SUSTAINABILITY | NET POSITIVE OUR PATH TO A NET POSITIVE FUTURE Contents

About our company 3

A message from our Chief Executive Officer 4

A message from our Chief Sustainability Officer 5

Our sustainability strategy 6

What is Net Positive? 7

Our Net Positive journey 8

Our markets in 2016 10

Our portfolio in 2016 11

Majid Al Futtaim - Properties 12 Introduction 13 Carbon and water footprint breakdown 14 Targets and action plans 15

Majid Al Futtaim - Retail 16 Introduction 17 Carbon and water footprint breakdown 18 Targets and action plans 19

Majid Al Futtaim - Ventures 20 Introduction 21 Carbon and water footprint breakdown 22 Targets and action plans 23

A message from the Minister of Climate Change & Environment 25

Carbon and water footprint data 26

Sustainability glossary 27

2 ABOUT OUR COMPANY

BUILT FROM A SINGLE VISION exclusive rights to the Carrefour franchise in 38 markets across the Founded in 1992, Majid Al Futtaim Middle East, Africa and Asia, and Majid Al Futtaim 2016 is the leading shopping mall, operates a portfolio of more than communities, retail and leisure 175 outlets in 14 countries. pioneer across the Middle East, Africa and Asia. Majid Al Futtaim operates 284 VOX Cinema screens and 24 Magic A remarkable business success Planet family entertainment story, Majid Al Futtaim started centres across the region, in from one man’s vision to addition to iconic leisure and transform the face of shopping, entertainment facilities such as entertainment and leisure to Ski and , among ‘create great moments for others. 560m everyone, every day’. It has since visitors annually grown into one of the United Arab The company is parent to the Emirates’ most respected and consumer finance company successful businesses spanning 16 ‘Najm’, a fashion retail business international markets, employing representing international brands more than 40,000 people, and such as Abercrombie & Fitch, obtaining the highest credit rating AllSaints, lululemon athletica, (BBB) among privately-held Crate & Barrel and Maison du corporates in the region. Monde; and a healthcare business that operates five City Centre By 2016, Majid Al Futtaim owned Clinics. In addition, and operated 20 shopping malls, Majid Al Futtaim operates Enova, 12 hotels and three mixed - a facility and energy management 40k use communities, with further company, through a joint venture employees developments underway operation with Veolia, a global in the region. leader in optimised environment The shopping malls portfolio resource management. The includes , Company also owns the rights to City Centre malls, My City Centre the LEGO Store and American Girl neighbourhood centres, and four in the Middle East and operates community malls which are a in the food and beverage industry joint venture with the Government through a partnership with of Sharjah. The Company holds Gourmet Gulf. 16 countries

BBB credit rating

3 A MESSAGE FROM OUR CHIEF EXECUTIVE OFFICER

Alain Bejjani Chief Executive Officer Majid Al Futtaim - Holding

FIRST STEPS ON OUR PATH TO we must work together – we A POSITIVE FUTURE need to share our ideas, inspire innovation and celebrate each Our vision is to create great other’s achievements. moments for everyone, everyday and it is imperative that we do NEW SUSTAINABILITY that without compromising the FRAMEWORK environment. At the beginning of Net Positive is an integral part of 2017, we launched our Net Positive our new Sustainability Strategy, commitment. Now we are starting “Dare Today, Change Tomorrow” to change the way we do business which embraces all of our as part of this commitment. Operating Companies. The new The beauty of Net Positive is the sustainability strategy focuses simplicity behind it – it is just one on three key areas: Transforming target, one goal that people can Lives, Rethinking Resources and get behind. This journey towards Empowering Our People. One achieving this target will present us sustainability strategy for the with challenges and opportunities entire business will help us achieve as we substantially shift the way we ambitious goals together. operate. We have many wonderful people OUR TARGETS FOR 2022 who are passionate about sustainability and I encourage In order to make achieving Net everyone to step up to this Positive more manageable, we challenge as it provides each of broke our journey down into us with a platform to make a real phases. We have already taken the difference. Collaboration is now first big step of quantifying our more crucial than ever and it is carbon and water impacts across encouraging to see people from all operating companies enabling different parts of the business us to set ambitious targets and united by a common goal. We will engage with stakeholders across achieve Net Positive together. our business. I am proud to announce that we have set a bold 37% absolute operational carbon and water footprint reduction target for each Operating Company by 2022. We have already seen great success stories across all Operating Companies, but the whole is greater than the sum of its parts. To achieve Net Positive

