Sustainability

Sustainability ADNOC Distribution

A leader in environment and carbon neutrality

Sustainability ADNOC Distribution

Message from the ESG Subcommittee Chairwoman

At ADNOC Distribution, sustainability is a central consideration for how we operate, anchoring our responsibilities today and driving sustained value for tomorrow. As Chairwoman of the ESG Subcommittee and an Independent Non-Executive Director, I have been encouraged to see sustainability become embedded more deeply across strategy, governance, and day-to-day operational decision-making, reinforcing the company's leadership in mobility and convenience retail.

Paula Disberry

Chairwoman, ESG Subcommittee
ADNOC Distribution

Message from the CSTSO

As we evolve and drive transformative change , sustainability remains central to our strategic vision and everyday decisions. We advanced our decarbonization roadmap, expanding solarization across our network, and furthered the rollout of fast and superfast EV charging while embedding AI across the value chain to enhance efficiency and reduce emissions.

SUSTAINABILITY FRAMEWORK

ADNOC Distribution’s Sustainability Strategy Framework adopts the ADNOC Group’s sustainability strategy, reinforcing a shared commitment to the provision of responsible, lower-carbon energy. This commitment is pivotal to ensuring continuous and sustainable value creation for the UAE, its citizens, and businesses. Sustainability forms the backbone of ADNOC Distribution’s strategy, and it is integrated across the organization. The Company is committed to incorporating top-tier Health, Safety & Environment standards within its operational framework, contributing to local communities, fostering sustainable economic progress, and channeling investments toward cleaner, cutting-edge energy solutions. To realize its sustainability pledges, the Company has developed a set of goals and objectives to be accomplished over the short, medium, and long term.

The extensive sustainability goals of ADNOC Distribution contribute to the UAE’s strategic vision and resonate with ADNOC Group’s enduring commitment to integrate best-in-class Health, Safety and Environment (HSE) standards across our operations, giving back to communities, supporting sustainable economic development and investing in cleaner new energies.

Our Strategy: ADNOC Sustainability Pillars 2030 strategy

Biofuels in our fleet We converted 100% of our company-owned road fleet to biofuel, avoiding an estimated 2,079 tCO2e of Scope 1 emissions in 2025 versus conventional diesel and demonstrating near term, scalable decarbonization of our operations.
EV charging network We expanded our electric vehicle charging infrastructure to 402 installed charging points across the UAE, up from 180+ at year end 2024. We are continuing to progress toward our goal to exceed 500 charging points by 2028, and intend to prioritize high demand locations and network reliability to support customer adoption.
Energy efficient design We integrated energy efficient systems and energy optimized building designs across our network (MEP, HVAC, retail and service equipment), delivering measurable energy savings and an estimated emissions reduction of 370 tCO2e in 2025 for the scope covered.
Digital efficiency We use AI as part of our efforts to optimize end-to-end operations intelligent assortment and C store clustering tune inventory and pricing to local demand, while AI-led site selection help to identify new stations using traffic, spend and competitor signals. Fuel demand prediction right-sizes replenishment to prevent runouts and reduce OPEX. Preference-based fueling and in-app F&B ordering speed throughput cut wait times, turning data into faster decisions, lower costs and a smoother customer experience.
Solarization Started in 202 4 and continuing thereafter, have been installing solar PV at additional ADNOC Distribution stations to increase renewable electricity consumption and reduce Scope 2 emissions, building on our broader energy efficiency program.

Biodiversity restoration Since 2024, we planted over 27,000 mangroves and over 1,800 Gha f across four Emirates (Abu Dhabi, Dubai, Ajman, Ras Al Khaimah).
Each planting is recorded on a blockchain ledger and can be adopted through the ADNOC Distribution app. The program contributes to ADNOC Group’s goal of planting 10 million mangroves by 2030 and creates biodiversity co benefits, including shoreline protection and habitat enhancement.
Waste and water management We expanded solutions to help reduce waste and conserve water, including recycling water from car wash facilities and installing aerators across washrooms and mosque ablution areas to lower consumption.
We deployed Reverse Vending Machines (RVMs) at 25 service stations and 2 offices, enabling the recycling of 18.2 million bottles and cans and preventing nearly 2,733,905 kg of CO2e emissions through avoided virgin material production and disposal.

