ALEC Group ESG Report 2022-2023

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ALEC SUSTAINABILITY & ESG REPORT 2022

COEX


TABLE OF CONTENTS OVERVIEW

2-11

About this report

2

About ALEC

3

Message from the leadership

9

Highlights

11

SUSTAINABILITY STRATEGY

12

ENVIRONMENTAL

16

SOCIAL

28

GOVERNANCE

38

APPENDICES

49

ALEC Sustainability & ESG Report | 01


OVERVIEW

SUSTAINABILITY STRATEGY

ABOUT THIS REPORT

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

We are proud to present ALEC’s first sustainability report, providing an overview of our commitments to environmental, social and governance topics. Scope & boundary: This report covers our UAE operations, comprising occupied assets (owned offices, yard, factories, labour accommodation), project site offices and operations across projects, where ALEC is the main contractor (referred to as main projects) or has operational control. The report excludes our operations in other countries as well as operations related to new acquisitions & joint ventures in 2022 like Target Engineering. To the extent possible, considering data availability limitations and the reporting boundary, the report contains disclosures related to our corporate and main projects-related data, unless otherwise stated in the reporting criteria. We aim to expand the scope of reporting in the following years to ensure completeness. Reporting Guidelines: ALEC uses international frameworks and reporting guidelines listed below as a guide for our sustainability reporting. At this stage, ALEC does not claim compliance with these standards, but as we mature in our data reporting capabilities, we will look into aligning with these standards. • • • • •

Global Reporting Initiatives (GRI) Standards Dubai Financial Market’s ESG reporting guidelines United Nations Global Compact’s 10 principles United Nations Sustainable Development Goals (SDGs) Sustainability Accounting Standards Board (SASB) – Engineering & Construction Services (IF-EN) metrics

The appendices contain the board details, 2022 ESG disclosures, reporting criteria and reporting framework mapping index to help readers navigate to the related topic areas. We also link our initiatives to the local and national priorities, including the UAE’s decarbonisation plans. We will restate our 2022 emissions data based on additional data availability, and review of our carbon accounting methodology, if required. Reporting period: This report covers the period from 1 January 2022 to 31 December 2022. In some instances, we have also referred to data pertaining to key aspects of our business from 2021 or earlier and mention our plans for 2023. Feedback We welcome feedback on ALEC’s ESG strategy, sustainability activities and performance. Please contact sustainability @alec.ae. Cautionary statement regarding forward-looking statements This report contains certain forward-looking statements that typically contain words such as “anticipate”, “believe”, “expect”, “estimate”, “forecast”, “intend”, “plan”, “project”, “aims”, “seeks”, “may”, “will” or similar expressions. Such statements are based on assumptions made using currently available information that is subject to a range of uncertainties that could cause actual results to diverge from these projected or implied statements. Any forward-looking statements contained in this report are therefore not promises or guarantees of future conduct or policy, and thus ALEC and its subsidiaries assume no obligation to publicly update any statements made in this report. ALEC and its subsidiaries rely on information obtained from different third-party sources believed to be reliable but does not guarantee its accuracy or completeness.

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ABOUT ALEC Purpose: Transform the construction industry towards a sustainable future

Vision: To be the leading innovative Construction Group

Strategy: To provide construction solutions with aligned capability, resulting in enhanced stakeholder success

VALUES & WHAT THESE MEAN FOR ALEC:

Integrity We believe in upholding the highest standards of integrity in all our interactions, which includes maintaining transparency and ethical behavior. This helps us build trust with our clients, partners, and employees, which is crucial for the success of our business.

Courage Our commitment to courage drives us to take bold and innovative approaches to our projects, even in the face of challenges and uncertainty. We encourage our employees to be proactive and to embrace change as an opportunity for growth and improvement. This value helps us stay at the forefront of our industry and deliver exceptional results for our clients.

Reliability Reliability is a cornerstone of our business, and we take pride in delivering our projects on time, on budget, and to the highest standards of quality. We strive to build lasting relationships with our clients and partners based on trust and reliability. Our commitment to excellence in project delivery is reflected in our ISO certifications and our track record of successful projects across various sectors.

Value Our People We place great importance on our employees and their well-being. We recognize that their talent and dedication are critical to our success. This is why we strive to create a supportive and inclusive work environment that fosters personal and professional growth. We invest in training and development programs, provide competitive compensation and benefits, and encourage a healthy work-life balance.

Innovation We believe in the power of innovation and staying ahead of the curve. We encourage our employees to think creatively and challenge assumptions to seek out new opportunities for growth and improvement. We invest in research and development to deliver innovative solutions that meet the evolving needs of our clients.

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

WHO WE ARE Our passion is the execution of complex and iconic projects. We are proud to be trendsetters in the region – whether it is exceeding clients’ expectations in quality or challenging ourselves to continuously innovate our methods of construction, digitising our processes, while also standing out in the industry in the way we care of our people – not just our employees but also our supply chain partners. We build high end complex projects such as airports, retail, hotels & resorts, high-rise buildings, themed projects.

AIRPORTS

28

COMMERCIAL

10

Airports and aviation terminals

28

Exhibition and convention centers

4

Office towers and business centers

5

Parking structures and garages

1

CULTURAL

8

EDUCATION

2

Museums and Cultural centers

8

Schools and educational institutions

2

INDUSTRIAL

3

ENERGY

1

GOVERNMENT

2

HOSPITALITY

Energy plant

1

Government buildings and ministries

1

Beach clubs and leisure resorts

3

Data centers and IT facilities

1

Military & Defence

1

Hotels and Resorts

25

Fish Farms

1

Spa's and Health Clubs

1

Industrial warehouses and logistics centers

1

12

RELIGIOUS

1

Religious buildings (mosques, temples)

1

29

INFRASTRUCTURE

2

MIXED USE

3

RECREATION

Infrastructure

2

Mixed - Residential, Hospitality, Commercial, Retail

3

Entertainment and performing arts centers

1

Golf courses and country clubs

3

Sports stadiums and facilities

1

Theme parks and amusement centers

7

RESIDENTIAL

6

RETAIL

7

TRANSPORT

1

Apartment buildings (high-rise and low-rise)

4

Shopping malls and retail complexes

7

Seaports and marine facilities

1

Staff Accommodation

1

Villas & Townhouses

1

Data includes main construction projects across territories.

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OVERVIEW

SUSTAINABILITY STRATEGY

ALEC GROUP

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ALEC is part of the Investment Corporation of Dubai (ICD) and has extensive experience in construction management, estimating and cost planning and procurement. ALEC possesses a Design and Build capability, which enables us to provide integrated construction solutions to our clients. Its construction arm is proficient in complex projects across a variety of sectors, which include airports, retail, hotels & resorts, high-rise buildings, and themed projects.

ALEC FITOUT specialises in the fit out and refurbishment of hotels & resorts, cinema, commercial offices, retail, cultural and luxury mixed use developments in the UAE, Qatar & Oman.

ALEMCO, a Mechanical, Electrical and Plumbing company, provides the skill, expertise, experience and resources essential to meet the demands of today’s fast track projects.

Utilising our in-house network of specialist contractors coupled with our extensive local and international supply chain we offer a complete interior solution fulfilling the need for project management, engineering, value engineering, design build, procurement and out all under one contractor to the highest standards of workmanship.

The key services that ALEMCO provides to clients include turnkey electromechanical construction services, planning and design & build engineering services. We also offer facilities management and long term maintenance contracts to ensure efficiency and sustainability of our MEP installations.

ALEC ENERGY is a provider of solar energy. We offer financially sound green energy solutions. We provide an efficient turnkey solar solution for your commercial & industrial rooftops to ensure maximum return on investment and sustainability.

ALEC Data Center Solutions provides specialized data center solutions to deliver resilient, sustainable solutions to house, maintain and protect your data and critical assets.

ALEC Technologies provides complex fully integrated ELV systems in the region with a team of passionate technical professionals.

Building Excellence

Our team provides a range of services aimed at meeting your technical needs. - ICT Systems

- AV Systems

- Guest Room Systems

- Security Cameras

- IOT / Automation Systems

- Car Park and Automation

LINQ is a manufactured housing solution provider that integrates industry best practice with high-quality materials, resulting in a product that can be transported and assembled anywhere and that can operate sustainably in any environment. Manufactured in Dubai, UAE, within a controlled production environment, LINQ provides consistent quality with significant improvements to overall project durations, while reducing material waste and energy consumption. AES is a solution-oriented, integrated trading platform that aims at disrupting the traditional procurement value chain for developers by connecting them to experienced, cost efficient, and technologically superior suppliers in the world.

AJI is a rental operation with the focus on the rental, sales and services of Aerial Work Platforms. The rental operation has been formed and managed by a combination of experienced and regionally established parties. Integrated business units Complementary services Core operations

The platform is a consortium of relevant, experienced, and motivated stakeholders that have come together in order to address their own procurement requirements and offering the same to large developers of scale.

The ALEC logo symbolizes three key elements of the company. The origin of the management team from South Africa is represented by the stone colour symbol, current Gulf regional operations is represented by the blue colour symbol and our future growth into international markets is represented by the red colour symbol.

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

WHERE WE OPERATE

APPENDICES

GOVERNANCE

PROJECTS OVERVIEW EXPO 2020

QATAR SAUDI ARABIA

UAE VISION PAVILION

ABU DHABI

DUBAI

ETHIOPIA

Data includes main construction projects under ALEC and ALEMCO & ALEC FITOUT in UAE.

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ALEC UAE

PEOPLE

PROPERTIES

OWNED EQUIPMENT & FLEET

OFFICES TOTAL STAFF

8,600 STAFF

2,000 SKILLED & UNSKILLED LABOUR

6,600

OWNED

2,500 sq m

LEASED

1,500+ sq m

FACTORIES

55,000 sq m OWNED LABOUR ACCOMMODATION

7,000+ sq m

TOTAL EQUIPMENT

265

TOWER CRANES

33

DOUBLE CAGE HOIST

8

MOBILE CRANES

4

VARIOUS SMALL EQUIPMENT

106

COMMERCIAL VEHICLES

55

MECHANICAL EQUIPMENT

59

This represents ALEC 2022 data prior to new acquisitions.

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

FORMWORK & SCAFFOLDING

ASB 240 - 55,000 m

GT24 Girders

ALUMA Light Beams

VARIO Wall Formwork

TRIO Wall Formwork

ABS 160 - 116,000 m

119,000 m

53,600 m

9,400 m2

4,850 m2

Wall Climbing Platform

ALEC Modular Column

Multi Props

PEP Props

ALUMA Truss

300 m2

1,240 m2

3,579 Nos

11,546 Nos

12,000 m2

PD8 Towers - 89,500 m2

Cuplock Scaffold

GI Pipe Edge Protection

Edge Protection Mesh

Aluminum Towers

R 110 = 18,889 Nos

465,000 m2

86,900 m

71,036 m

545 Nos

R 150 = 30,553 Nos

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

MESSAGE FROM ALEC LEADERS As we navigate the challenges and opportunities in the ever-evolving construction sector, we want to take a moment to reflect on some of our most critical responsibilities – environmental sustainability, social responsibility, and business governance.

Kez Taylor

Director - ALEC Board

At ALEC, we’re aligned with the UAE’s strategy to achieve net-zero emissions by 2050. The construction industry plays a pivotal role in shaping our world, and with that influence comes a profound duty to protect and preserve our environment. Our commitment to environmental sustainability in the construction sector is a testament to our values and dedication to leaving a positive legacy for future generations. By embracing sustainable practices, we not only protect the environment but also strengthen our resilience as a business. We invite each of our stakeholders to join us on this journey towards a more sustainable future. Together, we can make a significant difference in the construction sector and set an example for others to follow. Let us work hand in hand to build a better world – one that is environmentally responsible, economically prosperous, and socially equitable.

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

We are unwavering in our commitment to

of ESG and we aspire to set our company targets

adopt sustainable practices in every facet

aligned with the aspirations of the UAE vision for

of our work. This includes minimizing our

net zero by 2050. We have a robust road map for

environmental

our journey marked by specific milestones and

innovative construction techniques, embracing

metrices which will guide us to successfully

energy-efficient technologies, and championing

achieving the vision. Our commitment to this

responsible waste management. Our aim is to

journey is a testament to the core values which

not only meet local and global environmental

underpin our daily actions.

standards but to set new benchmarks for

Sean McQue

Chief Executive Officer

Chief Financial Officer

APPENDICES

GOVERNANCE

The ALEC Group is committed to the three pillars

Barry Lewis

John Deeb

SOCIAL

footprint

by

implementing

sustainability in the region’s construction sector.

Managing Director - Construction

We have always believed that our success is not

Sustainability is no longer a choice but an

solely measured by our financial performance but

imperative in today's construction landscape. It

also by our commitment to environmental

encompasses not only environmental stewardship

stewardship. We firmly believe that quality and

but also social responsibility and economic

sustainability are inseparable partners on our

viability. Sustainability goes beyond regulatory

journey towards excellence. In the construction

compliance; it is our compass for responsible

sector, where our work significantly impacts the

decision-making. Together, we can set new

built environment and future generations, our

standards, create greener communities, and

commitment to these ideals is non-negotiable.

demonstrate that responsible construction is not

Kobus Dreyer

only possible but profitable.

Group Commercial Director ALEC Sustainability & ESG Report | 10


OVERVIEW

KEY HIGHLIGHTS

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GREEN BUILDING EXPERIENCE

158,632.21 kWh of renewable energy produced on site at ALEC yard Solar-diesel hybrid generator used on one of our main construction projects

6

7 PROJECTS ACHIEVED 4 PROJECTS ACHIEVED LEED CERTIFICATION PEARL ESTIDAMA RATING

RELATED BUSINESS AWARDS / POWERLISTS:

13

PROJECT AWARDS:

17

DEPARTMENTAL AWARDS:

5

PEOPLE AWARDS:

6

ENVIRONMENTAL ISO 14001: 2015 Environmental Management System

ACHIEVED ALEC AWARDS / POWERLISTS:

APPENDICES

GOVERNANCE

Platinum

PEARL 2

• Saudi Arabia Pavilion EXPO 2020 • UAE Pavilion EXPO 2020

• Abu Dhabi Airport transfer baggage facility

GOLD

• Abu Dhabi Airport arrivals hall & tunnel

• ADNOC New Head Quarters

• ADIA car park

• Mirdif City Center • Mobility Pavilion EXPO 2020

LEED NC 2.2 • Dubai International Airport (C4)

Recycling rate from project start till Dec 31, 2022

ALEMCO Offsite Construction LINQ Modular Construction

SOCIAL ISO 45001: 2018 Occupational Health & safety Management System 0.033 LTIFR 100% HSE managers NEBOSH certified

PEARL 1

43,337 employees and directly supervised subcontractors underwent the worker welfare induction training

• Yas Waterpark

8,700 employees upskilled at ALEC trade skills training facilities

SILVER • Conference and Exhibition Centre EXPO 2020

Recycling rates across main projects active in 2022: 83%*

484 employees engaged in innovation & 73 rewards for innovation ideas

1 PROJECT ACHIEVED GSAS CERTIFICATION GSAS 3 Star • Doha Festival City

49+ Nationalities 10% of our senior managers are women Parental leave: 90 calendar days (Female) 7 calendar days (Male) 100% parental return rate

GOVERNANCE

ONGOING

ISO 9001: 2015 Quality Management System

1 ONGOING PROJECTS UNDER PROCESS FOR LEED CERTIFICATION

4 ONGOING PROJECTS UNDER PROCESS FOR PEARL ESTIDAMA RATING

GOLD

PEARL 2

• One Zaa’beel

• Sea World

• TeamLab Phenomena

• Natural History Museum

• Yas Waterpark Extension

BSI Kitemark ISO 19650 Information Management using Building Information Modelling (BIM) 25% female on board • Number of projects with approximate value of AED 46 Billion successfully delivered since inception: 270+ *Includes ALEC, ALEMCO, Fitout main projects

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

SUSTAINABILITY APPROACH MATERIAL TOPICS

ESG STRATEGIC FRAMEWORK

To identify, analyse and address material ESG issues for our industry, especially within our scope as an engineering and construction contractor, we reviewed material topics and metrics from international guidelines and frameworks such as Sustainability Accounting Standards Board (SASB), Morgan Stanley Capital International (MSCI) ESG Material map for Construction & Engineering, Dubai financial Market (DFM) & Tadawul ESG reporting guidelines. We aim to strengthen this materiality assessment by conducting a survey of our internal and external stakeholders in 2023-2024 to ensure our initiatives and goals match their expectations.

