of our group companies.

and group 2014 5,196

companies' data companies' 2013 6,038 Crescent Enterprises Enterprises Crescent Crescent Enterprises

Female Male data Number of different nationalities 2014 29% 71% 2013 30% 70% 2014 14 2013 12

Sustainability Report 2014 33 Health and Safety Crescent Enterprises and our group companies are proactive in ensuring employee safety. The case studies on the following pages highlight the measures we have implemented to protect our employees and contractors while at work.

Case study Case study Gulftainer Health and Safety Gulftainer: Goals to reinforce Gulftainer is an Integrated Management System (IMS) accredited the leading safety culture company. The company has been ISO 9001:2008, OHSAS During 2014, Gulftainer was awarded the 18001:2007 and ISO 14001:2004 certified since December 2010. International Safety Award for 2014 by the As part of a continuous improvement programme, Gulftainer British Safety Council in London and the has implemented policies such as a ‘No Smoking Policy’ and Silver Award for Occupational Health and an ‘Alcohol and Drugs Policy’ in addition to the usual QHSE Safety Management System Practises by Policies. Gulftainer also ensures compliance to its CSR Policy for Royal Society for Prevention of Accidents HSE as well as providing continued support to the Sharjah Port (RoSPA) Scotland. The RoSPA award highlights Authority to maintain compliance to its HSE requirements. Gulftainer’s focus on ensuring world-class At present, Gulftainer is developing new safety management standards across all of their operations, to reporting systems, which it expects to roll out by the end of 2015 promote the well-being of employees, partners, in order to build on its existing safety awareness framework. and stakeholders. Some of Gulftainer’s award- Currently, accident statistics and lost day rates per location are winning practises in line with OHSAS 18001 recorded on a monthly and yearly basis. requirements are outlined below.

Gulftainer’s award-winning safety practices

Procedures for Safety Committee, Safety Root-cause Inspection, and investigations of Safety walk etc. incidents and corrective Internal and external audits actions for incidents and third party accreditations, Procedures such as OHSAS 18001:2007, for monitoring International Safety Award from subcontractor British Safety Council, Value activity controls Chain Leadership award from Frost & Sullivan

Top management’s commitment to Procedure to identify implement HSE and evaluate the risks policies around the terminal

Proactive and reactive health and safety statistics to measure Clearly defined performance individual roles and Procedures for responsibilities for communicating Continuous safety health and safety health and safety training courses for to employees employees Gulftainer plans to actively and openly review and report on its health and safety performance against published objectives and targets. Improvement plans are being developed to support the delivery of these objectives and targets. The company will also constantly encourage, develop, review and share good practices in health and safety through HSE inductions, HSE trainings and toolbox talks.

34 Sustainability Report 2014 Percentage of corrective Protecting contractors actions closed out within at Gama Aviation Case study specified timeframe Gama Aviation has a series of Gama Aviation’s KPI to close all findings within 60 contractor workplace safety ‘Safety in Numbers’ days. In 2014, 48 per cent of all procedures, including inductions and findings were closed out. permit to work systems. The Health campaign and Safety team and responsible managers oversee different aspects The ‘Safety in Numbers’ relating to contractors’ compliance campaign is used to within these policies. Regular safety promote awareness on key tours are also undertaken by Senior health, safety, security and Managers to oversee the health, environment issues and there safety and welfare of employees and are a series of training courses contractors alike. that encompass this brand to shape employee behaviour. KPIs are now provided on a monthly basis to the Gama Lost time (in hours) due to accidents Case study Aviation Board from across (including fatalities) per 100,000 the regions. Risk Management hours worked CPS’s inclusive and Assurance Performance Employee data 0.96 approach to safety Indicators are within these Contractor data 0 reports. At the company CPS employees are required to level, a Safety Improvement Lost time (in hours) due to non-fatal attend health and safety training Plan exists which contains accidents per 100,000 hours worked including hazards in the clinical Departmental Performance laboratory, as well as first aid and Employee data 0.96 Indicators focused on improving fire safety sessions. Health and performance, addressing Contractor data 0 safety matters are a standing the precursor events, and agenda item on the senior assessing the effectiveness of management meetings and the the risks on their risk register. Health and Safety manual is A blend of proactive and constantly reviewed. Staff are reactive Health and Safety obliged to read the manual and performance indicators are to sign that they have done so. included within the Safety Improvement Plan. Number of reportable accidents per 100,000 hours worked (including Substitutions fatalities) keeping employees Gama Aviation's Employee data 263 safe at CPS employee and Contractor data 0 CPS’ chemicals management contractor injury data policy mandates the use of non-toxic, non-hazardous materials in testing methods in order to protect the health and safety of its employees. CPS regularly screens its chemical inventory based on regulatory Number of non-conformance with requirements. This year, CPS Number of fatalities per 100,000 hours legal or internal standards in safety was able to substitute one of worked inspections the toxic substances used in a Employee data 0 Employee data 3 testing procedure with a safe replacement within one week of Contractor data 0 Contractor data 0 identifying the toxic substance.

