Sustainability

Sustainability ADNOC Distribution

A leader in environment and carbon neutrality

Sustainability ADNOC Distribution

A MESSAGE FROM OUR CEO

As we reflect on the milestones achieved in the past twelve months, we see significant strides in shaping a more resilient and responsible future for our
company and the communities where we operate.

ADNOC Distribution continues to evolve its ESG strategic vision in line with leading local and global ESG agendas, such as the UAE Energy Strategy 2050, the UAE initiative to achieve Net Zero by 2050, the National Climate Change Plan of the UAE 2017-2050, the Environment Vision 2030, and the Abu Dhabi Economic Vision 2030. Through our initiatives, ADNOC Distribution is constantly seeking new ways to reduce our carbon footprint and promote renewable energy solutions to reduce carbon intensity in its operations by 25% by 2030.

In line with the “UAE Year of Sustainability”, our Decarbonization Roadmap was announced in 2023, outlining our commitment to significantly reducing carbon emissions and energy usage in our operations. To facilitate the implementation of this roadmap, we are identifying energy-saving opportunities within our facilities, retrofitting existing buildings, and further promoting the integration of renewable energy generation within our business.

Eng. Bader Saeed Al Lamki

Chief Executive Officer
ADNOC Distribution

A MESSAGE FROM THE CSTSO

Under our sustainability strategy, ADNOC Distribution achieved several key milestones in 2023 by delivering more than ten successful sustainability projects aligned with the UAE’s Year of Sustainability and COP28 objectives. We advanced our sustainable mobility solutions by accelerating the rollout of electric vehicle (EV) charging points, with over 50 assets strategically placed across our service station network in the UAE. Additionally, we proudly introduced the region’s first highspeed green-certified hydrogen refueling station, in collaboration with ADNOC and Masdar, a monumental step in advancing clean mobility solutions.

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

In 2023 we announced a Decarbonization Roadmap (GHG emissions)
To achieve a 25% reduction in Scope 1 and 2 emissions intensity by 2030 through higher energy efficiency and cleaner fuel initiatives, setting the path to Net-zero by 2050.
2,369 GJ Solar Energy generated and consumed, contributing to a reduction in GHG emissions equal to 296.1 tons of carbon dioxide equivalent (tCO2e).
26 Rooftop solar PV panels installed across ADNOC Distribution’s service stations in Dubai in 2023, as part of the Company’s phased out approach to solarize its UAE network.
ADNOC Distribution operated the first high-speed hydrogen refueling stations in the Middle East.
100% of ADNOC Distribution’s owned heavy fleet using biofuel, targeting a 15% reduction in CO2 emissions from the fleet. . During 2023, usage of biofuel resulted in 333 tCO2e emission saved.
>50 fast and super-fast charging points for Electric Vehicles (EVs) installed across ADNOC Distribution’s UAE network, advancing contribution to sustainable mobility.

AED 61.19 million capital expenditures (CAPEX) was invested and AED 22 million operating expenses (OPEX) in environment-related infrastructure, improvement initiatives, studies, risk mitigation, and management projects including EV Chargers.
Introduced Reverse Vending Machine recycling service at 25 locations across Abu Dhabi.
ADNOC Distribution at the forefront of biodiversity during the UAE’s Year of Sustainability
The Company was the first fuel retailer in the region to offer customers the opportunity to adopt a plant and monitor it live through its Rewards app.
Fleet Management:
During 2023, ADNOC Distribution adopted advanced technologies, introducing in-vehicle management system (IVMS) for vehicle root optimization and monitoring driver behaviors. along with introducing CNG vehicle fleet to our operations resulted in emission savings.

c.70% in-country value contribution.
Company delivers on its market commitments by achieving an EBITDA of AED 3.68 billion ($1 billion), recording Company’s highest ever EBITDA since IPO.
AED 34,629 million revenue, increase in economic value generated by 8%.
AED 2.5 million invested in CSR and related sponsorship initiatives.

62.5% Emiratization rate.
642 unique training courses, covering various categories such as leadership, functional & technical skills, business training courses.
Online and in-person personal development planning sessions with Fresh Graduate Trainees (FGTs) & more than 60 assessment sessions & 27 panel verification sessions & rehiring of 27 FGTs.
Conducted over 109,400 person-hours of training for employees
Over 13,000 employees from more than 75 nationalities in ADNOC Distribution’s workforce.
ADNOC Distribution’s 100X Your Wellbeing program was recognized with a GCC GOV HR Award for its innovative approach and successful execution.

Zero fatalities and zero high consequence work-related injuries.
Conducted 203 Contractor HSE Performance Evaluation Audits, 36 HSE Management System Audits, camp welfare audits and 43 HSE Assurance Program Audits.
54 different HSE training courses were delivered in 2023.
0.023 mmhrs total Recordable Injury / Illness Rate (TRIR).
Launched the HSE Recognition Program for contractors.
First fuel retailer in the UAE/ MENA region being awarded the WELL Health-Safety Rating for more than 500 service stations in the UAE, a testimony of the Company’s commitment to health, safety and well-being of employees, customers and communities.

Solid business model
Predictable cash flow generation supported by robust regulatory framework, industry-leading margins and limited exposure to oil price volatility.
100% of employees and governance body members received anti-corruption training and communication.
ADNOC Distribution is showcasing its commitment towards business sustainability by appointing a dedicated Chief Strategy, Transformation and Sustainability Officer to drive the agenda.
ADNOC Distribution was the first UAE fuel retailer to secure a sustainability-linked loan by converting its existing $1.5bn loan into a sustainability-linked one.
Unveiled a five-year sustainable growth strategy, to become a multi-energy, convenience and mobility leader during the Investor Day (Feb. 2024).
Operational Excellence:
Completed the roll-out of Integrated Management System and received six ISO Certifications (Environment MS, Occupational Health & Safety MS, Business Continuity MS, Energy MS, Asset Management MS, and Maintenance Reliability MS).

Advancing Towards Net Zero by 2045

Pillar 1

Decarbonizing Our Operations

Pillar 2

Growing Our Lower-Carbon Solutions

Pillar 3

Leveraging Technology and Partnerships

Pillar 4

Promoting Biodiversity and Nature-Based Solutions