ADNEC Group Sustainability Strategy and ESG Framework

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Sustainability Strategy & ESG Framework Environmental & Social Governance

April 2026 update

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Acknowledgement Dear Reader,

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Welcome to the ADNEC Group Sustainability Strategy and ESG Framework. Since its inception, this strategy has been revitalised to capture the significant progress we have made in advancing our ESG maturity and embedding sustainability at the heart of our business, growth and operations. Over the past decade, we have implemented transformative initiatives across the Environmental, Social, and Governance pillars, building on and feeding into the foundation of our initial strategy and framework. Throughout this journey, we have continuously refined our policies and frameworks to ensure they remain robust, forward-looking, and reflective of the organisation's evolving aspirations and achievements.

Our environmental journey has been pivotal. We have not only calculated our carbon footprint across Scopes 1, 2, and 3, but have also delved into extended Scope 3 emissions to comprehensively understand and address our environmental impact. These efforts have resulted in the development of our Net Zero Transition Plan, outlining key projects and initiatives to achieve our goal of reaching Net Zero in Scopes 1 & 2 by 2030, while keeping scope 3 constant, laying the foundation for our decarbonization journey by 2050. These include deploying renewable energy solutions, enhancing energy and resource efficiency, and reducing emissions across our value chain.

Meanwhile, our social impact initiatives has been equally transformative to our social sustainability pillar and goals. We have prioritised initiatives that enhance employee well-being, foster gender balance and diversity while strengthening community engagement and stakeholder value creation. Notable achievements include launching programmes that support Emiratisation, employee talent development, establishing partnerships to promote community resilience, and implementing initiatives that improve workplace equality and culture, together with the definition of a new Social Impact Strategy. Through these efforts, we have reinforced our commitment to social responsibility, ensuring that our growth is inclusive and aligned with global best practices.

Governance remains at the heart of our ESG and sustainability strategy. Our governance frameworks have evolved to reflect our ESG maturity, embedding transparency, accountability, and ethical decision-making across the organisation.

This updated strategy builds upon the foundation of our original strategy and framework, incorporating learnings from our journey while addressing emerging challenges and opportunities. It reaffirms our commitment to Abu Dhabi’s and the UAE’s ESG, sustainability and social responsibility ambitions, aligning with national strategies and global frameworks to deliver meaningful impact.

As we move forward, we recognise that sustainability is an evolving journey. By continuously refining our approach, engaging with stakeholders, and monitoring our progress, we remain committed in our mission to create a sustainable, inclusive, equitable and low-carbon future. This document outlines a clear view of our accomplishments and the road ahead, and we invite you to join us in driving this vision forward.

ESG and Sustainability Team ADNEC Group

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01 | Executive Summary 02 | Sustainability Strategy Definition Approach at ADNEC Group 03 | ESG Gaps, Risks, and Materiality Assessment 04 | National and International Contributions 05 | ESG Transformation Agenda 06 | ESG Investment Mechanism Guidelines 07 | Appendix 7.1 | ESG Benchmarking Study 7.2 | Link between ESG Goals and Mandate Contributions 7.3 Initiatives Prioritisation Model 7.4 | Governance Structure Design Options 7.5 | GRI Context Index 7.6 | ESG Ratings Reference

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1 | Executive Summary

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ADNEC Group - Evolution of ESG A

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2013

2015

2018 & 2019

2021

2022

2023

2024

2025 +

2026+

Joined the Abu Dhabi Sustainability Group and introduced structured waste management and recycling initiatives

Published our first Global Reporting Initiative (GRI) report and achieved ISO 14001 Environmental Management certification

Integrated into ADQ

Issued 1st ESG report from this year onwards

ADNEC Group is

Developed and launched our first Sustainability Strategy and ESG Framework, along with a carbon emissions strategy and plan.

Integrated into Modon Holding & alignment with ESG Strategy

Launched second Sustainability and ESG strategy & framework

Conducted a refresh of the Group’s ESG strategy

Developed Groupwide Net Zero Transition Plan & Commissioned key projects such as EWEC, Solar PV, AI Energy Optimisation, and more

Integrated ESG criteria into procurement

Reviewed previous materiality assessments

ADNEC Centre Abu Dhabi & Excel London

Won the EFQM Challenge for circular economy Secured ISO 20121 certification for sustainable events

ADNEC Group joins the global initiative Net Zero Carbon Events

ranked 3rd among 32 ADQ entities in reference to ESG practices

Ethical Procurement & Supply Chain Engagements

Revised decarbonization roadmaps & targets

Summary of Key Achievements

Summary of Key Next Steps

1. ESG strategy and sustainability framework 2. Issued annual ESG reports – Year 2021 onwards 3. Alignment with Modon Holding ESG Policy & Strategy 4. Developed Group-wide Net Zero Transition Plan with targeted projects 5. Commissioned key projects at ADNEC Centre Abu Dhabi: EWEC Trade Agreement, Solar PV, AI Energy Optimisation Project

1. Implement Targeted Efficiency and Carbon Reduction Projects 2. Transition scope 3 emissions from supplier spend to activity based 3. Further develop procurement ESG criteria – formalise process 4. Engage with suppliers – ESG Training and Awareness 5. Become Net Zero in Scopes 1 & 2 emissions by year 2030 – as per updated NZTP ...and more

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Overview of National and International Mandates In formulating its ESG Strategy, ADNEC Group undertook an extensive analysis of local and global trends, strategies, and methodologies, while gaining a deeper understanding of stakeholder expectations, to effectively define its ESG priorities and strategic direction.

SECTOR General

SCOPE

TITLE

International United Nations Sustainable Development Goals United Nations Global Compact

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OVERVIEW A universal framework comprising 17 goals adopted by all UN member states to end poverty, protect the planet, and ensure prosperity for all by 2030.

A voluntary initiative based on ten principles covering human rights, labour standards, environmental protection, and anti-corruption practices.

An internationally recognised framework that provides a standardised approach to sustainability reporting, enhancing transparency, comparability, and stakeholder engagement.

Ten strategic principles guiding the UAE’s long-term economic, political, and social development, emphasising sustainability, human capital, UAE Principles of the 50 and global partnerships.

A UAE-wide action plan aimed at accelerating the transition to a green economy through sustainable economic growth, environmental Green Agenda 2030 stewardship, and increased competitiveness.

A national commitment to achieving net-zero carbon emissions by 2050, promoting sustainable development, clean energy, and low-carbon UAE Net Zero 2050 economic diversification.

A strategic framework aimed at reducing Abu Dhabi’s greenhouse gas emissions and enhancing resilience to climate change through Abu Dhabi Climate Change Strategy comprehensive mitigation and adaptation initiatives.

A national strategic roadmap focused on diversifying the UAE’s energy sources, enhancing energy efficiency, and increasing the share of UAE Energy Strategy 2050 renewable and clean energy to ensure sustainable economic growth.

A comprehensive national vision outlining strategic objectives and initiatives to position the UAE as a global leader in innovation, sustainable We the UAE 2031 development, economic prosperity, and societal well-being by 2031.

A long-term strategic plan designed to diversify Abu Dhabi’s economy, reducing reliance on oil by developing high-value, knowledge-driven Abu Dhabi Economic Vision 2030 sectors and promoting sustainable economic growth and competitiveness.

A long-term strategic plan integrating economic growth with environmental sustainability, focusing on resource efficiency, biodiversity Abu Dhabi Environment Vision 2030 conservation, and quality of life improvements in Abu Dhabi.

A UAE national initiative designed to stimulate local economic development, enhance competitiveness, and promote local content, In-Country Value (ICV) Program employment, and investments within supply chains.

Modon Holding’s ESG governance framework, guiding and embedding environmental, social, and governance principles across all subsidiaries, Modon Holding ESG Policy & Strategy including ADNEC Group.

Global Reporting Index (GRI) National

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Overview of National and International Mandates In formulating its ESG Strategy, ADNEC Group undertook an extensive analysis of local and global trends, strategies, and methodologies, while gaining a deeper understanding of stakeholder expectations, to effectively define its ESG priorities and strategic direction.

SECTOR Sector Related

SCOPE International

TITLE Net Zero Carbon Events (NZCE) Science Based Targets Initiative (SBTi)

National

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ADNEC Group Corporate Strategy ADNEC Group ESG and Sustainability Framework and Strategy

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OVERVIEW An events industry-led initiative committed to halving greenhouse gas emissions by 2030 and achieving net zero emissions by 2050, aligned with the Paris Agreement targets.

An initiative that guides companies in setting scientifically aligned, measurable greenhouse gas emission reduction targets to effectively address climate change.

ADNEC Group’s corporate strategy, defining ambitions and targets for sustainable growth, stakeholder value creation, and integrated ESG management across its investments and operations.

ADNEC Group’s ESG-specific strategy outlining clear sustainability objectives, targets, and governance processes that guide responsible operations across all business clusters.

Overview of ADNEC Group’s Integrated ESG Approach In formulating its ESG Strategy, ADNEC Group undertook an extensive analysis of local and global trends, strategies, and methodologies, while gaining a deeper understanding of stakeholder expectations, to effectively define its ESG priorities and strategic direction.

Risks & Opportunities

Benchmark

Materiality

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Actions

Priorities

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Governance

Value Creation Model

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Benchmark Approach Overview: first exercise A benchmark was conducted with the aim of understanding of what other organisations are doing with regards to their Sustainability strategy and ESG framework and to use this information as part of ADNEC Group’s own ESG journey

Overarching Criteria for Selection: Type of organisation Availability of information ESG maturity

Disclaimer: This benchmark is not intended to provide a one-to-one comparison, nor intended to rank ADNEC Group against the selected organisations.

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Portfolio Peers

Local Market Peers

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International Peers

Benchmark Approach Overview: Materiality assessment An additional benchmarking exercise was conducted during the 2026 ESG strategy refresh to identify any additional material topics to be considered

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Methodological approach

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Longlist creation

• We identified a broad set of relevant peer organizations based on sector, business model similarity, and regional presence • We covered benchmarks across ADNEC’s 6 business clusters and at overall Group level, focusing on ESG/disclosure levels • Then we compiled the longlist using public ESG/ annual reports, sustainability disclosures etc. ensuring a comprehensive evidence base

2 Prioritization • Shortlisted benchmarks by assessing ESG reporting maturity, availability of published ESG content, relevance to ADNEC’s business scope, and comparability of operations • Ensured inclusion of: – Local and international peers – Best-practice ESG reporters – A mix of business models (venue operators / event organizers / hospitality & mobility ecosystem players)

Long list of companies Disclaimer: This benchmark is not intended to provide a one-to-one comparison, nor intended to rank ADNEC Group against the selected organisations.

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Top-down assessment

Selected benchmarks

3 Analysis • Extracted ESG themes from benchmark disclosures and consolidated them into a standardized ESG Topic Coverage Matrix • Mapped benchmark topics against ADNEC’s current materiality topics to identify: – Topics already covered – Topics partially addressed – Topics not yet included but potentially relevant – Produced an initial list of additional ESG topics for ADNEC to consider in future materiality updates

Objectives • Identify ESG topics disclosed by relevant benchmark peers to broaden ADNEC’s view of potential material themes • Benchmark ADNEC’s current materiality topic set against peer disclosure practices • Highlight gaps and emerging topics that ADNEC may consider in future materiality assessments • Support stronger ESG prioritization and reporting readiness aligned with stakeholder expectations and best practices

ADNEC Group - Material ESG Topics The Material Topics outline what issues mater most to the Group’s stakeholders and to the business itself – in surveying and engaging internal and external stakeholders; the Group was able to identify 20 material topics

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Stakeholder Relevance

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The resulting material ESG topics for the ADNEC Group are:

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Environment 4

3.5

3

Social

2.5

2

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1

1.5

2

2.5

3

3.5

4

4.5

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Business Impact Rating

Environment

Governance

Social

Materiality analysis was updated based on the peer-benchmarking exercise

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Governance

• • • • • • • •

Carbon Footprint and Greenhouse Gas emissions Energy Efficiency Waste Management and Circular Economy Sustainable Materials Renewable Energy Water Conservation and Management Biodiversity & Natural capital (new topic) Pollution (new topic)

• • • • • • • • • •

Workforce Well-Being Work-Life Balance Gender Balance and Equal Opportunity Nationalisation Customer Experience & Satisfaction Community Initiatives and Engagement Health & Safety Economic impact (new topic) Human rights (incl. supply chain) (new topic) Talent training & retention (new topic)

• • • • • • •

Ethical Sourcing and Supply Chain Oversight Data Security and Integrity Business Ethics and Values Corporate Governance Business Continuity and Resilience Transparency and ESG Disclosures Operational Excellence and Innovation

Modon Holding : ADNEC Group - ESG Strategy Alignment A

Modon Holding ESG Policy Focus Area

Environment

Social

Governance

Modon Holding Material Topic

ADNEC Group Material Topic

Climate Change and GHG Emissions

Carbon Footprint and Greenhouse Gas emissions

Fully Aligned

Energy Efficiency

Energy Efficiency

Fully Aligned

Waste and Resource Efficiency

Waste Management and Circular Economy

Fully Aligned

Sustainable Materials and Circular Economy

Sustainable Materials

Fully Aligned

Renewable and Alternative Energy

Renewable Energy

Fully Aligned

Water Management

Water Conservation and Management

Fully Aligned

*Biodiversity and Habitat Protection

Biodiversity

Fully Aligned

Workforce Management

Workforce Well-Being, Work-Life Balance

Fully Aligned

Diversity and Inclusion

Gender Balance and Equal Opportunity, Nationalisation

Fully Aligned

Customer Experience

Customer Experience & Satisfaction

Fully Aligned

Community and Social Investment

Community Initiatives and Engagement

Fully Aligned

Occupational Health and Safety

Health & Safety

Fully Aligned

*Talent Development

*Included under Workforce Well-Being

Fully Aligned

Responsible Procurement and Supply Chain Oversight

Ethical Sourcing and Supply Chain Oversight

Fully Aligned

Data Protection and Cybersecurity

Data Security and Integrity

Fully Aligned

Ethics, Values, and Compliance

Business Ethics and Values

Fully Aligned

Company

ADNEC Group Alignment

*Biodiversity: Initially, biodiversity was explicitly mentioned in Modon Holding’s ESG policy but not explicitly listed in ADNEC Group’s updated material topics. The strategy refresh determined that biodiversity applies to ADNEC Group’s operations when assessing initiatives and projects, based on the benchmarking exercise conducted *Talent Development: Included under Workforce Well-Being for simplicity, as ADNEC Group does not explicitly mention it separately.

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ADNEC Group: Top ESG Risks Selected due to their link with the KPIs of our ESG Index Area

KPI -

Likelihood Impact

Key Mitigating Actions

Relevant Business Unit

Implementation of a robust Net Zero Transition Plan, energy efficiency improvements, renewable energy projects, and active supply chain engagement.

All Business Clusters Facilities Management

Potential loss of business opportunities due to increased stakeholder and regulatory demand for net-zero carbon operations. Financial and reputational impacts.

Medium

Increased regulatory scrutiny leading to potential fines or restrictions on operations if emission standards are exceeded.

Medium Medium

Regular emissions monitoring, compliance checks, and implementation of pollution-control technologies.

All Business Clusters Facilities Management

High

NOx/SOx Emissions

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Water Consumption (m³) Water Intensity per event

Water Conservation and Management

Risk of water scarcity impacting operations and regulatory penalties for exceeding consumption limits. Increased operational costs.

Medium

High

Regular water audits, installation of water-efficient fixtures, recycling and reuse initiatives, and employee awareness programmes.

All Business Clusters Facilities Management

Electricity Consumption (kWh) Electricity Intensity (kWh/m²)

Energy Efficiency

Inefficient energy use increases operational costs and contradicts ESG commitments, impacting reputation and regulatory compliance.

High

High

Energy efficiency upgrades, LED lighting, HVAC optimization aligned with ASHRAE standards, solar PV installations, energy monitoring systems, and audits.

All Business Clusters Facilities Management

High

Enhanced waste management strategy, WasteMaster technology implementation, increased recycling programmes, hazardous waste protocols, and employee training.

High

Regular environmental audits, enhanced compliance training, proactive management reviews, and robust monitoring and reporting procedures.

-

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Carbon Footprint and Greenhouse Gas Emissions

Risk Description and Potential Impact

Company

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Environment

Absolute Carbon Emissions (tCO₂e) Carbon Intensity per Employee Carbon Intensity per Event Carbon Intensity per Visitor

Related Material Issue

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Total Waste (kg) Recycled Waste (kg) Diversion Rate (%) Hazardous Waste (kg) Number of Major Spills Number of Environmental Violations

Waste Management and Circular Economy

Ineffective waste management leading to increased operational costs, regulatory fines, environmental Medium pollution incidents, and reputational damage.

Compliance and Environmental Management

Environmental violations causing financial penalties, operational disruptions, and reputational Medium harm.

All Business Clusters Facilities Management Health, Safety and Environment

All Business Clusters Facilities Management Health, Safety and Environment

ADNEC Group: Top ESG Risks Selected due to their link with the KPIs of our ESG Index Area

Social

Governance

KPI

Risk Description and Potential Impact

Key Mitigating Actions

Medium

High

Employee wellness programmes, flexible working policies, regular employee surveys, and continuous improvement in workplace conditions.

All Business Clusters Human Resources

Reputational risk and limited innovation due to lack of diversity and non-compliance with nationalisation objectives.

Medium

Medium

Inclusive hiring practices, diversity and inclusion training, nationalisation targets with strategic workforce planning.

All Business Clusters Human Resources

Customer Experience & Satisfaction

Loss of revenue and reduced market competitiveness due to poor customer experiences and reduced satisfaction ratings.

Medium

High

Enhanced customer feedback mechanisms, service excellence training, continuous quality improvement programmes.

All Business Clusters Quality / Customer Experience

Community Engagement Activities

Community Initiatives and Engagement

Reduced community support and loss of social license to operate if local engagement is insufficient.

Medium

Medium

Active community investment programmes, regular stakeholder dialogues, CSR initiatives aligned to local community needs.

All Business Clusters Strategy, Sustainability & ESG Champions

-

Health & Safety Incidents

Health & Safety

Operational disruptions, regulatory fines, and reputational damage due to workplace accidents or inadequate safety practices.

Medium

High

Comprehensive health and safety management system, regular safety training, incident reporting and analysis, continuous safety audits.

All Business Clusters Health, Safety and Environment

-

Ethical Sourcing Compliance Rate

Ethical Sourcing and Supply Chain Oversight

Operational and reputational risks arising from unethical supply chain practices and supplier noncompliance.

Medium

High

ESG-integrated procurement policies, rigorous supplier due diligence, and periodic supplier audits.

All Business Clusters Risk & Compliance

-

Data Breaches Incidents

Data Security and Integrity

Financial, regulatory, and reputational impacts from data security breaches.

Medium

High

Robust cybersecurity framework, employee training, regular penetration testing, and IT security audits.

-

Number of Ethics Violations Reported

Business Ethics and Values

Financial, legal, and reputational risks from unethical business practices.

Medium

High

Clear ethics policies, robust whistleblowing channels, regular ethics training.

All Business Clusters Risk & Compliance IT & Digital Transformation All Business Clusters Risk & Compliance

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Governance and Compliance Audits

Corporate Governance

Regulatory penalties and reputational damage due to governance failures.

Medium

High

Strong governance frameworks, regular compliance audits, board oversight.

All Business Clusters Risk & Compliance

-

Business Continuity Plan Activation

Business Continuity and Resilience

Financial losses and operational disruptions due to inadequate preparedness for crises.

Medium

High

Regularly updated business continuity plans, scenario testing, employee preparedness drills.

All Business Clusters Business Continuity

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ESG Disclosure Completeness (%) Operational Excellence and Innovation Index

Transparency and ESG Disclosures Operational Excellence and Innovation

Loss of stakeholder trust due to insufficient transparency in ESG reporting.

Medium

Medium

Comprehensive ESG reporting aligned with global standards, external assurance.

Reduced competitive advantage due to lack of innovation and operational inefficiencies.

Medium

High

Continuous innovation programmes, operational efficiency initiatives, technology integration.

Strategy & Sustainability All Business Clusters All Business Clusters Business Excellence Team Innovation Committee

Employee WellBeing and Work-Life Workforce Well-Being Balance

Reduced productivity and high staff turnover due to inadequate support for employee well-being and worklife balance.

-

Gender Balance and Gender Balance and Equal Opportunity, Equal Opportunity Nationalisation

-

Customer Satisfaction Score

-

Likelihood

Company

Impact

-

-

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Related Material Issue

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Relevant Business Unit

ADNEC Group: Top ESG Opportunities A

Selected due to their link with the KPIs of our ESG Index ESG Category ESG Opportunity Related Material Topic Net Zero Transition Plan

Venue Energy Efficiency Upgrades

Environmental

On-Site Renewable Energy Generation

Waste Reduction & Circular Economy Program

Water Conservation Initiatives

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Opportunity Description

Company

Expected Benefits

Develop and implement a group-wide decarbonisation roadmap to achieve Net Zero Carbon Emissions by 2045, accelerating the existing 2050 pledge. This initiative focuses on cutting Climate Change & GHG greenhouse gas emissions through energy efficiency measures, adoption of renewable Emissions energy, and carbon offset programs in event operations. It involves working closely with event organizers and suppliers to minimize the carbon footprint of venues and exhibitions.