Sustainability Report 2014 35 Connecting with society KPI update

Sharjah International Children’s Film Festival (SICFF) 2014 was more than just an event to celebrate film, it was a representation of the incredible power behind the creative arts in making a lasting impact on the future of our youth. Over 15,000 children came together to view documentaries, animation and films throughout Social partnerships Through a structured and clear the festival. Crescent approach developed by the Corporate Enterprises’ belief in the It is our responsibility to understand Citizenship Committee, three key positive influence that media the impact of our decisions and areas of need and value were defined literacy and cultural awareness activities on the societies in which for 2014, ‘Entrepreneurship’, can have on youngsters made we operate, which is why corporate ‘Environment,’ and ‘Education and for a perfect partnership. citizenship is such an important Community’, leading to an extensive motivator and driver of Crescent list of initiatives we proudly supported Enterprises. Over time, our corporate on a global scale throughout the citizenship undertakings have matured year. To best realise our objectives into a tool for generating tangible and extend our impact in each of our H.E. shared value and positive change. We three identified areas, we have formed Sheikha Jawaher pledge a minimum of 5 per cent of strategic partnerships with several Bint Abdullah Al our annual net cash flow towards our impact investment institutions and Qasimi corporate citizenship budget. other community organisations whose Director, SICFF purposes are aligned with our vision.

36 Sustainability Report 2014 Cherie Blair Foundation for Women – Sharjah Leadership Program Mentoring Women in Business Crescent Enterprises signed a Five Crescent Enterprises mentors partnership agreement with the were selected to mentor five women Sharjah Tatweer Forum for its entrepreneurs in the Middle East as 2014 initiative, ‘Sharjah Leadership Entrepreneurship part of the Cherie Blair Foundation Programme’ (SLP). Designed to meet Entrepreneurship and innovation for Women’s Mentoring Women in future employment targets for the are important values for Crescent Business Programme. The programme business growth of the Emirate, the Enterprises to foster internally and combines mentoring with technology SLP works to foster entrepreneurial within the communities in which we to offer cross-border support to skills as well as broaden employment engage. As we operate in several women entrepreneurs from developing opportunities for local and expatriate areas of the world that are facing and emerging economies. mid-level management by partnering high youth unemployment rates, Crescent Enterprises has helped to with government and educational entrepreneurship is a valued target for support the growth and sustainability institutions within the UAE and fundamental positive change. In 2014, of the Mentoring Women in Business internationally in order to equip we contributed our time and support Programme, which, to date, has candidates with the highest standard to regional initiatives developed for matched over 1,800 women mentees quality education, desired skills and global scalability. with mentors from around the world. competencies to fulfil these jobs. The programme runs over the course of six months. Entrepreneurship Our Mentoring Women in In 2014, the SLP provided experiential Support local innovation in scaling Business Programme uses learning opportunities to 20 UAE up their operations pioneering technology to nationals and four expatriates. The • Arab World Social connect women entrepreneurs Sharjah Leadershp Programme Entrepreneurship Program around the world with mentors, enrolled participants in lectures at so that they have access to • Cherie Blair Foundation for the American University of Sharjah, one-to-one support to help Women (CBFW) – Mentoring engaged them in group workshops on them establish and grow Women in Business business and entrepreneurship, and their businesses. Crescent hosted them on – including Crescent • Sharjah Leadership Program Enterprises has been an Enterprises’ operations – for hands-on • Global Consulting Project important partner in enabling us experience and learning. to connect highly-skilled mentors with women entrepreneurs Global Consulting Project Impact created: across the Middle East. We The Global Consulting Project is a Arab World Social Entrepreneurship look forward to continuing our dedicated internship programme for Program work together to foster women’s graduate students run by the University economic empowerment of Cambridge’s Judge Business Crescent Enterprises partnered throughout the region. with the largest network of social School. In 2014, five full-time MBA entrepreneurs, Ashoka, for its Arab students from the Global Consulting World Social Entrepreneurship Project conducted research on Gama Programme (ASEP), aimed at Aviation. Their research highlighted the increasing the presence and impact significant increase in traffic for Gama of social entrepreneurs in the Gulf Aviation’s Fixed Base Operation. Region. 7 entrepreneurs pitched their start-ups to more than 60 venture Cherie Blair capitalists, investors and business Founder, CBFW at the Arabreneur initiative hosted by A S EP.