4 A MESSAGE FROM OUR CHIEF SUSTAINABILITY OFFICER

Ibrahim Al-Zu’bi Chief Sustainability Officer Majid Al Futtaim - Holding

WE HAVE SET THE FOUNDATIONS energy and water efficiency. As FOR NET POSITIVE part of the action plans, we will be rolling out training programmes In 2017 we worked together across to facilitate behavioural change all three Operating Companies to and to ensure good understanding understand our Company-wide of our goals and opportunities at impacts. We have completed an all levels of the organisation. We in-depth analysis of our water will work together to align best and carbon footprint across all of practices and to find a way forward our assets and operations. This for Majid Al Futtaim. extensive exercise has created a solid foundation on which to ACHIEVING OUR KEY implement our Net Positive TARGETS INNOVATION actions. Through the collective We are already leaders in effort of our sustainability teams, sustainability in our region but to we have set ambitious carbon and achieve Net Positive we need to water reduction targets for 2022 transform the way we operate. – a significant milestone on our We must seek out opportunities journey towards Net Positive. to innovate and explore digital and OUR CARBON AND technological solutions as a WATER FOOTPRINT way forward. Establishing a comprehensive Sustainability and innovation are carbon and water footprint has two sides of the same coin. I am allowed us to analyse our impacts sure that if we harness innovation, at Operating Company, country, we will overcome any challenges business unit and asset levels. that we face on our Net Positive Having obtained such detailed journey. data we are now able to focus our efforts at key areas where large efficiency improvements can be implemented. Using this data, we were able to set ambitious but achievable targets and support our efforts with detailed action plans. OUR ACTION PLANS FOR ACHIEVING NET POSITIVE We will start 2018 on a strong note with our action plans to achieve the targets, which are already in place. We will be implementing our action plans to make significant reductions through

5 OUR SUSTAINABILITY STRATEGY

Having first developed a material to the business based on key focus area – Transforming sustainability strategy in 2011, a review of international standards Lives, Rethinking Resources and Majid Al Futtaim - Properties have and market requirements, the Empowering Our People – already implemented best practice United Nations’ Sustainable Majid Al Futtaim have set goals to standards and achieved regional Development Goals (UN SDGs) deliver positive economic, social sustainability leadership in its and research into the risks and environmental outcomes sector most recently pioneering the present in key markets. This was based on those issues which are establishment of internationally complemented by research on most material to the business. leading Net Positive commitments sustainability innovation and best These goals are underpinned to tackle carbon emissions and practices demonstrated by leading by Sustainable Business water management. international companies. Commitments (SBCs) which all Operating Companies must uphold. In 2017, Majid Al Futtaim This process enabled The Properties, Retail and Ventures recognised the opportunity Majid Al Futtaim to develop an businesses will each set in motion to develop a comprehensive aspirational strategy, targets and action plans tailored sustainability strategy that “Dare Today, Change Tomorrow”. to their specific activities and will would embrace all its Operating It is based on key focus areas be accountable at a Group level for Companies. This started with and a robust framework for implementing the actions required the identification and mapping implementing sustainability to deliver Majid Al Futtaim’s vision of social, environmental and standards across each of the and sustainability goals. governance issues which are most Operating Companies. Under each DARE TODAY CHANGE TOMORROW A way of life for a positive future

TRANSFORMING LIVES We dare to transform the lives of the communities we serve, to provide a RETHINKING healthy, fulfilling and RESOURCES sustainable way of life We dare to rethink our use of resources to make a Net Positive Impact EMPOWERING OUR PEOPLE We dare to empower our people to unlock their full potential