Operational cost savings from energy reduction and resource efficiency, enhanced brand reputation as a sustainability leader in the events industry (leading to increased stakeholder trust and preference), and proactive compliance with global climate initiatives (positioning ADNEC ahead of emerging carbon regulations).

Invest in energy-efficient infrastructure and practices at all venues. This includes retrofitting lighting systems with LED technology, optimizing HVAC and cooling systems, installing smart building controls, and engaging staff in energy conservation training and awareness. These upgrades reduce electricity use and align with national energy efficiency targets for 2050.

Significantly lower operating costs due to reduced energy consumption, decreased carbon emissions contributing to climate goals, and improved compliance with energy regulations and green building standards (reducing the risk of future energy price or carbon cost increases).

Energy Efficiency & Management

Expand the use of clean energy by installing on-site renewable power systems (e.g. solar panels on exhibition hall rooftops and parking structures) and procuring clean electricity Climate Change & GHG from the grid. Generating renewable energy on-site will directly reduce reliance on fossil Emissions fuels and cut Scope 2 emissions from venue operations. Any surplus energy could be fed back or stored to further improve efficiency.

Long-term energy cost savings and insulation from utility price volatility, a demonstration of innovation and climate leadership that provides competitive advantage as stakeholders increasingly prefer low-carbon partners, and tangible progress toward ADNEC’s emission-reduction targets (mitigating transition risks associated with carbon).

Waste Management & Circular Economy

Implement a comprehensive waste management initiative aiming for zero waste to landfill in events and operations. Measures include expanding recycling and composting facilities onsite, phasing out single-use plastics in venues, reusing or donating exhibition materials, and working with contractors to design booths and stages for disassembly and reuse. The program also entails educating exhibitors and attendees on waste sorting and reduction.

Lower waste disposal and material procurement costs due to reduced waste generation and increased recycling, improved operational efficiency in resource use, and enhanced corporate reputation for environmental responsibility – visibly aligning ADNEC with circular economy principles and client sustainability expectations.

Water Management

Adopt water-saving technologies and practices across venues and hotels to minimize water usage. This includes installing low-flow fixtures and sensor faucets, optimizing irrigation systems for landscaping, implementing greywater recycling for plant irrigation or toilet flushing, and improving chillers/cooling towers for efficient water use. Regular monitoring of water consumption will identify and fix leaks promptly.

Reduced water utility costs and improved efficiency (important as businesses in water-scarce regions should implement strategies to cut usage), increased resilience against future water scarcity or stricter water regulations, and support of UAE sustainability goals on water conservation (strengthening ADNEC’s license to operate in the community).

ADNEC Group: Top ESG Opportunities A

Selected due to their link with the KPIs of our ESG Index ESG Category ESG Opportunity Related Material Topic Occupational Health & Safety Excellence Employee Wellbeing & Engagement Program

Diversity & Inclusion Strategy

Social

Talent Development & Retention Programs

Customer Experience Enhancement

Community Engagement & Social Impact Initiatives

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Opportunity Description

Strengthen health and safety practices to ensure safe venues for employees, contractors, and visitors. This includes regular HSE training and drills, rigorous risk assessments for Employee Health & events, certification to international safety standards (e.g. ISO 45001), and a “safety-first” culture campaign. By investing in advanced safety equipment and clear emergency response Safety plans, ADNEC can minimize workplace incidents and ensure all events meet high safety standards.

Implement programs to support employees’ physical and mental well-being and to foster engagement. Initiatives could include wellness workshops, access to mental health Employee Engagement resources, fitness activities, flexible working arrangements, and regular employee feedback & Well-being surveys (with action plans based on results). Emphasizing work-life balance and well-being benefits will improve overall job satisfaction.

Roll out a comprehensive diversity and inclusion strategy to ensure equal opportunity and a workforce that reflects the community. This strategy would set targets (e.g. increasing female representation in leadership and hiring more UAE nationals), enforce unbiased Diversity & Inclusion recruitment and promotion practices, provide mentorship and leadership programs for underrepresented groups, and conduct regular staff training on unconscious bias and inclusive culture.

Invest in developing employee skills and leadership pipeline. This encompasses graduate recruitment schemes and internships, continuous training and upskilling workshops, clear Talent Attraction & career progression paths, and partnerships with educational institutions (e.g. sponsoring Development industry-related courses or hosting job fairs). By mapping career development plans for employees and recognizing high performers, ADNEC can build a strong internal talent pipeline.

Customer Satisfaction & Service Quality

Leverage technology and staff training to elevate the experience for customers, clients, and event attendees. This opportunity involves deploying advanced CRM systems and data analytics to personalize services, implementing real-time feedback tools (surveys/apps) during events, and training frontline staff in service excellence. By using customer insights and focusing on client care, ADNEC can set itself apart in service quality.

Community Engagement & Impact

Establish robust community outreach and investment programs to ensure ADNEC’s growth benefits the local society. For example, partner with local schools and universities on education and internship initiatives, support community events and charitable programs, encourage employee volunteering days, and collaborate with local businesses (such as SMEs and social enterprises) for event services. Regularly measuring and communicating the Group’s economic and social contributions to Abu Dhabi demonstrates transparency in impact.

Company

Expected Benefits Fewer accidents and incidents, leading to lower costs related to injuries or disruptions (companies that prioritize employee health and safety can reduce costs associated with accidents and illnesses). Additionally, a robust safety record boosts ADNEC’s reputation as a reliable, world-class venue operator and ensures compliance with labor and event safety regulations (reducing legal risk).

Higher employee morale and productivity, and improved talent retention – employees are more likely to stay with and be attracted to a company that invests in their well-being and shares their values. A positive workplace culture also enhances innovation and service quality (as engaged employees are more motivated), and strengthens ADNEC’s brand as an employer of choice.

A more diverse and inclusive workforce drives greater innovation and problem-solving by bringing varied perspectives. It also strengthens the company’s appeal to a broader talent pool and improves employee engagement and loyalty. Moreover, demonstrating commitment to D&I enhances ADNEC’s compliance with local employment goals and its reputation among global partners and clients as an equitable, modern organization.

Improves workforce capabilities and innovation capacity, ensuring the company has the skills needed for future growth. These programs also increase employee loyalty (reducing turnover costs) and help attract top talent externally – as employees are drawn to organizations with strong development opportunities and values alignment.

In the long term, succession planning through talent development secures leadership continuity for the Group.

Higher client satisfaction and loyalty, leading to repeat business and positive word-ofmouth. Strengthening customer-centricity also enhances ADNEC’s brand reputation and competitive position – companies known for responsible practices and superior service tend to enjoy better stakeholder loyalty. Additionally, actively engaging with customer feedback drives continuous improvement in operations and can spark service innovations.

Strengthens relationships with local stakeholders and ADNEC’s “social license to operate.” A proactive community engagement approach enhances the company’s reputation among residents and regulators and contributes to the local economy and social development. Such goodwill can translate into easier project approvals, government support, and a preference from clients who value working with a socially responsible venue partner.

ADNEC Group: Top ESG Opportunities A

Selected due to their link with the KPIs of our ESG Index ESG Category

ESG Opportunity Ethics & Compliance Enhancement

Data Privacy & Cybersecurity Upgrades

Governance

Sustainable Procurement Program

Enhanced ESG Reporting & Transparency

Integrated Risk Management & Business Continuity

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Company

Related Material Topic

Opportunity Description

Expected Benefits

Ethics and Integrity

Strengthen the Group’s ethics and compliance framework to uphold the highest standards of corporate governance. Key actions include periodic training for all employees on the Code of Conduct and anti-corruption policies, establishing an anonymous whistleblower hotline, performing regular compliance audits, and enforcing zero tolerance for violations. Leadership oversight (e.g. an ethics committee) will monitor compliance and address any misconduct swiftly.

Reduces the risk of legal breaches or reputational scandals by proactively preventing misconduct (effective ESG risk management lowers the likelihood of financial, legal, or reputational damage). It also builds stakeholder trust – investors, partners and regulators gain confidence that ADNEC operates ethically and transparently – and ensures adherence to all applicable laws and regulations, avoiding penalties.

Data Privacy & Security

Implement robust data protection measures to safeguard customer, employee, and partner data across all business units. This opportunity involves upgrading cybersecurity infrastructure (firewalls, intrusion detection, encryption), conducting regular vulnerability assessments and penetration tests, and enforcing strict data governance policies (in line with GDPR and UAE data laws). Employees will also receive training on cybersecurity awareness and data privacy best practices.

Prevents data breaches and the associated financial and reputational harm that can result from such incidents. Maintains customer and stakeholder trust by demonstrating that ADNEC takes data privacy seriously and ensures compliance with data protection regulations (avoiding regulatory fines). A strong cybersecurity posture also protects business continuity by reducing the risk of IT disruptions.

Sustainable Procurement

Integrate environmental and social criteria into procurement and supply chain management.

ADNEC will update procurement policies to favor suppliers with strong ESG credentials, use more local and eco-friendly products (e.g. sustainable event materials, green catering options), and require key suppliers to abide by ADNEC’s supplier code of conduct. Supplier ESG performance will be monitored and ADNEC can collaborate with vendors on initiatives to reduce waste and improve labor practices in the supply chain.

Mitigates supply chain risks and can lead to cost savings – for example, sourcing materials more sustainably and efficiently, and reducing waste in the supply chain can lower costs over time. It also enhances ADNEC’s brand credibility and consistency, as the company’s ESG values are extended to its partners (which is increasingly important to clients and investors). Additionally, this program ensures compliance with emerging regulations or client requirements regarding responsible sourcing.

Transparency & ESG Disclosure

Adopt best practices in ESG reporting and disclosure to improve transparency. This includes publishing an annual ESG/Sustainability report aligned with international frameworks (GRI, SASB, etc.), clearly communicating performance on each material topic and progress toward targets. ADNEC should also report climate-related risks in line with TCFD recommendations and ensure data in reports is externally assured. Regularly updating stakeholders on ESG progress (via the company website or newsletters) is part of this initiative.

Increases accountability and builds stakeholder confidence in the company’s commitments. High-quality ESG disclosure meets investor expectations and regulatory requirements, potentially improving access to capital as investors and lenders favor companies with strong ESG transparency. It also helps internal decision-making by tracking progress and enhances ADNEC’s reputation for governance excellence and openness.

Risk Management & Business Continuity

Embed ESG considerations into enterprise risk management and strengthen business continuity plans. This involves regularly updating the corporate risk register to include ESG risks (e.g. climate change impacts, supply chain disruptions, health pandemics), and developing robust contingency and continuity plans for critical operations. ADNEC will conduct scenario planning and simulation drills (for events of various crisis situations) to ensure preparedness. Business continuity policies (aligned with ISO 22301 or similar) will be maintained and communicated to all relevant teams.

Enhances organizational resilience against crises and unexpected disruptions, thereby protecting employees, customers, and financial performance. Proactive risk management of ESG issues helps avoid or mitigate potential losses (identifying and managing ESG-related risks lowers the likelihood of costly incidents). A strong continuity capability also assures stakeholders – from clients to regulators – that ADNEC can sustain operations under challenging conditions, which builds trust and reliability.

Our Sustainability Strategy A

Company

Our Pledge “Create long-term value for all our stakeholders through consciously ethical and sustainable practices across our group activities” Contributions to UAE Strategies Abu Dhabi Climate Change Strategy

We the UAE 2031

UAE Principles of the 50

UAE Net Zero 2050

Abu Dhabi Economic Vision 2030

UAE Energy Strategy 2050

Abu Dhabi Environnent Vision 2030

Green Agenda 2030

In-Country Value (ICV) Program

Contributions to UN SDGs

18

Priority 1

Priority 2

Priority 3

Priority 4

Protecting Our Land, Air, and Seas

Growing and Investing in Our Employees

Collaborating with Our Communities, Partners, & Suppliers

Safeguarding Our Assets and Values

Material Issues 1. Carbon Footprint and GHG Emissions 2. Energy Efficiency 3. Waste Management and Circular Economy 4. Sustainable Materials 5. Renewable Energy 6. Water Conservation and Management 7. Biodiversity & natural capital 8. Pollution Key Metrics 1. Scope 1, 2 & 3 GHG emissions (absolute & intensity) 2. Renewable energy consumption (% of total use) 3. Energy, water & waste intensity per event/visitor 4. Waste diversion & food waste valorisation rates 5. % of sustainable materials used in operations & events 6. Climate risk assessments & mitigation actions 7. Green building certifications (LEED/Estidama) 8. Water reuse & quality management projects

Material Issues

Material Issues

Material Issues

1. Workforce Well-Being 2. Work-Life Balance 3. Gender Balance and Equal Opportunity 4. Nationalisation 5. Health & Safety 6. Talent training & retention

1. Customer Experience & Satisfaction 2. Community Initiatives and Engagement 3. Health & Safety 4. Economic impact 5. Human rights (incl. supply chain)

1. Ethical Sourcing and Supply Chain Oversight 2. Data Security and Integrity 3. Business Ethics and Values 4. Corporate Governance 5. Business Continuity & Resilience 6. Transparency and ESG Disclosures 7. Operational Excellence and Innovation

Key Metrics

Key Metrics

Key Metrics

1. Employee satisfaction & engagement scores 2. Occupational health & safety indicators ( LTI, incident rate) 3. Gender diversity & leadership representation 4. Emiratisation rate & retention of UAE talent 5. Participation in training, development & upskilling programmes 6. Volunteer hours and employee social impact participation 7. Training hours

1. Supplier ESG compliance rate & ethical sourcing audits 2. % of local and sustainable procurement spend 3. Community investment (amount, beneficiaries, partnerships) 4. Customer satisfaction (NPS, complaints resolved) 5. Engagement in cultural inclusion and accessibility programmes

1. ESG reporting alignment (GRI, TCFD, SDGs) 2. ESG assurance & verification status 3. Data breaches & cybersecurity incident frequency 4. Whistleblowing reports & resolution rate 5. Business continuity test coverage & scenario simulation frequency 6. Compliance with internal controls & ethics training participation

Our Sustainability Strategy A

Company

Our Pledge “Create long-term value for all our stakeholders through consciously ethical and sustainable practices across our group activities” Contributions to UAE Strategies Abu Dhabi Climate Change Strategy

We the UAE 2031

UAE Principles of the 50

UAE Net Zero 2050

Abu Dhabi Economic Vision 2030

UAE Energy Strategy 2050

Abu Dhabi Environnent Vision 2030

Green Agenda 2030

In-Country Value (ICV) Program

Contributions to UN SDGs

19

Priority 1

Priority 2

Priority 3

Priority 4

Protecting Our Land, Air, and Seas

Growing and Investing in Our Employees

Collaborating with Our Communities, Partners, & Suppliers

Safeguarding Our Assets and Values

Goals

Goals

Goals

Goals

1. Significantly reduce Scope 1, 2, and 3 greenhouse gas emissions by improving energy efficiency, transitioning to renewable energy, and managing emissions from logistics and travel.

2. Minimise waste generation by enhancing recycling, promoting reuse, and prioritising sustainable and recyclable materials through circular economy practices.

3. Strengthen infrastructure and operational resilience by proactively addressing climate-related risks, implementing green building practices, and managing environmental impacts across events.

4. Responsibly manage natural resources by optimising water use, reducing pollution and protecting soil and land quality

1. Foster a supportive workplace by prioritising employee wellbeing, work-life balance, and occupational health and safety, creating a resilient and productive workforce.

2. Promote diversity, gender balance, and equal opportunity through inclusive hiring practices, development opportunities, and equitable career advancement.

3. Accelerate nationalisation and talent retention by investing in continuous training and development, preserving Emirati culture and identity, and positioning the organisation as an employer of choice.

4. Uphold fundamental human rights and proactively prevent discrimination, while encouraging employees to actively engage in meaningful volunteerism and community initiatives.

1. Build strong, long-term relationships with local communities through inclusive engagement, impactful initiatives, and support for youth development and education.

2. Ensure safe, culturally inclusive, and accessible products and services that meet the diverse needs of ADNEC Group’s global and local audiences.

3. Drive sustainable growth by embedding human rights, innovation, and ethical practices across our value chain and partnerships.

1. Promote ethical conduct, responsible communication, and transparent governance practices that uphold stakeholder trust and regulatory compliance.

2. Strengthen cyber security, business continuity, and risk governance frameworks to ensure secure, adaptive, and future-ready operations 3. Ensure strong governance, senior management diversity, and responsible sourcing through robust oversight and alignment with ESG principles.

ESG and Sustainability Strategy Our Pledge “Create long-term value for all our stakeholders through consciously ethical and sustainable practices across our group activities” Protecting Our Land, Air, and Seas

ESG Priority Areas

Minimise ADNEC Group’s environmental footprint by reducing emissions, conserving natural resources, and advancing climate and ecosystem resilience across all operations.

1.

2.

3.

4.

5.

6.

7.

8.

Carbon Footprint and Greenhouse Gas Emissions Energy Efficiency Waste Management and Circular Economy Sustainable Materials Renewable Energy Water Conservation and Management Biodiversity & natural capital Pollution

1.

2.

3.

4.

5.

6.

Green Building and Infrastructure Emissions from Travel and Logistics Event-Based Environmental Footprint Soil & Land Use Impact Water Quality Management Climate Risk and Resilience

A

Company

Growing and Investing in Our Employees

Foster an inclusive, empowered, and future-ready workforce by advancing well-being, equity, skills development, and national talent integration across all business clusters.

Material Topics 1. Workforce Well-Being 2. Work-Life Balance 3. Gender Balance and Equal Opportunity 4. Nationalisation 5. Health & Safety 6. Economic impact 7. Human rights (incl. supply chain) 8. Talent training and retention Other Relevant Topics 1.

2.

3.

4.

Non- Discrimination Emirati Culture and Identity Employee Training and Development Volunteerism & Employee Social Impact

UN SDG Contributions

ESG Goals 1.

1. Significantly reduce Scope 1, 2, and 3 greenhouse gas emissions by improving energy efficiency, transitioning to renewable energy, and managing emissions from logistics and travel.

2.

2. Minimise waste generation by enhancing recycling, promoting reuse, and prioritising sustainable and recyclable materials through circular economy practices.

3.

3. Strengthen infrastructure and operational resilience by proactively addressing climate-related risks, implementing green building practices, and managing environmental impacts across events.

4.

4. Responsibly manage natural resources by optimising water use, reducing pollution and protecting soil and land quality

20

Foster a supportive workplace by prioritising employee well-being, work-life balance, and occupational health and safety, creating a resilient and productive workforce.

Promote diversity, gender balance, and equal opportunity through inclusive hiring practices, development opportunities, and equitable career advancement.

Accelerate nationalisation and talent retention by investing in continuous training and development, preserving Emirati culture and identity, and positioning the organisation as an employer of choice.

Uphold fundamental human rights and proactively prevent discrimination, while encouraging employees to actively engage in meaningful volunteerism and community initiatives.

ESG and Sustainability Strategy Our Pledge “Create long-term value for all our stakeholders through consciously ethical and sustainable practices across our group activities” Collaborating with Our Communities, Partners & Suppliers

ESG Priority Areas

Create shared value through meaningful partnerships, inclusive customer experiences, and active community engagement that enhances societal well-being and long-term stakeholder trust.

A

Company

Safeguarding our Assets & Values

Uphold the highest standards of governance, integrity, and operational resilience to protect ADNEC Group’s people, data, reputation, and long-term value.

Material Topics 1.

2.

3.

4.

5.

6.

7.

1. Customer Experience & Satisfaction 2. Community Initiatives and Engagement 3. Health & Safety

1.

2.

3.

4.

5.

6.

Cultural Accessibility and Inclusive Tourism Equitable Access Emirati Culture and Identity Human Rights Product and Service Innovation Youth Engagement & Skills Development

Ethical Sourcing and Supply Chain Oversight Data Security and Integrity Business Ethics and Values Corporate Governance Business Continuity & Resilience Transparency and ESG Disclosures Operational Excellence and Innovation

Other Relevant Topics 1.

2.

3.

4.

5.

6.

Accurate and Timely Communication Board Composition and Diversity Fair Competition Greenwashing Risk and Communication Integrity Project Management Regulatory Compliance

7. Risk Management and Internal Controls 8. Sustainability-Linked Finance Readiness 9. Whistleblowing

UN SDG Contributions

ESG Goals

1. Build strong, long-term relationships with local communities through inclusive engagement, impactful initiatives, and support for youth development and education.

2. Ensure safe, culturally inclusive, and accessible products and services that meet the diverse needs of ADNEC Group’s global and local audiences.

3. Drive sustainable growth by embedding human rights, innovation, and ethical practices across our value chain and partnerships.

21

1. Promote ethical conduct, responsible communication, and transparent governance practices that uphold stakeholder trust and regulatory compliance.

2. Strengthen cyber security, business continuity, and risk governance frameworks to ensure secure, adaptive, and future-ready operations 3. Ensure strong governance, senior management diversity, and responsible sourcing through robust oversight and alignment with ESG principles.