Kasr al Siyam is a Ramadan community initiative by ADNOC Distribution to help people on the move break their fast safely and on time during Maghrib. Employees distributed 300,000 Iftar boxes at and around more than 83 stations across the UAE, including streets and traffic signals near high need areas, for fasting communities and working laborers.
Energy access for families (LPG donation) With the Khalifa bin Zayed Al Nahyan Foundation, we supported the National Families initiative during Ramadan by donating LPG cylinders to families across Abu Dhabi, helping to reduce household energy costs during a period of peak demand.
Liwa Moreeb Dune Festival included cash sponsorship and full fueling operations of one main hub with eight fuel trucks plus MyStation trucks across six secondary zones providing capacity for 8,000 vehicles daily. We enhanced the fan village with two ADNOC Oasis Stores & Cafés, E2GO EV charging and a Fleet Smart Solution hub for RFID tag setup and wallet activation and amplified reach via station advertising and social media, generating 52 million views to promote sport, community engagement and wellbeing.
Local community and youth employment As we expanded our network, we created jobs at multiple levels and invested in UAE National talent.
Our focus included recruiting experienced UAE Nationals from the local market, hiring fresh UAE National graduates, offering internships to local students and collaborating with ADNOC on youth changemaker initiatives and the Youth Committee to build a strong future workforce.

Emiratization and youth We contributed to the UAE National Employment Strategy 2031, achieving >70 % Emirati representation across our organization. We prioritized hiring experienced UAE Nationals, created pathways for graduates and interns and expanded targeted learning to accelerate development into supervisory and leadership roles.
Diverse and inclusive workforce Our people represent 81 nationalities. In 2025, we recruited 1,100 employees from more than 30 nationalities across our markets, strengthening capabilities in retail operations, mobility services, logistics and digital.
Employee experience We achieved a 78% employee experience score, reflecting progress in engagement, inclusion, wellbeing and manager effectiveness.
Gender balance and pay equity A CEO chaired Gender Balance Committee steers our agenda. In 2025, we increased women’s representation to 14% in top management, 15% in STEM roles and 4% in junior management. We achieved a 1:1 median gender pay ratio (total compensation, including bonuses and incentives) for the measured population and strengthened policy foundations for equal pay and equitable career progression.

Asset Integrity and Process Safety (AIPS) We embedded a risk based approach across terminals and service stations designed to systematically identify, assess and mitigate hazards. Key elements include control of work, management of change, safety critical equipment inspection and testing, emergency response drills and periodic assurance.
Joint safety campaign on fueling practices: In collaboration with the Ministry of Interior (MOI) and the Ministry of Education (MOE), we launched a nationwide awareness campaign on safe fueling. The initiative emphasizes speed compliance within stations, prevention of nozzle pull incidents and adherence to UAE safety regulations.
Road safety in operations: We advanced fleet safety through journey planning, defensive driving training and telematics to monitor speed, harsh braking and distraction indicators. These measures aim to lower vehicle incident rates and protect employees and the public on and around our sites.
Workforce health and wellbeing: We continued occupational health programs including medical screenings, heat stress prevention and hydration protocols, PPE compliance, ergonomics improvements and mental health awareness. These actions are meant to enhance fitness for work, reduce absenteeism and support a resilient, engaged workforce.
Contractor safety management: We strengthened alignment with contractors via pre qualification, HSE requirements in contracts, onboarding and toolbox talks and joint audits to support consistent standards across our supply chain.

Ethics and compliance: We continued to embed global good practices through a comprehensive framework that includes our Code of Conduct, Antibribery and Corruption, Gifts and Entertainment and Conflicts of Interest policies. These are operationalized via management and reporting systems that support policy rollout, employee training, third-party due diligence, disclosures and registers (e.g., gifts and conflicts) and incident reporting and investigation. The program reinforces a culture of integrity across our operations and supply chain.
Sustainability governance :To accelerate delivery of our ESG agenda, the Executive Committee established an ESG Subcommittee in 2024. The Subcommittee is responsible for coordinating cross-functional initiatives, monitoring performance against targets and ensuring consistent reporting and accountability across the business.
Sustainable finance: We converted an existing AED 5.5 billion facility into a Sustainability Linked Loan (SLL), linking a portion of our financing costs to the achievement of defined sustainability performance indicators. In 2025, we achieved the two KPIs associated with this SLL, underscoring our commitment to environmental responsibility and financial discipline