6 WHAT IS NET POSITIVE?

ISSUES SUCH AS CLIMATE To achieve our Net Positive COLLABORATION AND SHARING CHANGE AND RESOURCE commitments in carbon and water EXPERIENCE IS CRITICAL TO SCARCITY PRESENT SIGNIFICANT we will therefore carefully plan our SUSTAINABILITY ENVIRONMENTAL AND SOCIAL actions and approach. We believe, collaboration is at the RISKS THAT WE CAN NO BY TAKING THE LEAD, WE ARE very core of Net Positive LONGER IGNORE READY TO DEMONSTRATE and we think that methods is changing faster than BENEFITS OF THE NET POSITIVE will continue to evolve as more ever. The global population already APPROACH companies make Net Positive consumes 1.5 times the resources To date a handful of leading global commitments. that can be renewed in a year and companies have implemented For this reason, we are certain the global population is expected to a Net Positive approach and that working together, building grow from 7.5 billion people in 2016 commitments, such as IKEA, partnerships and sharing best to 9 billion by 2050. Kingfisher and Hammerson among practise are key parts of Net For companies operating in the others. The early implementers Positive approach and is critically Middle East climate change already see not only sustainability important for mainstreaming impacts are particularity apparent, benefits but also business benefits. change. including raising costs and Although the exact route of We believe that sustainability consumer satisfaction concerns. implementation of the Net is contagious and Net Positive Although to date sustainability Positive approach taken varies represents an unprecedented programmes have been driven slightly and there are no readily transition, which will change the by regulation, risk management, available solutions, we believe that role of business in sustainability reputation and cost efficiencies, sustainability and business benefits and wider society. we recognise that putting outweigh any uncertainties. sustainability at the core of We at Majid Al Futtaim, among other business strategy is the key global leaders, are ready to pave a to our success in the twenty-first way demonstrating the benefits of century economy. the Net Positive approach. FOR THIS REASON WE ARE TECHNOLOGICAL INNOVATION IS COMMITTED TO BECOMING NET THE BACKBONE OF NET POSITIVE POSITIVE IN OUR KEY MATERIAL AREAS – CARBON AND WATER Real time monitoring of our carbon and water footprint will allow us to Net Positive is an approach that maintain our focus on key areas. Live means doing more good than bad. data collection and automation will It goes beyond ‘doing no harm’ and enable us to optimise our systems. urges businesses to have a positive New communication channels will impact on the world rather than support awareness campaigns and just trying to reduce their impact. facilitate behaviour change. The concept suggests a holistic We are producing a technical approach, positioning core guidance paper to support our business activity at the heart Net Positive action plans. We will of actions towards sustainable review best practice and innovative practice, and encourages solutions, analyse successful case acknowledgement and studies in our region and align our prioritisation of impacts that are approach across the entire business. linked to business profitability, risk and opportunity.

7 OUR NET POSITIVE JOURNEY

We set out on our Net Positive milestone in 2022, when we will starting our tenants’ journey to Net journey with a plan to gradually have reduced our operational Positive in the same year. We will reduce our carbon and water carbon and water footprint by 37% use our experience to support them footprint to reach key milestones across all Operating Companies. every step of the way while we work before we become Net Positive This milestone is particularly on a positive contribution to the in 2040. We will reach the first significant as we will also be environment together.

Operational Footprint Developments Footprint Tenant Footprint

Setting the baseline Established preliminary Launched our Starting baseline to commitment to our tenants’ set the scope be Net Positive journey to of Net Positive by 2040 Net Positive 100%

Published Net Positive White Paper

37% reduction Established in operational detailed carbon and carbon water footprints and water footprints

Set Operational Company targets for 2022

Created Operational Company action plans for 2018 0% 2016 2017 2022

8 Our operational footprint will be Net Positive by 2030

Our tenants and developments will achieve Net Positive by 2040

2030 2040

9 OUR MARKETS

UAE 46% of our carbon footprint 60% of our water footprint

EGYPT 21% of our carbon footprint 14% of our water footprint

REMAINING PORTFOLIO 33% of our carbon footprint 26% of our water footprint

Establishing a detailed carbon and environment, we are able to test and The remaining quarter of our water footprint across our three implement new solutions powered footprint is spread across the Operating Companies has allowed by technological innovation. 13 countries in the rest of our us to understand our Company- portfolio, presenting us with unique Another quarter of our water and wide impacts in order to lay a solid challenges in each market. carbon footprint lies in Egypt, foundation to implement our Net presenting us with a different set Rolling out a single solution or Positive actions. This analysis of infrastructure challenges. approach will not work here as has allowed us to evaluate the each country has diverse water challenges and opportunities in WHAT CHALLENGES? sources and electricity grid different regions and countries. Working closely with the regional compositions, and varying levels Half of our footprint is in the teams, we will be able to share of infrastructure and access to , which leads solutions that work best in each technological solutions. the region in energy and water area, utilising local expertise infrastructure and innovation. In this and resources.