ESG as a Driver of Long-Term Value ADNEC Group’s ESG framework strategically aligns environmental, social, and governance priorities with business performance. By applying a unified set of metrics across all clusters, we enhance our capability to:

Create Impact & Value

Identify emerging regulations, climate risks, and stakeholder expectations to enable proactive decision-making.

Drive stronger revenue growth, improve cost efficiency, enhance staff productivity, and secure access to favourable financing.

Modon Holding Strategic Directives

Manage Risk

22

Build Trust & Governance

Achieve Operational Excellence

Uphold transparent governance, ethical Improve energy, waste, and resource conduct, and responsible supply chains efficiency, while fostering innovation and to mitigate legal, regulatory, and sustainable service delivery. reputational risks.

Abu Dhabi's Strategic Directives and Priorities

ADNEC Group Strategy

ADNEC Group ESG Strategy

Group Innovation and Future Shaping Strategy

Business Cluster and Departmental Frameworks & Strategies

Global Frameworks, Regulatory Signals & Market Trends

A

Company

Governance and Control Our governance framework includes continuous evaluation and measurement of ESG performance, independent oversight to reinforce accountability, and regular refinement of governance structures to effectively address evolving sustainability risks and opportunities.

Entity Modon Holding - Board of Directors

Modon Holding - Group CEO

Modon Holding - Executive Management Committee

ADNEC Group - Managing Director & Group CEO

ADNEC Group - Strategy & Sustainability Department

23

A

Company

Responsibilities Establishes the overarching sustainability and ESG strategy for Modon Holding and its subsidiaries, including ADNEC Group. Sets strategic objectives, highlevel targets, and priorities aligned with applicable mandates and regulations. Provides oversight through regular reviews of ESG performance against established targets as reported by the Group CEO, ensuring accountability and transparency.

Leads the operational integration and execution of Modon Holding’s sustainability and ESG strategy across all subsidiaries. Ensures subsidiaries adhere to the established ESG framework and achieve set targets. Reports regularly to the Board of Directors on ESG performance, highlighting key achievements, challenges, and recommended actions.

Supports the Group CEO by reviewing and advising on ESG strategic direction, business planning processes, and priorities. Provides guidance on ESG policy development, strategic targets, procedures, risk management, annual goals, and key performance indicators (KPIs).

Provides executive leadership and strategic direction for ADNEC Group’s sustainability strategy and ESG agenda. Ensures full alignment with Modon Holding’s ESG policies, targets, and standards. Oversees the management of ESG performance, risk management frameworks, and sustainability initiatives and projects across the organisation.

Leads the development, implementation, and monitoring of ADNEC Group’s ESG strategy and initiatives. Manages the ESG performance framework, coordinates sustainability activities across all business clusters, ensures alignment with recognised global ESG standards, and facilitates transparent ESG reporting. Advises senior leadership on sustainability best practices, monitors performance against defined ESG objectives, and recommends areas for continuous improvement. Provides regular reporting to the Managing Director and Group CEO, detailing ESG achievements, challenges, and strategic recommendations.

ADNEC Group: Integrated Value Creation ESG Approach GROUP CLUSTERS

VALUE CREATION MODEL

MATERIAL ISSUES Environmental

1. Carbon Footprint & Greenhouse Gas emissions 2. Energy Efficiency 3. Waste Management & Circular Economy 4. Sustainable Materials 5. Renewable Energy 6. Water Conservation & Management 7. Biodiversity & natural capital 8. Pollution

VENUES

EVENTS

• • Revenue Generation

Social

F&B

SERVICES

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Workforce Well-Being Work-Life Balance Gender Balance and Equal Opportunity Nationalisation Customer Experience & Satisfaction Community Initiatives & Engagement Health & Safety Economic impact Human rights (incl. supply chain) Talent training & retention

1.

Ethical Sourcing and Supply Chain Oversight Data Security & Integrity Business Ethics & Values Corporate Governance Business Continuity & Resilience Transparency & ESG Disclosures Operational Excellence & Innovation

• • Optimization and Cost Control •

•

Governance

TOURISM

MEDIA

2.

3.

4.

5.

6.

7.

ENABLERS

24

•

• Intangible Asset Creation

• •

Work Together

Company

PRIORITY AREAS & METRICS

Sustainability leadership enhances competitiveness in international bids and events.

Clean energy, waste innovation, and ESG-aligned services open new commercial opportunities (e.g. sustainable event packages, green certifications, carbon-neutral partnerships).

Strategic ESG positioning supports access to sustainability-linked financing and impact-focused investments.

Energy-efficient operations (AI-driven BMS, HVAC optimisation, solar PV) lower utility costs and carbon intensity.

Waste diversion and food valorisation reduce disposal costs and improve operational sustainability across F&B and events.

Water-saving fixtures and greywater reuse reduce consumption and avoid excess utility charges.

ESG performance strengthens brand equity and stakeholder trust.

Enhances talent attraction and retention through well-being, inclusion, and upskilling initiatives.

Enables stronger regulatory compliance and futureproofs operations against climate, data, and ethical risks.

Drives innovation in event delivery and builds thought leadership in net-zero and sustainable MICE practices.

Strive for Excellence

A

Creative and Innovative

Protecting Our Land, Air, and Seas 1. Scope 1, 2 & 3 GHG emissions (absolute & intensity) 2. Renewable energy consumption (% of total use) 3. Energy, water & waste intensity per event/visitor 4. Waste diversion & food waste valorisation rates 5. % of sustainable materials used in operations & events 6. Climate risk assessments & mitigation actions 7. Green building certifications (LEED/Estidama) 8. Water reuse & quality management projects Growing and Investing in Our Employees 1. Employee satisfaction & engagement scores 2. Occupational health & safety indicators ( LTI, incident rate) 3. Gender diversity & leadership representation 4. Emiratisation rate & retention of UAE talent 5. Participation in training, development & upskilling programmes 6. Volunteer hours and employee social impact participation Collaborating with Our Communities, Partners, and Suppliers 1. Supplier ESG compliance rate & ethical sourcing audits 2. % of local and sustainable procurement spend 3. Community investment (amount, beneficiaries, partnerships) 4. Customer satisfaction (NPS, complaints resolved) 5. Engagement in cultural inclusion and accessibility programmes Safeguarding Our Assets and Values 1. ESG reporting alignment (GRI, TCFD, SDGs) 2. ESG assurance & verification status 3. Data breaches & cybersecurity incident frequency 4. Whistleblowing reports & resolution rate 5. Business continuity test coverage & scenario simulation frequency 6. Compliance with internal controls & ethics training participation

Passionate

ADNEC Group: Overarching ESG Value Chain A

Company

Level 1 Processes 1

2

3

Strategy Definition

Implementation and Reporting

Governance and Control

In this phase, the Group conducts its materiality assessment, stakeholder engagement, and other research activities to identify material topics, risks and opportunities that will shape its ESG strategy.

This also includes articulating the Group’s aspirations in ESG, and defines its goals, targets, and plans – and linking these to the Group’s policies and procedures.

In this phase, the Group collects insights and data regarding its ESG performance in order to collate this information and disseminate it as part of its annual report and as required to its stakeholders, including shareholders, regulators and ratings agencies.

In this phase, the Group carries out periodic maturity and performance analysis to identify areas of improvement and track progress against the strategy, across the Group. Moreover, this phase includes the on-going research and coordination conducted by the ESG team(s) to identify ESG best practices, guidelines and improvements that can benefit the Group.

1.

2.

3.

4.

1.

2.

3.

4.

Level 2 Sub-processes 1.

2.

3.

4.

5.

6.

Materiality Assessment and Risk Integration Vision and Priority Setting Goal Definition Programme and Roadmap Development Integration and Alignment Internal Communication and Awareness

25

Programme Execution Data Collection and Analysis Group Performance Reporting and Disclosure External Stakeholder Coordination and Communication

Maturity Analysis Standards and Practices Research Topics and Trends Research Internal Performance Monitoring and Management

ESG Reporting Overview A

1

This is based on ADNEC Group’s responsibility to align with its shareholder‘s (Modon Holding) aspirations and strategy for adopting ESG practices. ADNEC Group on an annual basis must submit its updated ESG performance against the topics and criteria that are material to the business. The information provided is based on: the strategy/targets the Group has defined, the measures (activities) deployed, and the results achived for each of the criteria identified by Modon Holding.

2

This consists of the reporting that ADNEC Group (or its specific business clusters / subsidiaries) submits to external stakeholders, in order to comply with the standards, guidelines, and mandates it has agreed to. Each external stakeholder represents its own specific reporting expectations.

3

This report is prepared and published annually, as part of the Group’s Annual Report. In it, ADNEC Group shares its ESG and sustainability goals, strategy, programmes and results.

4

This consists of ADNEC Group’s internal performance reporting that tracks the progress against its ESG strategy, updates on any ESG activities and the programmes defined, and the maturity of the organisation’s ESG capabilities. These reports are submitted to the ESG Committee and Executive Management / Board on a regular basis.

5

Annual targets are prepared and shared by each business cluster / subsidiary within the Group, in line with the Group’s reporting to its shareholders, the public, and any other external stakeholders as required. Additionally, on a regular basis, each business cluster prepares and shares its performance updates against the Group’s ESG strategy.

Shareholders

1 Regulators / Ratings Agencies

2

4

ADNEC Group

5

Business Clusters / Subsidiaries

26

3

Public

Company

ESG Governance: ESG Index ADNEC Group develops an ESG Index outlining annual targets for each business cluster, aligned with the Group’s ESG Strategy and Modon Holding’s overarching strategy and policy; the index is updated bi-weekly and reported to senior management on a quarterly basis.

ADNEC Group ESG Index (internally, developed by ADNEC Group) Component / Element

Weight

ESG Performance Score

100%

ESG Maturity

40%

Conducting Materiality Assessment

20%

Developing an ESG Strategy

20%

Developing an ESG Initiatives Portfolio

20%

Level of Group ESG Alignment (vertical and horizontal)

20%

Internal Governance Practices

20%

Materiality Performance (towards our 4 priority areas)

60%

Protecting Our Land, Air, and Seas

25%

Growing and Investing in Our Employees

25%

Collaborating with Our Communities, Partners, and Suppliers

25%

Safeguarding Our Assets and Values

25%

27

A

Company

Reference: ESG Rankings & Ratings A

Company

Agency

Aligned ESG Topic

Scope & Focus Area

Grading Scale

Public Rating

Trading Platform

CDP (Carbon Disclosure Project)

GHG Emissions, Water Conservation, Environmental Impacts

Scope 1, 2 & 3 emissions, water security, supply chain impacts

A to D- (climate) A to D- (water)

Yes

Google Finance

Climate Change, Circular Economy, Waste, Natural Capital

Environmental & Social risks and opportunities

CCC to AAA

Yes

Bloomberg MSCI ESG Manager

Sustainalytics

Resource Use, Carbon Intensity, Biodiversity

ESG Risk Rating: unmanaged risks across E, S, G

0–100 (lower = better)

Yes

Yahoo Finance Morningstar

S&P Global ESG Score

GHG Emissions, Waste, Water, Land Use

ESG evaluation across operations and disclosures

0–100

Yes

S&P Global

FTSE4Good Index

Environmental Strategy, Pollution, Waste, Supply Chain

ESG standards: environmental, social, governance

Pass / Fail, or 0–5 band scoring

No

FTSE Russell

Refinitiv ESG Score

ESG Policies, External Initiatives, Certifications, Controversies

Measures ESG performance, commitment, and disclosure across 10 themes

0–100

Yes

Refinitiv Eikon

MSCI ESG Ratings

28

ADNEC Group: Net Zero Carbon Commitment ADNEC Group has accelerated its decarbonisation journey by launching a comprehensive Net Zero commitment. Guided by the Greenhouse Gas (GHG) Protocol and aligned with the Science-Based Targets initiative (SBTi), the Group established 2024 as its new baseline year and committed to a robust, scientifically validated emissions-reduction pathway.

A

Company

Overview of publicly communicated Net Zero Carbon Commitment Year 2030

Year 2035

Year 2045

Reduce absolute Scope 1 and 2 emissions by at least 50% & ensure that suppliers representing 67% of Scope 3 Purchased Goods and Services have adopted science-based targets aligned with the 1.5°C pathway.

Achieve a minimum 90% reduction in Scope 1 & 2 emissions.

Reach full net zero across Scopes 1, 2, and 3, with any residual emissions (no more than 10%) neutralised through accredited carbon removal solutions only, such as direct air capture or longterm bio-based sequestration.

Following the 2026 strategy refresh, the new internal target (not yet communicated publicly) is more ambitious for Scopes 1& 2, planning to reach Net Zero by 2030

29

Updated plan to reach 100% by 2030

ADNEC Group: Net Zero Carbon Commitment Our updated and re-baselined year 2024 carbon footprint of 195,247 tCO₂e covers all relevant GHG Protocol categories including extended scope 3 emissions. Our carbon footprint scope 3 emissions are broken down as follows

Total Scope 1 Emissions Emissions from Stationary Combustion Sources

5%

Emissions from Mobile Combustion Emissions from Fugitive Sources (Fire Suppression)

18%

195,247 tCO2e

Scope 1

Emissions from Fugitive Sources (Refrigeration and Air Conditioning Equipment)

Scope 2

Total Scope 2 Emissions

Scope 3

Emissions from Purchased Electricity Emissions from Purchased Cooling Total Scope 3 Emissions Emissions from Category 1: Purchased Goods & Services

77%

Emissions from Category 3: Fuel- and Energy-Related Activities Emissions from Category 5: Waste Generated in Operations Emissions from Category 6: Business Travel Emissions from Water Consumption

30

A

Company

9,833 770 8,202 539 324 36,022 28,890 7,133 149,390 142,792 2,216 582 588 3,214

ADNEC Group: Net Zero Carbon Commitment A

Stationary Combustion

Mobile Combustion

Fugitive Sources

Purchased Electricity

Purchased Cooling

ADNEC Venues Abu Dhabi Exhibition Centre

6

0

440

11,783

4,954

9,290

825

ADNEC Venues Al Ain Exhibition Centre

6

0

76

2,580

395

294

ADNEC Venues Excel London

25

18

93

1,254

1,784

ADNEC F&B 2 kitchens at ADNEC Centre AD

0

0

0

0

ADNEC F&B - Airport Facility

0

6,928

202

Tourism 365 LTD & Capital Holidays

232

746

Two Four 54 LLC

500

ADNEC Services Capital 360, Capital Protocol, Lite Development Management Capital Events (IDEX, NAVDEX, UMEX, STimTEX, ISNR, AD Boat Show, Food Exhibition., Global Media Congress) Total

31

Purchased Goods & Fuel- and Energy- Waste Generated Services Related Activities in Operations

Company

Business Travel

Water Consumption

Total

311

62

1,639

29,308

181

168

62

162

3,924

7,595

281

15

283

31

11,380

0

48,545

0

0

6

0

48,551

10,916

0

48,545

764

0

6

1,146

68,507

0

0

0

4,438

0

4

33

0

5,454

509

51

2,357

0

8,568

165

83

30

236

12,499

0

0

0

0

0

7,764

0

0

61

0

7,826

0

0

0

0

0

7,753

0

0

45

0

7,798

770

8,202

862

28,890

7,133

142,792

2,216

582

588

3,214

195,247

ADNEC Group: Net Zero Pathway ADNEC Group’s journey to achieving net zero by 2045 follows a structured, phased approach combining technology, operational excellence, and stakeholder collaboration.

Company

Publicly communicated approach – To be revised with new targets

No Reduction Trajectory Scope 1

350,000

A

Near-Term Targets for 2030

- Reduce absolute Scope 1 and 2 emissions by at least 50% - Suppliers covering 67% of emissions from Purchased Goods and Services to set net zero targets

Scope 2 Scope 3

300,000

Year 2024 Baseline 195 ktCO2e

250,000

Medium-Term for 2035

Reduce absolute Scope 1 and 2 emissions by at least 90%

200,000

150,000

Long-Term Target for 2045

100,000

Reduce Absolute Emissions by 90% 14,628 tCO2e

50,000 Ethical Procurement & supplier engagement

0

32

Residual Emissionstotooffset offset Residual Emissions 2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

ESG Initiatives Overview Our Net Zero Transition Plan outlines a clear roadmap structured around three distinct phases:.

A

Company

To be adjusted

2022 – 2026

2027 – 2030

Immediate

Near-Term

• Carbon Baselining and Net-Zero Transition Plans • Waste Management Initiatives • ADNEC Centre Abu Dhabi - Clean Energy Agreement & AI Energy Optimisation Projects • ExCeL London - Electricity Submetering, Voltage Optimisation & Lighting Controls • Ethical Procurement Framework Development • Data Collection / Reporting / ESG IT Solution • F&B portion size and recipe adjustments • Expand use of RECs • Venues suppliers engagement

33

2030+ Medium & Long Term

• ADNEC Centre Al Ain Clean Energy Agreement, On-site PV & Energy Audit • ADNEC Centre Abu Dhabi Onsite PV & Energy Audit • ExCeL London - Onsite PV (Phases 1 & 2), HVAC Controls & Voltage Optimisation • ADNEC F&B – Voltage Optimisation • ADNEC Media – Energy Audit & Clean Energy Trade Agreement • Fleet Decarbonisation Phase 1 • Group-wide Lighting Redesign, Controls

• Group wide Energy Audits / ESCO Shared Savings Agreements • Building Envelope Upgrades • Travel Fleet Decarbonisation - Phase 2 • Environmentally Friendly Refrigerants • Boilers & Heat Pump Upgrades • Material lifecycle Analysis • Transition Scope 3 emissions spend to activity based.

• Supplier awareness & training

1. Timeframes are indicative only and may not represent the actual duration and start/end date of the programmes noted.

ESG Initiatives Overview - Roadmaps Our Net Zero Transition Plan outlines a clear roadmap also by scope – Scope 1 overview (1/2)

A

Company

Detailed Cluster-Level decarbonization implementation plan available in separate document 2026

Activity

2027

2028

2029

2030

Stakeholders

Details

Facility Management

Continuous improvements’ implementation

Create fleet electrification program governance

Fleet management

Appoint progr. owner, SteerCo, cadence, KPIs

Gather insights from current pilot projects

Fleet management

Capture charging issues, driver feedback, TCO

Develop fleet electrification schedule

Fleet management

Define waves by relevant internal data

Develop charging infrastructure feasibility study

Facility management

Grid capacity, technical upgrades assessment

Engage relevant suppliers (e.g., Chinese OEMs)

Procurement

Validate availability, warranty, lead times etc.

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Non-vehicle related Scope 1 emissions Fugitive sources & stationary combustion Phase 1: Design, foundations & pilots

Suppliers’ selection

Procurement & Fleet mgmt. Run RfP; Shortlist 2-3 OEMs + Charging provider

EV chargers – Pilot project

Facility management

Install chargers in “hot spots” for testing

Develop fleet charging policy

Fleet management

Prio users, home charging reimbursement etc.

Change management plan creation

Fleet management

Drivers’ training, S&OPs

EV new pilot launch

Fleet management

Deploy first vehicles; Monitor KPIs

EV & Charger pilot projects assessments

Facility management

Evaluate reliability, charging times, utilization

Develop full business case 2027-2030 (CAPEX/ OPEX)

Finance & fleet mgmt.

TCO model, funding ask, risk mitigation

Approval for 2027-2030 rollout funding

Finance

Investment decision & budget lock-in

Tender & award of long-term contracts

Procurement

Multi-year framework: vehicles, chargers, maintenance

Wave 1 charging stations installation

Facility management

Priority sites first

Wave 1 fleet replacement

Procurement & fleet mgmt. Based on electrification schedule

Route Optimization

Fleet management

Phase 2: Scale-up

Maximize EV utilization

Key milestones Supplier selection & EV schedule finalized

34

Pilots completed

First EV wave completed 1. Timeframes are indicative only and may not represent the actual duration and start/end date of the programmes noted.

ESG Initiatives Overview - Roadmaps Our Net Zero Transition Plan outlines a clear roadmap also by scope – Scope 1 overview (2/2)

A

Company

Detailed Cluster-Level decarbonization implementation plan available in separate document 2026

Activity

2027

2028

2029

2030

Responsible

Details

Wave 2 – charging expansion

Facility management

Expand chargers to remaining sites

Wave 2 – fleet electrification

Procurement & fleet mgmt. Based on electrification schedule

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Phase 3: Scale-up (wave 2) & integration

Phase 4: HVO assessment Evaluate “hard to electrify” use cases

Fleet management

Focus on trucks

Prepare and deploy HVO pilots

Procurement & fleet mgmt. Focus on trucks

Preparation of sustainability communications

Fleet management

Public communication of progress & targets

Prepare emission calculations audit

Fleet management

Gather data

Phase 5: Reach Net Zero in scope 1 Wave 3 – Final conversion wave

Procurement & fleet mgmt. Based on electrification schedule

HVO rollout for remaining ICE vehicles

Procurement & fleet mgmt. “Hard to electrify” use cases

Prepare emission calculations audit

Fleet management

Gather data

Obtain limited assurance

Fleet mgmt. & Finance

Support auditors

Develop communication campaign

Procurement & fleet mgmt. Communicate NZ ahead of target

Key milestones

Wave 2 completed

35

Reach NZ in S1 1. Timeframes are indicative only and may not represent the actual duration and start/end date of the programmes noted.

