2020 Sustainability Report YEARS OF SUSTAINABLE SUCCESS Gulf Petrochemical Industries Company Kingdom of Bahrain www.gpic.com YEARS OF 2020 Global Reporting Initiative (GRI) Report Including: UN Global Compact - Communication on Progress SUSTAINABLE UN Global Compact - Food and Agriculture Business Principles SUCCESS UN Global Compact - Women’s Empowerment Principles Gulf Petrochemical Industries Company Kingdom of Bahrain GPIC Sustainability Report 2020 ABOUT GULF PETROCHEMICAL INDUSTRIES COMPANY (GPIC) Gulf Petrochemical Industries Company (GPIC) is a The Oil and Gas Holding Company (Nogaholding) is leading joint venture setup and owned by the Oil and the business and investment arm of NOGA (National Gas Holding Company (Nogaholding), Kingdom of Oil and Gas Authority) and steward of the Bahrain Bahrain, SABIC Agri-Nutrients Investment Company, Government’s investment in the Bahrain Petroleum Kingdom of Saudi Arabia and Petrochemical Company (BAPCO), the Bahrain National Gas Company Industries Company (PIC), Kuwait. GPIC was set up (BANAGAS), the Bahrain National Gas Expansion for the purposes of manufacturing fertilizers and Company (BNGEC), the Bahrain Aviation Fuelling petrochemicals namely Ammonia, Methanol and Urea. Company (BAFCO), the Bahrain Lube Base Oil Company, the Gulf Petrochemical Industries Company Being a major manufacturer within the Kingdom of (GPIC), and Tatweer Petroleum. Bahrain, GPIC is also a proactive stakeholder within the Kingdom and the region, with our activities being represented by natural gas purchases, empowering Bahraini nationals through training & employment, utilisation of local contractors and suppliers, energy consumption and other financial, commercial, environmental and social activities that arise as a part of our core operations within the Kingdom. In 2012, Gulf Petrochemical Industries Company becomes part For the purpose of clarity throughout this report, of the global transformation for a sustainable future by 1. ‘GPIC’, ’we’ ‘us’, and ‘our’ refer to the Gulf committing to the United Nations Global Compact’s ten principles Petrochemical Industries Company; in the realms of Human Rights, Labour, Environment and Anti-Corruption. 2. ‘SABIC’ refers to the Saudi Basic Industries Corporation; 3. ‘PIC’ refers to the Petrochemical Industries Company, Kuwait; 4. ‘Nogaholding’ refers to the Oil and Gas Holding Company, Kingdom of Bahrain; We are a member of the GRI Community since 2014 and support 5. ‘Board’ refers to our Board of Directors represented the mission of GRI to empower decision makers everywhere, by a group formed by Nogaholding, SABIC and PIC. through GRI Sustainability Reporting Standards and its multi- stakeholder network, to take action towards a more sustainable economy and world. The GRI community is a catalyst for positive change; it’s a learning-exchange space where experience and expertise come together helping participants make competitive choices; it’s the launch pad for local and global leaders to share their success stories; it’s the powerhouse where collective impact in For GPIC, sustainability has sustainable development starts to become real and grow. evolved to a strategic imperative that focuses on economic, environmental and social risks and opportunities. By sharing our 2020 Global Reporting Initiative (GRI) Report sustainability performance through Including: UN Global Compact - Communication on Progress our fifth GRI Sustainability Report GPIC is a Responsible Care Company certified for RC 14001 since July 2010. We are committed to the safe, ethical and UN Global Compact - Food and Agriculture Business Principles and encouraging others to do the environmentally sound management of the petrochemicals and same, we are infact addressing fertilizers we make and export. Stakeholders’ well-being UN Global Compact - Women’s Empowerment Principles is always a key priority at GPIC. SDG 12 target 12.6. Gulf Petrochemical Industries Company Kingdom of Bahrain 01 GPIC Sustainability Report 2020 Contents 04 06 08 INTRODUCTION SUSTAINABILITY REPORTING SUSTAINABILITY OVERVIEW 2018 -2019 28 60 84 STRATEGY AND PROFILE THE ECONOMIC IMPACT PROTECTING OUR PLANET OF GPIC OF SUSTAINABILITY 108 144 156 A GREAT PLACE TO WORK UN GLOBAL COMPACT UNGC FOOD AND AGRICULTURE BUSINESS (FAB) 6 PRINCIPLES 164 174 178 UNGC WOMEN’S LEADING EXCELLENCE WHAT OTHERS SAY EMPOWERMENT PRINCIPLES AWARDS 188 202 GRI CONTENT INDEX ACRONYMS 02 03 GPIC Sustainability Report 2020 Introduction 04 Welcome to our fifth GRI Sustainability Report 2020 This report also serves as GPIC’s UN Global Compact “40 Years of Sustainable Success” The theme of the Communication on Progress (COP) and our strategies report highlights the wonderful journey that began 40 and initiatives regarding