10 OUR PORTFOLIO IN 2016

MAJID AL FUTTAIM - PROPERTIES MAJID AL FUTTAIM - RETAIL MAJID AL FUTTAIM - VENTURES

38 ASSETS 222 ASSETS 217 ASSETS

Large portfolio of malls, hotels and Large portfolio of hypermarkets, Large diverse portfolio communities supermarkets and support buildings of various ventures

Large carbon and water footprint Large footprint across many similar Small carbon footprint (5%) across across complex assets assets many diverse assets

UNIQUE APPROACH Footprint reduction at individual A programme rolled out across A diverse portfolio will assets will have a significant two hundred assets will have a require individual solutions effect on the overall footprint due large overall effect with a focus and innovation will be key to the size of our assets on quantity and replication in achieving targets

11 MAJID AL FUTTAIM - PROPERTIES “We have already established ourselves as a pioneer of sustainability in the MENA region, but this year we have taken our environmental commitments to a much higher level through our Net Positive approach. We at Majid Al Futtaim - Properties Robert Welanetz look forward to taking this Company-wide commitment Chief Executive Officer forward through achieving our Majid Al Futtaim - Properties ambitious 2022 targets. To achieve these targets, we will need to push our boundaries and continue to lead by example.”

12 MAJID AL FUTTAIMMAJID - PROPERTIES Introduction to Majid Al Futtaim - Properties Majid Al Futtaim - Properties 2016

Majid Al Futtaim – Properties is the Middle East & North Africa’s (MENA’s) leading diversified real estate and property services company with a regional portfolio of innovative, world-class shopping malls, hotels and mixed-use communities In 2016 we had a portfolio of 20 20 12 shopping malls hotels malls, 12 hotels, three mixed- use communities and four office buildings across the United Arab Emirates, Egypt, Lebanon, Bahrain and Oman. In 2016, our malls attracted more than 178 million visitors, and our hotels welcomed more than 1.6 million guests. Majid Al Futtaim – Properties 178m+ 3,371 visitors annually rooms and suites employs more than 1,000 people.

4m sqm 1,300+ combined land area families living in our communities

FOOTPRINT IN CONTEXT Majid Al Futtaim – Properties has the largest carbon and water footprint of our three Operating Companies and unlike the rest of the Group, our footprint is spread across a small number of assets. Consequently, a large reduction in our footprint of any of these assets will have a strong impact on the overall footprint. 3 582,531 tCO2e 4,512,917 m Majid Al Futtaim – Properties accounts for 54% of the total carbon footprint and for 71% of the total water footprint. 54% of total footprint 71% of total footprint

13 MAJID AL FUTTAIMMAJID - PROPERTIES Carbon and water footprint breakdown

With the majority of our footprint COUNTRIES WITH THE LARGEST FOOTPRINT situated in the UAE, we will benefit from government led clean and renewable energy policies. The positive political environment for technology and innovation will help us drive our ambition forward. UAE Egypt Bahrain Other

Operational footprint

Our operational footprint evaluates BREAKDOWN BY BUSINESS UNIT the greenhouse gas emissions and water consumption during the operation phase of a property. 350,858 tCO e 4,078,618 m3 Malls have the highest operational 2 carbon impact in the existing 80% Malls 63% Malls Majid Al Futtaim – Properties portfolio. Hotels are the next highest emitter in the existing 16% Hotels 13% Hotels portfolio. Communities have the highest water consumption in the existing 3% Offices 2% Offices portfolio, accounting for 22% of the operational water footprint. With significant community 1% Communities 22% Communities developments underway, the absolute water footprint is forecasted to increase and CARBON EMISSIONS SOURCES communities will account for the majority of our water footprint. 99% This highlights the area where we Electricity Refrigerants Fuels Other can achieve the highest savings in our water footprint.

Developments footprint Developments footprint evaluates BREAKDOWN BY BUSINESS UNIT greenhouse gas emissions and water consumption during the development phase of a property. 3 231,673 tCO2e 434,299 m Developments currently accounts for 40% of carbon 76% Malls 93% Malls impacts with embodied carbon from construction materials representing the biggest 24% Communities 7% Communities proportion of this impact. While this poses a significant challenge, it also gives us the opportunity CARBON EMISSIONS SOURCES to help reduce future operational costs through the use of smart 99.9% design and sustainable building materials. Embodied Carbon Electricity Other

14 MAJID AL FUTTAIMMAJID - PROPERTIES

“We have great success stories to build on en route to our Net Positive targets. City Centre Me’aisem is a prime example of our success, showcasing a water recycling system and a solar panel lighting solution to address both our water and carbon footprints. In 2015 we generated 392 MWh of renewable electricity in our Malls Hamad Al Lawati with another 26 MWh generated Mall Management in Community Malls. To achieve Majid Al Futtaim - Properties Net Positive, we will need to make bold decisions and employ innovative solutions across our portfolio.”