ESG Initiatives Overview - Roadmaps Our Net Zero Transition Plan outlines a clear roadmap also by scope – Scope 2 overview

A

Company

Detailed Cluster-Level decarbonization implementation plan available in separate document

2026

Activity

Q1

Q2

Q3

2027 Q4

Q1

Q2

Q3

2028 Q4

Q1

Q2

Q3

2029 Q4

Q1

Q2

Q3

2030 Q4

Q1

Q2

Q3

Q4

Responsible

Details

Phase 1: Planning Create program governance

Facility management

Assign owner, SteerCo, cadence, KPIs, reporting

Clarify Scope 2 boundary

Facility management

Define meters/sites; leased assets; Scope 2 eligibility

Develop baseline consumption forecast

Facility management

Historic kWh & growth assumptions to 2030

Centralize & evaluate non-REC projects

Facility management

Review efficiency/onsite RE options; prioritize pipeline

Create timelines & business cases

Facility mgmt. & Finance

Focus on phasing and cost estimations

Develop procurement strategy

Facility management

Phasing, key suppliers etc.

Approval for 2027-2030 rollout funding

Facility mgmt. & Finance

Investment decision & budget lock-in

Phase 2: Execution Supplier engagement

Facility mgmt. & procurement Shortlist vendors; validate supply, pricing, credibility

Tender & award of long-term contracts

Facility mgmt. & procurement RFP; award multi-year framework; define SLAs

Initiatives’ rollout

Facility management

Implementation of shortlisted initiatives

Phase 3: Assurance & communication Prepare emission calculation audit

Facility management

Evidence pack; methodology; market-based Scope 2

Obtain limited assurance

Facility mgmt. & Finance

External assurance statement for Scope 2 claims

Develop communication campaign

Facility management

Communicate NZ ahead of target

Key milestones

Timelines, budget Suppliers are selected & teams secured & rollout starts

36

Reach NZ in S2

1. Timeframes are indicative only and may not represent the actual duration and start/end date of the programmes noted.

ESG Initiatives Overview - Roadmaps Our Net Zero Transition Plan outlines a clear roadmap also by scope – Scope 3

A

Company

Detailed Cluster-Level decarbonization implementation plan available in separate document

2026

Activity

Q1

Q2

Q3

2027 Q4

Q1

Q2

Q3

2028 Q4

Q1

Q2

Q3

2029 Q4

Q1

Q2

Q3

2030 Q4

Q1

Q2

Q3

Q4

Responsible Details

Phase 1: Planning Create program governance

Procurement

Identify emission “hotspots” for ingredients

Procurement

Centralize main ingredients for further adjustment

Engage recipe developers (e.g., chefs)

F&B experts

Optimize recipes

Develop detailed supplier engagement program

Procurement

Identify top suppliers, plan execution/ phasing

Launch supplier engagement program – F&B and Venues only

Procurement

Top 20-50 suppliers first

Launch supplier engagement program – Other business clusters

Procurement

Top 20-50 suppliers first

Assign owner, SteerCo, cadence, KPIs, reporting

Set supplier disclosure requirements & reporting template

Procurement

Request product footprints, activity data etc.

Embed “low-carbon” policies into procurement policies

Procurement

Carbon clauses, thresholds, specs, scoring criteria

Pilots on high-impact categories

Procurement

Trial menu shifts, modular reuse, low-carbon materials

Shift to activity-based calc. for top suppliers for all Clusters

Procurement

Replace spend-based; use supplier operational emissions data

Roll out low-carbon F&B progr. across catering operations

Procurement

Portion sizing, meat mix shift, waste prevention

Roll out low-carbon procurement for Venues

Procurement

Modular reuse; low-carbon fit-outs; circular sourcing

Roll-out low carbon initiatives for other clusters

Procurement

Reuse sets, reduce freight, green transport packages

Extend activity-based emission calc. beyond top suppliers

Procurement

Broaden categories; improve data granularity and accuracy

Extend supplier program beyond top spend categories

Procurement

Long-tail suppliers; compliance monitoring; supplier training

Embed low-carbon offerings

Procurement

Embed low carbon product/ offerings in relevant Clusters

Prepare audit

Procurement

Audit trail, controls, documentation, methodology alignment

Obtain limited assurance

Procurement

Third-party verification of Scope 3 reporting and claims

Phase 2: Programs’ rollout

Phase 3: Scale-up

Key milestones

37

1. Timeframes are indicative only and may not represent the actual duration and start/end date of the programmes noted.

A

2 | Sustainability Strategy Definition and ESG Framework Approach at ADNEC Group

38

Company

3-step Approach: ESG Business Strategy Sustainability and ESG certifications, labels and frameworks have gained in popularity as transparency and stakeholder expectations become more important. A comprehensive approach in ESG driven organisation and strategy, should consider all 3 of these pillars.

Pillar 1 Materiality and Strategy Setting For a company to establish and delivery its sustainability journey, several key activities need to be conducted first as they present prerequisites for a clear and coherent strategy.

Carbon Footprint Assessment All players should know their environmental footprint to assess their impact on climate and the society. A scope 3 analysis will present emission heavy aspects and will thus provide reduction indicators.

Many tools and providers on the market offer GHG accounting services.

39

Materiality Matrix The materiality assessment helps stakeholders to find out how important specific environmental, social or governance issues are to them. The assessment combines this view with an understanding of the impact of these issues to the organisation’s financial and strategic success. A double materiality assessment can also be conducted to further consider the impact of these issues to the society.

SDG Prioritization and Target Setting To develop an ESG strategy a company needs to determine its main priority areas and goals in line with its values and its materiality. Here, the UN Sustainable Development Goals present an internationally recognized framework, with specific targets, that the organisation can work towards – including other key mandates that the organisation specifically contributes to.

Pillar 2 Reporting

A

Company

Pillar 3 Accreditation

Sustainability reporting becomes mandatory To take the sustainability accreditation even for organisations in all sectors and sizes. The further some companies, mainly stock public and private sector demand for exchange companies also aim for ESG transparency and some organizations offer recognition. This gives investors additional third party accreditation services to avoid confidence of the organisation’s management greenwashing and promote collaborative capabilities and commitments in line with the action. Some of these organizations are SBTi, rating agencies ESG guidelines and standards.

CDP, Ecovadis, ACT, GRI, etc.

ESG ratings are based on environmental, social and governance pillars which are all covered and step 1 and 2 of the recommendations. The most popular ESG rating companies are MSCI, Sustainalytics, etc.

ADNEC Group: Overarching ESG Framework A

Company

2. Vision and Aspirations: The Group’s ESG vision and aspirations are shaped by shareholder priorities and relevant external frameworks, including the UN Sustainable Development Goals (SDGs), Science-Based Targets Initiative (SBTi), and UAE national priorities.

3. Implementation and Action Plans: Guided by the overarching ESG Strategy, targeted substrategies and detailed action plans are developed and implemented across ADNEC Group to effectively deliver ESG objectives.

4. Subsidiary and Cluster Contributions: Each subsidiary or business cluster actively contributes to the Group’s ESG Strategy by defining tailored goals and action plans. These are aligned with Group-level strategic direction, while addressing specific material topics, operational requirements, constraints, and stakeholder expectations unique to their context.

40

Modon Holding Strategic Directives

1. Strategic Alignment: ADNEC Group’s ESG Framework and Strategy are aligned with the Group’s overall Corporate Strategy and guided by shareholder directions.

Abu Dhabi's Strategic Directives and Priorities

ADNEC Group Strategy

ADNEC Group ESG Strategy

Group Innovation and Future Shaping Strategy

Business Cluster and Departmental Frameworks & Strategies

Global Frameworks, Regulatory Signals & Market Trends

ADNEC Group: ESG Model The ADNEC Group ESG Model is aligned with international guidelines for ESG integration and reporting, leveraging the Group’s existing corporate strategy and management frameworks. The model comprises three interconnected activities:

A

Objectives and Strategy Definition Covers defining material ESG topics, setting strategic ESG goals, and formulating actionable plans aligned with the Group’s vision.

Governance and Control Covers internal oversight, alignment, and continuous improvement of the Group’s ESG initiatives, ensuring robust governance and accountability.

Implementation and Reporting Covers the management, execution, and monitoring of ESG action plans, including regular performance reporting to key stakeholders.

41

Company

Objectives and Strategy Definition Process The development of ADNEC Group’s ESG Strategy followed a structured 4-step process outlined below:

1

2

3

A

Company

4

Conduct a Materiality Assessment

Establish the Baseline

Define the Vision and Goals

Develop the Plans and Roadmap

Alignment with National & International Mandates Identify and align ADNEC Group’s ESG strategy with key national and international sustainability mandates and priorities.

Baseline Cards Utilise detailed descriptions ("baseline cards") of each material ESG topic, capturing relevance, context within ADNEC Group, and associated risks and opportunities.

ESG Pledge Establish ADNEC Group’s overarching sustainability ambition and commitment.

Action Plan & Roadmap Outline comprehensive programmes, projects, initiatives, and timelines necessary to operationalise and deliver the ADNEC Group ESG Strategy effectively.

Benchmark Analysis Perform comparative analysis of ESG practices among leading organisations to identify relevant strategic elements and industry best practices.

Material ESG Topics Define critical ESG topics most relevant to ADNEC Group’s operations and stakeholders, informing strategic direction.

42

Priority Areas Identify major ESG themes and areas of strategic focus, derived directly from the ESG pledge.

Specific Goals Set measurable targets and specific outcomes to guide ESG strategy implementation and performance assessment.

Key Success Factors Define critical enabling factors required for the successful achievement of ESG goals and effective strategy execution..

A

Company

3 | ESG Gaps, Risks, and Materiality Assessment

43

ESG Gaps and Materiality Assessment Approach In developing a robust ESG framework and strategy for the ADNEC Group, a clear understanding of the organisation’s current state and maturity needs to be established in addition to determining the key ‘issues’ it needs to tackle through its strategy – represented by the ‘material’ ESG topics.

A

Company

1. Maturity Assessment

2. Materiality Assessment

3. Risks and Opportunities

Snapshot analysis of the organisational capabilities, tools and practices adopted by the organisation in implementing and managing an ESG framework, and which looks at the following elements:

This assessment looks at the different topics that will directly inform the organisation's ESG strategy. The topics stem from global and local trends, including the organisation's own priorities based on its business activities and strategy, some of these sources include:

Risk management is an integral part of ESG and the aim here is to look at the key related risks and potential opportunities facing the organisation – based on its overarching business activities.

1. Objectives and Strategy Definition 2. Implementation and Reporting 3. Governance and Control This is used to help determine the key areas that can be addressed that would add value to the organisation’s ESG journey.

List of key gaps in the organisation’s ESG management practices.

44

1.

2.

3.

4.

5.

United Nations Sustainable Development Goals (UNSDG) United Nations Global Compact (UNGC) Net Zero Carbon Events (NZCE) UAE Net Zero 2050 Modon Holding ESG Policy and Strategy

Material topics relevant to ADNEC Group and its ESG Strategy.

These risks and opportunities are taken from the perspective of each issue and are subsequently prioritized based on the material topics identified.

Risks and Opportunities Associated with Each Material Topic

Maturity Assessment Approach This maturity assessment provides a snapshot of the organisation’s current strengths and weaknesses in relation to its ESG management capabilities. The assessment is based on a review of the available information shared by the ADNEC Group strategy team and is informed by the interviews conducted with key members across the organisation as well as a review of the documentation made available.

A

Company

OBJECTIVES AND STRATEGY DEFINITION

IMPLEMENTATION AND REPORTING

GOVERNANCE AND CONTROL

1. Does the organisation have an overarching vision for ESG?

1. Does the organisation report or communicate internally and externally on its ESG performance?

1. Are there clearly defined roles for ESG management embedded within the organisation?

2. Is ESG incorporated as part of the organisation’s broader strategy?

2. Does the organisation provide any publicly accessible information about its ESG strategy and performance?

2. Is the ESG strategy and performance reviewed by the executive leadership and Board of the organisation.

3. Does the organisation track the impact of its activities on its ESG strategy and targets?

3. Does the organisation have a dedicated manager / team to oversee ESG?

4. Does the organisation enable the achievement and implementation of its ESG strategy through a dedicated budget allocation?

4. Are ESG principles and policies integrated into the operations and management systems of the organisation?

5. Does the organisation technology to track performance?

5. Is ESG supported by a clear approach and mechanism for change management?

3. Is ESG incorporated as part of the organisation’s broader risk management framework?

4. Has the targets?

organisation

defined

objectives

and

5. Are the targets in accordance with any established standards (e.g. SASB, CPD, SBTi)?

6. Has the organisation engaged with its stakeholders to determine its material issues?

7. Does the organisation have a set of programmes / initiatives that directly contribute to the ESG strategy?

have and

the tools monitor

and ESG

6. Is the organisations ESG report reviewed and assured by a third party?

The aim of this assessment is not to give ADNEC Group a specific score or rating that it can use to benchmark itself to its peers – but to highlight to the reader and the team the current state of the organisation’s ESG management capabilities and the key gaps that it can address through its on-going ESG efforts

45

ESG Management Overview: Strengths and Areas for Improvement IMPLEMENTATION AND REPORTING

GOVERNANCE AND CONTROL

1. Sustainability is a core component in the Group (and cluster) strategies.

1. The Group has GRI reports on ESG and has publicly published annual ESG reports from 2021 to present date, and has been publishing sustainability reports since 2014.

1. The Group has an established ESG Committee consisting of members from across the organisation and who meet bi-weekly.

3. The Group has several initiatives and projects that directly contribute towards ESG and sustainability.

4. A materiality assessment was previously conducted and will be expanded to include further stakeholders to provide further insights and alignment with stakeholder needs..

5. The Group has individual targets related to ESG performance metrics, that support the Group in delivering a comprehensive ESG strategy.

2. ADNEC Group has positioned itself as a market leader in ESG and Sustainability through the various ESG and sustainability initiatives it has implemented over the years.

3. The prioritisation and budgeting process for the Group is being expanded to factor in ESG programmes and ESG driven investments.

4. The Group has implemented several practices, programmes, and standards that contribute towards key topics within ESG (e.g. ISO 14001, 21021 and 22000).

5. The Group is tackled specific ESG topics (e.g. sustainability) and is planning broader awareness and training campaigns across ESG issues.

Key Areas For Improvement & Enhancement

46

Company

OBJECTIVES AND STRATEGY DEFINITION

2. Key elements from the social and governance perspectives are represented in the Group strategy.

Notable Achievements and Strengths

A

1. Key ESG performance metrics need to be re-baselined considering the growth of the Group’s activities.

2. The Group’s enterprise risk management (ERM) approach is being factors in ESG risks but this could be further improved / enforced through more adequate risk and compliance resources.

1. The Group is taking steps to align with international reporting standards including those from SASB, TCFD, CDP. 2. ESG data is managed on an ad-hoc basis and the Group’s systems are being expanded to support in collecting, managing and utilising ESG related data.

2. ESG is an item on the agenda of every Board of Directors meeting, and is reported to Modon Holding monthly.

3. The Group has implemented many programmes and policies that support ESG, such as; Anti-Bribery & Corruption Policy, Conflict of Interest and Related Party Policy and a Whistle-blowing Policy.

4. The mechanism to manage ESG within the clusters and to track overall ESG performance across the Group has been developed.

5. The Group has developed a framework for ESG definition and management.

1. ESG principles and goals are being integrated across the organisation’s policies and procedures – while some policies are being reviewed against ESG to ensure alignment.

2. The Group’s ESG / sustainability disclosures have not yet been assured or validated by a third party – however, this is considered for future discolosures.

Materiality Assessment: ESG Topic Overview A

ENVIRONMENT 1

Air pollution

Contamination of the atmosphere by harmful substances including gases, chemicals, and particulates.

2

Climate Risk and Resilience

Physical and transition risks posed by climate change, and an organisation’s capacity to adapt effectively.

3

Desertification

Degradation of land in dry regions caused by climate variability and unsustainable practices.

4

Ecosystem biodiversity

The diversity of living organisms and ecosystems, including genetic, species, and habitat variations.

5

6 7 8 9 10

Waste Management and Circular Economy Carbon Footprint & Greenhouse Gas emissions

3

Providing clear, consistent, and timely information to stakeholders.

Tourism experiences that are accessible, inclusive, and respectful of diverse cultures and abilities.

2

Ethical Sourcing and Supply Chain Oversight

Ensuring suppliers adhere to responsible labour, environmental, and ethical practices.

Health and Safety

Protecting employees, contractors, visitors and occupants from injuries, illnesses, and health hazards.

3

Business Ethics and Values

Operating with integrity, fairness, transparency, and adherence to ethical principles.

4

Customer Experience & Satisfaction

Ensuring products and services consistently meet or exceed customer expectations, fostering loyalty.

4

Operational Excellence and Innovation

Continuously improving organisational efficiency, performance, and outcomes through innovation.

5

Equitable Access

5

Board Composition and Diversity

Having a diverse and qualified board of directors for balanced decision-making.

6

Non-Discrimination

6

Fair Competition

Engaging in open market practices and preventing anticompetitive behaviour.

7

Data Security and Integrity

Protecting data from breaches, ensuring its confidentiality, accuracy, and availability.

8

Greenwashing Risk & Integrity

Preventing false or misleading claims about environmental or social impacts.

9

Project Management

Effectively planning, executing, and delivering projects within scope, time, and budget.

10

Regulatory Compliance

Ensuring organisational adherence to applicable laws, regulations, and industry standards.

11

Corporate Governance

Structures and processes that ensure accountability, oversight, and strategic guidance.

12

Transparency and ESG Disclosures

Openly communicating accurate environmental, social, and governance performance and risks.

Encouraging employee participation in voluntary activities that positively impact communities.

13

Risk Management and Internal Controls

Identifying, evaluating, and mitigating risks through robust internal oversight systems.

Supporting employees to effectively balance professional duties with personal responsibilities.

Promoting the comprehensive physical, mental, and financial health of employees.

Empowering youth through educational opportunities, mentorship, and employment pathways.

14

Sustainability-Linked Finance Readiness

Capability to secure finance linked to achieving specific sustainability targets.

15

Whistleblowing

Providing secure channels to report unethical or illegal activities without fear of retaliation.

16

Business Continuity & Resilience

Maintaining organisational operations effectively during and after disruptions.

7

Sustainable Materials Emissions from Travel and Logistics

Materials sourced and utilised to minimise negative environmental and social impacts.

8

Energy Efficiency

12

Noise Pollution

13

Renewable Energy

16

2

Cultural Accessibility & Inclusive Tourism

1

Accurate and Timely Communication

Design and operation that minimises inefficiency and negative impacts throughout lifecycles.

Event-Based Environmental Footprint

15

Total greenhouse gases emitted directly and indirectly by an organisation’s operations and value chain.

1

Programmes to support and involve local communities in social or environmental improvements.

Green Building and Infrastructure

11

14

Minimising waste and extending the lifecycle of materials through reuse, recycling, and closed-loop systems.

Soil & Land Use Impact Water Conservation and Management Water Quality Management

Greenhouse gas and air pollutant emissions from the transportation of people and goods.

Reducing energy consumption and losses while delivering the same level of output or service.

Total environmental impact of energy, water, waste, and emissions, generated by an event or project.

Excessive or disturbing noise levels that negatively impact people or wildlife.

Energy derived from naturally replenished sources such as solar, wind, or hydropower.

Impact on soil health, erosion, and land conversion caused by operational activities.

Efficient use and sustainable stewardship of potable or freshwater resources.

Actions to preserve or enhance the chemical, physical, and biological conditions of potable or freshwater.

Denotes ADNEC Group’s Material ESG Topics

47

GOVERNANCE

SOCIAL

Community Initiatives and Engagement

Company

9

Emirati Culture and Identity Employee Training and Development Gender Balance and Equal Opportunity

10

Human Rights

11

Nationalisation

12 13 14 15 16 17

Product and Service Innovation Talent Attraction and Retention Volunteerism & Employee Social Impact Work-Life Balance Workforce Wellbeing Youth Engagement & Skills Development

Providing fair and unbiased access to products, services, or opportunities for all individuals.

Preventing unfair treatment based on characteristics such as gender, race, religion, or other attributes.

Preserving and promoting the UAE’s national cultural heritage and values.

Improving employee capabilities and career prospects through ongoing learning and skills enhancement.

Ensuring equitable representation, opportunities, and progression for all genders across the organisation.

Respecting and protecting fundamental human rights and freedoms across operations and supply chains.

Prioritising the hiring and development of local citizens to enhance national workforce participation.

Creating or enhancing products and service to deliver value and address societal or environmental challenges.

Attracting, motivating, and retaining highly skilled and capable employees.

Stakeholder Top Ranking ESG Topics 147 people responded to our survey that consisted of internal and external stakeholders, asking them to rate the relevance of key ESG topics. 36% of the respondents were internal stakeholders and 64% were external stakeholders.

OVERALL (n = 147) 1.

2.

3.

Environment

4.

5.

6.

1.

2.

3.

Social

4.

5.

6.

7.

1.

Governance

48

2.

3.

4.

5.

6.

7.