Environmental, social, and governance (ESG) factors are the key measures of a business’s sustainability and societal impact within the construction ecosystem.

ALEC’s ESG focus areas are directly in line with the national priorities laid down by the national priorities and are underpinned by the UN Sustainable Development Goals (SDGs).

ENVIRONMENTAL

SOCIAL

GOVERNANCE

Emission management

Health & Safety

Construction Quality & Compliance

Waste management & Circularity

Worker Welfare

Fair & Ethical Conduct

Green Building & low-carbon solutions

People Management & Development

Responsible Supply Chain

Climate Change Adaption & Mitigation

Wellbeing & engagement

ESG & Climate Risk Oversight & Management

Diversity, Equity & Inclusion

Data Privacy & Cybersecurity

Community Impact ENABLERS

ERP System

Internal & External Communication

Partnerships & Collaborations

Capacity Building

Reporting

SUSTAINABLE DEVELOPMENT GOALS (SDGS) WE FOCUS ON:

UN GLOBAL COMPACT To illustrate our commitment to sustainability, ALEC has joined the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative that promotes responsible business practices and the advancement of the Sustainable Development Goals (SDGs) in 2023. As participants of the UN Global Compact, ALEC has publicly committed to implementing the Ten Principles of the UNGC in the areas of human rights, labour, environment, and anti-corruption, and will publicly report its progress on these efforts annually.

EMIRATES GREEN BUILDING COUNCIL Emirates Green Building Council (EGBC) is an industry forum focused on enhancing sustainability in the built environment in the UAE through the promotion of high-performance green buildings and environmentally friendly technologies and products. We aim to use this forum to showcase our best practices as well as learn from industry peers, supply chain partners on opportunities in decarbonizing the sector.

BRITISH SAFETY COUNCIL

SUSTAINABLE DEVELOPMENT GOALS (SDGS) WE CONTRIBUTE TO:

National Priorities we contribute to:

MEMBERSHIPS & PUBLIC COMMITMENTS

• ‘We the UAE 2031’ vision

ALEC has been a member of the British Safety Council since 2015, demonstrating our commitment to health, safety, and wellbeing and transparency in reporting.

• UAE Energy Strategy 2050 • UAE Water Security Strategy 2036

ALEC Sustainability & ESG Report | 12


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ESG IMPLEMENTATION PLAN 2022 – 2023

2024

2025 ONWARDS

• Enhance materiality assessment through stakeholder engagement • Establish ESG and decarbonisation targets • Finalise ESG-related policies and processes across businesses.

• Develop ESG strategy, due diligence and reporting frameworks for joint ventures, acquisitions

Strategy

• Develop ESG framework and set ESG reporting metrics aligned to global reporting standards • Develop Community Impact Strategy & partnerships • Establish ESG implementation responsibility matrix • Establish Sustainability committee • Review and update ESG-related policies and processes

Reporting

• Collect existing sustainability data for UAE • Establish sustainability reporting templates for the business • Publish first sustainability & ESG report

• Enhance carbon baseline through increase scope and coverage • Internal reporting dashboards • Explore digitising sustainability reporting

• Align reporting to global ESG reporting standards • Undertake pre-assurance readiness testing

• Launch Community Impact initiatives • Launch ‘quick win’ environmental initiatives across own UAE operations

• Develop ESG & Climate risk registers • Establish low-carbon site operations manuals and targets

• Ongoing efficiency projects • Complete procurement of clean energy through on-site solar generation across all owned and directly-controlled properties, where feasible*.

Implementation

Some properties are subject to landlord, regulatory and space restrictions for on-site solar production.

Awareness & Upskilling

• Launch in-house ESG & carbon literacy programmes • Establish ESG & carbon learning development programmes through partnerships

• Launch ESG & decarbonisation strategy training & engagement programmes for top-tier and preferred suppliers and subcontractors.

• Ongoing awareness and capacity building

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ESG GOALS: A key element of integrating ESG into the business is the adoption of the ESG metrics and integrating these initiatives into project operations not only to report the results achieved, but to make decisions and guide actions. ESG metrics will continue to evolve based on the maturity of our understanding of dacarbonisation regulations, awareness of ESG and evolution of reporting methodologies and implementation.

FOCUS AREA & GOALS

METRICS ENVIRONMENTAL

Emission Management Finalise a full carbon, water, and waste data baseline to establish current performance to enable setting decarbonisation targets

• • • •

Scope 1 (Fuel) emissions Scope 2 (Purchased electricity) Scope 3 emissions Scope 3 categories: • Category 1: Purchased goods and services (Concrete, Steel, Water) • Category 5: Waste generated in operations

Waste Management & Circularity Diversion of waste from landfill Own: • Divert from landfill around 75% of waste from offices/ factories/ labour accommodation Projects: • Divert 75% of waste from landfill

• Recycling rate

Green building and low-carbon solutions Develop and grow our capabilities and services to support carbon emission reduction

• % projects pursuing LEED certifications • % projects utilising offsite construction • % projects featuring modular volumetric construction

Climate Change Adaptation & Mitigation Develop and implement programmes to reduce emissions from our operations

• On-site renewable energy produced & used for owned properties • Adoption/ investment in energy-saving & hybrid solutions within own operations • Adoption/ investment in water-saving solutions within operations • % LEED certified entities within operational control • Investment in circularity solutions • % revenue invested in ecosystem regeneration

FOCUS AREA & GOALS

METRICS SOCIAL

Health & Safety Provide a safe working environment free from harm to employees, visitors and stakeholders. • 0 Fatalities • 0 health & safety-related major non compliances • Less than 10 health & safety-related minor non compliances. • Maintain a LTIFR of 0.03

• Fatalities • LTIFR • Legal cases related to safety-related incidents

Worker Welfare Uphold human rights within our operations and influence compliance among subcontractors through screening and audits

• • • •

Non compliances on human rights violations % employees trained on human rights & modern slavery % subcontractors trained on human rights & modern slavery % subcontractors screened for human rights violations

People Management & Development • Attract and retain talent • Facilitate accessibility to online learning programmes and increase training penetration • Mapping career progression paths

• • • • •

Turnover rate Average training hours per employee % staff participation in innovation activities % coverage of all positions No. of unique Innovative idea contributors

Wellbeing & Engagement • Drive fitness, health and wellness initiatives • Conduct employee surveys • Reduce absenteeism

Wellbeing & engagement activity participation • Employee survey participation • Absenteeism rate

Diversity Equity & Inclusion • Foster diversity and inclusivity

• Nationalities • Age

Community Impact • Inspiring youth to enhance their STEM skills • Invest in upskilling young adults from low-income backgrounds on transferrable trade skills • Supporting local community needs through participation in local and national initiatives

• No. of beneficiaries • Volunteering hours • No. of employees engaged in Community Impact initiatives

• Emiratisation • % women across grades

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

FOCUS AREA & GOALS

GOVERNANCE

APPENDICES

METRICS GOVERNANCE

Construction Quality & Compliance Leading the industry in quality and compliance

• Legal cases related to structural integrity claims from main projects • Instances of liquidation damages

Fair & Ethical Conduct Lead by example in ethical practices and operate with integrity and transparency.

• No. of cases of bribery and money laundering • % employees trained on ethics & anti corruption • No. of active projects/ backlog in countries ranking low on Corruption Index

Responsible Supply Chain To support and encourage our partners’ ambitions towards more humane and climate-friendly practices within supply chain

• • • •

% subcontractors formally certified compliance with ALEC Code of Conduct ICV score % subcontractors screened through prequal and procurement process on human rights policies and safeguards in place Trainings provided to supply chain to upskill and support subcontractors

ESG & Climate Risk oversight & management To incorporate ESG & climate risks into decision making

• • • • •

Sustainability governance structure Materiality assessment ESG & climate risk registers and mitigation plans Annual sustainability reports No. of ideas generated & implemented through innovation dashboard

Data Privacy & Cybersecurity To maintain robust data privacy and cybersecurity policies that protect sensitive information, ensure secure network access and uphold the principles of confidentiality

• No. of substantiated complaints of breaches or data loss.

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OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ENVIRONMENTAL CONTEXT The built environment contributes to over one-third of global final energy use, generates nearly 40% of global energy-related carbon emissions and consumes 40% of global raw materials.a The major contributors to these emissions are the materials used as well as the heating, cooling, and lighting of buildings and infrastructure.b

REGIONAL CONSTRUCTION INDUSTRY CONTEXT & ALEC’S SCOPE OF INFLUENCE In the Engineering, Procurement and Contracting (EPC) based model, main contractors are usually brought into the decision-making stage after the building is designed based on client’s Green Building rating ambition, material specified based by consultants’ based on clients’ emission reduction goals and Whole Carbon Life Cycle Assessment (in some cases).

STAGE

POTENTIAL REDUCTION

CALCULATION CERTAINTY

100%

Lowest

0%

Highest

Feasibility Brief Design Tender

Reducing 'upfront' embodied carbon is easiest during planning and early-stage design, where the largest reductions can be achieved with the least effort. As construction begins, options become more limited, and there is much less that can be done to reduce upfront carbon once the building is operational apart from upgrade or refit of elements.

Construction Handover

ALEC’S DECARBONISATION STRATEGY: DECARBONISING OWN OPERATIONS

At ALEC our approach has been to thoroughly understand the impact of decarbonisation before creating a robust strategy. We are in the process of establishing a carbon emission baseline, which will help us assess the impact of existing practices and develop an emission reduction strategy.

Our climate mitigation priority areas, for owned properties and those under direct or operational control such as offices, warehouses, factories, labour accommodation, are:

Our operations are governed by Environmental Management System that conforms to the ISO 14001: 2015 Standard. This system addresses environmental aspects and impacts to identify risks associated with our operations, controls to mitigate them, and compliance with applicable environmental laws and permits.

"We understand the impact of our operations on the planet and commit to reducing our environmental footprint and improving resource efficiency."

1. Generate and use clean energy through onsite solar energy production 2. Upgrade current systems to improve energy efficiency, water management and retrofits, where feasible 3. Enhance waste management through phase out of single-use plastic & reduction in paper usage through digitalisation ISO 14001:2015

4. Develop a carbon emission baseline for the business and creating decarbonisation strategies for high-emitting assets

Barry Lewis, Chief Executive Officer a: (Source: https://www.wbcsd.org/Overview/News-Insights/WBCSD-insights/Decarbonizing-the-40-How-the-finance-sector-can-drive -the-transformation-to-a-net-zero-built-environment)

b: (Source: https://www2.deloitte.com/ce/en/pages/real-estate/articles/putting-the-construction-sector-at-the-core-of-the-climate -change-debate.html)

ALEC Sustainability & ESG Report | 16


OVERVIEW

SUSTAINABILITY STRATEGY

EMBODIED CARBON The less obvious source of GHG emissions associated with buildings is embodied carbon. It’s already in the atmosphere, quietly warming our planet, by the time materials reach the project site. And for new buildings, its climate impacts are nearly even with those of operational energy.* Embodied carbon consists of all the Greenhouse Gas (GHG) emissions associated with building construction, including those that arise from extracting, transporting, manufacturing, and installing building materials on site. While operations may have decarbonisation opportunities long after construction completion, the embodied carbon emissions from construction are set in stone as the project is executed. The “Cradle to gate” or 'upfront' embodied carbon refers to the emissions associated with only the production of building materials, from raw material extraction to the manufacturing of finished products (which in our case is the buildings we construct). Up-front carbon emissions account for up to 50% of total life cycle emissions.*

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ALEC’S DECARBONISATION STRATEGY: 1. Employing modern methods of construction, (1a) Offsite construction and prefabrication (1b) Modular volumetric 2. Digitalising construction: BIM (Building Information Modelling) facilitates collaboration between designers and contractors in real-time. AR and VR technologies allow workers to overlay digital information onto the physical construction site or to immerse themselves in a virtual environment that simulates the construction site. This helps workers visualise the design intent, identify potential conflicts, and communicate more effectively with other team members. Both these strategic initiatives across our main construction projects result in higher productivity, improving safety and quality, reducing wastage of materials and shorter timelines, thereby reducing overall emissions. 3. Low-carbon construction site operations (3a) Reduce dependence on fossil fuel across operating sites ◦ Through onsite solar energy generation ◦ Electrifying construction sites where feasible ◦ Optimise fuel usage through use of technology and behavioural change

(3b) Leveraging and actively pursuing the circular economy model to divert construction waste from landfill. ◦ Reduce generation, enhance segregation and divert waste from landfill ◦ Explore use of recycled and upcycled materials for temporary works, where feasible 4. Leveraging supply chain to lower product-related embodied emissions (4a) Engage and collaborate with our top tier suppliers to upgrade our reporting framework to capture emission reduction potential (4b) Increase current inventory of low-carbon construction material with Environmental Product Declarations (EPDs). (4c) Offer a launch pad for testing low-carbon alternatives from local suppliers, where available, to identify carbon emission reduction opportunities and encourage the value chain to seek innovation and cost efficiencies for reducing carbon as part of our innovation and R&D activities. (4d) Offer training to top tier subcontractors and suppliers on decarbonisation

[Source: https://www.mckinsey.com/capabilities/ operations/our-insights/global-infrastructure-initiative/ voices/reducing-embodied-carbon-in-new-construction]

ALEC Sustainability & ESG Report | 23 17


SUSTAINABILITY STRATEGY

ENVIRONMENTAL

A1-A3

A1

A2

A4-A5

A3

A4

A5

SITE

PRACTICAL COMPLETION

B1-B7

B1-7

C1-C3

C1

C2

Reuse Recovery Recycling

NEXT PRODUCT SYSTEM

Disposal

Waste processing

Transport

Deconstruction Demolition

Operational water use

END OF LIFE STAGE

Operational energy use

USE STAGE

Use Maintenance repairs Refurbishment Replacement

Construction Installation process

Transport

Manufacturing

Transport

Raw Materials

CONSTRUCTION STAGE

D

C3

MODULE

CRADLE TO GATE

APPENDICES

GOVERNANCE

EMISSION MANAGEMENT: SCOPE 1

DECARBONISING CONSTRUCTION PRODUCT STAGE

SOCIAL

END OF LIFE TO GRAVE

Fuel consumption: Diesel consumption on projects depends on energy requirements of different phases of the project and the timeline to receive temporary connection. Typically, fuel consumption is high in the initial phases of the project, where power is mainly sourced from on-site diesel generators and use of heavy plant for the substructure and super structure work. Traditional diesel-powered construction equipment used in construction operations contributes roughly 3% of embodied carbon for new-build construction projects*, according to McKinsey & Company analysis. We expect absolute fuel consumption to rise each year, due to increasing revenue, a growing commercial fleet, our acquisitions and the increased geographical area of major building projects. Our projects, by their inherent nature, are different and span over different years, so comparing year-on-year project-level or comparing absolute carbon emissions does not accurately reflect our decarbonisation efforts. While there are many common activities, the scale and complexity of these varies considerably, leading to very different levels of absolute emissions year-on-year.

12,500

Emissions (tCO2e)

OVERVIEW

10,000

9,864.44

7,500 5,000 2,500 695.35 -

Diesel emissions

Petrol emissions

Total: 10,560 tCO2e

How ALEC will decarbonise

Value Proposition:

Scope:

BOUNDARY CONDITION

ALEC to Influence*

ALEC Control

ALEC Control

ALEC can Influence**

Upfront Carbon (Module A1-A5)

INFLUENCE

MEASURE PLAN

ACT REPORT

PROPOSE SOLUTIONS

Embodied Carbon (Module A1-A5, B1-B5, C1-C4)

Stage 1: ECI/Design & Build

Stage 2: Construction

ALEC Solutions

Low energy use

Low Carbon Supply

Modern Methods of Construction DIGITAL CONSTRUCTION

*Based on data availbility from supply chain **Subject to client consultant approvals

ENERGY EFFICIENCY PROJECTS One challenge in reducing dependence on diesel generators for power is delays related to approvals required for temporary power connection on site and proximity to existing grid. We work closely with our clients, consultants as well as utility providers to expedite this process, with an average timeline of nine months for securing temporary power connection to the grid. We are hopeful that with the utility companies expanding their network and decarbonisation of the grid, emissions resulting from diesel consumption for the GCC construction industry will reduce over time. Some of the initiatives to reduce dependence on diesel on ALEC project sites include: • Synchronisation of generators and optimizing their size based on planned usage

This includes diesel and petrol consumed (from stationery and non-stationary sources) across active UAE projects, where ALEC is the main contractor, properties under direct control as well as consumption from our owned fleet. This excludes consumption from leased buses used for labour transport. Please refer to the reporting criteria for more details.