Sustainability Report 2014 37 on inefficient bulbs was enforced our societies today, and to lay the beginning 1 January, 2015. The foundation for a sustainable future, initiative undertook a successful hinges on the availability and quality verification of the National Footprint of education. It is our belief that the Accounts of the UAE, thus increasing same principle applies at the economic Environment confidence in the Ecological Footprint level as well, and with the proper value of the country. Our support of programmes and support in place, We have a direct impact on the marine this project furthers our obligation the benefits for both individuals and environment via our ports and logistics to UNGC Principle 9, encouraging the communities to which they belong operations and our activities globally the dissemination of environmentally have incredible potential to positively also contribute to climate change and friendly technology. change the world. waste generation, thus impacting the environment. Through our platinum Blue Flag sponsorship of the Emirates Wildlife Education and community Society – World Wildlife Fund (EWS- Enabling access to education and WWF), we actively support various creating a connected society initiatives that conserve biodiversity, • Dubai Cares — Adopt a School address environmental conservation, awareness and education, tackle • Education for Employment climate change, and reduce the UAE’s Photo credit: © Tiffany Schultz / EWS-WWF • Arab Women Sports Tournament ecological footprint. Five additional public beaches and two Dubai Cares — Adopt a School private beaches in the UAE will receive Environment the internationally recognised Blue Flag Understanding and protecting the for the 2014-2015 season. Blue Flag ecosystems we operate in Beaches are protected and developed Partnership with Emirates Wildlife in an environmentally friendly manner. Society – WWF: Terrestrial Conservation • Earth Hour In partnership with the Fujairah • The UAE’s Ecological Footprint Municipality, EWS-WWF is leading the We partnered with Dubai Cares – Initiative transformation of the Wadi Wurayah Adopt a School to support primary • Blue Flag area into the UAE’s first national education in Western Nepal, which • Terrestrial Conservation park, operating according to best holds classes for children and literacy international standards. To date, over classes for adults. Impact created: 500 different species, 75 of which are new to science, have been identified in Impact created: Our support to EWS-WWF contributed the Wadi. It is one of the last freshwater to the organisation's significant sources in the UAE and the country’s • 174 students enrolled (10 per cent milestones in the past year. Some of first Protected Mountain Area. increase since 2013), 54 per cent these milestones are: are girls. Earth Hour different species have • 60 women from the community In 2014, the awareness campaign 500 been identified in were taught how to read and write reached out to 5.5 million UAE Wadi Wurayah and given classes on beautification residents, and saw participation of all of the community. seven emirates. • Jobs created for 10 women and 10 men from the local community. The UAE’s Ecological Footprint Education for Employment The UAE’s Ecological Footprint Initiative is a prestigious partnership As a founding Gulf supporter, Crescent of like-minded organisations that Education and Enterprises partnered with Education work to reduce the country’s CO2 community for Employment (EFE) to scale up emissions. Developed under the employment programmes for Arab aegis of the Ecological Footprint Education youth across the Middle East and Initiative, the standard came into Our ability to address the North Africa, and to provide EFE force on 1 July 2014 and a retail ban most critical issues facing with ongoing strategic guidance and networking support.

38 Sustainability Report 2014 EFE has been actively working focused on several programmes with public and private companies, highlighting this impact through film Impact created: multinational corporations and and theatre projects. • 34 youth from 14 countries across government institutions to develop the MENA region were given a world-class professional and technical Arts & Culture once-in-a-lifetime, expenses-paid training to empower youth with the opportunity, to complete a two- skills and opportunities they need to Stimulating creativity to enable week theatre training programme in enhance employability. strong and productive communities Sharjah, with META and the Kevin • Sharjah International Children's Spacey Foundation. The EFE-Global support network Film Festival including its regional hub in the UAE provides assistance, capacity building, • Middle East Theatre Academy training, expertise and networks to (META)- Home Grown Project support EFE affiliates in the Middle Sharjah International Children’s Film East and North Africa in implementing Festival: focused youth employment programs and fostering entrepreneurship.