EMPLOYEES (n= 53)

CUSTOMERS (n =48)

A

Company

OTHERS* (n = 46)

Carbon Footprint and Greenhouse Gas emissions Energy Efficiency Waste Management and Circular Economy Sustainable Materials Renewable Energy Water Conservation and Management

1. Waste Management and Circular Economy 2. Energy Efficiency 3. Renewable Energy 4. Carbon Footprint and Greenhouse Gas emissions 5. Sustainable Materials 6. Noise Pollution

1. Energy Efficiency 2. Ecosystem Diversity 3. Carbon Footprint and Greenhouse Gas emissions 4. Air Pollution 5. Sustainable Materials 6. Water Conservation and Management

1. Energy Efficiency 2. Sustainable materials 3. Waste Management and Inventory Planning 4. Water Conservation and Management 5. Green Building and Infrastructure 6. Renewable Energy

Workforce Well-Being Work-Life Balance Gender Balance and Equal Opportunity Nationalisation Customer Experience & Satisfaction Community Initiatives and Engagement Health & Safety

1. Workforce Wellbeing 2. Work-life Balance 3. Employee Training and Development 4. Nationalisation 5. Non-Discrimination 6. Emirati Culture and Identity 7. Talent Attraction and Retention

1. Customer Relations 2. Customer Experience & Satisfaction 3. Health & Safety 4. Equal Opportunities 5. Human Rights 6. Gender Balance and Diversity 7. Equitable Access

1. Health & Safety 2. Workforce Wellbeing 3. Customer Relations 4. Training and Development 5. Work-life Balance 6. Community Initiatives and Engagement 7. Workforce Wellbeing

Ethical Sourcing and Supply Chain Oversight Data Security and Integrity Business Ethics and Values Corporate Governance Business Continuity and Resilience Transparency and ESG Disclosures Operational Excellence and Innovation

1. Data Security and Integrity 2. Business Continuity and Resilience 3. Business Ethics and Values 4. Corporate Governance 5. Operational Excellence and Innovation 6. Whistleblowing 7. Ethical Sourcing and Supply Chain Oversight

1. Data Security and Integrity 2. Business Ethics and Values 3. Regulatory Compliance 4. Operational Excellence and Innovation 5. Greenwashing Risk and Communication Integrity 6. Transparency and ESG Disclosures 7. Ethical Sourcing and Supply Chain Oversight

1. Business Ethics and Values 2. Regulatory Compliance 3. Data Security and Integrity 4. Operational Excellence and Innovation 5. Ethical Sourcing and Supply Chain Oversight 6. Corporate Governance 7. Transparency and ESG Disclosures

Survey Methodology Observations & Recommendations •

At least 3 stakeholder groups were consolidated as “others” in order to provide more meaningful interpretation to their responses.

Encouraging stronger participation and responses from stakeholders will help to ensure better response rates.

•

Some responses were all “1” or “5” indicating that there is perhaps a lack of maturity in understanding the impact of the topics to the stakeholder. With time, maturity will naturally develop, however, ADNEC Group play a role in creating awareness about these (and other) ESG topics, and can also invite a more targeted audience to participate in the survey in the future.

* This includes those that identified as “suppliers”, “operating partners” and “others”.

(2) ESG Topic Impact The impact to the business was assessed based on an understanding of ADNEC Group’s overarching strategy and operational activities, supported by discussions with key internal stakeholders. The resulting analysis reflects the perspective of ADNEC Group as the parent company overseeing its various business clusters.

Assessment Approach Each topic was scored on a scale from 1 to 5 (with 1 being very low and 5 being very high) across three distinct categories. These scores were then weighted and aggregated to produce a total score reflecting performance across all categories. This total was subsequently combined with stakeholder relevance ratings to generate a graphical plot, enabling the identification of the most material ESG topics..

ENVIRONMENT Air pollution

1

1

2

1.1

2

Climate Risk and Resilience

3

3

3

3.0

3

Desertification

1

2

2

1.5

4

Ecosystem biodiversity

4

1

2

2.6

5

Waste Management and Circular Economy

4

4

5

4.1

6

Carbon Footprint & Greenhouse Gas emissions

4

4

3

3.9

7

Green Building and Infrastructure

4

1

3

2.7

8

Sustainable Materials

4

4

3

3.9 2.9

9

Emissions from Travel and Logistics

3

3

2

10

Energy Efficiency

5

5

4

4.9

11

Event-Based Environmental Footprint

1

1

1

1.0

12

Noise Pollution

1

1

2

1.1

13

Renewable Energy

4

4

4

4.0

14

Soil & Land Use Impact

3

2

2

2.5

15

Water Conservation and Management

4

4

5

4.1

16

Water Quality Management

1

2

1

1.4

49

Financial Risks & Opportunities

x 50% (wt.)

Category 2

Relevance to ADNEC Group’s Corporate Strategy

X 40% (wt.)

Category 3

Relevance to Individual Business Cluster Strategies

X 10% (wt.)

SOCIAL

Cat 1 Cat 2 Cat 3Impact

1

Category 1

GOVERNANCE

Cat 1 Cat 2 Cat 3 Impact

A

Company

Impact on ADNEC Group

Cat 1 Cat 2 Cat 3 Impact

1

Accurate and Timely Communication

2

3

3

2.5

2

Ethical Sourcing and Supply Chain Oversight

4

5

5

4.5

1

Community Initiatives and Engagement

4

5

4

4.4

2

Cultural Accessibility & Inclusive Tourism

2

2

3

2.1

3

Health and Safety

5

4

5

4.6

3

Business Ethics and Values

4

5

4

4.4

4

Customer Experience & Satisfaction

5

4

5

4.6

4

Operational Excellence and Innovation

4

5

3

4.3

5

Equitable Access

2

2

2

2.0

5

Board Composition and Diversity

1

2

3

1.6

6

Non-Discrimination

2

1

1

1.5

6

Fair Competition

1

3

1

1.8

7

Emirati Culture and Identity

2

3

4

2.6

7

Data Security and Integrity

5

4

4

4.5

8

Employee Training and Development

2

4

1

2.7

8

Greenwashing Risk & Integrity

2

3

1

2.3

9

Gender Balance and Equal Opportunity

4

5

5

4.5

10

Human Rights

3

3

3

3.0

9

Project Management

2

1

1

1.5

11

Nationalisation

4

4

1

3.7

10

Regulatory Compliance

1

3

3

2.0

12

Product and Service Innovation

2

2

2

2.0

11

Corporate Governance

4

4

3

3.9

13

Talent Attraction and Retention

3

2

2

2.5

12

Transparency and ESG Disclosures

5

5

3

4.8

14

Volunteerism & Employee Social Impact

3

3

3

3.0

13

Risk Management and Internal Controls

2

1

1

1.5

15

Work-Life Balance

5

4

5

4.6

14

Sustainability-Linked Finance Readiness

3

3

2

2.9

16

Workforce Wellbeing

5

4

3

4.4

15

Whistleblowing

2

1

1

1.5

17

Youth Engagement & Skills Development

3

1

1

2.0

16

Business Continuity & Resilience

4

5

5

4.5

Topics evaluated as material following te benchmarking exercise conducted during the 2026 strategy refresh

(2) ADNEC Group: Material ESG Topics The ESG topics are plotted on a matrix, with the top-right quadrant—where scores in both categories exceed 3.5— highlighting the topics that are most material to ADNEC Group

A

Company

+ Benchmarking exercise inputs

5

The resulting material ESG topics for the ADNEC Group are:

Stakeholder Relevance

4.5

4

3.5

Environment

3

2.5

Social 2

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Business Impact Rating

Environment

Governance

Social

Materiality analysis was updated based on the peer-benchmarking exercise

50

Governance

• • • • • • • •

Carbon Footprint and Greenhouse Gas emissions Energy Efficiency Waste Management and Circular Economy Sustainable Materials Renewable Energy Water Conservation and Management Biodiversity & Natural capital (new topic) Pollution (new topic)

• • • • • • • • • •

Workforce Well-Being Work-Life Balance Gender Balance and Equal Opportunity Nationalisation Customer Experience & Satisfaction Community Initiatives and Engagement Health & Safety Economic impact (new topic) Human rights (incl. supply chain) (new topic) Talent training & retention (new topic)

• • • • • • •

Ethical Sourcing and Supply Chain Oversight Data Security and Integrity Business Ethics and Values Corporate Governance Business Continuity and Resilience Transparency and ESG Disclosures Operational Excellence and Innovation

ADNEC Group: Top ESG Risks Selected due to their link with the KPIs of our ESG Index Area

KPI -

Likelihood Impact

Key Mitigating Actions

Relevant Business Unit

Implementation of a robust Net Zero Transition Plan, energy efficiency improvements, renewable energy projects, and active supply chain engagement.

All Business Clusters Facilities Management

Potential loss of business opportunities due to increased stakeholder and regulatory demand for net-zero carbon operations. Financial and reputational impacts.

Medium

Increased regulatory scrutiny leading to potential fines or restrictions on operations if emission standards are exceeded.

Medium Medium

Regular emissions monitoring, compliance checks, and implementation of pollution-control technologies.

All Business Clusters Facilities Management

High

NOx/SOx Emissions

-

Water Consumption (m³) Water Intensity per event

Water Conservation and Management

Risk of water scarcity impacting operations and regulatory penalties for exceeding consumption limits. Increased operational costs.

Medium

High

Regular water audits, installation of water-efficient fixtures, recycling and reuse initiatives, and employee awareness programmes.

All Business Clusters Facilities Management

Electricity Consumption (kWh) Electricity Intensity (kWh/m²)

Energy Efficiency

Inefficient energy use increases operational costs and contradicts ESG commitments, impacting reputation and regulatory compliance.

High

High

Energy efficiency upgrades, LED lighting, HVAC optimization aligned with ASHRAE standards, solar PV installations, energy monitoring systems, and audits.

All Business Clusters Facilities Management

High

Enhanced waste management strategy, WasteMaster technology implementation, increased recycling programmes, hazardous waste protocols, and employee training.

High

Regular environmental audits, enhanced compliance training, proactive management reviews, and robust monitoring and reporting procedures.

-

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Carbon Footprint and Greenhouse Gas Emissions

Risk Description and Potential Impact

Company

-

Environment

Absolute Carbon Emissions (tCO₂e) Carbon Intensity per Employee Carbon Intensity per Event Carbon Intensity per Visitor

Related Material Issue

A

Total Waste (kg) Recycled Waste (kg) Diversion Rate (%) Hazardous Waste (kg) Number of Major Spills Number of Environmental Violations

Waste Management and Circular Economy

Ineffective waste management leading to increased operational costs, regulatory fines, environmental Medium pollution incidents, and reputational damage.

Compliance and Environmental Management

Environmental violations causing financial penalties, operational disruptions, and reputational Medium harm.

All Business Clusters Facilities Management Health, Safety and Environment

All Business Clusters Facilities Management Health, Safety and Environment

ADNEC Group: Top ESG Risks Selected due to their link with the KPIs of our ESG Index Area

Social

Governance

KPI

Company

Risk Description and Potential Impact

Likelihood

Impact

Key Mitigating Actions

Relevant Business Unit

Employee wellness programmes, flexible working policies, regular employee surveys, and continuous improvement in workplace conditions.

All Business Clusters Human Resources

Inclusive hiring practices, diversity and inclusion training, nationalisation targets with strategic workforce planning.

All Business Clusters Human Resources

-

Employee WellBeing and Work-Life Workforce Well-Being Balance

Reduced productivity and high staff turnover due to inadequate support for employee well-being and worklife balance.

Medium

High

-

Gender Balance and Gender Balance and Equal Opportunity, Equal Opportunity Nationalisation

Reputational risk and limited innovation due to lack of diversity and non-compliance with nationalisation objectives.

Medium

Medium

-

Customer Satisfaction Score

Customer Experience & Satisfaction

Loss of revenue and reduced market competitiveness due to poor customer experiences and reduced satisfaction ratings.

Medium

High

Enhanced customer feedback mechanisms, service excellence training, continuous quality improvement programmes.

All Business Clusters Quality / Customer Experience

-

Community Engagement Activities

Community Initiatives and Engagement

Reduced community support and loss of social license to operate if local engagement is insufficient.

Medium

Medium

Active community investment programmes, regular stakeholder dialogues, CSR initiatives aligned to local community needs.

All Business Clusters Strategy, Sustainability & ESG Champions

-

Health & Safety Incidents

Health & Safety

Operational disruptions, regulatory fines, and reputational damage due to workplace accidents or inadequate safety practices.

Medium

High

Comprehensive health and safety management system, regular safety training, incident reporting and analysis, continuous safety audits.

All Business Clusters Health, Safety and Environment

-

Ethical Sourcing Compliance Rate

Ethical Sourcing and Supply Chain Oversight

Operational and reputational risks arising from unethical supply chain practices and supplier noncompliance.

Medium

High

ESG-integrated procurement policies, rigorous supplier due diligence, and periodic supplier audits.

All Business Clusters Risk & Compliance

-

Data Breaches Incidents

Data Security and Integrity

Financial, regulatory, and reputational impacts from data security breaches.

Medium

High

Robust cybersecurity framework, employee training, regular penetration testing, and IT security audits.

-

Number of Ethics Violations Reported

Business Ethics and Values

Financial, legal, and reputational risks from unethical business practices.

Medium

High

Clear ethics policies, robust whistleblowing channels, regular ethics training.

All Business Clusters Risk & Compliance IT & Digital Transformation All Business Clusters Risk & Compliance

-

Governance and Compliance Audits

Corporate Governance

Regulatory penalties and reputational damage due to governance failures.

Medium

High

Strong governance frameworks, regular compliance audits, board oversight.

All Business Clusters Risk & Compliance

-

Business Continuity Plan Activation

Business Continuity and Resilience

Financial losses and operational disruptions due to inadequate preparedness for crises.

Medium

High

Regularly updated business continuity plans, scenario testing, employee preparedness drills.

All Business Clusters Business Continuity

-

ESG Disclosure Completeness (%) Operational Excellence and Innovation Index

Transparency and ESG Disclosures Operational Excellence and Innovation

Loss of stakeholder trust due to insufficient transparency in ESG reporting.

Medium

Medium

Comprehensive ESG reporting aligned with global standards, external assurance.

Reduced competitive advantage due to lack of innovation and operational inefficiencies.

Medium

High

Continuous innovation programmes, operational efficiency initiatives, technology integration.

Strategy & Sustainability All Business Clusters All Business Clusters Business Excellence Team Innovation Committee

-

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Related Material Issue

A

ADNEC Group: Top ESG Opportunities Selected due to their link with the KPIs of our ESG Index ESG Category ESG Opportunity Related Material Topic Net Zero Transition Plan

Venue Energy Efficiency Upgrades

Environmental

On-Site Renewable Energy Generation

Waste Reduction & Circular Economy Program

Water Conservation Initiatives

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A

Opportunity Description

Company

Expected Benefits

Develop and implement a group-wide decarbonisation roadmap to achieve Net Zero Carbon Emissions by 2045, accelerating the existing 2050 pledge. This initiative focuses on cutting Climate Change & GHG greenhouse gas emissions through energy efficiency measures, adoption of renewable Emissions energy, and carbon offset programs in event operations. It involves working closely with event organizers and suppliers to minimize the carbon footprint of venues and exhibitions.

Operational cost savings from energy reduction and resource efficiency, enhanced brand reputation as a sustainability leader in the events industry (leading to increased stakeholder trust and preference), and proactive compliance with global climate initiatives (positioning ADNEC ahead of emerging carbon regulations).

Invest in energy-efficient infrastructure and practices at all venues. This includes retrofitting lighting systems with LED technology, optimizing HVAC and cooling systems, installing smart building controls, and engaging staff in energy conservation training and awareness. These upgrades reduce electricity use and align with national energy efficiency targets for 2050.

Significantly lower operating costs due to reduced energy consumption, decreased carbon emissions contributing to climate goals, and improved compliance with energy regulations and green building standards (reducing the risk of future energy price or carbon cost increases).

Energy Efficiency & Management

Expand the use of clean energy by installing on-site renewable power systems (e.g. solar panels on exhibition hall rooftops and parking structures) and procuring clean electricity Climate Change & GHG from the grid. Generating renewable energy on-site will directly reduce reliance on fossil Emissions fuels and cut Scope 2 emissions from venue operations. Any surplus energy could be fed back or stored to further improve efficiency.

Long-term energy cost savings and insulation from utility price volatility, a demonstration of innovation and climate leadership that provides competitive advantage as stakeholders increasingly prefer low-carbon partners, and tangible progress toward ADNEC’s emission-reduction targets (mitigating transition risks associated with carbon).

Waste Management & Circular Economy

Implement a comprehensive waste management initiative aiming for zero waste to landfill in events and operations. Measures include expanding recycling and composting facilities onsite, phasing out single-use plastics in venues, reusing or donating exhibition materials, and working with contractors to design booths and stages for disassembly and reuse. The program also entails educating exhibitors and attendees on waste sorting and reduction.

Lower waste disposal and material procurement costs due to reduced waste generation and increased recycling, improved operational efficiency in resource use, and enhanced corporate reputation for environmental responsibility – visibly aligning ADNEC with circular economy principles and client sustainability expectations.

Water Management

Adopt water-saving technologies and practices across venues and hotels to minimize water usage. This includes installing low-flow fixtures and sensor faucets, optimizing irrigation systems for landscaping, implementing greywater recycling for plant irrigation or toilet flushing, and improving chillers/cooling towers for efficient water use. Regular monitoring of water consumption will identify and fix leaks promptly.

Reduced water utility costs and improved efficiency (important as businesses in water-scarce regions should implement strategies to cut usage), increased resilience against future water scarcity or stricter water regulations, and support of UAE sustainability goals on water conservation (strengthening ADNEC’s license to operate in the community).

ADNEC Group: Top ESG Opportunities Selected due to their link with the KPIs of our ESG Index ESG ESG Opportunity Related Material Topic Category Occupational Health & Safety Excellence Employee Wellbeing & Engagement Program

Diversity & Inclusion Strategy

Social

Talent Development & Retention Programs

Customer Experience Enhancement

Community Engagement & Social Impact Initiatives

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A

Opportunity Description

Company

Expected Benefits

Strengthen health and safety practices to ensure safe venues for employees, contractors, and visitors. This includes regular HSE training and drills, rigorous risk assessments for events, Employee Health & certification to international safety standards (e.g. ISO 45001), and a “safety-first” culture Safety campaign. By investing in advanced safety equipment and clear emergency response plans, ADNEC can minimize workplace incidents and ensure all events meet high safety standards.

Implement programs to support employees’ physical and mental well-being and to foster engagement. Initiatives could include wellness workshops, access to mental health resources, Employee Engagement fitness activities, flexible working arrangements, and regular employee feedback surveys (with & Well-being action plans based on results). Emphasizing work-life balance and well-being benefits will improve overall job satisfaction.

Fewer accidents and incidents, leading to lower costs related to injuries or disruptions (companies that prioritize employee health and safety can reduce costs associated with accidents and illnesses). Additionally, a robust safety record boosts ADNEC’s reputation as a reliable, world-class venue operator and ensures compliance with labor and event safety regulations (reducing legal risk).

Higher employee morale and productivity, and improved talent retention – employees are more likely to stay with and be attracted to a company that invests in their wellbeing and shares their values. A positive workplace culture also enhances innovation and service quality (as engaged employees are more motivated), and strengthens ADNEC’s brand as an employer of choice.

Diversity & Inclusion

Roll out a comprehensive diversity and inclusion strategy to ensure equal opportunity and a workforce that reflects the community. This strategy would set targets (e.g. increasing female representation in leadership and hiring more UAE nationals), enforce unbiased recruitment and promotion practices, provide mentorship and leadership programs for underrepresented groups, and conduct regular staff training on unconscious bias and inclusive culture.

A more diverse and inclusive workforce drives greater innovation and problem-solving by bringing varied perspectives. It also strengthens the company’s appeal to a broader talent pool and improves employee engagement and loyalty. Moreover, demonstrating commitment to D&I enhances ADNEC’s compliance with local employment goals and its reputation among global partners and clients as an equitable, modern organization.

Talent Attraction & Development

Invest in developing employee skills and leadership pipeline. This encompasses graduate recruitment schemes and internships, continuous training and upskilling workshops, clear career progression paths, and partnerships with educational institutions (e.g. sponsoring industry-related courses or hosting job fairs). By mapping career development plans for employees and recognizing high performers, ADNEC can build a strong internal talent pipeline.

Customer Satisfaction & Service Quality

Leverage technology and staff training to elevate the experience for customers, clients, and event attendees. This opportunity involves deploying advanced CRM systems and data analytics to personalize services, implementing real-time feedback tools (surveys/apps) during events, and training frontline staff in service excellence. By using customer insights and focusing on client care, ADNEC can set itself apart in service quality.

Community Engagement & Impact

Establish robust community outreach and investment programs to ensure ADNEC’s growth benefits the local society. For example, partner with local schools and universities on education and internship initiatives, support community events and charitable programs, encourage employee volunteering days, and collaborate with local businesses (such as SMEs and social enterprises) for event services. Regularly measuring and communicating the Group’s economic and social contributions to Abu Dhabi demonstrates transparency in impact.