[Source:https://www.mckinsey.com/capabilities/operations/our-insights/global-i nfrastructure-initiative/voices/reducing-embodied-carbon-in-new-construction]

ALEC Sustainability & ESG Report | 18


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

SCOPE 2 EMISSIONS

Solar-diesel hybrid power generator trial ALEC is trialling a solar-diesel hybrid power generator at one of the construction sites to replace the traditional diesel generators. It is estimated that using this system over the project duration of 23 months will save around 161,850 litres of diesel. Equipment tracking through IoT sensors trial On certain projects, ALEC is contractually obligated to provide fuel and equipment to subcontractors. In order to better manage the utilization of equipment, reduce idling time and minimize wastage of fuel and thereby reduce overall emissions, ALEC installed internet of things (IoT) sensors and GPS track ers on 114 equipment to record run time, utilization hours, idling duration and geolocation. In 2022, we completed pilot roll out of the AI platform that utilizes the IoT sensors to collect vehicle data to improve utilization via common dashboard to provide actionable insights. Within three months, we managed to improve utilization rate, reduce idling, which resulted in saving close to 3,425 litres of diesel.

Electrification When we first started looking at improving the efficiency of tower lights in 2015, the average diesel consumption was more than 2 litres/hour. By switching to LED solutions and hybrid tower lights we have reduced this to approximately 1.2 litres/hour. 100% of owned tower lights have LEDs. At present, 21% of ALEC-owned tools are battery-operated. In 2023, we are undertaking a study to plan the energy transition of machinery. This also reduces the need for cables, generators or compressors, reducing the risk of slips, trips and falls. Vehicle emissions are driven by fleet size, vehicle efficiency, vehicle use and the location of projects at any given time. Majority of our commercial vehicles carry staff or materials between our yard and construction sites. We are also currently exploring digitising the delivery management of materials to site and aim to improving logistical efficiency. We will work with our supply chain partners to further streamline and digitise tracking origin of materials, and its delivery to sites. Air Quality Management To monitor air quality on projects, we allocate resources through the Environment, Health & Safety team, refered to as Construction Risk Management (CRM) team within ALEC, to implement, inspect and monitor, maintain air quality in accordance with the Construction Environmental Management Plan approved by the client and local regulatory bodies. Air Quality management initiatives includes: • Equipment and machinery maintenance programmes for vehicles and combustion equipment to reduce air emissions from poor performance at ALEC Yard. • Electrification of Plant/ tools • Dust suppression activities to manage transport-related dust • Applying dust shrouds and shields when conducting grinding, flooring, MEP installation activities at warehouses/ factories or fabrication yards and projects • Reducing fugitive air emissions (volatile organics) through spill prevention management of chemical storage and waste minimisation programmes • Using clean energy sources where feasible

Electricity consumption

20000000 17,879,998

18000000 Electricity Consumption (kWh)

Furthermore, the decarbonisation of vehicles, plant and equipment is a major focus of future action. With steps to increase efficiency of our generators, trial plant and equipment electrification, we expect to see improvement in this area. Advances in vehicles and plant efficiency by suppliers, together with electrification, will reduce all fuel-related emissions and we are working closely with our suppliers to pilot these in our sites.

16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0

1,808,954

1,523,446

461,232 Head Office

Factories

Labour Camps

Projects

Total: 8,745 tCO2e

This chart shows the emissions in tonnes of CO2e from purchased grid electricity used on ALEC premises and projects, where ALEC is the main contractor. Total electricity consumption varies considerably as result of the different projects we are delivering at any given year and also the maturity of the project in that given year, as certain phases of construction are more energy-intensive than others. We are confident that the decarbonisation of the national grid, as per UAE Energy Strategy 2050, coupled with the various energy-efficiency initiatives ALEC has undertaken will reduce carbon emissions intensity. ALEC Sustainability & ESG Report | 19


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

CLIMATE CHANGE ADAPTATION & MITIGATION Our extensive ISO-certified Quality, Environmental and Occupational Health & Safety Management Systems help ALEC address the global warming-related risks and impacts.

Planned for 2023- 2024:

Energy & electricity efficiency projects for owned properties: Offices/ Factories within direct control: • Air cooled chilled water system and Variable Refrigerant Flow (VRF) systems in lieu of standard Direct Expansion (DX) systems

Remaining offices retrofit and reconfiguration

• Fresh air system incorporated making for a healthier building environment

Energy efficient system monitored on BMS system, which will be upgraded by full building energy control

• Energy efficient system monitored on Building Management System (BMS) system

Fresh air system incorporated making for a healthier building environment extension of chilled water system in lieu of standard DX system

Power storage and monitoring system

Renewable Energy During Construction: Underpinned by our ALEC policies, we enact the project- specific environmental management plans and processes and are subject to external third party audits as well as audits from consultants, clients and regulators. During project implementation, based on the Environmental Impact Assessment (EIA) studies undertaken by third-party consultants, ALEC prepares a Construction Environmental Management Plan (CEMP) before work commences. The CEMP contains all aspects of the project’s environmental management, which is then incorporated within the ALEC Environmental Management Procedures and control plans & guidelines for heat stress management, waste management and pollution risk control. These risk management processes are further evaluated and approved by the consultant, client teams, environmental agencies and also get audited by clients and federal environmental agencies for compliance.

LED light fixtures for normal and emergency lights

Occupancy sensors installed in office areas, toilets, and pantries

Motion sensor and timers for corridor lighting

Inverter type Split AC units

Automatic control of AC units through lighting sensors

Electricity sub meters

In 2023, we are further enhancing our sustainable project site office guidelines to continually improve the energy and water efficiency of site offices and temporary works that are within our operational control. Our permanent works and other site operations are already audited to standards set by the Construction Environmental Management Plan approved by regulators and the client.

As part of our Scope 1 & 2 emission reduction plans, we aim to increase the total installed solar capacity for our owned properties and those under direct control to 1.45 MWp by early 2024. The only electricity that is not from renewable sources are on properties that are subject to landlord approvals, infrastructure and space constraints for on-site solar production.

2022

2023 - 2024

Increasing generation of on-site renewable energy: In October 2022, a 0.501MWp rooftop solar PV plant was commissioned, generating 158,632.21 kWh of renewable energy in 2022. This plant will generate 840.04 MWh of clean energy in the first year.

Increasing generation of on-site renewable energy: In 2023, we plan on installing solar panels on owned factories and labour camps in UAE.

ALEC Sustainability & ESG Report | 20


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

SCOPE 3 EMISSIONS

Main Construction Materials At ALEC, we are directly involved in the procurement and execution of substructure and super structure-related works (referred to as ALEC Direct Works) and we typically subcontract the remaining packages. For ALEC Direct Works, main construction materials used are concrete, reinforced steel bars (Rebar) and structural steel along with timber and aluminium used for formwork and scaffolding activities.

375,000

To increase longevity of formwork and scaffolding stock through reuse and utilisation, we have switched from predominantly wood-based to aluminium items. Given the recyclability of aluminium and its ability to be used multiple times with less upkeep, the wastage of timber-based formwork has reduced over the years.

100% of the wooden formwork girders used in 2022 for ALEC temporary works were. Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC) certified. Materials specifications, including use of chemicals, are in alignment with the standards laid down by the local green building codes and are audited by the consultants appointed by the client, prior to use.

336,081.15 303,211.81

300,000

For permanent works’ materials, we require our subcontractors and suppliers to confirm that all proposed materials have local municipality, Civil Defence and all other related authority approvals / registration and is compliant with any restrictions on the country of origin. All subcontractors and suppliers are required to provide an undertaking that their proposed method statements and materials are in complete adherence to client’s material specifications and the materials undergo a rigorous inspection and testing regime, undertaken by the QAQC teams.

225,000

150,000 74,325.76 14,300.93 0

For our temporary works, where we have more operational control, we explore reuse of excess materials, pilot low-carbon material alternatives and undertake feasibility studies and gain buy-in from the operations teams.

For 2022, we have only included concrete, rebar, structural steel used in permanent works and aluminium, steel and timbers used for formwork & scaffolding of temporary works across projects, where ALEC is the main contractor, in calculating emissions.

MATERIALS

Emissions (tCO2e)

Purchased Goods & Services: Supply chain emissions from the materials and products that we purchase in support of successful project delivery are the main contributors to our scope 3 emissions and are covered by A1- A3 of the upfront embodied carbon emissions of a project. These production-related emissions, which lie largely outside our direct operational control, remain a challenge to measure and report on.

Concrete

Rebar

Structural Steel

Aluminum

1,289.34 Wood

TOTAL: 729,209 tCO2e

ICD EXPO Pavilion: Around 70,000 pieces of bamboo were used to create ICD pavilion at EXPO Dubai 2020 and all natural materials were used for the landscaping; natural grass is used as well trees and plants from the Expo 2020 Dubai nursery. All AV screens, speakers and related equipment has been repurposed internally within an ICD Group company. Overall, 90% of the ICD Pavilion has been repurposed. ALEC Sustainability & ESG Report | 21


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

MATERIALS Currently, we have EPDs that we have successfully sourced, trialled and used on projects for the following materials.

Concrete

Structural Steel

Stainless Steel

Powder Coat - Paint

Roller Blinds

Sealant

Traffic Coatings

Floor Coating

Paint - Primar

Paint - Block Filler

Metal Railings Handrail

Metal Deck

Flooring

Structural Sealant

Paints

Insulation

Self Levelling Compound

Flooring - Vinyl

Flooring - Linoleum

Flooring Carpet

Vinyl

Furthermore, in alignment with client's material specifications, we procure construction materials with Environmental Product Declaration (EPDs). An Environmental Product Declaration, or EPD, is a document which transparently communicates the environmental performance or impact of any product or material over its lifetime. EPDs support carbon emission reduction by making it possible to compare the impacts of different materials and products in order to select the most sustainable option.

Overall emissions associated with material use will reduce due to better information on material production and innovation in materials technology. This area will be a key focus of future engagement with suppliers and we will work closely with our suppliers and subcontractors to find more efficient low carbon solutions and encourage capturing that emission reduction impact through EPDs. Consequently, we plan to expand our repository of EPDs for core construction materials and encouraging our supply chain, especially preferred suppliers, to get EPDs for their products.

In 2023 – 2024, we will work on engaging with our main construction materials suppliers to further streamline reporting to understand the current baseline of supply chain emissions. We will do so by upgrading our on-project reporting, prequalification documentation to capture relevant information. Following this, we will prioritise categories of suppliers and subcontractors and embark on supplier induction trainings on our decarbonisation strategy, targets and provide guidelines on reducing emissions.

ALEC Sustainability & ESG Report | 22


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

WATER MANAGEMENT 383,450,500 375,000

483.45 million litres

300,000

Water consumption (litres)

TOTAL LITRES

TOTAL EMISSIONS

5,560 tCO2e

225,000

Water on site is mainly utilised for drinking, hygiene and sanitation and construction activities such as concrete curing, hydrostatic testing, flushing, dust control, waterproofing, pressure tests for Mechanical, Electrical, Plumbing (MEP) systems, flood testing etc.

150,000 82,312,506 75,000

0

6,839,922.25

10,852,517

OFFICES

FACTORIES

LABOUR ACCOMMODATION

PROJECTS

WATER EFFICIENCY PROJECTS To reduce our dependence on sweet water delivered on site through tankers and associated wastage and transport emissions, we aim to obtain temporary water connection from utility company within nine months or earlier of mobilisation on site. We believe this timeline can be further shortened as the utility network expands and external approval timelines are shortened.

We will continue to improve the water efficiency of our own assets and project site offices and explore systems to reduce the water consumption during temporary works. For permanent works, water efficiency depends on materials used which is prescribed by consultants, and hence we have limited operational control in this area.

GOVERNANCE

APPENDICES

WASTE MANAGEMENT & CIRCULARITY The construction industry sees high levels of demand for materials, many of which cause environmental and social impacts in their extraction, manufacture and transport, so it is important that we focus on waste and resource efficiencies. Our current areas of focus are reducing sources of waste through different efficiency projects and streamlining waste segregation. Reducing paper usage: 1. Default double-side printing and secured access across site offices 2. Default black & white printing ensured less wastage of colour cartridges. 3. Our IT equipment suppliers also reforested 1,065 standard trees on the PrintReleaf Exchange in 2022, to offset total paper consumption at ALEC. 4. Over the years, we have been replacing paper-based approvals with e-forms and electronic data management system. These eforms, developed by IT, help digitise requests by using built in templates and support with assigning tasks while creating workflows. Shop drawings, calculations, material submissions, method statements as well as Requests for Information, Work Inspection Reports (WIRs), Material Inspection Reports (MRIs), access permits are mapped digitally. At one of the projects active in 2022, we managed to avoid 5,826,393 printed pages.

Some of the initiatives that help us reduce water wastage on site include: • Reduce nozzle diameters for water hoses used for concrete curing • Aerators for Washbasins, sink, etc. • Water flow reducer for hand flush

OIL FILTRATION

• We use AC runoff, condensation water, dewatering leftover for irrigation & dust suppression, besides sweetwater.

Within our facility at DIC, we use hydraulic filter carts to clean our equipment fluids and oils to increase the lifespan and efficiency of our owned construction vehicles. Around 9,910 litres of hydraulic oil were saved through use of oil filtration systems.

• Submeters across site to identify leaks and water consumption patterns Ongoing pilots: • Waterless urinals for site offices and welfare areas

ALEC Sustainability & ESG Report | 23


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

WASTE MANAGEMENT & CIRCULARITY ALEC has engaged waste management and recycling partners across our offices, factories, labour accommodation and projects. Our project-specific waste management plans are approved by clients, who set the recycling targets, which ALEC has consistently achieved. Across project sites, we recycle the following materials:

CIRCULARITY PROJECTS Concrete Steel

WASTE GENERATION (tonnes) 58,518

60,000

Other Metals Glass

45,000

Timber Plastic

33,883 30,000

Paper & Cartons

24,635

15,000

Recycling rates fluctuate over the project lifecycle depending on recyclability of materials used during each stage, which is different for different ongoing projects in a single year, so overall waste recycling rate for projects provides a complete and accurate impact measurement of our waste management initiatives.

0 Non recyclable waste

Waste Recycled

TOTAL WASTE GENERATED

2022 Recycling:

58% (Main Projects) Average project recycling % over project lifecycle until Dec 31, 2022)

83% (Average across main construction projects)

ALEC Sustainability & ESG Report | 24


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GREEN BUILDING

CIRCULARITY PROJECTS Wood /Timber waste repurposed into: Sign boards

Excess concrete retained after field tests (slump/temperature tests) are used to produce barricades, foundations for signages.

Fire extinguisher holding boxes

Concrete waste repurposed into: Barricades Paver blocks Anchor blocks

Backfill

ALEC has one of the largest in-house quality teams in the region with Green Building expertise, supporting our clients in achieving their Green Building certifications. Across projects, all relevant ALEC operations and subcontractor staff are trained on various aspects of Green Building requirements at the start of the project. In 2022, 24 ALEC operations team members belonging to operations, MEP and Logistics teams & subcontractors were trained on LEED project requirements.

Storage boxes

Excavated soil reused as:

APPENDICES

GOVERNANCE

Precast Fence / handrails

NO. OF GREEN BUILDING CERTIFIED EMPLOYEES WITHIN QAQC DEPARTMENT: LEED

Green Associate

4

For dust suppression

LEED AP

BD+C

3

Plastic waste repurposed into:

Estidama

PQP

4

Barricades

BREEAM

Infrastructure

1

Chairs and tables

GSAS

CGP

1

CEEQUAL

CEEQUAL Assessor

1

Dewatering water reused:

Hoarding

Precast foundations for Scaffolding, Road Barriers, various Paving slabs Welfare tents & office furniture: Reused across multiple projects sites

We upcycle excess concrete leftover from testing/ pouring into precast concrete barriers, concrete fences, concrete manhole covers, staircases and jersey barriers. For projects active in 2022, we managed to divert 1,144 tonnes from landfill concrete through such activities. Shipping containers modified/ upgraded as workshop centres at DIC Yard & cold food storage on project sites: No. of containers reused: 26

In 2024, we will collaborate with our waste management partners to further understand end-of-life treatments of some of the waste streams to identify more circular economy opportunities. We also provide project site offices for our subcontractors, consultants to foster better collaboration. This also helps reduce the number of additional generators, fuel and accessories related to temporary facilities and consequently reduces emissions to less wastage and over purchase of items that can be shared. Going forward, we will also organise additional trainings to subcontractors to enhance waste management and reporting, especially on subcontracted packages. ALEC Sustainability & ESG Report | 25


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

LOW-CARBON SOLUTIONS: ALEC aims to be the first choice for customers who prioritise climate-adaptive design, efficient delivery and long-term value generation and collaboration. Using our expertise in project delivery, innovative value engineering solutions, we collaborate with customers and suppliers to improve delivery efficiency, mitigate risks, digitise construction, minimise waste generation and consequently reduce overall emissions.