signature issue platforms years ago, when GPIC was born in December 1979 as such as the Food and Agriculture Business Principles a petrochemicals joint venture. With sustainability at and Women’s Empowerment Principles. the heart of its strategy, GPIC is actively involved in the creation of a better world for future generations by Within this document we have also highlighted, in tackling pertinent sustainability issues and balancing detail, our commitment, support and contribution to environmental, social and economic value. the United Nations 17 Sustainable Development GPIC’s smart and forward looking business approach Goals (SDGs). has embraced the shift from the classical three pillars of Sustainable Development to the 5 P’s- By issuing sustainability reports and encouraging People, Planet, Prosperity, Partnerships and Peace. our peers and business partners to take on board By doing this GPIC has become part of the global sustainability reporting, we are in fact contributing transformation for a sustainable future. to SDG #12 target 12.6 “Encourage companies, especially large and transnational companies, to adopt To promote transparency , accountability and to sustainable practices and to integrate sustainability share our sustainability performance globally we information into their reporting cycle.” have prepared this report i in accordance with the GRI Standards-Comprehensive and shares our Other Company reports that may be of interest to performance on social progress, environmental readers is available on www.gpic.com include: protection ,economic growth and prosperity for • GPIC Annual Reports 2018-2019. • GPIC Company Magazine – Khaleejieh • GPIC GRI Sustainability Reports • GPIC UN Global Compact Communication on Progress (COP) Reports 05 GPIC Sustainability Report 2020 Sustainability Reporting 06 SUSTAINABILITY REPORTING - UN Global Compact’s 10 principles. The UN Global Compact is A COMPREHENSIVE UNDERSTANDING the world’s largest voluntary corporate citizenship initiative. For What is the Global Reporting Initiative (GRI)? more information on the UN Global Compact and its principles, GRI is an organization that has pioneered the standardization of visit: www.unglobalcompact.org sustainability reporting through the creation of the GRI framework. Key principles in its approach include: balance, What is the United Nations Global Compact (UNGC) Food and comparability, materiality, accuracy, timeliness, clarity and Agriculture Business Principles? reliability. For more information, visit GRI’s website; To advance the positive impact that business can have in the food www.globalreporting.org. and agriculture field, the United Nations Global Compact has facilitated the development of voluntary Food and Agriculture What is an In Accordance Sustainability Report? Business Principles (FAB Principles) to serve as a framework An “In Accordance “sustainability report is a report that fulfills for principle-based collaboration of companies with the UN, the GRI Standards “in accordance” criteria; and states that it is governments, civil society and other stakeholders. For more “In Accordance” with either the Core or Comprehensive options. information on the UN Global Compact FAB 6 principles, visit: GPIC 2020 SR is “ in accordance” Comprehensive. www.unglobalcompact.org What is Materiality assessment? What is the United Nations Global Compact (UNGC) Women’s Materiality assessment is the process of identifying, refining, and Empowerment Principles? assessing numerous potential environmental, social and The Women’s Empowerment Principles are a set of 7 Principles governance issues that could affect our business, and/or our for business offering guidance on how to empower women in stakeholders, and condensing them into a short-list of topics the workplace, marketplace and community. They are the result that inform company strategy, targets, and reporting. of a collaboration between the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) and How does GPIC approach sustainability reporting? the United Nations Global Compact and are adapted from the The transparent and comprehensive use of the GRI framework Calvert Women’s Principles®. The Women’s Empowerment creates accountability for GPIC to report and improve reporting Principles seek to point the way to best practice by elaborating on the topics stakeholders may find important. the gender dimension of corporate responsibility, the UN Global Compact, and business’ role in sustainable development. For What are GPIC ‘s long term Sustainability Goals? more information on the Women’s Empowerment principles, In 2014, to make a greater impact, to scale up the contribution of visit: www.empowerwomen.org our business to UN priorities and to align our strategy