Targets and action plans

Establishing a detailed carbon and Opportunities: water baseline has allowed us to • Different Operating Companies set an ambitious 37% reduction and Business Units can work target for both carbon and water by together to source sustainable 2022 on our journey to Net Positive. materials To achieve this target, we will need to build on our current success and • Procurement policy to encourage work closely as a business. group buys of energy efficient technologies and materials To make the target more across the business manageable, we are producing action plans for each year leading to 2022. These action plans will set milestones at portfolio, business Challenges: unit, country and asset levels, allowing us to tailor our approach. • High cost of low embodied carbon materials for We will face many challenges and developments e.g. recycled limitations but each of them will aggregate provide us with opportunities to innovate. • Limited roof space for renewable installations In our Al Zahia Community, we have a solid foundation to build • Power cuts and restrictions on upon: we are already using LED for renewables all our light fittings and recycling water from the sewage treatment plant. Furthermore, we have already installed 7,000 solar panels in the Mall of the Emirates with a capacity of 2 MWh.

15 MAJID AL FUTTAIM - RETAIL

“Majjid Al Futtaim – Retail joined our Company-wide Net Positive commitment by setting bold 2022 targets. We have worked across all countries and operations to understand our impacts and developed detailed action plans to meet our targets. Hani Weiss This is a measure of how far we have come since the beginning of Chief Executive Officer 2017 and we are excited to build Majid Al Futtaim - Retail on this success to scale up our ambitions. There is a long way to go but together we can become Net Positive.”

16 Introduction to AL FUTTAIMMAJID - RETAIL Majid Al Futtaim - Retail Majid Al Futtaim - Retail 2016

Majid Al Futtaim – Retail owns and operates 100% of the Carrefour franchise in 38 markets across the Middle East, Africa and Asia. The brand ensures customer satisfaction and convenience while offering unbeatable value for money. Carrefour offers a 117 2.2million vast array of more than 100,000 hypermarkets & supermarkets visitors per year products from home electronics and clothing, to fresh fruits from around the world and locally produced items. The Carrefour hypermarkets are the industry leaders in product selection and price guarantee. While the supermarkets are smaller in scale, they offer a great variety of products catering to the 29,000+ 14 everyday needs of the surrounding staff countries community. Over the last 20 years, this brand has grown from strength to strength in the region, and at Majid Al Futtaim we are committed to growing it even further.

2million+ m2 227 total floor area assets

FOOTPRINT IN CONTEXT Majid Al Futtaim – Retail have a large carbon and water footprint that is spread across multiple assets dominated by hypermarkets and supermarkets. Majid Al Futtaim – Retail accounts for 40% of the total carbon footprint and for 25% of the total water footprint. 3 426,670 tCO2e 1,611,615 m

40% of total footprint 25% of total footprint

17 MAJID AL FUTTAIMMAJID - RETAIL Carbon and water footprint breakdown

Footprint breakdown by country

The Majid Al Futtaim – Retail BREAKDOWN BY COUNTRY portfolio covers all 16 countries of our operations. UAE, Saudi Arabia, Egypt and Jordan are the top four countries by carbon footprint while UAE, Egypt, Qatar and Saudi 36% 14% 10% 8% Arabia account for 75% of our UAE SAUDI ARABIA EGYPT IRAQ water footprint. REMAINING COUNTRIES 32% The wide area of operations brings about its own set of opportunities and challenges due to differences in infrastructure, utility and technology costs and political environment. Focusing 45% 15% 9% 7% innovation on countries with a UAE EGYPT QATAR GEORGIA larger footprint, particularly the UAE, will help trial our approach REMAINING COUNTRIES 24% before rolling it out to countries with fewer assets and more expensive technology.

Footprint breakdown by business unit Hypermarkets and supermarkets BREAKDOWN BY BUSINESS UNIT differ in size but the assets within this portfolio are largely comparable.