OFFSITE CONSTRUCTION: In-house prefabrication facilities from ALEMCO: • Duct Manufacturing – 75% of ducting supplied on contracts is manufactured in our ALEC yard at Dubai Industrial City, except in case of specialist ducting requirement. • Duct Insulation - Ducting insulation is pre-applied to insulated ducts in factory facilities. • Bracket & secondary steel fabrication ◦ 60% of bracketing is prefabricated at facilities. ◦ 30% of steel bracketing is manufactured in facility (sent to specialist for galvanising) • Pipe bending facility – 80% of small-bore piping is pre-bent at facilities (below 50mm diameter)

Modular Volumetric Construction:

• ALEMCO modular services – Currently, 15% targeted offsite modular construction. We aim to provide between 20% - 25% of MEPD system installation in modular and prefabricated solutions by 2025.

APPENDICES

GOVERNANCE

ALEC DATA CENTER SOLUTIONS ALEC Data Center Solutions was established in 2022 to deliver resilient and sustainable data centre assets. While being product agnostic, we use latest construction software to build large scale data centres. We also offer prefabricated DC solutions, with liquid immersion and air-cooled options.

WHAT IS LIQUID IMMERSION COOLING? Immersion cooling technology involves using a dielectric coolant to cool servers

Servers installed horizontally in tanks filled with a dielectric coolant. It is an excellent conductor of heat not electricity

Coolant circulated between racks connected via heat exchanger to a chilled water loop for heat removal

Standalone system, does not require chillers, CRACs, CRAHs, or raised floors easily intergrates with legacy infrastructure cool over 100 kW per rack PUE <1.03

Cooling power reduction of up to 95% reduces critical IT load by 10%-20%

Quality

Protection

Safety

Fully Compatible with IT components Non-Corrosive Non-Oxidative Lifespan: 15 years*

Barrier against dust & moisture Thermal uniformity Sealed environment No moving parts

Non-toxic Certified Biodegradable and food-grade

First Tier 3 approved modular data centre MDCC Dubai Airport** Staff accreditions: 6* Uptime accredited tier designers *https://submer.com/business-cases/use-cases/immersion-cooling-for-high-performance-computing/ **https://www.youtube.com/watch?v=Bjn7xKJfyJQ

ALEC Sustainability & ESG Report | 26


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

LINQ Modular, an ALEC subsidiary, builds customised modular units for commercial or residential developments. The modular units are built at LINQ’s 300,000sqft manufacturing facility, which has the capacity to produce 1,900 units per year. The modular building designs are created using BIM (Building Information Modelling) software, ensuring each structure only uses the required amount of material with a minimal amount of waste, the statement concluded. In July 2023, LINQ Modular received the first regional licence from Dubai Municipality to use the modular design for (G+6) building.

LINQ Modular’s first show home was featured at EXPO 2020 Dubai’s ICD Pavilion.

“The pace and scale of developments in Dubai is truly impressive and in line with the Dubai 2040 Urban Master Plan, we are keen to ensure this momentum is maintained in the most sustainable manner possible. We are proud to support innovative organisations such as LINQ, that are pioneering advanced construction techniques such as modular construction. The introduction of this paradigm will translate to the more rapid and controlled production of high-quality buildings that can meet the needs of a wide range of stakeholders, from the hospitality sector to residential developments and even commercial developments like malls and offices.” Ahmed Al Salami, principal of research and building studies at Dubai Municipality.

ALEC Sustainability & ESG Report | 27


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

SOCIAL HEALTH & SAFETY Building a strong health and safety culture takes top priority. Preventing serious injuries and ensuring the offices, warehouses, depots, projects sites have 0 work-related fatalities remains our top goal. Our ALEC and ALEMCO facilities and site operations in the UAE operate according to an occupational health and safety management system certified to the ISO 45001 and aligned to Abu Dhabi’s Occupational Safety and Health Centre’s (OSHAD) System Framework. Regular site visits from Construction Risk Management (CRM) senior management and the Executive team and daily walkarounds by project leaders demonstrate a clear and visible commitment to health & safety on all of our projects.

offices

ALEC delegates the accountability of managing environmental and health risks to the Project Directors. The Project Directors then cascade the responsibilities to the respective operating teams, who are supported by the CRM and QAQC teams. During construction ALEC’s occupational health and safety management systems and associated safety controls are extended to all our 8,491 employees and the 8,116 directly supervised subcontractors we worked with in 2022. Indirectly supervised contractors are required to work in a health and safety system compliant with ALEC’s core requirements, as defined in our Code of Conduct and project-level processes.

75% 87 employees of our operational HSE team members, across grades, have completed the National Examination Board in Occupational Safety and Health (NEBOSH) General Certificate programme, and more than

Work Hours LTI-free 2022

1,334,312

Construction site risk management: On award, the CRM teams prepares task-specific method statements and risk assessments and all subcontractors are required to develop individual bespoke Health, Safety & Environment (HSE) plans, which are approved by ALEC and client, prior to commencement of operations.

1,434,690 warehouses

70 employees are Institution of Occupational Safety and Health (IOSH) certified

60% The CRM team conducts internal audits monthly and subcontractors audits, as per schedule and risk rating. Internal offices and warehouse audits (full or partial) based on risk profile of the project are conducted on a six-monthly basis. The risk profile of the project is determined by the analysis of the HSE statistics and action notice system analysis.

Besides the ISO recertification-related audits every third year and an annual third party Abu Dhabi Occupational Safety and Health Center (OSHAD) audit, Self Regulating Audits (SRA) audits are conducted by Abu Dhabi Municipality every three years to maintain our OSHAD approval. We are also subject to client and consultant audits, as specified in the HSE specification of the contract.

2022

, In we launched the digital HSE induction video for all visitors. Around 745 visitors underwent the online induction. Upon completing the digital safety induction each visitor is sent a QR code that grants them entry to the site. Suggestions or concerns can be raised via dedicated reporting lines, innovation dashboard, smartphone applications, open suggestion schemes, toolbox talks, safety steering committees, virtual town hall meetings, regular safety meetings and face-to-face with our specialist safety teams. Any improvements or updates to risk identification procedures, as well as associated controls and requirements for hazard elimination, are undertaken following concerns or suggestions raised by any of our colleagues under the guidance of our safety teams. Regardless of their position, every ALEC employee and subcontractor has the authority to refuse or stop any activity that is deemed unsafe. We convey this message as part of our induction and safety refresher training. Task-specific safety requirements are communicated to staff and directly supervised contractors through appropriate, tailored training events with refresher courses, at a frequency relevant to the degree of risk. Training needs are identified according to assessment by ALEC’s safety professionals and effectiveness is monitored in accordance with our occupational health and safety management systems.

HSE training ALEC Internal Training including subcon

ALEC Third Party Training

Total Attendees

Total Attendees

144,492

9,380

Total hours

Total hours

144,492

30,721

ALEC Sustainability & ESG Report | 28


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

ACTION NOTICE SYSTEM With regards to work-related injuries and the elimination of hazards and the minimisation of risks, we have established the Action Notice system, which is a bespoke online tool utilised for the identification and correction of hazards in the workplace. Thereafter, corrective actions are assigned to individuals and each open Action Notice is tracked until it has been closed out, with reports generated to highlight the shortfalls. The system allows for data filtration to identify trends within trends that point out root causes of potential hazards and address them according to the hierarchy of controls. Moreover, monthly HIPO meetings and Opportunity for Improvement meetings provide a structured platform to discuss various trends across all projects, upcoming high-risk activities, subcontractor issues, training requirements, change management issues and elevation risks.

33,602

During 2022 a total of action notices were issued, investigated and closed out to prevent reoccurrence. 1 fatality (subcontracted labour)

HSE Awards:

APPENDICES

Winning HSE Awards act as a testament to our long-term commitment in delivering excellent build quality on the grounds of a site that’s safe and efficiently managed. Construction Risk Management (CRM) Opportunity for Improvement (OFI) Committee comprises CRM leads with operations personnel and a labour representative from each project and meet on a quarterly basis. Labour representatives are selected and appointed to bring any EHS or Worker Welfare concerns to the committee. The committee is chaired by Operations Support Manager. Progress Meetings, subcontractor HSE Meetings are held monthly on each project and are attended by all sub-contractor HSE representatives and management representatives. Positive employee HSE behaviour is identified by management, and employees are rewarded during visible felt HSE leadership weekly walks. Employees are given recognition in front of their peers immediately on the work front and at the end of the month during the safety awards each of these employees, who have been identified during the month will receive a certificate of appreciation and achievement and a gift in front of the entire project workforce.

Best Safety Performing Project (SeaWorld Abu Dhabi) – Awarded by AD Municipality in 2022 for our safety efforts throughout 2021. ALEC Logistics Team Safety Award – Awarded by SWAD

ALEC Sustainability & ESG Report | 29


OVERVIEW

SUSTAINABILITY STRATEGY

WORKER WELFARE Human Rights violations, such as unfair working conditions, modern slavery and child labour in our supply chain is a major risk in the construction industry. ALEC aims to be a leader in safeguarding human and labour rights across our operations by placing safeguards to ensure that these risks are mitigated. Our Employee and Supplier Codes of Conduct has Human Rights clauses embedded and all subcontractors confirm compliance to this while being awarded the contract. We have zero tolerance for any form of human trafficking, forced or child labour. Own employees Prior to engagement of any agency to recruit semi- and unskilled workers for ALEC, an eligibility assessment is conducted, including client reference checks. Job offers reflect the same conditions of employment as the Ministry of Human Resources & Emiratisation contract and employment contracts. Under no circumstances is any employee forced to accept or sign an offer letter. All workers are made aware of the fees to be paid to the recruitment agency, as per the local country norms, and expected salary prior to employment during out of country induction before signing the offer letters. We ensure that offer letters are signed in country of recruitment by employee and ALEC representatives. All employees attend an onboarding induction in the country of recruitment. Upon completion of recruitment, the performance of the agency is assessed and a recruitment report is prepared to identify the gaps and areas that need to be improved. ALEC bears all costs of recruitment and ticket including all medical and visa costs. ALEC monitors the process of fees paid by each employee as a declaration document is signed stating fees paid. Reported deviations such as charging illegal fees are dealt with in accordance with sanctions mentioned in the Code, and could include termination of agreements. ALEC does not impose a ban on any employee should they wish to resign as it is every employee’s right to have the freedom of movement to change employers should they decide to. Under no circumstances are workers threatened to be returned to their home country and or reported to the authorities should they wish to resign or change employer. In 2023, we are digitising manpower forecasting and launching an italk labour app to disseminate information to our labour force through multilingual videos and provide them easy access to different trainings.

ENVIRONMENTAL

SOCIAL

ALEC OWNED LABOUR ACCOMMODATION FACILITIES INCLUDE: • Internet café • Free wifi • Volleyball courts • Badminton court • Gymnasiums

Pre-award due diligence All subcontractors are required to undergo mandatory human rights and labour rights due diligence screening and provide compliance statements, as part of ALEC prequalification. In our post tender clarification, we require subcontractors to reconfirm that they comply with the requirements related to Worker Welfare as mentioned in the Code of Conduct and have made necessary provisions for the same. Safeguards for directly supervised own and subcontracted labour

• Movie theatre facility • Weekly free transport to public malls • ATM and Forex money gram facility • Laundry services • Barber • Tailor

Additionally, staff talent acquisition team has a disclaimer on their email signatures, stating that ALEC will never ask for financial cost. ALEC information of any kind or for payment of money during the application document process. We do not require any financial, credit card or bank account are dealt with information and/or any payment in exchange for employment opportunities or other similar services. Under no circumstances is any employee required to render his or her personal documents for safekeeping to any other person. All employees have the right to retain possession of their own personal documents. In 2023, we will be conducting a full review and refresh of our human rights safeguards and policies to ensure that it reflects evolving regulatory requirements and developments in industry good practice.

APPENDICES

GOVERNANCE

0 incidents

of modern slavery or human During the year, rights violations reported against ALEC through our auditing or internal incident reporting mechanisms.

560

Workers Interviews: In 2022, interviews were conducted. We recorded 522 issues and 38 remain open. In cases, where the subcontractor failed to resolve the issues, we terminate contracts. Issues raised on these calls were related to Contract transparency, Recruitment fees, Leave entitlement, Passport retention, Wage payment, Overtime and End of Services gratuity. Happiness Call: ALEC and subcontractors’ workers can raise complaints and suggestions for improvement either anonymously or in person through ALEC-monitored Happiness call.

32

Audits: In 2022, we recorded cases against subcontractors, of which 1 is still active. Issues raised were related to annual leave, labour accommodation, salary and final settlement, tickets. Safe Call: ALEC and subcontractors’ workers can raise complaints and suggestions for improvement on client-monitored direct grievance line.

102

In 2022, calls were received and 100% of them were closed. Issues raised on these calls were related to wage payments, leave requests and entitlement, end of service gratuity and termination as well as employer funded travel (returned ticket/ repatriation ticket).

ALEC Sustainability & ESG Report | 30


OVERVIEW

SUSTAINABILITY STRATEGY

During 2022, ALEC Worker Welfare team conducted

42 corporate compliance audits (including second

audits for high risk subcontractors) to verify compliance to the worker welfare standards as specified within the

25

contract. As part of this, subcontractor labour accommodation audits were conducted. In one instance, ALEC terminated the contract of a subcontractor for violation of our human rights and labour rights stipulations, based on repeated chances and sufficient time to resolve issues that were highlighted during audits. Our worker welfare teams conduct physical inspections, a dialogue with key stakeholders and subcontractors, discussions with the onsite worker welfare committee, and weekly interviews with a cross-section of workers. Improvement opportunities are identified related to subcontractor grievance management and compliance assurance, and an action plan implemented that subsequently addressed the gaps in our system of control. We also to remind project teams of the importance of remaining vigilant, drawing attention to the findings, especially the importance of effective grievance processes, and maintaining a regular dialogue with the worker welfare committee.

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

Inspecting subcontractor accommodation: We visit accommodation camps to check that workers (who are typically employed by subcontractors) have safe and dignified living, sleeping, leisure, and sanitation facilities. Where we have concerns, we follow up with the subcontractors, and raise action trackers until they are resolved. We also operate grievance processes, which are designed to be transparent and accessible, and based on engagement and constructive dialogue. Labour Interviews: As part of the compliance auditing process, interviews are conducted on a random basis based on the risk profile ascertain through prequalification and onboarding assessment. Any findings or grievances are investigated, and we work collaboratively with our subcontractors to resolve them. ALEC employs internal security personnel at all operational sites and facilities. When security is required to interface at key access points, we employ security guards with Department of protective systems or Private Security Business Departmen certifications. During each project mobilisation, all security personnel receive formal training in ALEC’s human rights policies, security protocols such as non violence, incident reporting among others.

We aim to conduct periodic in-depth human rights audits at our project sites to assess worker welfare conditions and identify any labour rights concerns, as per project specification.

ALEC Sustainability & ESG Report | 31


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

PEOPLE & CULTURE

Male

135 Male

1,616

We leverage technology to streamline human resource processes and utilise efficient data-generated insights to inform decision making

Employee turnover (Staff): Female

TOTAL

Female

TOTAL

45

Staff

Labour

0

180

1,616

Voluntary (Resigned)

Benefits provided to full-time employees that are not provided to temporary or parttime employees

PEOPLE MANAGEMENT

We’ve also begun digitizing the onboarding orientation process to further enhance the experience for both the applicants, department managers and the recruitment team through video induction and user-friendly digital forms. Some of the forms include new joiner requests for additional IT assets, referral forms, vacancy requisition form, job offer requests and interview evaluation forms. The digitisation saved time and improved the productivity based on requests.