Community Case study Arab Women Sports Global Gumbo Tournament Group launches 'Bokra the Film' In 2014, 'Bokra the Film' Crescent Enterprises’ sponsorship premiered at the Dubai of the six-day SICFF further helps to International Film Festival. engage children with the arts. The Created by Emirati filmmaker objective of the festival is to enhance Ahmed Abdulqader, the film the media literacy of children and documents the origin and impact young people, foster children’s of Quincy Jones and Global Crescent Enterprises supported the creativity, and showcase the best in Gumbo Group’s charity single 2nd Arab Women Sports Tournament, filmmaking for, by, and about children “Bokra: Tomorrow”. The aim of organised by the Sharjah Ladies Club. and young people. the project was to demonstrate The women-only event celebrates the the charitable work that the progress of female athletes across single had contributed towards the region and was a great success. Impact created: and take the cause to a wider Participants competed in a range of • 144 submissions received, audience for more support. The traditional and contemporary sports, showcased 112 films from 38 Bokra project has raised funds for including basketball, volleyball, table countries, including documentaries, several programs with the aim of tennis, shooting, athletics, fencing, animation and child-made films. engaging and developing young and archery. people through art. Donations to Home Grown Project: Save the Children's Healing and Impact created: Crescent Enterprises funded the Home Education through Art (HEART) Grown Project, an intensive two-week enabled over 5,000 children • 900 female athletes from 14 theatre training programme run by the and more than 450 parents countries competed in Middle East Theatre Academy (META) in Palestine and Jordan to seven games. under the direction of the Kevin Spacey participate in arts activities which Foundation. The objetive of the Home they will be able to nurture in their Grown Project is to introduce, influence Arts & Culture communities. Contributions to and nurture youth in the region in the One area of education often art of theatre, stage performance and the Abu Dhabi Music and Arts overlooked for its importance related education, and to motivate Foundation (ADMAF) facilitated in a young individual’s growth and underprivileged children and teenagers creative workshops which 463 achievements has been art, which to reach their full potential young people and children with is why in 2014 Crescent Enterprises special needs participated in.

Sustainability Report 2014 39 Environmental stewardship KPI update

Our commitment to carbon management is a key driver for efficiency within our operations. Our carbon reduction programme in the EU has resulted in a significant reduction in CO2 emissions by almost 50 per cent. This is based on a forecast of 18,000 tonnes at the inception of the programme in 2010/11 At Crescent Enterprises, we are certified management system to to just over 9,000 tonnes in placing increasing emphasis on track and improve their environmental 2014. We regard this to be managing our environmental impact performance. At Gama Aviation, a considerable investment and increasing resource efficiency. As given that the aviation industry is towards climate stability for part of our commitment to Principle 8 responsible for around 12 per cent* future generations. of the undertake initiatives to promote of the transportation sector’s global greater environmental responsibility’, emissions, the company works to Crescent Enterprises encourages reduce its contribution to the risk of Hannah Smith, conscious consumption of natural global warming by running a carbon Head of Risk resources. This section provides more management programme to ensure Management detail on our performance this year, compliance with EU emissions and Assurance, with case studies from Gulftainer and regulations. Gama Aviation Gama Aviation in leading practises. Gulftainer has implemented an ISO

* Air Transport Action Group (ATAG), Facts and Figures webpage http://www.atag.org/ facts-and-figures.html,

40 Sustainability Report 2014 Energy Waste We continue our efforts to improve resource efficiency. At the Crescent Group level (Crescent Petroleum and In 2014, we have successfully reduced the amount of Crescent Enterprises) we have increased the amount of electricity consumed per employee by 20 per cent at paper recycled this year, amounting to the equivalent of 161 Crescent Enterprises’ headquarters. trees saved from destruction (as measured by our paper recycling contractor Shred-it). We report this at the group level as we do not separate paper recycled by organisation. 2014 2013 % Change Electricity consumption 2014 2013 % Change 6,527 8,122 -20% per employee (kWh) Number of trees saved from destruction by recycling paper 161 128 26% Case study at Crescent Group