Hypermarkets have the largest 426,670 tCO e 1,611,615 m3 carbon footprint in the portfolio 2 and together with supermarkets 76% Hypermarkets 57% Hypermarkets account for 94% of our carbon footprint. Addressing this footprint will be a balance between rolling 18% Supermarkets 13% Supermarket out standard footprint reduction programmes and solutions tailored to local markets. 3% Staff Accommodation 24% Staff Accommodation A quarter of our water footprint originates from our staff <1% Warehouse 4% Warehouse accommodation as water is used in the day to day lives of our employees. Employee engagement 3% Office 2% Office will be key to address this area of our footprint. CARBON EMISSIONS SOURCES Electricity by far has the highest impact on our carbon footprint 88% 9%

across all assets (88%) with the Electricity District Cooling Refrigerants Other remainder dominated by district cooling. This is largely due to the amount of chilling equipment used in our daily operations, and while cold temperature is essential for food storage, the efficiency of these appliances can be improved.

18 MAJID AL FUTTAIMMAJID - RETAIL

“Our commitment to Net Positive is driving us to innovate and rethink how we manage our resources. Having had great success with the roll-out of LED lighting, we will trial various new carbon and water efficiency measures in our stores. Successful solutions will be rapidly implemented in multiple Sustainability Team locations and significantly reduce our carbon and water footprint. Majid Al Futtaim - Retail Our team is excited to be in the vanguard of change for Majid Al Futtaim – Retail and hope to inspire our people across the business.”

Targets and action plans

The reduction targets are Opportunities: ambitious, but in some markets, • Plenty of opportunities for energy the main target is to have water efficiency in stores, e.g. bakery and electricity on a permanent section, refrigeration units basis. Cost and access to technology varies greatly from • Working together with malls country to country as well. Working • Futureproofing buildings and closely with our regional teams will installations against climate ensure that we share best practice change impacts and tailor solutions to each market. • Our expansion is an opportunity A large proportion of our electricity to get things right at the consumption could be reduced development stage by improving the efficiency of our chillers, forklifts and cooking appliances, which will require significant investment across Challenges: the board as well as regular maintenance. • Average lifetime of store equipment is between 10 and 20 In addition to improvement of years across the store portfolio equipment, we will be able to achieve significant savings through • Old structures and designs of staff awareness campaigns as this some stores will not only address energy and • Poor water and energy water efficiency at work but also infrastructure and availability in tackle our footprint at our staff some markets accommodation facilities. • High energy costs in some Establishing a detailed carbon and markets water footprint has allowed us to set our targets for 2022 and high quality data will guide our action plans for years to come.

19 MAJID AL FUTTAIM - VENTURES

“Sustainability is becoming a big part of our daily lives and we are excited to make it an integral part of our customer experience. In 2017, we have taken a big step towards Net Positive by measuring our carbon and water footprint, which allowed us to set ambitious but achievable milestone targets on our journey towards Net Ahmed Galal Ismail Positive. Chief Executive Officer This is a great opportunity for our Majid Al Futtaim - Ventures business units to work together with our colleagues across all Majid Al Futtaim Operating Companies in achieving our bold commitments.”

20 MAJID AL FUTTAIMMAJID - VENTURES Introduction to Majid Al Futtaim - Ventures Majid Al Futtaim - Ventures 2016

Majid Al Futtaim – Ventures was founded with the purpose of combining all Majid Al Futtaim’s leisure, entertainment and business ventures under one platform. Majid Al Futtaim - Ventures includes leading fashion brands and popular leisure and entertainment 7 3,985 brands such as VOX Cinemas, business units staff Magic Planet, , iFly Dubai, Orbi Dubai and Wahooo!. Also included are the award winning Majm Visa credit card range, the City Centre Clinic, an energy and facilities management solutions company called Enova, and a partnership with Gourmet Gulf. Businesses managed by Majid Al Futtaim – Ventures 31 217 include: Cinemas, Unique Theme number of brands assets Parks, Family Entertainment Centres, Fashion, Specialty Retail Stores, Consumer Finance, Healthcare, Facilities & Energy Management, and Food & Beverage.