APPENDICES

GOVERNANCE

No. of employees hired:

Our goal is to attract and retain top talent by creating an environment where they are rewarded, challenged, developed and provided with opportunities to grow.

We continued to digitise and automate core human resource information management processes to improve the experience of our current and potential employees. In 2022, we standardised and digitised our Interview Questionnaire to elicit responses from interviews that could demonstrate whether their personal values and working styles are aligned to ALEC values and our culture. We also ensure that our interview panel has a diverse set of interviewers, where applicable, to reduce the risk of bias.

SOCIAL

Life Insurance In 2023, we are working on digitisng processes such as schedule of employment, exit interview, Group life insurance form and employee profile. Most new roles within the business are advertised internally first. Internal employees who apply for these roles are evaluated for their suitability and if not successful, are provided detailed feedback on their areas for development. For continual improvement of our onboarding process, we are currently structuring our feedback survey from new recruits. The Marhaba induction, catering to all new joiners, provides them with the opportunity to interact and ask questions to our top leadership and heads of several departments. Led by the CEO, the new joiners are provided a deeper knowledge of our company strategy and priorities and how each of the different departments contribute to these goals. Besides establishing the culture of openness, it also providers new joiners and opportunity to understand how the different departments work cohesively to reach these goals.

Staff Yes

Labour Yes

Compassionate Leave Yes Emergency Leave Yes

Female (90 fully paid calendar days, vs 45 Days as per labour law)

No. of employees who took parental leave

56

Total

5

61

Return to work rate

100% 100%

10.47%

Involuntary (Terminated/ Retrenched)

Involuntary (Terminated/ Retrenched)

3.74%

1.05%

2022 Labour End of Service

1115

Male (7 fully paid calendar days, vs 5 working days per labour law)

7.26%

Employee turnover (Labour) 2022: 2,040

Yes Yes

Parental leave

Voluntary (Resigned)

693

16

0

Voluntary (Resigned)

Involuntary (Terminated/ Retrenched)

Medically Unfit

End of Contract

0

0

211

5

End of Service

End of Contract (Internship)

Absconded

Death due to natural cause

100%

Retention rate

100%

ALEC Sustainability & ESG Report | 32


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

PEOPLE DEVELOPMENT 8,700 employees were trained on health & safety topics and trade skills aligned to their job profiles

218 employees were trained on communication

skills, excel, ethics, presentation skills, collaboration, innovations, management skills.

No. of employees who took study leave

Male

Total

19

24

Female

5

37

employees were promoted from the semi-skilled to staff status based on trainings and assessments. ALEC’s Safety Cadet Programme, offers the opportunity for successful candidates to significantly increase their income and build a career in HSE. In 2022, two safety cadets were put through the program. Evolve is an 12-month-long accelerated leadership programme that focuses on developing future ALEC leaders based on the leadership model. Each Leadership trait becomes a module that Evolve participants must work towards and prove that they have achieved the skills, knowledge or behaviours expressed in that module. In 2022, 12 staff were part of this programme.

ALEC launched Tahadiy to challenge and develop individuals across the company while solving business challenges. Nine challenges were chosen, in line with the company priorities. The 12-month journey, split into 2 phases, helps participants test solutions across the business. A rigorous process was followed to ensure new ideas are brainstormed, developed and tested. Pilots have been built across the projects and clear business cases were prepared and presented showcasing the value add.

Tahadiy Process Phase-1 Understand Search Fields

Phase-2

Discover Idea Sourcing

Assess Solution Demo

Pilot Solution Assessment

Prepare Pilot

Adopt Manage Pilot

Support Scaling

9 focus areas: 100+ initial ideas Identified Solutions: 60+ Pilots: 25+

Ready to scale: 12

43 employees and 9 mentors participated in the program. As a result, at least 12 new solutions were implemented and are ready to scale to future projects with potential to save millions.

THRIVE is an 18-month-long Leadership Development program designed to support mid-management level employees on their journey to become senior leaders and to challenge their minds and foster a continuous learning attitude. Modules are mapped out against the ALEC values and showcase what ALEC senior leaders need to demonstrate. In 2022, 11 staff were part of this programme. Leadership Development Program

4

In 2022, employees were strategically selected by the company’s management team to attend a two week Leadership Development Program, hosted by the University of Cape Town Graduate School of Business, SA. The UCT GSB Executive Development Programme is a high-impact short course designed to equip senior leaders with the strategic thinking, innovative mind-set and values-based leadership needed to ensure long-term competitive advantage for their organisations.

Employees learn new skills, are encouraged to learn and deliver in new areas of work, interact with and are supported by the ALEC leadership team and others outside of their immediate areas of work. While most leadership development initiatives focus on talent with high potential, this programme is open to all employees across the business, irrespective of their role or seniority. Years of Service 120% 100% 80%

90%

87%

98%

95%

77%

60% 40% 23% 20% 0%

0 - 0.5

13%

10%

5%

2%

0.6 - 5 years

6 - 10 years

11 - 15 years

16 + years

Male %

Female %

ALEC Sustainability & ESG Report | 33


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

WELLBEING & ENGAGEMENT In 2022, more focus was placed around employee wellness within the business. A framework to support wellbeing was developed and wellbeing champions were appointed across the business to drive engagement around this initiative. A monthly wellness calendar is now published with events taking place in offices and on projects. Staff:

We organise or sponsor sports leagues for basketball, cricket, football, cycling, rugby.

272

54

294

Nutrition

97

Obesity

120

Hypertension

117

Eye care

61

Heart health

employees Around (staff and labour) participated in the annual cricket tournament.

Breast cancer

Dubai Fitness Challenge:

265

Mental health & wellbeing

Financial wellbeing

Health checkups monitor BMI, blood pressure, cholesterol, dental screening, eye tests etc:

178

125

74

51

Stress management

67

Sleep disorders

The ALEC Fitness Challenge including a weight loss challenge, wherein 76 participants in the UAE collectively lost 130.6 kg and 214cm over the 30 days of the fitness challenge. Some of the events organised included:

Yoga on site

Labour:

267

Eye care

67

Medical check up

31

Health awarenss

61

Heart health

Yoga on the Balcony

Desk Workouts

Stairs Challenge

Tug of War

Running Challenges

Plank Challenge

Table Tennis

Hiking

Cricket Tournament

Badminton

Staff absenteeism (average):

Labour absenteeism (average):

0.97%

1.51% ALEC Sustainability & ESG Report | 34


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

DIVERSITY, EQUITY & INCLUSION Fostering a diverse and inclusive culture enables us to achieve stronger outcomes together. Diversity is integrated into employee attraction and recruitment initiatives, employee performance review processes and leadership development programs. In 2022, we are undertaking a Group-wide employee survey to solicit feedback from our employees and ascertain our areas of improvement. United Kingdom, 1.6% Nepal, 2.1% Jordan, 2.4% Bangladesh, 3.2% Sri Lanka, 3.2%

Egypt, 1.4%

Lebanon, 1.0%

South Africa, 4.2% Pakistan, 4.8%

49

nationalities

Philippines, 10.9%

India, 59.4%

Gender Given the nature of our business and the location of many of our operations, achieving a better gender balance is a challenge. One focus is our senior management positions and retention through career development and creating an inclusive culture. In 2022, women accounted for senior managers.

In 2023, we are assessing our existing programmes against the UN Women’s Empowerment Principles to further support the development of the Diversity & Inclusion strategy. We will be establishing new mother’s room across our owned properties.

Emiratisation In line with our local delivery ethos, and the UAE Government’s Emiratisation agenda, we continue to source local nationals across all areas of the organisation. In 2022, ALEC recruited six UAE nationals. Emirati Development programme Tomohy, which means aspiration, is designed to empower Emiratis and provide them keys skills and insights into the company they are working for. This programme affords local talent a 8 weeks mentored work and learning journey with the business. At the end of the 12 weeks, full time employment contracts are offered to those who successfully complete the programme and wish to pursue their careers with ALEC. In 2022, a total of 19 Emirati nationals took part in the programme, while 6 were hired into permanent roles within the business. ALEC recruitment team attends career fairs in local universities to create awareness around our business and opportunities available to students.

10% of our ALEC Sustainability & ESG Report | 35


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

COMMUNITY IMPACT ALEC has focussed on education as the primary theme for community impact. One of our programmes is aimed at introduction youth to construction by hosting site visits across our projects in UAE. We hosted project site visits for students currently pursuing a degree in civil engineering at international universities. Nine employees volunteered 13 hours to guide the students and coach them on various aspects of construction and best practices.

Canadian University Dubai:

I wanted to extend my gratitude to the ALEC team for all the effort and time dedicated to showing us around. The students thoroughly enjoyed it, and it was great eye opener for them to see this calibre of building up close and personal as its built. Timothy Winstanley – Senior Lecturer

The construction team contributed to the students’ construction knowledge. They were eager to show us around the construction site and answer our questions about the project. It was a fantastic learning experience. They did not hesitate to teach us the extreme precision required in an architect’s work. Leen Tasneen - Student

It was such a nice experience to see a construction site that includes every single detail we are learning from foundations to other heavy structures. We realized different materials and their functionality to materialize the project. This experience would always be remembered, and it is such an honour to thank the construction team and all the labourers who take on such a big responsibility. Rashid Barhoum - Student

University of Twente: “I really enjoyed the excursion because of the combination of getting more knowledge into some building processes, and after that seeing how these processes turned out in the actual building. Thank you for the excursion, it really was a once in a lifetime experience.” Madieke van Oosterhout Student, MSc Civil Engineering

ALEC Sustainability & ESG Report | 36


OVERVIEW

SUSTAINABILITY STRATEGY

Supporting primary education: We have been supporting 600 children from low-income backgrounds in South Africa through sponsorship of education materials, upgrading school infrastructure, salaries of teachers and sponsoring technical courses since 2012. The funds were used to build fences, enhance the playground, renovate, and refurbish classrooms, restore two heritage buildings and build a new hall. Annetjie Coetzee, principal, Clarens Primary school, South Africa:

580

We currently serve Sotho-speaking learners up to grade 7. Most of our students come from very poor, disadvantaged circumstances – living in shacks with their grandparents or family. Despite these circumstances, most of our learners perform well and we strive to create a clean, safe, happy and stimulating environment to exposing the children to a variety of cultural activities and sports activities including athletics, soccer and netball. We also appoint the mothers as teaching assistants so they can get employment and support students with language barriers. We do not charge fees so we rely on government subsidies and corporate sponsors and ALEC has been such a blessing to our school since 2012.

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

Looking forward In 2023, we are developing a local delivery model for our community impact initiatives. Our priorities including promoting Science, technology, engineering, and mathematics (STEM) education, improving educational access and employability of youth. We will partner with local entities to attract youth to opportunities within the construction industry and enabling them to get trained to secure jobs. We also focus our donations around supporting the welfare of the large blue-collar workforce in the GCC regions and supporting their development. Besides the Community Impact framework highlighted here, we will also be earmarking funds to support national fundraising programmes on a ad hoc basis for humanitarian crisis and disaster relief.

EDUCATION & UPSKILLING

COMMUNITY SUPPORT

We teach, sponsor learning for all things construction related

We sponsor infra projects, provide in-kind support

Experiential learning workshops

Participation & contribution to local community programmes (Non-construction specific)

Trade upskilling programme for youth

Supporting infrastructure building

Employee skill-based volunteering programme (university seminars, site visits, e-webinars)

Sponsorship/ In-kind support for local & employee-related community activities

2023 Partners:

ALEC Sustainability & ESG Report | 37


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

GOVERNANCE BUILD QUALITY Our robust Quality Management System and ISO 9001:2015 certification (Design, Project & Construction Management of Buildings & ancillary works) reflects our ability to provide a quality of service that meets customer expectations as well as regulatory requirements. ALEC quality imperatives are focused on the products installed meeting the contractual requirements from a quality and commercial perspective. The contractual specifications are relayed throughout the supply chain ensuring that project specifications are met as a minimum. Regular reporting on progress and other key measures ensures that corrective actions can be taken at an appropriate point in time.

“One of our differentiators as a main contractor is our “no compromise” approach to complying with design specifications as a minimum. We can be trusted not to deviate for financial benefit. Our long-standing commitment to quality has proved itself over the years, with our construction teams successfully delivering projects with repeat clientele.” Sean McQue, Managing Director - Construction

SOCIAL

SUB STRUCTURE Soil Tests •

Backfill Soil Selection /Suitability Tests

Soil classification

Particle Size Distribution

Atterburg Limits (plastic limit, liquid limit)

Chemical Properties

Field Compaction

Soil Bearing Capacity

Sub Structure Concrete Tests •

Agrregate test

Cement test

Water test

Compressive strength of concrete

Concrete Durability tests

Temperature/workability of concrete

Reinforcement tests ◦

Physical and Chemical Properties

Tensile Strength

APPENDICES

GOVERNANCE

SUPER STRUCTURE Super Structure Concrete Tests • Aggregate Physical and chemical properties • Cement test ◦ Physical Properties ( Setting Time, Fineness, Soundness) ◦ Chemical Analysis ◦ Heat of hydration • Water test ◦ Total Dissolved Solids ◦ Chemical Analysis: Chlorides, Sulfate ◦ PH • Compressive strength of concrete • Concrete Durability tests • Temperature/workability of concrete • Reinforcement • Physical and Chemical Properties • Tensile Strength • Cement Concrete Block • Compressive strength of concrete

FACADE Performance Mock up tests Anchor/Anchor bolts test Façade material tests (Properties and Emission tests) Installation Tests Water penetration tests Air Leakage tests Acoustic Performance tests Paints •

Material /Substrate tests

Coating thickness

Emission tests/Certifications

Pull off tests

Structural Steel Tests • Manufacturer's test Certificates - Chemical / Physical and Strength • Welding Tests • Paint/Coating Tests • Painting/Coating tests Wood/Agifiber Products tests/certifications Emission tests/Certifications Acoustic Tests Fire performance tests

QA/QC team identifies the project quality/technical requirements including materials, workmanship & performance and prepares all material submittal schedules, method statement schedules and close out requirement schedules at the start of the project. The team conducts inspection test plans ensuring adherence to project specification requirements and ALEC project objectives. The team manages engineering deliverables, oversees structure inspection and testing of material before use on projects and undertakes detailed inspections and tests at each stage of works before starting subsequent activities. In-house experts complete firestopping and building performance tests for acoustics and envelope air leakage activities as well as manage LEED and other Green Building certification requirements. ALEC also proposes or recommends, when required, suitable alternative products based on our experience and product reliability and availability.

ALEC Sustainability & ESG Report | 38


OVERVIEW

SUSTAINABILITY STRATEGY

Digital Construction Building Information Modelling (BIM) forms the spine of digital construction/asset operation. It is a standardised process of information management to generate, visualize, exchange, assure and subsequently reuse information, including data, to form a trustworthy foundation for decision-making to the benefit of those involved in any part of an asset’s lifecycle. As-Built/Asset Model Site verified, accurate and consistent models with added attribute data sets in line with asset information requirements

3D Coordination Before issue of information spatial coordination must be carried out to ensure buildability and eliminate re-work.

Project Start

01

MODELING

02

COORDINATION

Information Production ALEC Direct works models must be developed up to min LOD350 in order to allow any shop drawings or other BIM use with the models

03

BIM DELIVERABLES

BIM Deliverables • Shop Drawings • 4D Schedules/Slides • Quantities • Interference reports • Setting-Out • Asset Lists Etc.

ENVIRONMENTAL

SOCIAL

GOVERNANCE

BIM MODEL USES Scheduling / sequencing (4D) Planning AR / VR Quantity take-off / cost Digital construction/BIM management (5D) Commercial Model checking / data Site logistics review validation for inductions etc. Digital construction/BIM Logistics Clash detection / reporting Digital construction/BIM

04

Site setting out Surveying

ASSET/AS-BUILT MODEL

Project Finish

At the heart of the BIM process is data-rich 3D models, providing the ability to detect clashes and resolve coordination issues to avoid late-stage design and installation changes, thereby reducing the need for rework and improving material optimization during construction. Having the ability to generate and exchange structured data across delivery teams allows ALEC to target data-driven use-cases as well as deliver digital handover aligned to client’s facility management team’s operational requirements. We can extract quantities and volumes of materials for emission calculations and cost analysis, link construction programme activities to the 3D model to visualize construction sequencing (4D) and deliver data required for maintainable assets at handover.