Electricity savings at CPS Case study Managing waste at In 2013, CPS set a target to reduce electricity consumption by 35 per cent of 2013 levels. CPS Gulftainer exceeded this, with a 54 per cent reduction in 2014: Gulftainer has developed its own Waste Management Plan, which ensures compliance to ISO 14001:2004 2014 2013 % Change Environmental Management System standard re- Electricity quirements. Gulftainer regularly engages employees 197,5 4 0 429,280 -54% consumption (kWh) on waste management requirements through periodic in-house briefings. Gulftainer has been successful in continuing its Water Reduce-Reuse-Recycle initiatives, which have been spread across all facilities in the UAE. Through its We have managed to reduce the amount of water partnership with Bee’ah and other government au- consumed per employee at Crescent Enterprises this year. thorised disposal authorities, it is now able to safely In the arid environment of the UAE, conscious consumption dispose of hazardous waste and e-waste, significantly of water is crucial for managing this precious resource. reducing its potential impact on soil and water quality. Waste oil, batteries, steel, used toner cartridges, tyres 2014 2013 % Change and any other by-products of its operations, are all disposed of through government authorised disposal Water consumption per 1,415 1,515 -7% employee (gallons) companies. Spilled oil is contained and cleaned up immediately to prevent contamination and long-term damage. Case study Gulftainer wastewater treatment and recycling

In order to reduce water consumption, Gulftainer uses closed water recycle systems for the dedicated washing bays. There is also a wastewater recycling initiative at its container repair facilities, where wastewater generated at Gulftainer facilities is recycled within the terminals. This recycling initiative is monitored and the facilities are inspected regularly by government authorities. Materials used for wastewater treatment meet industry specifications and requirements.

Sustainability Report 2014 41 Gulftainer – total waste generated (kg)

Through its partnership with Bee’ah, Mixed Gulftainer has improved waste 2014 272 management tracking and performance. 2013 540 All materials are now logged and accounted for, giving Gulftainer more E-waste Metal accurate waste data. Data presented for 2014 2,610 2014 680 2013 only starts from April to December. 2013 1,550 2013 2,000 As a result of the better tracking, Gulftainer identified an increase in both paper/card waste and hazardous waste Paper/card since last year. Waste quantities have 2014 6,379 reduced in the following categories in 2014: 2013 540 • E-waste generation has been reduced Other because new control measures have been introduced by IT to cut 2014 1,276 consumption of items such as ink Not cartridges. 2013 applicable Hazardous • Scrap metal waste has been reduced 2014 54,210 as it was only disposed of once Plastic Gulftainer – through Bee’ah and all other times total amount 2013 22,700 2014 1,120 scraps were sold by Procurement and of waste by Not Stores. 2013 type (kg) applicable • Mixed waste has been reduced because Gulftainer started categorising the wastes generated and disposing them item wise in a controlled way from 2014 onwards. Gulftainer – amount of waste recycled* (kg)

2014 8,175 2014 2,610 2014 23,985 2013 2,160 2013 2,300 2013 19,400 Office Collection e-Wastes Used Tyres (Paper, Plastic Bottles and Cans) (Used Computer Peripherals)

2014 17,100 2014 1,552 Total recycled 2013 26,000 2013 4,000 2014 53,422 Used Batteries and Filters General Scrap 2013 53,860 (Metal and polyvinyl chloride (PVC )

*Annualized data for 2013. Gulftainer started working with Bee’ah on waste management at its Sharjah facilities in July 2013.

42 Sustainability Report 2014 Quality Management Systems Case study Waste management Case study and compliance at Gulftainer’s Integrated Gama Aviation Management System Gama Aviation is subject to UK HSE laws, monitoring programme including the Waste Electrical and Electronic Equipment (WEEE) directive. The company Gulftainer was successful in renewing the certification continues to recycle its waste through the for its Integrated Management System and implemented charitable WEEE recycling programme. In ISO 9001:2008 for Quality Management, ISO 14001:2004 addition, there is a waste management contract for Environmental Management System and OSHAS for in place with Safety Kleen for all hazardous Occupational Health and Safety Assessment System. waste. Regular internal audits are conducted on a monthly basis and external audits annually by the certification body – DNV. In addition to this, Gulftainer is regularly audited by Case study customers and other groups, including award bodies, which Clinical waste verify processes, performance and compliance to ISO as management at CPS part of their review procedures. • To conduct minimum of four internal audits per month. CPS takes extra care to ensure medical waste is • To reduce non-conformances in the process disposed of and treated to prevent health risks or performance. soil contamination. CPS produces approximately 960kg of clinical waste per year, in addition to • To improve the organisation in line with Integrated an unspecified amount of domestic waste. Any Management Systems standard guidelines and to microbial clinical waste is autoclaved to ensure sustain the current certificate. that it is rendered non-infectious before disposal. Clinical waste is directly linked to work volumes so is hard to reduce. CPS does encourage its employees to manage domestic waste by Gama Aviation targets stronger reducing printouts and reusing and recycling management systems paper where possible. CPS is also investigating Gama Aviation plans to fully implement environmental electronic data management between CPS and management and health and safety management systems referral labs to further reduce reliance on paper in at all of its UK limited companies to boost performance. The the data entry process. implementation programmes for ISO 14001 and OHSAS 18001 standards are a target for 2015.