220k+m2 9 total floor area countries

FOOTPRINT IN CONTEXT Majid Al Futtaim – Ventures has a smaller carbon and water footprint than the other Operating Companies. Majid Al Futtaim – Ventures are responsible for 6% of the overall carbon footprint and for 4% of the overall water footprint. 3 66,526 tCO2e 263,355 m

6% of total footprint 4% of total footprint

21 MAJID AL FUTTAIMMAJID - VENTURES Carbon and water footprint breakdown

Footprint breakdown by country

The Majid Al Futtaim – Ventures BREAKDOWN BY COUNTRY portfolio is spread over 9 of the countries we operate in. UAE has by far the highest carbon footprint at 79% with the next three largest by footprint countries being Bahrain, 79% 9% 3% 3% Saudi Arabia and Egypt. UAE is also UAE OMAN EGYPT the top water consumer at 61%, BAHRAIN while Bahrain, Lebanon and Kuwait REMAINING COUNTRIES 12% account for the next 29% of water consumption.

61% 12% 11% 5% UAE BAHRAIN LEBANON KUWAIT

REMAINING COUNTRIES 11%

Footprint breakdown by property Leisure & Entertainment currently TOP CONSUMING PROPERTIES accounts for the biggest share of our carbon and water footprint. VOX has the second highest carbon and water impact followed by Food Operational Carbon Operational Water (tCO e) (m3) & Beverage. 2 Our footprint varies significantly 22,818 Ski Dubai (34%) 62,312 Ski Dubai (26%) within the Business Units and Mall of the Emirates Mall of the Emirates even between individual assets. Establishing a detailed carbon and water footprint was a big 4,039 Wahoo! Water Park (6%) Vox Cinema (10%) step towards managing our data Bahrain 24,058 City Centre Beirut and with the installation of smart meters and other tracking systems 3,511 Magic Planet (5%) Mall of the Emirates 23,327 Wahoo! Water Park (10%) underway, we will be able to closely Bahrain monitor our entire portfolio. 2,439 VOX Cinemas (4%) Mall of the Emirates Our two most carbon and water 11,823 Magic Planet (5%) intense assets - Ski Dubai and Kuwait Wahoo! Water Park - contribute to the majority of our carbon and water footprint. These two assets also stand out from the portfolio as they use diesel and LPG in their operations – these building fuels account for 22% of our carbon footprint.

22 MAJID AL FUTTAIMMAJID - VENTURES

“We operate a ski slope in a desert and we absolutely can do it sustainably. We will drive efficiency through technology as we trial new solutions and upgrade existing equipment. With the rapid expansion of our operations, we will apply our experience managing snow Mohammad El Etri operations as early as possible in Director of Global Snow the planning and design phase. Operations and Projects We will build assets that are sustainable and finely tuned to Ski Dubai Management our operations.”

Targets and action plans

Our footprint is highly dependent Opportunities: on the currently available • Business is changing and ethical technological innovations. As consumerism is on the rise technology becomes more feasible, we will see our footprint decrease. • Technology is getting cheaper The rise of ethical consumerism • Countries are adopting renewable will also support our journey and clean energy policies towards Net Positive. 34% of our assets are located in Majid Al Futtaim malls, which is a great opportunity to collaborate. Setting detailed action plans will help us manoeuvre a complex Challenges: portfolio and achieve the 2022 • Varying tenancy conditions milestone towards Net Positive. We will look at various measures that • High business growth potential would reduce our footprint, such • Abiding by brand guidelines as waterless bathroom technology • Organising solutions across or linking building management different Business Units systems to customer data.

23 24 A MESSAGE FROM THE MINISTER OF CLIMATE CHANGE & ENVIRONMENT

His Excellency, Dr. Thani Bin Ahmed Al Zeyoudi Cabinet Member Minister of Climate Change and Environment

“I am excited to see Majid Al Futtaim take on a leadership role for sustainability in our region through their Net Positive commitment. Our rapid population growth and ambitious developments in the region put immense pressure on our natural resources and the environment. Sustainability of the environment and preservation of natural resources are among the objectives of the UAE Green Development Strategy and Net Positive is a prime example of how business and industries can move towards environmental sustainability.

I would like to congratulate Majid Al Futtaim on taking this initiative and I encourage others to follow their example.”