Improves workforce capabilities and innovation capacity, ensuring the company has the skills needed for future growth. These programs also increase employee loyalty (reducing turnover costs) and help attract top talent externally – as employees are drawn to organizations with strong development opportunities and values alignment. In the long term, succession planning through talent development secures leadership continuity for the Group.

Higher client satisfaction and loyalty, leading to repeat business and positive word-ofmouth. Strengthening customer-centricity also enhances ADNEC’s brand reputation and competitive position – companies known for responsible practices and superior service tend to enjoy better stakeholder loyalty. Additionally, actively engaging with customer feedback drives continuous improvement in operations and can spark service innovations.

Strengthens relationships with local stakeholders and ADNEC’s “social license to operate.” A proactive community engagement approach enhances the company’s reputation among residents and regulators and contributes to the local economy and social development. Such goodwill can translate into easier project approvals, government support, and a preference from clients who value working with a socially responsible venue partner.

ADNEC Group: Top ESG Opportunities Selected due to their link with the KPIs of our ESG Index ESG Category

ESG Opportunity Ethics & Compliance Enhancement

Data Privacy & Cybersecurity Upgrades

Governance

Sustainable Procurement Program

Enhanced ESG Reporting & Transparency

Integrated Risk Management & Business Continuity

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A

Company

Related Material Topic

Opportunity Description

Expected Benefits

Ethics and Integrity

Strengthen the Group’s ethics and compliance framework to uphold the highest standards of corporate governance. Key actions include periodic training for all employees on the Code of Conduct and anti-corruption policies, establishing an anonymous whistleblower hotline, performing regular compliance audits, and enforcing zero tolerance for violations. Leadership oversight (e.g. an ethics committee) will monitor compliance and address any misconduct swiftly.

Reduces the risk of legal breaches or reputational scandals by proactively preventing misconduct (effective ESG risk management lowers the likelihood of financial, legal, or reputational damage). It also builds stakeholder trust – investors, partners and regulators gain confidence that ADNEC operates ethically and transparently – and ensures adherence to all applicable laws and regulations, avoiding penalties.

Data Privacy & Security

Implement robust data protection measures to safeguard customer, employee, and partner data across all business units. This opportunity involves upgrading cybersecurity infrastructure (firewalls, intrusion detection, encryption), conducting regular vulnerability assessments and penetration tests, and enforcing strict data governance policies (in line with GDPR and UAE data laws). Employees will also receive training on cybersecurity awareness and data privacy best practices.

Prevents data breaches and the associated financial and reputational harm that can result from such incidents. Maintains customer and stakeholder trust by demonstrating that ADNEC takes data privacy seriously and ensures compliance with data protection regulations (avoiding regulatory fines). A strong cybersecurity posture also protects business continuity by reducing the risk of IT disruptions.

Sustainable Procurement

Integrate environmental and social criteria into procurement and supply chain management.

ADNEC will update procurement policies to favor suppliers with strong ESG credentials, use more local and eco-friendly products (e.g. sustainable event materials, green catering options), and require key suppliers to abide by ADNEC’s supplier code of conduct. Supplier ESG performance will be monitored and ADNEC can collaborate with vendors on initiatives to reduce waste and improve labor practices in the supply chain.

Mitigates supply chain risks and can lead to cost savings – for example, sourcing materials more sustainably and efficiently, and reducing waste in the supply chain can lower costs over time. It also enhances ADNEC’s brand credibility and consistency, as the company’s ESG values are extended to its partners (which is increasingly important to clients and investors). Additionally, this program ensures compliance with emerging regulations or client requirements regarding responsible sourcing.

Transparency & ESG Disclosure

Adopt best practices in ESG reporting and disclosure to improve transparency. This includes publishing an annual ESG/Sustainability report aligned with international frameworks (GRI, SASB, etc.), clearly communicating performance on each material topic and progress toward targets. ADNEC should also report climate-related risks in line with TCFD recommendations and ensure data in reports is externally assured. Regularly updating stakeholders on ESG progress (via the company website or newsletters) is part of this initiative.

Increases accountability and builds stakeholder confidence in the company’s commitments. High-quality ESG disclosure meets investor expectations and regulatory requirements, potentially improving access to capital as investors and lenders favor companies with strong ESG transparency. It also helps internal decision-making by tracking progress and enhances ADNEC’s reputation for governance excellence and openness.

Risk Management & Business Continuity

Embed ESG considerations into enterprise risk management and strengthen business continuity plans. This involves regularly updating the corporate risk register to include ESG risks (e.g. climate change impacts, supply chain disruptions, health pandemics), and developing robust contingency and continuity plans for critical operations. ADNEC will conduct scenario planning and simulation drills (for events of various crisis situations) to ensure preparedness. Business continuity policies (aligned with ISO 22301 or similar) will be maintained and communicated to all relevant teams.

Enhances organizational resilience against crises and unexpected disruptions, thereby protecting employees, customers, and financial performance. Proactive risk management of ESG issues helps avoid or mitigate potential losses (identifying and managing ESG-related risks lowers the likelihood of costly incidents). A strong continuity capability also assures stakeholders – from clients to regulators – that ADNEC can sustain operations under challenging conditions, which builds trust and reliability.

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4 | National and International Contributions

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Company

Overview of National and International Mandates In formulating its ESG Strategy, ADNEC Group undertook an extensive analysis of local and global trends, strategies, and methodologies, while gaining a deeper understanding of stakeholder expectations, to effectively define its ESG priorities and strategic direction.

SECTOR General

SCOPE

TITLE

International United Nations Sustainable Development Goals United Nations Global Compact

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Company

OVERVIEW A universal framework comprising 17 goals adopted by all UN member states to end poverty, protect the planet, and ensure prosperity for all by 2030.

A voluntary initiative based on ten principles covering human rights, labour standards, environmental protection, and anti-corruption practices.

An internationally recognised framework that provides a standardised approach to sustainability reporting, enhancing transparency, comparability, and stakeholder engagement.

Ten strategic principles guiding the UAE’s long-term economic, political, and social development, emphasising sustainability, human capital, UAE Principles of the 50 and global partnerships.

A UAE-wide action plan aimed at accelerating the transition to a green economy through sustainable economic growth, environmental Green Agenda 2030 stewardship, and increased competitiveness.

A national commitment to achieving net-zero carbon emissions by 2050, promoting sustainable development, clean energy, and low-carbon UAE Net Zero 2050 economic diversification.

A strategic framework aimed at reducing Abu Dhabi’s greenhouse gas emissions and enhancing resilience to climate change through Abu Dhabi Climate Change Strategy comprehensive mitigation and adaptation initiatives.

A national strategic roadmap focused on diversifying the UAE’s energy sources, enhancing energy efficiency, and increasing the share of UAE Energy Strategy 2050 renewable and clean energy to ensure sustainable economic growth.

A comprehensive national vision outlining strategic objectives and initiatives to position the UAE as a global leader in innovation, sustainable We the UAE 2031 development, economic prosperity, and societal well-being by 2031.

A long-term strategic plan designed to diversify Abu Dhabi’s economy, reducing reliance on oil by developing high-value, knowledge-driven Abu Dhabi Economic Vision 2030 sectors and promoting sustainable economic growth and competitiveness.

A long-term strategic plan integrating economic growth with environmental sustainability, focusing on resource efficiency, biodiversity Abu Dhabi Environment Vision 2030 conservation, and quality of life improvements in Abu Dhabi.

A UAE national initiative designed to stimulate local economic development, enhance competitiveness, and promote local content, In-Country Value (ICV) Program employment, and investments within supply chains.

Modon Holding’s ESG governance framework, guiding and embedding environmental, social, and governance principles across all subsidiaries, Modon Holding ESG Policy & Strategy including ADNEC Group.

Global Reporting Index (GRI) National

A

Overview of National and International Mandates In formulating its ESG Strategy, ADNEC Group undertook an extensive analysis of local and global trends, strategies, and methodologies, while gaining a deeper understanding of stakeholder expectations, to effectively define its ESG priorities and strategic direction.

SECTOR

SCOPE

Sector Related

International

National

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TITLE

A

Company

OVERVIEW

Net Zero Carbon Events (NZCE)

An events industry-led initiative committed to halving greenhouse gas emissions by 2030 and achieving net zero emissions by 2050, aligned with the Paris Agreement targets.

Science Based Targets Initiative (SBTi)

An initiative that guides companies in setting scientifically aligned, measurable greenhouse gas emission reduction targets to effectively address climate change.

ADNEC Group Corporate Strategy

ADNEC Group’s corporate strategy, defining ambitions and targets for sustainable growth, stakeholder value creation, and integrated ESG management across its investments and operations.

ADNEC Group ESG and Sustainability Framework and Strategy

ADNEC Group’s ESG-specific strategy outlining clear sustainability objectives, targets, and governance processes that guide responsible operations across all business clusters.

Alignment to National Mandates In formulating its ESG Strategy, ADNEC Group undertook an extensive analysis of local and global trends, strategies, and methodologies, while gaining a deeper understanding of stakeholder expectations, to effectively define its ESG priorities and strategic direction.

TITLE

A

Company

ADNEC Group’s Role and Contribution

UAE Principles of the 50

ADNEC Group aligns through strategic contributions to economic diversification, Emiratisation, and sustainable growth, fostering innovation, and enhancing community engagement.

Green Agenda 2030

ADNEC Group supports the Green Agenda through initiatives promoting resource efficiency, renewable energy, waste reduction, and sustainable infrastructure across its operations.

UAE Net Zero 2050

ADNEC Group has a Net Zero Transition Plan aiming for a 50% carbon reduction by 2030 and net zero by 2045, leveraging renewable energy and energy efficiency.

Abu Dhabi Climate Change Strategy

ADNEC Group integrates climate resilience and emissions reduction across its value chain, supported by climate risk assessments and mitigation actions.

UAE Energy Strategy 2050

ADNEC Group advances energy efficiency, renewable energy projects, and innovative energy solutions such as AI-driven energy optimisation and solar PV installations.

We the UAE 2031

ADNEC Group contributes by enhancing community well-being, promoting sustainable practices, and supporting inclusive economic growth through responsible business operations.

Abu Dhabi Economic Vision 2030

ADNEC Group supports this vision by investing in sustainable infrastructure, economic diversification, Emiratisation, talent development, and fostering innovation across business clusters.

Abu Dhabi Environment Vision 2030

ADNEC Group maintains certifications like ISO 14001 and Estidama, focusing on waste management, resource efficiency, and environmental conservation practices.

In-Country Value (ICV) Program

ADNEC Group aligns by prioritising local sourcing, supplier development, and ensuring significant local economic impact through ethical and responsible procurement practices.

Modon Holding ESG Policy & Strategy

ADNEC Group adheres closely to Modon Holding’s ESG policy, embedding ESG principles into its procurement, governance, and operational activities, ensuring comprehensive sustainability alignment.

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Alignment to International Mandates In formulating its ESG Strategy, ADNEC Group undertook an extensive analysis of local and global trends, strategies, and methodologies, while gaining a deeper understanding of stakeholder expectations, to effectively define its ESG priorities and strategic direction.

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Company

TITLE

ADNEC Group’s Role and Contribution

United Nations Sustainable Development Goals

ADNEC Group aligns its sustainability and ESG strategy with relevant SDGs, addressing global challenges through targeted actions in environmental, social, and governance dimensions. |

United Nations Global Compact

Global Reporting Index (GRI)

Net Zero Carbon Events (NZCE)

Science Based Targets Initiative (SBTi)

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ADNEC Group adheres to UN Global Compact principles through responsible business practices, ethical sourcing, and comprehensive governance frameworks.

ADNEC Group ensures transparency and accountability by reporting its ESG performance annually in line with GRI standards, reflecting comprehensive disclosure of its sustainability impacts.

ADNEC venues actively participate in the NZCE initiative, adopting net-zero carbon standards in events management to minimise carbon emissions and enhance event sustainability.

ADNEC Group’s emissions reduction strategy is aligned with SBTi, ensuring scientifically validated and robust pathways towards achieving its ambitious carbon reduction targets.

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5 | ESG Transformation Agenda

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Company

ADNEC Group’s ESG Transformation Agenda (1 of 4) Priority Area 1. Protecting Our Land, Air, and Seas

Material ESG Topics 1.

Carbon Footprint and Greenhouse Gas emissions

2. Energy Efficiency 3. Waste Management and Circular Economy 4. Sustainable Materials 5. Renewable Energy 6. Water Conservation and Management 7. Biodiversity & natural capital 8. Pollution

What We Aspire to Achieve 1.

2.

Minimize (and offset where necessary) Scope 1, 2 and 3 emissions, and align to Net Zero Goals (50% reduction by 2030 and Net Zero by 2050) Optimize energy and water consumption to reduce negative consequences while creating immediate cost savings

3.

Switch to as much renewable energy as possible for on-site needs

5.

Reduce food waste generation and achieve 0% food waste disposal to landfill

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Company

What We Have to Do Well 1.

Invest into green technology to reduce Scope 1 emissions

2.

Become more energy efficient and invest into renewable energy to reduce Scope 2 emissions

3.

Engage external entities to collect accurate data on Scope 3 emissions and invest into carbon offsetting initiatives to achieve net zero

4. Actively work with facilities management to optimize energy consumption 5.

Invest into technology and expedite implementation of BMS

6. Engage employees to raise awareness and change behaviours to achieve energy savings 7.

Leverage physical space and facilities for solar panels

6. Reduce non-food waste generation and achieve 0% non-food waste disposal to landfill

8. Conduct feasibility studies on emerging technologies such as solar windows and invest into viable opportunities

7.

10. Develop better segregating and composting/conversion capabilities

Decrease waste generation through reduction, reuse and recycling strategies.

Increase use of reusable and recycled materials as much as possible.

9. Adopt advanced demand analytics and raise customer awareness 11. Partner with entities on food donation initiatives 12. Maximize reliance on re-usable and recyclable materials and reduce single use of plastic 13. Raise awareness and incentivize employees, customers and suppliers to take advantage of existing capabilities and to seek out new ideas and methodologies for removing waste 14. Engage with the industry to redesign events to utilise sustainable materials and be waste free 15. Offer solutions for sale that leverage sustainable materials to support stakeholder efforts and decisions

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ADNEC Group’s ESG Transformation Agenda (2 of 4) Priority Area 2. Growing and Investing in Our Employees

Material ESG Topics 1.

Workforce Well-Being

What We Aspire to Achieve 1.

2. Work-Life Balance 3. Gender Balance and Equal Opportunity 4. Nationalisation

2.

Instill balanced working hours, and separation between personal and professional time; and achieve 0% resignations due to burnout

3.

Grow the representation of women in senior leadership positions across ADNEC Group

5. Health & Safety 6. Talent training & retention

Promote a comprehensive approach to employee wellbeing to improve engagement, retention, and overall job satisfaction

4. Rank amongst the top local semigovernment organisations for Nationalisation in key positions 5.

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Provide a consistently safe and healthy environment for employees, visitors, and partners.

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Company

What We Have to Do Well 1.

Regularly engage employees in multiple ways to collect insights and ideas, and to determine their wellbeing

2.

Expand the wellbeing program to introduce new initiatives and offers to employees, including part-time and temporary employees

3. Understand the underlying reasons for burnout / work-life imbalance 4. Review and realign manpower planning across all business lines.

5. Develop policies and raise awareness towards respecting employee’s personal time 6. Identify and enrol high potential women in ADNEC Group into tailored leadership development programmes 7. Develop and implement a clear strategy to attract, develop and retain women across all levels within ADNEC Group 8. Identify and enrol high potential Emiratis in ADNEC Group into tailored leadership development programmes 9. Develop and implement a clear strategy to attract, develop and retain Emiratis across all levels within ADNEC Group 10. Engage with educational institutions and social programmes to promote relevant ADNEC Group careers to Emiratis 11. Implement rigorous health and safety management systems and ensure compliance at all operational levels.

ADNEC Group’s ESG Transformation Agenda (3 of 4) Priority Area 3. Collaborating with Our Communities, Partners, and Suppliers

Material ESG Topics 1.

Customer Experience & Satisfaction

2. Community Initiatives and Engagement 3. Health & Safety 4. Human rights (incl. supply chain) 5. Economic impact

What We Aspire to Achieve 1.

2.

3.

Procure 100% of materials and services from suppliers that are complying with ESG standards (and based on a minimum ESG score) Deliver exceptional experiences that consistently exceed customer expectations.

Foster meaningful community partnerships that enhance local wellbeing and prosperity.

4. Provide a consistently safe and healthy environment for employees, visitors, and partners.

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Company

What We Have to Do Well 1.

Incorporate ESG as a key requirement and decision factor for all procurement and investment activities

2.

Raise awareness and work with suppliers to adopt standards related to sustainability/ESG

3.

Raise awareness within ADNEC Group on ESG compliance

4. Conduct regular ESG audits of suppliers 5.

Map end-to-end customer journeys across each business and streamline processes to remove pain points and enhance customer experience

6. Develop a culture of transparency and responsiveness amongst customer facing and back-office employees, at all levels 7.

Invest in competencies, technologies, and communication that fosters engagement with customers

8. Continuously gather and act on customer feedback to improve services and satisfaction levels.

9. Actively engage with the community to understand their needs and create targeted initiatives.

10. Implement rigorous health and safety management systems and ensure compliance at all operational levels.

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ADNEC Group’s ESG Transformation Agenda (4 of 4) Priority Area 4. Safeguarding Our Assets and Values

Material ESG Topics 1.

Ethical Sourcing and Supply Chain Oversight

1.

Establish a responsible and sustainable supply chain aligned with global ethical standards.

2. Data Security and Integrity

2.

Ensure robust protection of data integrity, confidentiality, and availability at all levels.

3. Business Ethics and Values 4. Corporate Governance 5. Business Continuity & Resilience 6. Transparency and ESG Disclosures 7. Operational Excellence and Innovation

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What We Aspire to Achieve

3.

Embed integrity and ethical conduct throughout every aspect of business operations.

4. Demonstrate exemplary governance with transparency, accountability, and strong oversight.

5.

Ensure resilience and uninterrupted delivery of critical business services under any circumstances.

6. Achieve best-in-class transparency through comprehensive and clear ESG disclosures.

A

Company

What We Have to Do Well 1.

Implement rigorous supplier assessments and enforce compliance with ethical sourcing guidelines.

2.

Maintain advanced cybersecurity measures and continuously monitor and mitigate risks.

3.

Foster a culture of ethical awareness and transparency, supported by strong compliance frameworks.

4. Maintain effective governance structures and continuously improve board-level decision-making processes.

5.

Regularly review, test, and enhance business continuity plans and risk management procedures.

6. Regularly publish accurate, timely, and relevant ESG performance reports aligned with international standards.

A

6 | ESG Investment Mechanism Guidelines

66

Company

ESG Investment Methodology Overview A

1

Preliminary Screening

Company

Modon Holding – Investment Committee

ADNEC Group rigorously adheres to Modon Holding’s Investment Governance Framework, ensuring all investment decisions are strategically aligned, comprehensively risk-managed, and drive sustained value creation.

67

A

7 | Appendix 7.1 | Benchmarking

*Note: ESG Benchmarking study was completed in year 2021 upon issuance of the first ESG and Sustainability strategy and framework.

68

Company

A

7 | Appendix 7.1.1 | ESG Benchmarking Study

*Note: ESG Benchmarking study was completed in year 2021 upon issuance of the first ESG and Sustainability strategy and framework.

69

Company

Benchmark Approach Overview The benchmark aims to provide the ADNEC Group team with an understanding of what other organisations are communicating and doing with regards to their ESG strategy and to use this information as part of its own ESG journey.

This benchmark is not intended to provide a one-to-one comparison, nor intended to rank ADNEC Group against the selected organisations.

Overarching Criteria for Selection 1.

Type of organisation: the aim here was to select from a broad range of organisations that include those from within ADNEC Group’s shareholder portfolio (i.e. peer companies), local peers that operate across the UAE landscape and within a similar sector, and finally international organisations that operate in different markets albeit with a similar focus to ADNEC Group’s business activities.

2. Availability of information: ESG requires significant public disclosure in order to convey to investors and other stakeholders what the organisation’s ESG aspirations and performance entails. Hence, organisations that brought the most visibility were selected for benchmarking.

3. ESG maturity: finally, the quality and perception of the target organisation’s ESG capabilities and information was factored into the selection process – in order to ensure that ADNEC Group identifies lessons learned from some of the most mature organisations around.

70

A

Company

Based on criteria for selection outlined, a list of companies were identified and eventually this was shortlisted into the companies chosen to include in this report.

Portfolio Peers

Local Market Peers

Selected Companies

Other Shortlisted Companies Consid ered (but not selected)

International Peers

A

TAQA

71

Company

ESG Framework Benchmark: TAQA (1 of 2) TAQA has incorporated ESG as an underlying model within its overall strategy and has defined ESG priorities and contributions to the UN SDGs. Its approach to ESG is informed by its emphasis towards supply chain management and stakeholder engagement

TAQA’s 2030 strategy focuses on three themes: optimization, growth and capability building, with the ESG framework underpinning all initiatives under these themes

A

Company

Contribution to National and International Mandates In developing its ESG framework and strategy, TAQA has considered strategic contributions to several relevant mandates that include: 1.

