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 Dubai and Orbi Dubai, 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 Mall of the Emirates, 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 The world 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.