25 CARBON & WATER FOOTPRINT DATA

CARBON AND WATER FOOTPRINT BROKEN DOWN BY OPERATING COMPANY AND BUSINESS UNIT Operating Company Business Unit GHG emissions (tCO2e) Water consumption (m3) Carrefour - Office 12,714 26,695 Hypermarket 326,169 912,097 Retail Staff Accommodation 10,702 385,917 Supermarket 75,219 218,122 ENOVA 2 - F&B 5,565 11,209 Fashion 2,477 2,775 Finance 8 - Ventures Healthcare 882 7,462 L&E 38,387 165,474 VOX 19,205 49,436 ENOVA 126 313 Communities 4,019 886,988 Community Malls 4,408 17,079 Hotels 55,593 543,371 Properties Malls 276,259 2,533,066 Offices 10,579 98,114 Developments 231,673 434,299 Communities 988 886,988 TOTAL 1,075,727 6,360,887 CARBON AND WATER FOOTPRINT BROKEN DOWN BY OPERATING COMPANY AND COUNTRY

Properties Properties Properties Properties Operational Retail CO Ventures CO Operational Developments Retail Water Ventures Water Footprint by Developments 2 2 CO2 emissions emissions Water Water consumption consumption Country CO2 emissions 3 3 emissions (tCO2e) (tCO2e) consumption consumption (m ) (m ) (tCO2e) 3 3 (tCO2e) (m ) (m )

UAE 220,390 61,651 155,585 52,350 2,889,643 40,328 720,246 143,286 Egypt 11,716 168,952 40,757 2,091 335,264 337,152 234,289 11,549 Bahrain 60,393 5,405 5,636 436,860 17,362 27,840 Oman 22,169 1,070 25,374 2,132 230,266 56,820 76,828 4,808 Lebanon 36,189 6,280 1,224 186,585 14,060 27,038 Saudi Arabia 58,972 1,507 102,309 2,800 Jordan 22,608 234 31,383 4,564 Qatar 22,735 986 145,269 1,706 Iraq 32,878 41,194 Iran 21,830 51,343 Pakistan 8,046 29,747 Kuwait 5,401 367 21,037 12,764 Georgia 16,521 105,899 Kazakhstan 2,154 6,881 Armenia 1,211 9,288 Kenya 913 4,480 TOTAL 350,858 231,673 426,670 66,526 4,078,618 434,299 1,611,615 236,355

26 SUSTAINABILITY GLOSSARY

Climate change refers to a change in global or regional climate patterns, in particular a change apparent from the mid-to-late 20th century onwards which is largely attributed to the increased levels of atmospheric carbon dioxide (CO2) produced by the use of fossil fuels. Through their development, operations, and end-of-life, buildings account for about 40% of global CO2 emissions. Decarbonisation is the reduction or removal of carbon dioxide from energy sources. Developments footprint evaluates greenhouse gas emissions and water consumption during the development of a property. Efficiency of materials, energy, personnel, and investment, is commonly measured in order to assess performance and prioritise projects. For instance, energy intensity is a measure of energy efficiency. Within the property sector, energy intensity indicators enable companies to compare the relative efficiency of different portfolios and individual buildings in comparison to each other and over time. Embodied carbon refers to the carbon dioxide emitted during the manufacture, transport and construction of building materials, together with end-of-life emissions. Environmental footprints demonstrate the effect that a person, company, activity, etc. has on the environment, such as the amount of natural resources they use. LED, short for light-emitting diode, is a semi-conductor device which converts electricity into light. They are the most efficient lights currently available, using approximately 85% less energy than halogen or incandescent lighting and thereby delivering significant reductions in energy use and costs. Net Positive means putting more back into the environment or society than a company takes out, with a resulting balance of a Net Positive impact. Net Positive in carbon means that an organisation removes or avoids the generation of more carbon than they create through their operations. Net Positive in water means that an organisation is helping to create more clean water than it consumes across its operations. Operational footprint evaluates greenhouse gas emissions and water consumption during the operation of a property. Refrigerants are chemicals used in a cooling mechanism, such as an air conditioner or refrigerator, as the heat carrier which changes from gas to liquid and the back to gas in the refrigeration cycle. Leaks from refrigeration units cause concern due to the refrigerants relatively high ozone depletion potential and high global warming potential. Renewable energy is energy that is generated from natural processes that are continuously replenished. This includes sunlight, geothermal heat, wind, tides, water, and various forms of biomass. This energy cannot be exhausted and is constantly renewed. Sustainability or Sustainable Development, is commonly defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Businesses need a balance between economic, environmental and social capital in order to function as a sustainable business. Leading sustainable businesses recognise the importance of this balance and add as much into the economy, society and the environment as they use.

27 MAJID AL FUTTAIM

Majid Al Futtaim Tower 1 T +971 4 294 9999 Complex majidafuttaim.com PO BOX 91100 Dubai, United Arab Emirates