APPENDICES

Coordination review / issue management Design management Digital construction/BIM Operations CRM Logistics

3D BIM Model

• •

BIM Model uses ALEC departmental ownership/interaction

As-Built verification including laser scanning QA/QC Operations Asset data delivery Digital construction/BIM QA/QC

Focussing on the information management process aspect of BIM, ALEC achieved the bsi BIM Kitemark certification conforming to ISO 19650-1 & 2 standards. The quality mark helps us drive best practices for information management across all our projects, utilising BIM, giving clients assurance of our capabilities and approach, whilst supporting and upskilling our supply chain. The year-on-year auditing to evidence how the processes and resources aligned to the standards are being put into practice ensures accountability and continuous improvement.

75%

of its ongoing projects, where ALEC is the main contractor, in 2022. For ALEC, ALEC utilised 4D Construction sequencing across irrespective of whether it is a client requirement or not, utilising digital construction is an internal mandate from 2023. As part of our ongoing Digital Construction strategy implementation, we have streamlined and standardised our core technology stack for BIM, which has greatly improved how effective and efficient our delivery teams are, and has increased collaborative workflows dramatically. We have been able to automate some of the mundane manual tasks by integrating systems while reducing human error and have a repeatable approach across projects.

ALEC Sustainability & ESG Report | 39


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

CORE TECHNOLOGY STACK TO SUPPORT COLLABORATION Model viewer / coordination issue management / VR

Models and drawing sheets (DWFx/PDF) imported via plugin to authoring tool

Integration to automate MIDP reporting

Information hub for BIM project execution & monitoring resources (permission controlled)

Task teams (Design/Engineering

Optional import

Native file

WIP / SHARED

Optional (published) documentation export

Common Data Environment (CDE)

Phase planning & sequencing (4D)

PUBLISHED Native file

Native file

Typical CAD/BIM authoring tools

Cost estimation & QTO (5D)

Optional depending on client / departmental requirements

Key Industry Foundation Classes (IFC) - open file format and data standard Construction Operations Building information exchange (COBie) – via spreadsheet for maintainable asset data exchange ALEC Sustainability & ESG Report | 40


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

ALEC CONSTRUCTION STANDARD SOFTWARE Software for internal ALEC usage Collaboration software for wider project team usage

Departmental ownership / administration

Departmental / project team usage Design | BIM | Surveying

Design

Estimating

Planning

Tendering

Engineering & Procurement

Manufacturing and Construction

Design

Tekla (design authoring/fabrication for structural steel & rebar)

Estimating / Commercial

CostX (5D cost estimation/planning)

ACC Docs (document management system to fulfil CDE solution)

All inc. supply chain (& client)

Revizto+ (3D model viewer, 2D overlay, coordination issue management, VR)

All inc. supply chain (& client)

Morta (Database information hub replacing Excel/Word based resources)

All inc. supply chain (& client)

IntAlec (Virtual & Mixed Reality)

Planning | Design | Commercial | Operations

Holobuilder (360 progress capture)

Planning

QA/QC

All inc. supply chain (& client)

Surveying

Surveying

Primavera P6 (planning programme scheduling) Synchro (4D sequencing simulation)

Aconex (document management system to fulfil CDE solution)

Cyclone publisher (laser scan processing / publishing)

Logistic | Operations inc. supply chain

LoadGate (plant booking and material pass)

Operations | CRM inc. supply chain

eForms (ALEC internal digital forms, CRM, Manage+) IntAlec (Augmented Reality)

All

Common

All ALEC All

Software for internal ALEC usage

Handover into Operation

AEC Collection: AutoCAD, Revit (design authoring) ACC Collaborate Pro (Revit collaborative working)

Planning

Operations / Logistics / CRM

Project stage

Design

All inc. supply chain (& client)

Digital Construction (BIM)

APPENDICES

GOVERNANCE

Windows and Microsoft O365 (MS. Teams, OneDrive, Office 365, PowerBI) Egnyte ( cloud-based document management system) HIVE (Core ERP System)

Collaboration software for wider project team usage

ALEC Sustainability & ESG Report | 41


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

Tool

Features

Outcome

Revizto

Collaboration software for interrogating 3D models with 2D drawing overlay • Built in issue tracker including clash detection • Virtual reality (VR) compatibility • iPad / smart phone compatibility for reviewing models, drawings and issues on the project site workface

Revizto implementation is helping to democratise models and data to wider project teams, with estimated 350-400 users across ALEC’s subcontractors, client and consultant teams. Thanks to iPad and smartphone compatibility, the need to print drawings is minimised as users can open 2D drawings aligned to 3D models on the site workface. ALEC standard on all projects, with supply chain and client teams invited into project license pools. ALEC’s instance of Revizto is now hosted on the AWS Dubai data center, giving UAE clients the reassurance of data sovereignty / residency.

Morta

Could-based database for generating dynamic resources with permission-controlled data entry • Removing Excel based workflows with siloed input, manual error and breakable formulas • Automating tracking and reporting via API to other systems including Power BI • Scalable across departments and functions • Morta is configured as an ‘information hub’ from tender stage through project delivery where BIM documentation, plans, trackers are collaboratively generated and maintained.

Generating structured datasets with process automation and reducing human error. In 2023, we plan to incorporate corporate office data recordkeeping to Morta.

VR/MR green room

Dedicated room for key stakeholder immersive virtual and mixed reality experience on main project

Interactive planning sessions and immersive ‘walk through’ the construction model. Enable key stakeholders to get a feel for spaces and layouts using the developing construction models for early-stage project planning and enables reduction of rework

AR app

Ability to scan the QR codes on site and overlay the construction model by using Augmented Reality on physical job site

• View real-time 3D model locked onto built elements • Ability to compare as-built with planned model and identify deviations on site

Egnyte

• Site Collaboration with internal and external users

• Fast provisioning with no dependency on hardware availability • Access the content from anywhere and from any device • Eliminating the need for VPNs, inefficient backups, DR services, and internet optimization

Loadgate

• Manage construction site deliveries from start to finish using an online asset scheduling.

• Plan site assets in real-time and manage delivery operations across many projects in a few clicks. • View live dashboards and access real-time reporting for all site assets and delivery jobs.

ALEC Sustainability & ESG Report | 42


OVERVIEW

SUSTAINABILITY STRATEGY

FAIR & ETHICAL CONDUCT ALEC has built its success on a foundation of ethical conduct, upholding the highest standards of integrity transparency, and consistently earning the trust of clients, governments, partners, and the wider construction industry.

“Meeting and exceeding new industry standards for quality, operating with integrity and regulatory compliance is what ALEC is known for.” John Deeb, Chief Financial Officer

Code of Conduct: ALEC's Code of Conduct sets out the behaviours and norms employees and business partners are expected to follow in their day-to-day activities, in line with ALEC's values of Integrity, Reliability, Courage, Valuing our people and Innovation.

ENVIRONMENTAL Anti-trust and anti-competitive behaviour

SOCIAL

Human Rights, Child Labour & Forced Labour Safe & healthy work environment

Discrimination

Anti money-laundering

RESPONSIBLE SUPPLY CHAIN

Laws & regulations

Confidentiality of information

Policies

Charitable donations and political contributions Privacy & data protection

Anti bribery and Anti corruption

Business Courtesy (Gifts & Entertainment)

Protecting information & assets

APPENDICES

GOVERNANCE

Collusion Conflicts of interest

We are currently reviewing and updating our policies based on guidelines of the 10 principles UN Global Compact in the areas of Environment, Labour, Human Rights and Anti Corruption.

The Code empowers employees and subcontractors to do the right thing, speak up and make suggestions for continual improvement. All new joiners to the company undergo mandatory training on the Code as part of their induction.

Developing an ethical culture through employee and supplier training, effective governance structures and internal controls is critical for us to maintain this reputation. We are upgrading our ethics learning video to enhance retention and engagement on the topic.

We have Employee Code of Conduct covering all full-time and contracted employees as well as a Supplier Code of Conduct, covering all our subcontractors and suppliers.

All stakeholders, including employees, contractors, suppliers and community members, are encouraged to report concerns, questions or suspected violations (by employees, business partners, subcontractors or suppliers) of ALEC’s Code of Conduct through our dedicated email: ethics@alec.ae.

The Code of Conduct is also available on the intranet (ALEC Central) and any updates are communicated to all employees. For our labour workforce, the company’s policies and Code of Conduct is translated into their local language – both at the time of recruitment in their home country and once again once they get formally inducted within operations.

In 2023, we will/ plan to:

Supply Chain Risk Management ALEC’s procurement strategy calls for the establishment of alliances with the best vendors in the market. We like to build a database of reliable suppliers and subcontractors based on the due diligence during prequalification, procurement, post award screening or audit performance, monitoring their performance and based on site operations teams’ ranking of their performance on past jobs.

ALEC Prequal screening: We seek access to subcontractors' facilities, factories and labour camps as part of our prequal and post-award requirements. Health & Safety & Worker Welfare: • Policy • Summary of arrangements • Trainings • Certifications such as ISO 45000, OHSAS 18001 • Audits & seek access to third party audit findings Quality Standards: • Policy • Summary of arrangements • ISO certifications • Testing certifications • Audits & seek access to third party audit findings

• Incorporate the Ten Principles of the UN Global Compact into our strategies, policies and procedures. • Upgrade our ethics e-learning video for employees • Set up digital annual acknowledgement and adherence to Code of Conduct for all employees • Strengthen our Conflict of Interest process and reporting • Publish our first sustainability report for enhanced transparency

The Code mandates compliance with relevant legislation and regulations as a minimum standard, covering topics such as:

ALEC Sustainability & ESG Report | 43


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

Environment and Sustainability: • Public policy & commitments • Whether policy is sent to suppliers • Whether environmental audits are conducted • Environmental management plan and summary of arrangements • ISO 14000 certifications • Experience in and Level of Green Building certifications such as LEED, Dubai Green Building, Estidama, Mostadam of past projects • Performance targets related to environment • Audits & seek access to third party audit findings • Evidence of training and awareness sessions for employees • Whether company has been prosecuted for environmental non compliance in past 5 years? • Whether company was involved in environmental emergencies in past 5 years? • Manufacturer confirmation that materials don’t have long-term negative impacts? • Insulation materials with 0 Ozone Depleting Potential and low Global Warming Potential • Internal Air Quality certifications • No asbestos containing materials Additionally, at tendering stage and post tender clarification stage, we also enquire and expect subcontractors to share their subcontracting strategy for their respective packages, along with the programme details. Bidders are also expected to share their value engineering solutions, if applicable, and BIM management capabilities and experience. We also encourage bidders or tenderers to visit the site so they can price all the constraints and challenges they foresee. “Part of responsible supply chain policy is to give repeat business to subcontractors and suppliers who have demonstrated their capabilities in adhering to the stringent standards we put forth. We try and encourage clients to procure from ALEC-preferred subcontractors that have been vetted to minimise performance risks in projects. The early commitment of key subcontractors as well as a stringent prequalification prior to award of a contract is one of our strengths.” Kobus Dreyer, Commercial Director.

SOCIAL

Prompt payments: ALEC policy is to commit to pay our suppliers on time in accordance with contractual agreements. We ensure that there is no deliberate delay or unreasonably withholding payments. We communicate our purchasing policy and principles internally and externally. We encourage prompt payment practices throughout the supply chain through formal policies. We do not impose any unilateral change of terms retrospectively.

2023

, we are upgrading our ERP system to support In digitisation of payments management. Local procurement We seek information from our suppliers if they have businesses in other countries, where we plan to expand operations. This also helps us with easy access to ‘local’ or ‘locally-connected’ suppliers, who are already preapproved by us, when venturing into new territories. We also seek ICV certificates from all our suppliers and subcontractors, where applicable. In Country Value score*: • ALEC Abu Dhabi: 38% • ALEC Dubai: 39.53% • ALEMCO Abu Dhabi: 25.99& • ALEMCO Dubai: 27.42% Supply Chain upskilling and collaboration on digital construction The approach to creating a responsible supply chain in construction involves two key elements: collaboration and training. Firstly, collaboration with the supply chain is crucial in ensuring that everyone is working towards the same goal of sustainable and ethical procurement. This includes working together to identify potential areas for improvement and implementing solutions that benefit everyone involved.

APPENDICES

GOVERNANCE

Secondly, training and upskilling subcontractors and suppliers is also essential. This can be done at the company's expense and ensures that everyone in the supply chain working on our projects has the necessary skills and knowledge to contribute to a responsible and sustainable procurement process. This includes training on health & safety, worker welfare, environmental responsibility, importance of quality control as well as digitising construction. As part of ALEC’s BIM Kitemark, we are required to evidence supply chain collaboration. We have workshops with preferred supply chain (PSL) subcontractors, sharing best practices, expectations and direction, challenges and lessons learnt. Our project-based in-house BIM specialists educate and train subcontractors to use the collaborative software tools we deploy as part of the mobilization process, to make collaboration more effective, efficient and precise. Regular training is held for technology partners such as Revizto, Morta and for AR/VR, covering workflow and software onboarding to best achieve information delivery.

30

BIM induction sessions by ALEC In 2022, we held over specialists for subcontractors across three live projects. This equates to 90 hours of education and training. In 2023, we will deploy an internal upskilling training programme to help mass upskilling for understanding information management using BIM according to ISO 19650. We plan to select 100 staff across our departments initially to then determine further roll-out.

We also reiterate to suppliers that there are no on-site payments for major construction materials delivered and payment will be done as per the payment terms. We take allegations of bribery seriously at ALEC. In 2022, we had one instance of an allegation of bribery of our staff. We hired an external agency to investigate the allegation and the allegation was not substantiated. ALEC Sustainability & ESG Report | 44


SUSTAINABILITY STRATEGY

ENVIRONMENTAL

Audit

Directors

Management-level Committee

The Board is responsible for oversight of the overall conduct of the Group’s business, which extends to setting our climate response strategy and approach to the energy transition plans. The Board is assisted by two Board Committees: Audit & Remuneration. The Board is updated on climate-related issues by the Company Secretary, based on inputs from the Sustainability committee that meets quarterly.

Digital Committee

Sustainability Committee: • Monitor the Company's overall approach to ESG and ensure that the Company complies with applicable ESG regulations; • Oversee the development/ review of policies, guidelines and processes for matters relating to sustainable development, environment, climate risks as well as community impact and ethical conduct of the Company; • Responsible for the Company's ESG strategy and management of sustainability matters; • Ensure implementation of ESG activities is uniform throughout operations, business units and in collaboration with all Group functions. • Prepare and manage ESG reports for the management committee and Board

Regional Management

ESG & Climate Risk Oversight & Management ALEC’s work on adapting to and mitigating risks faced by climate change is a material governance and strategic issue that has been regularly addressed and discussed by our Board and Executive team.

Remuneration Committee: • Sets the remuneration of the Executive Directors, senior management and key managerial personnel • Oversees the administration of the Company's compensation and benefits plans; • Approves recommendations on senior appointments. • Oversees succession plans for key executive roles

Management Committee

Digital Committee: Develop and implement ALEC’s digital strategy that is aligned with the business strategy objectives. • Develop mechanism to govern and embrace the right digital tools and technologies that are required by the business to embark the digital transformation journey.

IT ERP

ESG

Digital Construction

QAQC

Strategic Projects

Logistic

Innovation

CRM

Ethics Committee

P&C Labour subcommittee Labour subcommittee: Operations Director, Direct Operations manager, Operations Support Manager, ER Business Partner • Review company manpower forecasts, develops recruitment plans, review and approve recruitment agencies • Ensures labour wages are in line with market through wage review exercises. • Review new policies applicable to labourers, labour accommodations & visits accommodation • Review happiness calls and feedback from labourers and develop action plans

APPENDICES

ESG & CLIMATE RISK OVERSIGHT

Remuneration

Sustainability Committee

Group functions

GOVERNANCE

Board-level Committee

Board

Audit Committee: • Monitors the integrity of the Group’s Financial Statements and formal announcements relating to its financial performance, including reviewing financial reporting judgements contained within them. • Reviews the Group’s internal financial controls and its systems for internal control and risk management. • Monitors and reviews the independence, objectivity and effectiveness of the External Auditor, and reviews and recommends to the Board the re-appointment, remuneration and terms of engagement of the External Auditor. • Develops and implements the Group’s policy on the engagement of the External Auditor to supply non-audit services.