2.

3.

Abu Dhabi Economic Vision 2030; Abu Dhabi Environment Vision 2030; ADX Disclosure Guidelines and SCA Corporate Governance Guidelines; 4. Abu Dhabi Demand Side Management (DSM) and Energy Rationalisation Strategy 2030; 5. Global Reporting Initiative (GRI); and 6. United Nations Sustainable Development Goals (UN SDGs) In lieu of a published group ESG strategy, it can be assumed that the guidelines, goals and plans set forth by the aforementioned mandates will help to inform TAQA and its subsidiaries’ ESG strategy.

To achieve its decarbonization and ESG agenda, highlighted in the 2030 corporate strategy, the Group has embarked on a Group-wide ESG strategy and net zero strategy that will define the pathways and practical steps to achieve its ESG ambitions.

This will include an ESG operating model, with ESG governance across the entire portfolio, as well as embedding ESG metrics into the Group’s capital allocation framework.

72

ESG Framework Benchmark: TAQA (2 of 2) As part of its materiality assessment, TAQA has engaged stakeholders to determine important topics to them and analyse the importance of these topics to the business. From which, TAQA was able to identify 28 material ESG issues that directly feed into its sustainability strategy and against which it reports its ESG performance

Stakeholders Groups Engaged 1.

Investor Community

2.

Government

3.

Business Partners

4.

Suppliers

5.

Customers

6.

Workforce

7.

Media

8.

Communities

32 Sub-groups of Stakeholders in Total

73

ESG Topics High Priority 1.

2.

Emissions Disaster / Emergency planning and response 3. Anti-Corruption 4. Environmental compliance 5. Availability and Reliability 6. Occupational HSE 7. System Efficiency 8. Energy 9. Asset Integrity & Process safety 10. COVID-19 11. Emergency Preparedness 12. Water and Effluents

Medium Priority 1.

2.

3.

4.

5.

6.

Access Anticompetitive behaviour Demand-side Management Waste Local Communities (Decommissioning) Economic Performance

Low Priority 1.

2.

Biodiversity* Nondiscrimination 3. Local communities 4. Diversity & Equal opportunity 5. Supplier Environmental 6. Assessment 7. Employment 8. Supplier Social Assessment 9. Training & Education 10. Reserves 11. Procurement Practices

A

Company

A

Majid Al Futtaim

74

Company

ESG Framework Benchmark: MAF (1 of 2) “Dare Today, Change Tomorrow” is Majid Al Futtaim’s (MAF) roadmap to address material ESG topics. Its ESG framework is build around three pillars and 11 Sustainable Business Commitments (SBCs)

A

Company

Sustainable Business Commitments 1.

2.

3.

Be Net Positive in Carbon by 2040 Be Net Positive in Water by 2040 Embed Circular Economy Principles into Business Operations 4. Increase Our Contribution to Local Economies to Heal Reach Prosperity and Promote Economic Development 5. Develop Skills and Entrepreneurship Inline with Local Needs Through Enterprise Hubs 6. Enrich Our Customers’ Experience Through Sustainability Across Our Business 7. Invest in Employees’ Innovation Centre of Excellence to Drive Sustainability Performance Improvements Across Majid Al Futtaim and Our Supply Chain 8. Put Wellbeing Programmes in Place Across the Business and Demonstrate Measurable Improvements in Employee Health Wellbeing and Productivity 9. Integrate Sustainability into Attraction and Retention Programmes 10. Provide Sustainability Training to Employees and Suppliers 11. Require All Employees and Direct (tier 1) Contracts to Comply with International Labour Organisation’s Eight Core Conventions

75

ESG Framework Benchmark: MAF (2 of 2) The aforementioned SBCs are informed through the 21 material issues that MAF has identified as part of its ESG strategy, based on the importance to stakeholders and to the business itself

ESG Topics High Priority 1.

Human Rights & Employment Conditions 2. Net Positive Water 3. Attracting & Retaining Talent 4. Net Positive Carbon 5. Health & Safety 6. Waste & Circular Economy 7. Local Economic Development 8. Training & Development 9. Community Wellbeing & Public Realm 10. Disruptive Technology 11. Health Workplaces 12. Customer Experience

76

Medium Priority 1.

2.

3.

4.

5.

6.

7.

8.

9.

Climate Change Adaptation Changing Role of Women in the Workplace Ecosystem Services Crime & Security Transport & Logistics Product Quality & Safety Responsible Procurement Promoting Sustainable Lifestyles Healthy Products & Services

A

Company

A

Emaar Properties PJSC

Company

ESG Framework Benchmark: Emaar (1 of 2) Emaar has developed a value creation model building on a deep understanding for its stakeholders, and in which it has linked 5 ‘capital’ pillars to this model and its subsequent outcomes and contributions towards sustainability

A

Company

Understanding Needs and Expectations Emaar has identified 5 stakeholders groups that it engages closely in order to establish a deeper appreciation for their needs. These include: investors, customers, (their) people, partners and suppliers, and communities.

Through interviews, surveys, and other direct and indirect interactions – Emaar determine the topics and issues that are material to them which it combines with its own analysis of trends/megatrends, and those identified through established ESG guidelines (e.g. SASB and GRI).

Based on identifying these issues, it clusters them into 6 categories and prioritises them based on stakeholder feedback and importance.

These are subsequently validated and integrated into Emaar’s strategy and risk management process.

Through this approach, Emaar creates a model in which it creates value for its stakeholder groups that captures direct financial return and addresses risks on the material issues.

78

ESG Framework Benchmark: Emaar (2 of 2) Emaar’s materiality map that demonstrates the overlap in importance of issues between internal vs external stakeholders

A

Company

ESG Strategy These material topics, and Emaar’s contribution and priorities towards other strategic drivers, have been translated into three overarching goals as part of its ESG Strategy: 1.

2.

3.

Greenprint for the Future The Wind Beneath our Wings Leading with Integrity

Together, these guide and inform Emaar and its stakeholders on the organisation's ESG priorities, actions and performance.

Environmental Capital

List of Material Topics for Emaar

79

1.

2.

Energy Management and Renewable Energy Usage Environmental Compliance

Social Capital

1.

2.

3.

Customer Privacy Data Security Product Quality and Safety

Human Capital

1.

2.

3.

Labour Practice and Employment Employee Health and Safety Training and Skill Development

Business Model & Innovation 1.

Long-term Management of Assets

Leadership & Governance

1.

2.

3.

Business Ethics, Integrity, Transparency, Bribery and Corruption Reputation, Communications, and Awareness Risk Management

Economy

1.

Economic / Business Environment

A

Marriott International

80

Company

ESG Framework Benchmark: Marriott (1 of 2) Marriott has translated its ESG Strategy into 4 but interconnected pillars, each with its own set of goals and plans, and which are linked to the UN SDGs

Nurture Our World 1.

15 million cumulative volunteer hours 2.

50% of volunteer hours will serve children and youth 3.

50% of volunteer activities will be skillsbased Empower Through Opportunity 1. $35 million invested to develop hospitality skills and opportunity among diverse, atrisk, and underserved communities 2.

Achieve global gender parity in executive positions by 2023 3.

Increase the representation of people of color in U.S. executive positions to 25%

A

Company

Sustain Responsible Operations 1.

15% water intensity reduction 2.

30% carbon intensity reduction 3.

45% waste-to-landfill (and 50% food waste) reduction 4.

30% renewable electricity 5.

Locally source 50% of all produce, in aggregate 6. … (+5 other goals) Welcome All and Advance Human Rights 1.

100% of on-property associates completed human rights training 2.

Enhance or embed human rights criteria in our recruitment and sourcing policies 3. $500,000 toward partnerships that drive, evaluate, and elevate travel and tourism’s role in cultural understanding

Rewards and Recognitions Diversity Inc Hall of Fame Companies

81

Best Workplaces for Parents

Top 250 BestManaged Companies of 2021

Best Places to Work for Disability Inclusion

GEI Member Company

100 Best Corporate Citizens List of 2022

Best Places to Work for LGBTQ Equality

World Changing Ideas Awards 2022

ESG Framework Benchmark: Marriott (2 of 2) Marriott’s Material ESG topics were informed by its sustainability and social impact assessment, which included interviews representing owners, customers, industry associations, and nongovernmental organizations

1.

2.

3.

4.

5.

6.

Energy and Emissions Water and Effluents Biodiversity Waste Sustainable Buildings and Adaptive Reuse Supply Chain Environmental Assessment (Responsible Sourcing)

82

1.

2.

3.

4.

5.

Employment Occupational Health and Safety Training and Education Diversity and Equal Opportunity (DEI) Child Labor, Forced or Compulsory Labor (Human Rights) 6. Youth 7. Refugees 8. Local Communities (Community Impact) 9. Associate Development, Support, & Wellbeing 10. Peace & Cultural Understanding 11. Supply Chain Social Assessment

1.

2.

3.

4.

5.

A

Company

Board & ESG Oversight Business Ethics Data Privacy & Cyber Security Public Policy Customer Health and Safety (Guest Engagement, Wellbeing, & Satisfaction) 6. Economic Performance 7. Indirect Economic Impacts 8. Procurement Practices 9. Anti-Corruption

A

7 | Appendix 7.1.2 | Materiality analysis benchmarking

83

Company

We mapped ESG topics disclosed by benchmark peers and by ADNEC to identify additional potential topics ADNEC may consider in future materiality assessments Material ESG topics – Benchmarking (1/4) Topic Cluster

Topic examples

Biodiversity & natural capital

Biodiversity protection, land use, animal welfare

Energy & emissions

Energy use, ren. energy, carbon emissions, climate action

Pollution

Traffic, noise, Contamin-ation and emissions of air, water, soil

Sustainable materials

Sustainable materials, ecodesign, plastics reduction

Waste & circularity

Waste reduction, recycling and circular practices

Topic present in materiality assessment

Topic assessed in ADNEC’s ESG report but not included in highest-ranked, most material ESG topics

Source: ADNEC, Desk research, Company websites, ESG or Annual reports, Roland Berger

A

Company

We mapped ESG topics disclosed by benchmark peers and by ADNEC to identify additional potential topics ADNEC may consider in future materiality assessments Material ESG topics – Benchmarking (2/4) Topic Cluster Water stewardship

Topic examples Water efficiency, consumption and scarcity management

Supply chain & Responsible sourcing, procure-ment

supplier ESG oversight

Community impact

Community investment, local engage., cultural impact

Diversity, equity & inclusion

Diversity, equal opportunity, accessibility and inclusion

Economic impact

Local economic contribution, SME support

Topic present in materiality assessment

Topic assessed in ADNEC’s ESG report but not included in highest-ranked, most material ESG topics

Source: ADNEC, Desk research, Company websites, ESG or Annual reports, Roland Berger

A

Company

We mapped ESG topics disclosed by benchmark peers and by ADNEC to identify additional potential topics ADNEC may consider in future materiality assessments Material ESG topics – Benchmarking (3/4) Topic Cluster

Topic examples

End-user / customer experience

Customer satisfaction, safety, transparency and quality

Human rights (incl. supply chain)

Human rights, fair labor, supply-chain working conditions

Emiratization Local hiring / nationali-zation and local talent development

Talent training & retention

Training, talent attraction and retention

Worker safety & wellbeing

Health, safety and employee wellbeing

Topic present in materiality assessment

Topic assessed in ADNEC’s ESG report but not included in highest-ranked, most material ESG topics

Source: ADNEC, Desk research, Company websites, ESG or Annual reports, Roland Berger

A

Company

We mapped ESG topics disclosed by benchmark peers and by ADNEC to identify additional potential topics ADNEC may consider in future materiality assessments Material ESG topics – Benchmarking (4/4) Topic Cluster

Topic examples

Business ethics

Ethical conduct, anti-corruption, compliance

Corporate governance & ESG oversight

Board oversight, ESG govern. compliance & disclosure

Data privacy & cybersec-urity

Data privacy, cybersecurity, data protection

Risk management & resilience

Risk mgmt., crisis response, business continuity

Technology & innovation

Digital innovation and sustainable technologies

Topic present in materiality assessment

Topic assessed in ADNEC’s ESG report but not included in highest-ranked, most material ESG topics

Source: ADNEC, Desk research, Company websites, ESG or Annual reports, Roland Berger

A

Company

We mapped ESG topics disclosed by benchmark peers and by ADNEC to identify additional potential topics ADNEC may consider in future materiality assessments Additional material topics identified for ADNEC ESG Category

Topic

Description

Examples from benchmarks

Biodiversity & natural capital

Manage impacts and dependencies on ecosystems, land, and natural resources to protect asset value, destination attractiveness, and regulatory compliance

EXPO City: Protecting and increasing biodiversity

Pollution

Prevent release of harmful substances or energy into air, water, or land that degrades environmental quality and poses risks to human health and ecosystems

GL Events: Impact of supply chain-related air pollution on local populations

Economic impact

Create local economic value through employment, procurement, SME engagement, and visitor spend to support long-term growth

Informa: Economic impact on host cities (local spend and job creation)

Human rights

Ensure fair, safe, and lawful treatment of workers across operations and suppliers to mitigate legal, reputational, and operational risks

Compass: Promoting ethical principles, human rights and labor standards in our businesses’ supply chains

Talent training & retention

Attract, develop, and retain skilled talent to sustain service quality, operational resilience, and long-term business performance

DWTC: Learning and Development Policy outlines clear guidelines for training delivery across all levels

(incl. supply chain)

A

Company

A

7 Marriott | Appendix International 7.2 | Link between ESG Goals and Mandate Contributions

89

Company

Alignment to the Relevant ESG Mandates Understanding the alignment between the national and international mandates and ADNEC’s ESG Priority Areas will help to determine the relevant goals that will inform ADNEC’s own ESG Goals and Key Success Factors

A

Company

Relevant to ADNEC’s ESG Priority Area?

Key National and International Mandates

Protecting Our Land, Air, and Seas

Growing and Investing in Our People

Collaborating with Our Communities, Partners, and Suppliers

Safeguarding Our Assets and Values

United Nations Sustainable Development Goals (UNSDG)









United Nations Global Compact (UNGC)





na



UAE’s Principles of the 50

na





na

UAE Net Zero 2050



na

na

na

Abu Dhabi Economic Vision 2030

na







Abu Dhabi Environment Vision 2030



na

na

na

Net Zero Carbon Events (NZCE)



na



na

90

Overview of the Relevant Mandate Goals (1 of 4) A

Company

Protecting Our Land, Air, and Seas Key National and International Mandates

Mandate Goals Applicable to the Priority Area and the ADNEC ESG Material Issues

United Nations Sustainable Development Goals (UNSDG)

1.

2.

3.

4.

5.

Switch to renewable energy and contribute to increasing the share of renewable energy in the global energy mix by investing in clean energy infrastructure, research and technology. (SDG 7.2, 7.a) Double the global rate of improvement in energy efficiency. (SDG 7.3) Reduce waste generation through prevention, reduction, recycling and reuse. (SDG 12.5) Reduce food waste at retail and consumer level and reduce food losses along production and supply chains. (SDG 12.4) Reducing the Group’s GHG emissions and work towards a Net Zero trajectory to align with the Paris Agreement. (SDG 13)

United Nations Global Compact (UNGC)

1.

2.

3.

Businesses should support a precautionary approach to environmental challenges. (7th Principle) Undertake initiatives to promote greater environmental responsibility (8th Principle) Encourage the development and diffusion of environmentally friendly technologies. (9th Principle)

UAE Net Zero 2050

1.

2.

In alignment with the Paris Agreement, which calls on countries to prepare long-term strategies to reduce greenhouse gas (GHG) emissions and limit the rise in global temperature to 1.5 C compared to pre-industrial levels.

The deployment and use of clean energy solutions

Abu Dhabi Environment Vision 2030

1.

2.

3.

Minimising the impact of climate change. (Priority Area 1) Clean air and noise pollution, contributing to safe and healthy living conditions. (Priority Area 2) Enhanced value creation through optimised material flows and waste management. (Priority Area 5)

Net Zero Carbon Events (NZCE)

1.

2.

3.

4.

Power events efficiently, with clean, renewable energy.

Redesign events to utilise sustainable materials and be waste free.

Source food sustainably, and eliminate food waste.

Move goods and equipment efficiently and transition to zero emissions logistics.

91

Overview of the Relevant Mandate Goals (2 of 4) A

Company

Growing and Investing in Our Employees Key National and International Mandates

Mandate Goals Applicable to the Priority Area and the ADNEC ESG Material Issues

United Nations Sustainable Development Goals (UNSDG)

1.

2.

3.

7.

End all forms of discrimination against women and girls everywhere. (SDG 5.1) Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision making. (SDG 5.5) Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels. (SDG 5.c) Ensure full productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. (SDG 8.5) Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment. (SDG 8.8) Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard (SDG 10.3) Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality (SDG 10.4)

United Nations Global Compact (UNGC)

1.

2.

3.

4.

5.

6.

Businesses should support and respect the protection of internationally proclaimed human rights. (1st Principle) Make sure that they are not complicit in human rights abuses. (2nd Principle) Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. (3rd Principle) The elimination of all forms of forced and compulsory labour. (4th Principle) The effective abolition of child labour. (5th Principle) The elimination of discrimination in respect of employment and occupation. (6th Principle)

UAE’s Principles of the 50

1.

The main future driver for growth is human capital. Developing the educational system, recruiting talent, retaining specialists and continuously building skills will be key to ensuring the Emirates remains the most competitive national economy. (4th Principle) The core value system in the Emirates shall remain based on openness and tolerance, the preservation of rights, the rule of justice and the law. We believe in the preservation of human dignity, the respect for cultural diversity, the strengthening of human fraternity, together with enduring respect for our national identity. The country will remain supportive, through its foreign policy, of all initiatives, pledges and international organisations that promote peace, openness and humanity. (8th Principle)

4.

5.

6.

2.

Abu Dhabi Economic Vision 2030

92

1.

Developing a highly skilled, highly productive work force

Overview of the Relevant Mandate Goals (3 of 4) A

Company

Collaborating with Our Communities, Partners, and Suppliers Key National and International Mandates

Mandate Goals Applicable to the Priority Area and the ADNEC ESG Material Issues

United Nations Sustainable Development Goals (UNSDG)

1.

2.

3.

4.

5.

6.

7.

8.

Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors. (SDG 8.2) By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. (SDG 8.9) Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all. (SDG 9.1) By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities (SDG 9.4) Adopt public procurement practices that are sustainable, in accordance with national policies and priorities. (SDG 12.4) Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the Sustainable Development Goals, including through North-South, South-South and triangular cooperation. (SDG 17.9) Enhance the global Partnership for Sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources to support the achievement of Sustainable Development Goals in all countries. . (SDG 17.16) Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. (SDG 17.17)

UAE’s Principles of the 50

1.

Consolidating the reputation of the Emirates globally is a national mission for all institutions. The Emirates is one destination for business, tourism, industry, investment and cultural excellence. Our national institutions must unify their efforts, benefiting mutually from their shared capabilities, and work to build global enterprises under the umbrella of the Emirates. (6th Principle)

Abu Dhabi Economic Vision 2030

1.

Building an open, efficient, effective and globally integrated business environment

Net Zero Carbon Events (NZCE)

1.

Work with and influence partners in the travel sector to reduce and mitigate the emissions of travel to events.

93

Overview of the Relevant Mandate Goals (4 of 4) A

Safeguarding Our Assets and Values Key National and International Mandates

Mandate Goals Applicable to the Priority Area and the ADNEC ESG Material Issues

United Nations Sustainable Development Goals (UNSDG)

1.

2.

3.

4.

Substantially reduce corruption and bribery in all their forms (SDG 16.5) Develop effective, accountable and transparent institutions at all levels. (SDG 16.6) Ensure responsive, inclusive, participatory and representative decision-making at all levels. (SDG 16.7) Promote and enforce non-discriminatory laws and policies for sustainable development (SDG 16.b)

United Nations Global Compact (UNGC)

1.

Businesses should work against corruption in all its forms, including extortion and bribery. (10th Principle)

Abu Dhabi Economic Vision 2030

1.

Developing a sufficient and resilient infrastructure capable of supporting anticipated economic growth

94

Company

A

7 | Appendix 7.3 | Initiatives Prioritisation Model

95

Company

ESG Initiatives Prioritisation Model (1 of 2) ESG related initiatives have a lot in common with traditional – strategic – initiatives and should be considered as part of ADNEC Group’s standard process for identifying, prioritizing, evaluating and managing initiatives. There are some notable differences however, in determining what constitutes a ‘good’ ESG initiative compared with the norm.

ESG Initiatives

A

Company

Traditional

Results

Management Systems

Systems-based Solutions

Cause

Effect Strategic Solutions

Behaviours

• Aligned with the ESG Strategy of ADNEC. • Solutions target multiple aspects that contribute to the risks and opportunities in parallel.

• Long-term mindset, but where solutions tend to be shorter in time-frames and sustained over a longer period.

• More centralized management and oversight by the ESG team and committee.

• Adheres to the company’s Project Management Guidelines

• Aligned with the Group Strategy of ADNEC (or its individual business cluster / subsidiary strategies).

• Target specific sources of the issues or opportunities – based on a more linear understanding of the cause-and-effect relationship.