Biodiversity

Case study Turtles and container ships at Gulftainer Conservation of marine life is a primary concern to Gulftainer, since it operates in such close proximity. The rigorous implementation of our marine conservation policy is evident at its container terminals, where turtles can be seen swimming close to huge container ships. Gulftainer partners with the Emirates Wildlife Society-World Wildlife Fund (EWS-WWF) and, as a Corporate Member, Gulftainer has confirmed its ongoing commitment and support to the EWS-WWD to ensure a sustainable future for the UAE, by addressing biodiversity conversation needs, environmental education gaps and contributing to lowering its impact on the fragile marine ecosystem. Since the Marine Turtle Conservation Project ended after three years of data collection, the EWS-WWF has commissioned experts to review the data and advise them on how best to proceed.

Sustainability Report 2014 43 GRI G4 Content Index

GENERAL STANDARD DISCLOSURES General Standard Page Number (or Link) UNGC Disclosures STRATEGY AND ANALYSIS G4-1 Pages 2-3

ORGANISATIONAL PROFILE

G4-3 Inside cover G4-4 Page 4 G4-5 Page 5 G4-6 Page 5 G4-7 Page 4 G4-8 Pages 6-7 G4-9 Page 5 (employees); Page 25 (operations) G4-10 Page 33 Principle 6 G4-11 None. Collective bargaining agreements are prohibited by UAE labour law Principle 3 G4-12 Page 6-7 G4-13 Page 33 (employee changes) G4-14 Page 9 Principle 7 G4-15 Pages 9-10 Principle 10 G4-16 Page 10

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 Page 4 G4-18 Pages 12-13 G4-19 Pages 12-13 G4-20 Pages 12-13 G4-21 Pages 12-13 G4-22 Pages 25-26, 42 G4-23 Pages 12-13

STAKEHOLDER ENGAGEMENT

G4-24 Pages 12-13 G4-25 Pages 12-13 G4-26 Pages 12-13 G4-27 Pages 12-13

44 Sustainability Report 2014 REPORT PROFILE

G4-28 Inside cover G4-29 2013 G4-30 Annual G4-31 Inside cover Report is developed using the G4 core requirements. GRI Index can be found G4-32 on pages 44-45. G4-33 No external assurance was sought for this report.

GOVERNANCE

G4-34 Pages 8-9

ETHICS AND INTEGRITY

G4-56 Pages 9-11 SPECIFIC STANDARD DISCLOSURES General Standard Page Number (or Link) UNGC Disclosures

MATERIAL ASPECT: ECONOMIC PERFORMANCE

G4-DMA Pages 24-25

G4-EC1 Page 25

G4-EC3 Pages 30-31

MATERIAL ASPECT: INDIRECT ECONOMIC IMPACTS

G4-DMA Page 28-29 G4-EC7 Pages 26-29 CATEGORY: ENVIRONMENTAL

MATERIAL ASPECT: ENERGY

G4-DMA Page 40-43 Principle 8 G4-EN3 Page 38 (initiatives to reduce consumption); Page 41 Principle 9 CATEGORY: SOCIAL MATERIAL ASPECT: EMPLOYMENT

G4-DMA Pages 31-32 G4-LA2 Pages 31-32 Principles 1-6

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK

MATERIAL ASPECT: TRAINING AND EDUCATION

G4-DMA Pages 31-32 G4-L A10 Pages 31-32

MATERIAL ASPECT: ANTI-CORRUPTION

G4-SO4 Page 9-10 Principle 10

Sustainability Report 2014 45 Crescent Enterprises Crescent House Buhairah Corniche, PO Box 2222, Sharjah, United Arab Emirates

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