SOCIAL

Execution

OVERVIEW

Ethics Committee: • Review and update ALEC Code • Review communications on ethics@alec.ae • Investigate allegations of violations to ALEC Code of Conduct

Finance

Legal

P&C

External audits, gap assessment reports, surveys ALEC Sustainability & ESG Report | 45


OVERVIEW

SUSTAINABILITY STRATEGY

Project-level risk management Tendering stage: Evaluation of the project based on ALEC’s core geographies, expertise, customer financial position, customer reputation, previous experience with same client, customer willingness to explore value engineering solutions and competition. Based on this analysis, the leadership team, along with the Director of Operations and head of tendering, either proceed or abstain. During contract negotiation, these risks are laid down and appropriate insurance is secured. Management of commercial risks is regulated by the Commercial Director. Additional subcontractor pre-qual checks: Over and above the prequal checklist items related to quality, health & safety, worker welfare and environment, we also screen our subcontractors and suppliers over their financial performance and other risks. • Whether bank guarantees were denied • Filed for bankruptcy • Current litigation with main contractors or developers • Judgement against in past three years • Whether Parent companies involved in litigation • Liquidated damages paid • Labour law violations • Defaulted on a contract • Failed to complete a contract • Terminated from a contract

ENVIRONMENTAL

SOCIAL

How Sustainability is managed and cascaded throughout operations: ESG team oversees Group-level ESG and decarbonisation strategy, capacity building and reporting. Focus areas where ESG team does not directly drive implementation, it takes on the role of policy, process reviewer and data auditor and supports with reporting templates, strategy guidelines and target setting. Environmental topics: ESG team implements projects relating to climate change adaptation and mitigation and is responsible for emissions reporting and reduction strategies for the Group. Facilities management department (FMD), logistics and Plant & Vehicles departments, along with the innovation team, execute projects that improve energy, waste, water efficiency. Digital Construction team is responsible for BIM implementation and operations teams are responsible for offsite construction, with LINQ handling modular solutions. QAQC department is responsible for compliance and material quality as well as sustainability across projects including LEED, Estidama and other Green Building certifications, while CRM team is responsible for executing project-specific environmental certifications and procedures and reporting. Social topics: People & Culture team along with the Construction Risk Management (CRM) or HSE, Worker Welfare teams manage the human rights, people management, development, diversity and engagement activities for employees as well as subcontracted employees on site. ESG department develops the strategy for and implements the community impact initiatives. Governance topics: The CRM team, QAQC and Authorities teams are responsible for the implementation and oversight on construction quality and environmental compliance on projects. Fair & ethical conduct-related activities are jointly managed by the ESG & P&C teams, along with legal and finance departments.

GOVERNANCE

APPENDICES

FUTURE PLAN: We are currently assessing the ESG & climate-related risks and opportunities and will be developing ESG risk registers. In order to identify the main types of risk and opportunity and their impact on the business, we will be reviewing the ISSB standards for sustainability-related and climate-related financial disclosures. Our Group’s decarbonisation strategy will be further enhanced after a careful analysis of the risks and opportunities connected to it as well as results from the stakeholder concerns raised during the materiality exercise. Innovation The innovation department is responsible to align innovation strategy with ALEC overall business goals. In addition to instilling the culture of innovation among new and existing employees and developing and nurturing this skills through programs and trainings. The innovation team horizon scans for the latest construction and business-related solutions and partners and supports different business functions in quantifying the impact and developing the business case for their selected innovation projects and reporting their tangible benefits. ALEC sees innovation as an open and decentralized process. It is decentralized because it is carried out independently in each business unit and related businesses, with the support of and coordinated by the company’s innovation department. It is open because the company involves internal and external stakeholders such as universities, technology centres, suppliers, equipment, and product manufacturers in its innovation process. Main objectives are to instil a culture of innovation within ALEC, to continually improve, be economically, socially and environmentally sustainable, generate savings through innovation initiatives and offer cutting-edge products and services to our industry. We have developed our innovation framework to categorize innovation ideas for easier reference and address different areas of our business while tackling the two main streams: leveraging existing business model in addition to business model innovation.

For responsible supply chain, ESG team provides guidance, reporting, policy support, with implementation executed by the procurement, commercial and finance departments. While climate risk oversight and management is managed by ESG, CRM and legal teams, data privacy and cybersecurity falls under the remit of the IT department.

• License revoked or suspended

ALEC Sustainability & ESG Report | 46


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

External partners and suppliers that have supported our innovation journey ALEC works with several external stakeholders such as universities, technology centres, suppliers, startups, equipment, and product manufacturers to support the innovation process. External partners are an integral part of the construction ecosystem, adding value by working alongside ALEC and the supply chain. As ALEC integrates innovation as part of the company’s culture, we believe supporting and creating an opportunity for start-ups, digital companies and other external partners can be exceptionally beneficial for both parties. DIGITAL COS & START UPS

STRATEGIC PARTNERSHIPS

Experience Working With Startups

Startup Statistics

Startup Engagements To date : 97

Pilots Done To date : 29

Paid Pilots To date : 13

Company Rollouts To date : 07

ALEC fully manages the idea lifecycle though bright ideas platform, which is accessible to all employees. Innovation hub provides all employees access to bright ideas platform host the overall innovation database, close out reports that records all the learning from completed initiatives, trainings, knowledge sharing lessons. The innovation dashboard acts as the idea lifecycle management, recording details of ideas generated by employees, number of implemented ideas, number of unique submitters in addition to number of people involved in innovation. Several topic-specific Subject Matter Experts (SMEs) committees assess ideas based. All projects and business units have their own budgets and are responsible for assessing their individual innovation initiatives based on the submitted business cases. If the initiative is deemed feasible, then the necessary resources get allocated. ALEC has also set aside a separate budget to assist in driving innovation. The budget includes innovation training and events, allocations for some of the key short and long-term initiatives, and items that might not fall into the departments/projects’ categories. The innovation department identifies contributors and has a well-defined scoring and reward mechanism. Innovation points collected by individuals are linked to their performance evaluations, to encourage more employees to contribute. ALEC Sustainability & ESG Report | 47


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

DATA PRIVACY & CYBERSECURITY ALEC is committed to maintaining robust data privacy and cybersecurity policies that protect sensitive information, ensure secure network access, and uphold the principles of confidentiality. These policies are essential in safeguarding the company's assets and reputation while complying with industry regulations and best practices. • Protecting Against Cyber Threats: ALEC IT infrastructure follows ISO 27001 principles, fortified with robust controls, malware protection, identity verification, and disaster recovery. Microsoft Defender for Office365 defends against various threats. • Detecting and Responding to Threats: Evidence-based reporting guides ALEC's approach to identifying and responding to cybersecurity events. Suspicious activities trigger immediate investigation, isolation, and recovery, supported by a 24/7 third-party partner Security Operation Centre (SOC), with regular security assessments to enhance digital security. • Securing Endpoints: Endpoint Detection and Response (EDR) solutions protect servers. In addition, EDR integrates with security monitoring, supplemented by Multifactor Authentication to protect users' machines. • Risk Assessment and Compliance: Regular risk assessments and external audits ensure IT infrastructure integrity. In addition, vulnerability analysis, simulated hacker attacks, and annual disaster recovery testing is conducted to support ALEC against cyber threats. • Employee Training and Awareness: ALEC promotes employee awareness through training on cybersecurity, and social engineering. Information Security specialist/s receive advanced training, ensuring a well-informed workforce.

0

substantiated complaints of breaches or data loss, reflecting In 2022, ALEC had our commitment to information security. Our comprehensive approach, aligned with industry standards, establishes us as leaders in safeguarding critical infrastructure while building trust with clients, employees, and partners.

ALEC Sustainability & ESG Report | 48


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

APPENDICES BOARD

HE Abdulla Al Shaibani

Kamillia AlMarashi

Riad Kamal

Kez Taylor

Chairman/ Non-Executive Director

Non-Executive Director/ Chair of the audit & renumeration committee

Non-Executive Director

Non-Executive Director

• Master's degree, Business Administration from American University of Sharjah (UAE)

• Certified accountant with an ACCA qualification

• Master’s degree, Construction Engineering, Imperial College (UK)

Education

• Bachelor's degree, Civil Engineering from Metropolitan University of Colorado (US)

• BA honors degree, Accounting & Financial Management from the University of Essex (UK)

• Bachelor’s degree, Civil Engineering, Imperial College (UK)

• BSc Honours degree, Construction Management, University of Witwatersrand, Johannesburg, SA

Gender

Male

Female

Male

Male

Nationality

UAE

UAE

Jordan

South Africa

Core competencies

General Management & Business Operations CEO Experience Construction Industry knowledge Risk Management Strategy Development Mergers & Acquisitions Legal / Regulatory Corporate Governance

General Management & Business Operations Accounting Risk Management Strategy Development Mergers & Acquisitions Legal / Regulatory Corporate Governance

General Management & Business Operations CEO Experience Construction Industry knowledge Risk Management Strategy Development Mergers & Acquisitions Legal / Regulatory Corporate Governance

General Management & Business Operations CEO Experience Construction Industry knowledge Risk Management Strategy Development Mergers & Acquisitions Legal / Regulatory Corporate Governance

Tenure

6

6

3

20

Role in the Board

ALEC Sustainability & ESG Report | 49


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

ESG 2022 DISCLOSURES FOCUS AREA

METRICS FOR 2022-23

2022 DISCLOSURE ENVIRONMENTAL

Emission Management

• Scope 1 emissions [Fuel] • Scope 2 emissions [Purchased electricity] • Scope 3 emissions [Category 1: Purchased goods and services (Concrete, Steel, Aluminium, Timber, Water)]

• • • •

Total GHG emissions: 754,074 tCO2e Scope 1: 10,560 tCO2e Scope 2: 8,745 tCO2e Scope 3: 734,769 tCO2e

Waste Management & Circularity

• Recycling rate (%)

• Recycling Rate across projects in 2022: 58% • Average recycling Rate across projects (complete project duration): 83%

Green building and low-carbon solutions

• % projects pursuing LEED certifications • % ongoing projects utilising offsite construction • % projects featuring modular volumetric construction

• 100% of Dubai-based main construction projects were in adherence to Dubai Green Building Code • 100% of Abu Dhabi-based projects pursuing Pearl 2 Estidama Rating & 1 Dubai-based project pursuing LEED in 2022. • For offsite construction, we are working on calculations and will disclose it in forthcoming reports. • ICD pavilion show home at EXPO 2020 Dubai featured modular volumetric construction

Climate Change Adaptation & Mitigation

• On-site renewable energy produced & used for owned properties • Adoption/ investment in energy-saving solutions and hybrid solutions within own operations • Adoption/ investment in water-saving solutions within operations • Investment in circularity solutions • % revenue invested in ecosystem regeneration • % LEED certified entities within operational control

Own operations, project agnostic: • 158,632.21 kWh of renewable energy produced on site (owned properties) in 2022 through a 0.501MWp rooftop solar PV plant commissioned at ALEC Yard. This plant will generate 840.04 MWh of clean energy in the first year. • Refer to Energy Efficiency & Water Management for details on adoption and investment in energy-saving and water-saving solutions within properties owned or under direct control. Project: • Solar-diesel hybrid generator used on one of our main construction project • 21% of ALEC & ALEMCO-owned tools are cordless & battery-operated tools. • Investment in circularity solutions: Refer to waste management section • % revenue invested in ecosystem regeneration: ALEC hasn’t made any investments in 2022, and will develop a strategy for the same. • % LEED certified entities within operational control: 0

ALEC Sustainability & ESG Report | 50


OVERVIEW

FOCUS AREA

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

METRICS FOR 2022-23

APPENDICES

GOVERNANCE

2022 DISCLOSURE SOCIAL

Health & Safety

• Fatality • LTIFR • Legal cases related to safety-related incidents

• • • •

Worker Welfare

• • • •

Non compliances on human rights % employees trained on human rights & modern slavery % subcontractors trained on human rights & modern slavery % subcontractors screened for human rights violations

• 30 Major non compliances identified during subcontractor worker welfare audits • 43,337 employees and directly supervised subcontractors underwent the worker welfare induction training • 30 subcontractors underwent prequalification screening, onboarding screening & compliance audits post six months, with 42 audits being conducted as some subcontractors were reaudited based on their risk rating.

People Management & Development

• • • • •

Turnover rate Average training hours per employee % staff participation in innovation activities % coverage of all positions No. of unique Innovation idea contributors

Refer to People Management & Development section • Total employees: 8,491 • Staff: 1,925 • Labour: 6,566 • % Female: 10% • % Female: 0% • Turnover Rate: 0.64% • Labour attrition (avg): 2.74% • • • •

1 Fatality (Subcontractor Labour) LTIFR:0.033 LTI: 16 Legal cases related to safety-related issues: 0

Total employees availing parental leave: 61 Return to work rate: 100% Retention rate: 100% ALEC Internal HSE Trainings attendees, including subcon: 144,492

• Work Hours LTI-free 2022 • Offices: 1,334,312 • Warehouse 1,434,690

• ALEC Third Party HSE Trainings attendees: 9,380 • No. of innovation events and workshops organised by Innovation: 10 • No. of unique innovation idea generators: 289 • No. of people engaged in innovation: 484 • No. of people rewarded for innovation: 73

Wellbeing & Engagement

• Wellbeing & engagement activity participation • Employee survey participation • Absenteeism rate

Refer to Wellbeing & Engagement section Absenteeism Rate • Staff: 0.97% • Labour: 1.51%

Diversity Equity & Inclusion

• • • •

• 49+ nationalities • Emiratisation 0.6% achieved • Women accounted for 10% of our senior managers.

Community Impact

• No. of beneficiaries • Volunteering hours • No. of employees engaged in Community Impact initiatives

Nationalities Age Emiratisation % women across grades

• Total employees hired: • Staff: 180 • Labour: 1,616 • Internal hires: 3.5%

No. of beneficiaries: 640 Volunteering hours: 56 No. of employees engaged in Community Impact initiatives: 8 ALEC Sustainability & ESG Report | 51


OVERVIEW

SUSTAINABILITY STRATEGY

FOCUS AREA

ENVIRONMENTAL

SOCIAL

METRICS FOR 2022-23

APPENDICES

GOVERNANCE

2022 DISCLOSURE GOVERNANCE

Construction Quality & Compliance

• Legal cases related to structural integrity claims from main projects • Instances of liquidation damages

• 0 legal cases related to structural integrity claims from main projects • 0 instances of liquidated damages or penalties on construction projects, where ALEC is the main contractor

Fair & Ethical Conduct

• Cases of bribery and anti money laundering • % employees trained on ethics & anti corruption • No. of active projects/ backlog in countries ranking low on Corruption Index

• 0 legal cases related to bribery and anti money laundering • Around 220 employees completed the training on ethics in 2022. • 0 active projects/ backlog in countries ranking low on Corruption Index

Responsible Supply Chain

• % subcontractors/ suppliers formally certified compliance with ALEC Code of Conduct • ICV score • % subcontractors screened through prequal on human rights policies and safeguards in place • Trainings provided to supply chain to upskill and support subcontractors

• 100% subcontractors on ALEC main projects formally certified compliance with ALEC Code of Conduct

ESG & Climate Risk oversight & management

• • • • •

Refer to ESG & Climate Risk oversight & management as well as ESG Implementation Plan section • Established Sustainability Committee • First sustainability report released in 2023 • No. of innovation ideas generated : 505 • No. of innovation ideas implemented: 96

Data Privacy & Cybersecurity

• No. of substantiated attacks • No. of substantiated data privacy violations

Sustainability governance structure Materiality assessment ESG & climate risk registers and mitigation plans Annual sustainability reports No. of ideas generated & implemented through innovation dashboard

ICV score: • ALEC: 38% • ALEC Dubai: 39.53% • ALEMCO: 25.99% • ALEMCO Dubai: 27.42%

• 0 case of substantiated breaches or data losses

ALEC Sustainability & ESG Report | 52


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

REPORTING SCOPE 2022 ALEC Engineering and Contracting

CONSTRUCTION

ALEMCO

FITOUT

SOLUTIONS

SERVICES

ALEC Technology

LINQ

AJI Rentals

ALEC Data Center

Energy AES

Social Reporting disclosure scope: All Group companies and divisions are covered. Environmental & Governance disclosure scope: For the 2022 report, we have focused only on calculating emissions from site operations of ALEC Construction in UAE, where ALEC is the main contractor as well as owned and leased properties, factories, owned labour accommodation. We are working on engaging all businesses and territories to ensure completeness. We aim to capture all relevant data, but where this is not feasible, we will estimate data wherever practical. Where we estimate, we make this clear in the Reporting Criteria, in forthcoming reports. We will restate our 2022 emissions, once we complete the data collection process. In measuring our carbon emissions, we have adopted the GHG reporting protocol (Corporate Standard), the world’s most widely used greenhouse gas accounting standards for companies. We are taking an operational control approach to GHG accounting, per the guidelines issued by the GHG Protocol. Exclusions: Acquisitions: Businesses acquired in FY22 have been excluded from the scope of this year’s report Outside UAE operations: Businesses and operations outside UAE have been excluded from the scope of this year's report.