• Mid-to-long term mindset, while solutions can range from quick wins to long-term initiatives that start and end around specific timeframes.

• Centralised oversight by the strategy and PMO teams – but with decentralized management by the respective owner.

• Adheres to the company’s Project Management Guidelines

96

ESG Initiatives Prioritisation Model (2 of 2) A

Propose

Identify

Initiate

Plan

Manage

Close

Company

Post Project-review

Follow’s the Organisation’s PMO Guidelines

Method for Identifying, Aligning and Prioritizing Initiatives 1.

Identify ideas and solutions to address ESG goals (linked to the transformation agenda and baseline analysis).

2. Connect solutions to form interconnected initiatives that tackle multiple aspects of an ESG goal, and which addresses the underlying issues identified in the baseline.

3. Prioritise and align initiatives to the ESG goals to ensure sufficient coverage of risks and opportunities.

4. Define the detailed milestones and plans to implement each initiatives, and where required; conduct further studies to assess the viability of a solution to meet the required goals 5. Determine the resourcing required and establish a sustainable model for financing as required 6. Develop a comprehensive ESG plan and implementation roadmap, and launch initiatives accordingly

97

Prioritization Matrix RELEVANCE

DELIVERY CAPACITY

ESG Fit

Impact

Complexity

Resource Intensity

Score x Weight

Score x Weight

Score x Weight

Score x Weight

Weighted Score

Weighted Score

Applying the Initiatives Prioritisation Model A

RELEVANCE

DELIVERY CAPACITY

ESG Fit

Impact

Complexity

ESG fit reflects how well the proposed initiative contributes to the material topics / ESG goals of the Group or cluster.

The impact reflects how significant the contribution and ‘return’ of the initiative will be in helping the Group achieve their stated goals and targets.

Complexity represents the Group’s ability to readily implement the proposed initiative based on existing enablers (e.g. capabilities, technology, and management systems).

Resource Intensity The resource intensity represents the level of investment (human and financial) required in order to implement the proposed initiative.

Does not contribute significantly to one or more topic or goal.

1

Only has an incremental impact to achieving the ESG targets.

1

Requires significant amounts of enablers that are not currently available in ADNEC.

1

Requires significant amounts of resources in order to implement the solution.

2

Contributes moderately or only to one or two topics and goals.

2

Has a moderate impact to achieving ESG targets.

2

Some enablers exist, but more are required to implement the solution.

2

Requires moderate amounts of resources in order to implement the solution.

3

Contributes significantly or to several topics and goals.

3

Has a significant impact to achieving ESG targets.

3

Most, or all, of the required enablers are readily available within the Group.

3

Requires low amounts of resources in order to implement the solution.

By applying the prioritisation criteria to the list of initiatives identified across the Group, a score for each proposed initiative can be determined, and the resulting initiatives plotted on a matrix that allows the ESG team, committee, and responsible stakeholders to identify the priority initiatives that will help to deliver ESG results.

The matrix is based on plotting the “relevance” and “delivery capacity” scores for each initiative (as illustrated below), and those scoring above the pre-determined threshold would be considered for final approval and implementation.

Priority initiatives 3

2 Relevance

1

Company

Score x 50% (sub-criteria weight)

Score x 50% (sub-criteria weight)

Score x 50% (sub-criteria weight)

1

Score x 50% (sub-criteria weight)

0

0

1

2

3

Delivery Capacity

Total Weighted Score

Total Weighted Score

The recommended prioritisation thresholds for each criteria are per the below:

98

• •

Relevance: 2 Delivery Capacity: 2.5

A

7 | Appendix 7.4 | Governance Structure Design Options

99

Company

ESG Organisational Design Options & Considerations

A

Company

RECOMMENDED MODEL CENTRALISED

DECENTRALISED

HYBRID

ADNEC Group

ADNEC Group

ADNEC Group

ADNEC HQ

Biz. Clusters

ADNEC HQ

Cons

Pros

ESG Team

Biz. Clusters

ADNEC HQ

Biz. Clusters

ESG Teams

ESG Teams

ESG Teams

1.

Ease of standardising level of service and quality of output across the Group.

1.

Promotes ESG efforts and implementation through the subsidiaries / business clusters.

2.

Ease of oversight and control over the ESG strategy and plans.

2.

More control and autonomy within each subsidiary / business cluster over their ESG plans.

3.

Consolidate ESG knowledge and resources.

3.

Reduces burden on ADNEC HQ to invest in internal resources to manage and oversee the Group’s ESG efforts.

1.

Requires a significant organisational (re)design for the associated function.

1.

2.

Requires significant resourcing and investment.

3.

Potentially reduced visibility and connection with ESG efforts at the subsidiary/business cluster level.

1.

Maintains control over certain key ESG governance activities at the ADNEC HQ level – while promoting accountability and efforts at the subsidiary / business cluster level.

2.

Shared resourcing and investment model between ADNEC HQ and the subsidiaries / business clusters.

ADNEC HQ adopts a reduced role in ESG governance for the Group – therefore, less control and direction.

1.

Requires seamless coordination and collaboration across the Group.

2.

Potential lack of consistent standards and practices applied across the Group.

2.

Potential overlap of responsibilities for resources involved in ESG governance across the Group.

3.

Duplicating efforts, resources, and competencies across the subsidiaries / business clusters.

Organisational Design Principles Integrating ESG into the culture of ADNEC Group

100

Streamlining internal coordination & communication

Enhance external stakeholder communication

Promote operational accountability and responsibility

A

7 | Appendix 7.5 | GRI Context Index

101

Company

GRI Event Organizers Sector Supplement (1 of 7) A

STANDARD DISCLOSURE: Performance Indicators

RELEVANT TO ADNEC

LINK TO SDG

Economic Economic Performance EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

SDG 8

EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change and other sustainability issues.

SDG 13

EC3

Coverage of the organization’s defined benefit plan obligations.

EC4

Significant financial assistance received from government.

SDG 8,17

Market Presence EC5

Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

SDG 5, 10

EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

SDG 8, 12

EC7

Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.

SDG 5, 10

Indirect Economic Impact EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement.

EC9

Proportion of senior management hired from the local community

SDG 5, 8, 10

EO1

Direct economic impacts and value creation as a result of sustainability initiatives.

SDG 8, 17

EN1

Materials used by weight or volume.

SDG 12

EN2

Percentage of materials used that are recycled input materials.

SDG 12

EN3

Direct energy consumption by primary energy source.

SDG 7

EN4

Indirect energy consumption by primary source.

SDG 7

EN5

Energy saved due to conservation and efficiency improvements.

SDG 7

EN6

Initiatives to provide energy-efficient or renewable energy-based events, products and services, and reductions in energy requirements as a result of these initiatives.

SDG 7

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

SDG 7

SDG 8

Environment Materials

Energy

102

Company

GRI Event Organizers Sector Supplement (2 of 7) A

STANDARD DISCLOSURE: Performance Indicators

RELEVANT TO ADNEC

LINK TO SDG

Environment Water EN8

Total water withdrawal by source, conservation and improvement initiatives and results.

SDG 6, 14

EN9

Water sources significantly affected by withdrawal of water.

SDG 6, 14

EN10

Percentage and total volume of water recycled and reused.

SDG 6, 14

EN11

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

SDG 15

EN12

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

SDG 15

EN13

Habitats protected or restored.

SDG 15

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity.

SDG 15

EN15

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

SDG 15

Biodiversity

Emissions, Effluents, and Waste EN16

Total direct and indirect greenhouse gas emissions by weight.

SDG13

EN17

Other relevant indirect greenhouse gas emissions by weight.

SDG13

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

SDG13

EN19

Emissions of ozone-depleting substances by weight.

SDG 12,13

EN20

NO, SO, and other significant air emissions by type and weight.

SDG 12,13

EN21

Total water discharge by quality and destination, and improvement initiatives and results.

SDG 6

EN22

Total weight of waste by type and disposal method, and initiatives to manage waste and their results.

SDG 12

EN23

Total number and volume of significant spills.

SDG 9,12

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

SDG 12

EN25

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

SDG 12

103

Company

GRI Event Organizers Sector Supplement (3 of 7) A

STANDARD DISCLOSURE: Performance Indicators

RELEVANT TO ADNEC

LINK TO SDG

Environment Products and services EN26

Initiatives to mitigate environmental impacts of events, products and services, and extent of impact mitigation.

SDG 12

EN27

Percentage of products sold or provided and their packaging materials that are reclaimed by category

SDG 12

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.

SDG 16

EO2

Modes of transport taken by attendees and participants as a percentage of total transportation, and initiatives to encourage the use of sustainable transport options.

SDG 9,11

EO3

Significant environmental and socio-economic impacts of transporting attendees and participants to and from the event and initiatives taken to address the impacts.

SDG 9,11

EN29

Significant environmental and socio-economic impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce

SDG 9,11

Total environmental protection expenditures and investment by type.

SDG 17

Compliance EN28 Transport

Overall EN30

Labor Practices and Decent Work Employment LA1

Total workforce by employment type, employment contract, and region, broken down by gender.

SDG 5,10

LA2

Total number and rate of new employee hires and volunteers recruited and employee and volunteer.

SDG 5,10

LA3

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation.

SDG 5,10

LA15

Return to work and retention rates after parental leave, by gender.

SDG 5,10

Labor/Management Relations LA4

Percentage of employees covered by collective bargaining agreements.

SDG 3,5,10

LA5

Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

SDG 3,5,10

104

Company

GRI Event Organizers Sector Supplement (4 of 7) A

STANDARD DISCLOSURE: Performance Indicators

RELEVANT TO ADNEC

LINK TO SDG

Labor Practices and Decent Work Occupational Health and Safety LA6

Total workforce by employment type, employment contract, and region, broken down by gender.

SDG 3, 5, 10

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and number of workrelated fatalities by region and by gender.

SDG 3, 5, 10

LA8

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

SDG 3, 10

LA9

Health and safety topics covered in formal agreements with trade unions.

SDG 3, 10, 17

Training and Education LA10

Average hours of training per year per employee or volunteer by gender, and by employee category.

SDG 4, 5

LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

SDG 4

LA12

Percentage of employees and volunteers receiving regular performance and career development reviews, by gender and by employee category

SDG 4, 5

Diversity and Equal Opportunity LA13

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.Q

SDG10

Equal Remuneration for Woman and Men LA14

Ratio of basic salary and renumeration of women to men by employee category, by significant locations of operation.

SDG 10

Human Rights Investment and procurement practices HR1

Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.

HR2

Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

HR3

Total hours of employee and volunteer training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees and volunteers trained.

SDG 16, 17 SDG 12, 16, 17 SDG 4, 16

Non-discrimination HR4

105

Total number of incidents of discrimination and corrective actions taken.

Company

SDG 10

GRI Event Organizers Sector Supplement (5 of 7) A

STANDARD DISCLOSURE: Performance Indicators

RELEVANT TO ADNEC

LINK TO SDG

Human Rights Freedom of Association and Collective Bargaining HR5

Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.

SDG 16

Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

SDG 8, 16

Child Labor HR6

Forced and Compulsory Labor HR7

Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

SDG 8, 16

Security Practices HR8

Percentage of security personnel and volunteers trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

SDG 16

Indigenous HR9

Total number of incidents of violations involving rights of indigenous people and actions taken.

SDG 16, 17

HR10

Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

SDG 16

HR11

Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.

SDG 16

Society Local Communities SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs.

SDG 16

SO9

Operations with significant potential or actual negative impacts on local communities.

SDG 16

SO10

Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

SDG 16

EO4

Expressions of dissent by type, issue, scale and response.

SDG 16

106

Company

GRI Event Organizers Sector Supplement (6 of 7) A

STANDARD DISCLOSURE: Performance Indicators

RELEVANT TO ADNEC

LINK TO SDG

Society Corruption SO02

Percentage and total number of business units analyzed for risks related to corruption.

SDG 8, 16

SO03

Percentage of workforce (employees, volunteers, contracted labor and participants who provide content to an event, such as athletes, artists or speakers) trained in organization’s anti-corruption policies and procedures, by workforce category.

SDG 8, 16

SO04

Actions taken in response to incidents of corruption and wrong-doing.

SDG 8, 16

SO05

Public policy positions and participation in public policy development and lobbying.

SDG 17

SO06

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

SDG 17

Public Policy

Anti Competitive Behaviour SO07

Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.

SDG 16

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

SDG 16

EO05

Type and impacts of initiatives to create a socially inclusive event.

SDG 5, 10

EO06

Type and impacts of initiatives to create an accessible environment.

SDG 10

Compliance SO08 Inclusivity

Product Responsibility Customer Health and Safety PR1

Life cycle stages in which wellbeing and the health and safety impacts of the event and its products and services are assessed for improvement, and the number and percentage of significant products and services categories provided at the event that are subject to such procedures.

SDG 3

PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning participants’ (who are content providers) and customer wellbeing and the health and safety impacts of the event and its products and services during their life cycle, by type of outcomes.

SDG 3

EO7

Number and type of injuries, fatalities and notifiable incidents for attendee sand other relevant stakeholders.

SDG 3

107

Company

GRI Event Organizers Sector Supplement (7 of 7) A

STANDARD DISCLOSURE: Performance Indicators

RELEVANT TO ADNEC

LINK TO SDG

Product Responsibility Product and Service Labeling PR3

Type and scale of event and its products and services information required by procedures, and percentage of significant products and services provided at the event that are subject to such information requirements.

SDG 12

PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning the event and its products and services information and labeling, by type of outcomes.

SDG 16

PR5

Percentage and total volume of water recycled and reused.

SDG 13, 14

Marketing Communications PR6

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

SDG 16

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

SDG 16

Customer Privacy PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

SDG 16

Monetary value of significant fines for noncompliance with laws and regulations concerning the event and the provision and use of its products and services.

SDG 16

Compliance PR9

Food and Beverages EO8

Percentage of and access to food and beverage that meets the organizer’s policies or local, national or international standards.

SDG 2, 6, 12

Sourcing EO9

Type and sustainability performance of sourcing initiatives.

SDG 12

EO10

Type, amount and impact of benefits, financial and in kind, received by the event organizer from suppliers.

SDG 12

EO11

Number, type and impact of sustainability initiatives designed to raise awareness, share knowledge and impact behavior change and results achieved.

SDG 1-12

EO12

Nature and extent of knowledge transfer of best practice and lessons learned.

Legacy Soft Legacies

SDG 13, 14, 15

Food and Beverages EO13

108

Number, type and impact of physical, and technological legacies.

SDG 1, 2, 3

Company

A

7 | Appendix 7.6 | Reference of ESG Ratings

109

Company

Reference of ESG Ratings A

Company

Agency

Aligned ESG Topic

Scope & Focus Area

Grading Scale

Public Rating

Trading Platform

CDP (Carbon Disclosure Project)

GHG Emissions, Water Conservation, Environmental Impacts

Scope 1, 2 & 3 emissions, water security, supply chain impacts

A to D- (climate) A to D- (water)

Yes

Google Finance

Climate Change, Circular Economy, Waste, Natural Capital

Environmental & Social risks and opportunities

CCC to AAA

Yes

Bloomberg MSCI ESG Manager

Sustainalytics

Resource Use, Carbon Intensity, Biodiversity

ESG Risk Rating: unmanaged risks across E, S, G

0–100 (lower = better)

Yes

Yahoo Finance Morningstar

S&P Global ESG Score

GHG Emissions, Waste, Water, Land Use

ESG evaluation across operations and disclosures

0–100

Yes

S&P Global

FTSE4Good Index

Environmental Strategy, Pollution, Waste, Supply Chain

ESG standards: environmental, social, governance

Pass / Fail, or 0–5 band scoring

No

FTSE Russell

Refinitiv ESG Score

ESG Policies, External Initiatives, Certifications, Controversies

Measures ESG performance, commitment, and disclosure across 10 themes

0–100

Yes

Refinitiv Eikon

MSCI ESG Ratings

110

Scoring Methodology A CDP score provides a snapshot of a company’s disclosure and environmental performance. The CDP scores show organizations and their stakeholders where they are on the road towards operating in line with a 1.5-degree, deforestation-free and water-secure future.

A

Company

Overview

Calculating the Scores

Disclosure drives action and by scoring companies from D- to A, organisations are taken on a journey from disclosure through awareness and management, and finally to leadership.

Leadership (A score) To earn an “A” score from CDP, organizations must show environmental leadership, disclosing action on climate change, deforestation or water security. They must demonstrate best practice in strategy and action as recognized by frameworks such as the TCFD, Accountability Framework and others. As well as having high scores in all other levels these companies will have undertaken actions such as setting science-based targets, creating a climate transition plan, developing waterrelated risk assessment strategies, or reporting on deforestation impact for all relevant operations, supply chains and commodities.

It is important to note that companies that achieve an A score are not at the end of their environmental journey - they are among the most transparent when it comes to disclosure and performance on climate change, deforestation or water security.

The CDP’s scoring methodology is aligned with the Taskforce for Climate-Related Financial Disclosures (TCFD) and with major environmental standards, and therefore provides a comparable dataset across the market

Management (B-/B score) A “B” score indicates environmental management. Companies that score a B have addressed the environmental impacts of their business and ensure good environmental management. A “B-” score indicates that a company is showing some evidence of managing its environmental impact but is not undertaking actions that mark it out as a leader in its field.

CDP’s scoring methodology assesses the level of detail and comprehensiveness in a response, as well as the company's awareness of environmental issues, its management methods and progress towards environmental stewardship.

Awareness (C-/C score) A “C-” or ”C” score indicates awareness-level engagement, with the differentiator being the level of awareness a company has shown in their response.

Questionnaire scoring is conducted by accredited scoring partners trained by CDP. The internal scoring team then collates all scores, running data quality checks to ensure that scoring standards are accurate and consistent.

Disclosure (D-/D score) Every question in the questionnaires is scored for disclosure. At disclosure level, companies are awarded roughly one point per data point provided. This level features both “D” and “D-” score. To score a “D” over a “D-” organizations need to have disclosed a more extensive set of information.

Failure to disclose (F score) An “F” score is given when a requested company fails to disclose through CDP.

136

111

Scoring Methodology ESG risks and opportunities can vary by industry and company. The MSCI ESG Ratings model identifies the ESG risks, that are most material to a sub-industry or sector.

Overview MSCI ESG Ratings uses a rules-based methodology designed to measure a company’s resilience to long-term, industry material environmental, social and governance (ESG) risks.

MSCI conducts research and rates companies on a ‘AAA‘ to ‘CCC’ scale according to their exposure to industry-material ESG risks and their ability to manage those risks relative to peers.

The approach consists of 4 steps: 1.

Data; MSCI collects and standardizes public data including alternative data including government, regulatory and NGO datasets, company disclosure documents, and 3,400 media sources. It does not conduct questionnaires.

2. Metrics; MSCI applies a standardized methodology to assess company Risk Exposure and Risk Management relative to industry peers. MSCI’s ESG issuer communications team engages with companies for data verification.

3. Evaluation; Industry-specific key issues are scored (0-10) using a rules-based methodology, and the team monitors daily and weekly updates of controversies and events to align their scoring methodology.

4. Rating; finally, key ESG issue scores and weights are combined to create an overall ESG rating (AAA – CCC) relative to industry peers. These ratings are subject to industry and market-led checks and formal committee review

112

A

Company

Scoring Methodology The ESG Risk Ratings measure the degree to which a company’s economic value is at risk driven by ESG factors or, i.e. the magnitude of a company’s unmanaged ESG risks

A

Company

Overview

Determining the Ratings

The quantitative score represents units of unmanaged ESG risk with lower scores representing less unmanaged risk. Unmanaged Risk is measured on an open-ended scale starting at zero (no risk) and, for 95% of cases, a maximum score below 50. Based on their quantitative scores, companies are grouped into one of five risk categories (negligible, low, medium, high, severe).

The final ESG Risk Ratings scores are a measure of unmanaged risk, which is defined as material ESG risk that has not been managed by a company. It includes two types of risk: • Unmanageable risk, which cannot be addressed by company initiatives.

• Management gap, which represents risks that could potentially be managed by a company but aren’t sufficiently managed according to Sustainalytics assessment.

The ESG Risk Ratings are composed of three building blocks that contribute to a company’s overall rating.

These building blocks include Corporate Governance, material ESG issues (MEIs), and idiosyncratic ESG issues.

Building Block #1: Corporate Governance. Only Category 4 or 5 events result in an adjustment of a company’s exposure score. On average, unmanaged Corporate Governance risk contributes round about 20% to the overall unmanaged risk score of a company.

Building Block #2: Material ESG Issues. The assessment of material ESG issues occurs at the subindustry level and is reviewed annually through a comprehensive and structured process. At a company level, material ESG issues can be removed from the rating if they are not relevant to the company’s business model.

Building Block #3: Idiosyncratic Issues. These Issues are ‘unpredictable’ or unexpected in the sense that they are unrelated to the specific subindustry and the business model(s) that can be found in that subindustry. Idiosyncratic issues become material issues only for the specific company in question, not for the entire subindustry that company is part of.

113

The final ESG Risk Ratings score is calculated as the sum of the individual material ESG issues’ unmanaged risk scores. It

A

Company

THANK YOU

@ADNECGROUP 114