Scope

Definition

1

These are greenhouse gases from sources owned or controlled by the organisation reporting its emissions. These are known as direct emissions..

2

These are emissions created by the generation of energy, such as electricity, which is bought by the organisation reporting its emissions. These are indirect emissions.

3

These are all other indirect emissions. They may be created by anorganisation’s supply chain, or by the products it produces. This also includes embodied carbon – the emissions produced when materials, such as steel, concrete and so on.

ALEC Sustainability & ESG Report | 53


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

APPENDICES

GOVERNANCE

REPORTING CRITERIA 2022 DISCLOSURE

DEFINITION

Fuel

Covers mobile and stationary fossil fuel use (diesel, petrol)

SCOPE 1. Fuel used directly by ALEC to deliver projects where it functions as a main contractor, in commercial vehicles and site plant and equipment. This includes all vehicles, plant and equipment – either owned or leased – that ALEC directly operates and buys fuel for.

UNITS

CALCULATION METHODOLOGY

SOURCE

Litres

Data was collected using delivery notes and supplier invoices indicating quanity of fuel delivered to site by site logistics team and ALEC's Plant Machinery Vehicles (PMV) team for corporate and owned vehicles.

Site logistics/ PMV reports

kWh

Data was collected using utility bills

Site logistics/PMV reports

litres

Data was collected using utility bills and site logisitics reports for sweet water delivered on site & potable water from supplier invoices

Site logistics reports/ Utility bills

2. Fuels used at ALEC premises for power generation. In this case, premises means any offices, workshops, factory, yard which are independent of any one particularly project. This includes directly measured fuel supplies – where ALEC purchases the fuel directly. 3. Fuel used in vehicles used in support of our operations: Vehicles directly owned by ALEC. Exclusion: Related businesses: There are also a small number of projects (especially for Related Businesses such as ALEMCO/ Fit out/ Energy) where the customer provides fuel for us to carry out work on their behalf and these are NOT included. •

Electricity

Covers purchased electricity

Subcontractors: Typically, ALEC provides fuel for subcontractors on site. In cases where subcontractors purchase own fuel, we have not added those.

Includes all electricity consumed at ALEC premises the company owns, operates from or exerts control over, where data is available. Premises are offices, factory or yard, labour accommodation, which are independent of any one particularly project. This area is split into: Directly measured electricity controlled and paid for by ALEC. Electricity used to deliver ALEC projects and covers our construction sites, welfare areas and project site offices. It includes electricity that ALEC pays for directly through metered supplies. Exclusions are projects (especially for Related Businesses such as ALEMCO/ Fit out/ Energy) where the customer provides electricity for us to carry out work on their behalf.

Water

Covers water consumption

Includes all water consumed at ALEC premises the company owns, operates from or exerts control over, where data is available. Premises are offices, factory or yard, labour accommodation, which are independent of any one particularly project. This area is split into: Directly measured water controlled and paid for by ALEC. For offices that are landlord-controlled, we have estimated the total water consumption by dividing the total water consumed by the building by the occupied area. Water from utility and tankers used to deliver ALEC projects and covers our construction sites, welfare areas and project site offices are included. Exclusion: Labour accommodation where we have no direct control over water consumption and locations where other than ALEC labour are housed. Exclusions are projects (especially for Related Businesses such as ALEMCO/Fit out/ Energy) where the customer provides water for us to carry out work on their behalf.

Waste & recycling rate

Waste generated (including both hazardous and non-hazardous waste)

Includes all waste generated across projects. Excluded: Areas where landlord provides waste management services and the fee is included as a service charge. For this report, we have not included waste from factories and labour accommodation and will do so for the next report. Exclusions are projects (especially for Related Businesses such as ALEMCO/ Fit out/ Energy) where the customer provides waste management services.

Tonnes

Data was collected using delivery notes, waste management company reports, central waste management systems managed by government landfill sites. The types and volume of material and how they are recycled by waste management companies, or disposed of is recorded. Recycling rate is the total waste recycled by waste management company divided by total waste generated on site.

Site logistics report

Material Consumption

Core Construction materials such as concrete, reinforced steel and structural steel used for the project included permanent structure & aluminium, timber used for formwork and scaffolding.

Covers consumption of these materials in main construction projects, QAQC where ALEC is the main contractor.

Tonnes

Data was collected using delivery notes and supplier invoices, verified by the project management consultant.

QAQC reports (Acconex)/LEED reports where applicable/ Formwork & Scaffolding unit reports/Site commercial reports

ALEC Sustainability & ESG Report | 54


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SCOPE

SOCIAL

UNITS

APPENDICES

GOVERNANCE

DISCLOSURE

DEFINITION

CALCULATION METHODOLOGY

SOURCE

Direct Emissions Scope 1

Direct GHG emissions from sources owned or controlled by the company

Includes emissions from stationary combustion (generators), mobile combustion (plant, vehicles etc). Fugitive emissions from use and disposal of refrigeration and airconditioning equipment are excluded due to lack of available data.

tCO2e

Fuel Emissions (tCO2e) = Consumption data (activity data) * DEFRA 2023 emission factors for fuels

DEFRA 2023

Indirect Emissions Scope 2

indirect GHG emissions associated with the purchase of electricity

Includes electricity emissions from premises and projects sites, over which ESG there is operational control

tCO2e

Location-based method for calculation. Scope 2 emissions (tCO2e) = Consumption data (activity data) * Grid emission factor from DEWA.

Grid emission factor from DEWA Sustainability Report 2022

Indirect Emissions Scope 3

Other indirect greenhouse gas emissions from building and non- building activities including those from resulting from purchased goods and services including water consumption, materials consumed.

Category 1 (Purchased goods and services) includes materials and water;

tCO2e

Scope 3 emissions (tCO2e) = Consumption data (activity data) * Embodied Carbon Emissions factors for different construction materials from ICE Database. Water emissions was estimated using a local supplier emissions factor (EWEC).

ICE DB V3.0 & EWEC emission factor

Man-hours Worked

Number of hours worked across the organization

Full time employee (FTE) across all business units and fully owned subsidiaries, CRM directly supervised subcontracted workers across projects

Number (#)

FTEs: Number of people multiplied by 3,120 man-hours worked in a year (8+2 manhours per day multiplied by the number of days worked for the month – on average 26 days, multiplied by 12 months to get the annual manhours)

FTEs: Calculated based on headcount Subcontracted Workers: Reported from monthly HSE statistics reports submitted by respective subcontractors

Directly supervised subcontracted workers: Sum of worked hours logged as per subcontractor logs Lost Time Injury (LTI)

An injury arising out of, or in connection with work, which leads to an employee being absent from work for more than three days in addition to the day of the injury, as per an official Sick Leave Certificate

FTEs across all business units and fully owned subsidiaries, directly supervised subcontracted workers across projects

Number (#)

FTEs & Contractors: Filter number of injruies recorded based on the definition.

Illness & Injury register

Lost Time Injury Frequency Rate (LTIFR)

The total number of Lost Time Injuries per 100 000 manhours worked

FTEs across all business units and fully owned subsidiaries, directly supervised subcontracted workers across projects

Ratio

FTEs & Contractors: Filter number of injuries recorded based on the definition.

Monthly Health & Safety Statistics Report

Health and Safety trainings

Number of training sessions delivered/ organised by Construction Risk Management (CRM) department (HSE)

FTEs across all business units and fully owned subsidiaries, subcontracted workers on projects

Number (#)

Sum of H&S training sessions conducted

Reported from CRM training registers

Gender Representation*

The percentage of male or female employees among total headcount as of 31st December 2022

FTEs across all business units and fully owned subsidiaries

Percentage (%)

Number of employees for specified gender divided by total number of employees

Reported from HR database systems

Age Representation*

The percentage of employees belonging to specific age groups (<30 years, 30–50 years, >50years) as of 31st December 2022

FTEs across all business units and fully owned subsidiaries

Percentage (%)

Number of employees for specified age group divided by total number of employees

Reported from HR database systems

ALEC Sustainability & ESG Report | 55


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SCOPE

SOCIAL

UNITS

APPENDICES

GOVERNANCE

DISCLOSURE

DEFINITION

CALCULATION METHODOLOGY

SOURCE

Nationalities

The percentage of employees’ nationalities split by macro geographical areas as of 31st December 2022

FTEs across all business units and fully owned subsidiaries

Percentage (%)

Number of employees for specified geographical areas divided by total number of employees

Reported from HR database systems

Management Representation (Gender)

The percentage of male or female employees across employee grade levels as of 31st December 2022

FTEs across all business units and fully owned subsidiaries

Percentage (%)

Number of employees for specified gender divided by total number of employees in specified employeegrade category

Reported from HR database systems

New Hires

The total number of Full Time Employees (FTE) hired during 2022

FTEs across all business units and fully owned subsidiaries

Percentage (%)

Sum of employees hired during 2022 across businesses

Reported from HR database systems

Employee turnover

Percentage of employees who left the organization during 2022

FTEs across all business units and fully owned subsidiaries. Transfers within P&C & CRM ALEC Entities are not considered as exits.

Percentage (%)

Number of employees who left the organization (including End of Service, voluntary (Resigned), Involuntary (Terminated/Retrenched), Medically Unfit, End of Contract, Absconded, Death) divided by total number of FTEs

Reported from HR database systems

Employees trained

Total number of FTEs who have undergone formal training (staff & labour)

FTEs across all business units and fully owned subsidiaries. Includes classroom trainings and practical tests and assessments.

Number (#)

Sum of total number of staff who have undergone formal training. Total number of labour who have been trained in the technical training center.

Reported from L&D records (training registers)

Parental Leave

Number of employees who availed the parental leave benefit during the reporting period

FTEs across all business units and fully owned subsidiaries

Number (#)

Sum of employees who availed parental leave during the reporting year

Reported from HR database systems

Parental Leave – Return Rate

Percentage of employees who availed parental leave benefit and returned to work after completing the stipulated leave period

FTEs across all business units and fully owned subsidiaries

Percentage (%)

Sum of employees who availed parental leave during the reporting year

Reported from HR database systems

Parental Leave – Retention Rate

Percentage of employees who availed parental leave benefit and remained within the company 12 months after completing the stipulated leave period

FTEs across all business units and fully owned subsidiaries

Percentage (%)

Number of employees who returned to work after the parental leave ended and and remained within the company 12 months after divided by the number of employees who took parental leave

Reported from HR database systems

Innovation trainings

Number of training sessions delivered organised by Innovation department

FTEs across all business units and fully owned subsidiaries and interns

Number (#)

Sum of Innovation training sessions conducted

Reported from Innovation training registers

BIM/ Digital Construction trainings

Number of training sessions delivered/organised by Digital Construction department

FTEs across all business units and fully owned subsidiaries and subcontractors

Number (#)

Sum of Digital Construction training sessions conducted

Reported from Digital Construction training registers

Innovation ideas generated

Idea generated by employees and externally sourced

FTEs across all business units and fully owned subsidiaries

Number (#)

Sum of all ideas submitted on the bright ideas platform

Bright ideas dashboard

Innovation ideas implemented

Ideas generated by employees or external contributed that have been implemented as part of the company processes.

Ideas that have been approved by Innovation dashboard Innovation client/ project consultant for implementation and is jointly sponsored by clients and restricted for use on a project-specific basis.

Number (#)

Sum of total ideas that are approved on the innovation dashboard and for which budget expenditure is accounted for.

Bright ideasdashboard

ALEC Sustainability & ESG Report | 56


OVERVIEW

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

APPENDICES

REPORTING FRAMEWORK MAPPING INDEX ALEC ESG Report 2022 - Sections

Pages

DFM ESG reporting guidelines

About this Report

2

G8.1; G9.1;

About ALEC

3

2-1; 2-6; 203;

Message from leadership

9

2-22;

Awards

11

2022 Highlights

11

UN Global Compact

GRI

SASB Engineering & Construction Services (IF-EN)

SDGS

REMARKS

OVERVIEW 2-2;2-3

2-4: No restatements as this is the first sustainability report; GRI 2-5/ DFM G10: External assurance hasn't been sought for ESG disclosures 2022. G8.2: Not applicable

SUSTAINABILITY STRATEGY Material topics

12

ESG framework

12

ESG implementation plan

13

Memberships & public commitments

12

2-23; 2-28;

ESG goals & metrics

14

2-23; 2-24;

2-29; 3-1 G 9.2

3-2;

ENVIRONMENTAL Sectoral context

16

Decarbonisation strategy

16

Emission Management

18

Fuel management

18

E3.1

Electricity management

19

E3.2

Climate Change adaptation & mitigation

20

Renewable energy

20

Main construction materials

22

Water management

23

Waste management & Circularity

24

Green Building & low-carbon solutions

25

E7.1; E7.2;E7.3

Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and

3-2; 3-3;

IF-EN-160a.2

3.9; 6.3; 11.6; 12.4

3-3; 302-1; 302-4; 305-1; 305-5

8,4

3-3; 302-1; 302-4; 305-2; 305-5

7,3

E10

3-3; 305-5

13,1

E5

3-3; 302-1; 302-4;305-5

7,2

3-3; 305-3;

6,3

3-3; 305-3; 305-5

6,4

3-3; 305-5; 306-1; 306-4;

6.3; 11.6; 12.4; 12.5

E6.1

E10

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

3-3; 203; 305-5

IF-EN-160a.2; IF-EN-410a.1; F-EN-410a.2

E4; Energy intensity has not been reported

E6.2: Water reclaimed has not been reported.

7.2; 7.3; 7.a; 9.1,9.4

ALEC Sustainability & ESG Report | 57


OVERVIEW

ALEC ESG Report 2022 - Sections

SUSTAINABILITY STRATEGY

Pages

DFM ESG reporting guidelines

Health & Safety

28

S7;S8

Worker Welfare

30

S9.1; S 10.1

ENVIRONMENTAL

SOCIAL

UN Global Compact

GRI

GOVERNANCE

SASB Engineering & Construction Services (IF-EN)

SDGS

APPENDICES

REMARKS

SOCIAL 3-3; 403-(1-9) Principle 1:

Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2:

make sure that they are not complicit in human rights abuses.

Principle 4:

the elimination of all forms of forced and compulsory labour;

Principle 5:

the effective abolition of child labour; and

Principle 6:

the elimination of discrimination in respect of employment and occupation

S3.1

IF-EN-320a.1;

3.8; 6.3; 12.4

3-3; 409-1;

8.7; 8.8

2-7; 2-8;

3,8

People Management

32

People Management

32

2-7; 2-8;

3,8

People Development

33

3-3;

4.7;

Wellbeing & Engagement

35

3-3;

3,4

Diversity, Equity & Inclusion

36

S4; S11.1;

3-3; 202; 405-1;

5.5; 5c; 8.5

Community Impact

35

S12.1

3-3; 203;

4.4; 4.7; 4.b

2-18. 2-20:2-21/ DFM G4: Not reported due to confidentiality constraints. 2-30: UAE does not permit unions. DFM S1, S2 has not been reported due to confidentiality constraints. S5.1 & S5.2 has not been reported. DFM G3:Currently, executives are not formally incentivised to perform on sustainability.

Amount invested is not disclosed

GOVERNANCE Build Quality

38

Digital Construction

39

Fair & Ethical Conduct

43

S6; G6.1; G6.2 S9.1; S10.1

Responsible Supply Chain

43

S9.2; S10.2; G5

All ten principles of UN Global Impact are applicable

3-3;

IF-EN-250a.1; IF-EN-250a.2;

12.2; 12.4

2-24; 2-25; 2-26; 2-27; 3-3; 205-2; 406-1;

IF-EN-510a.1.2; IF-EN-510a.3;

5.1; 10.3, 16.5

205-3: There were no confirmed incidencts of corruption. 206-1: There were no legal actions for anti-competitive behavior, anti-trust, and monopoly practices in 2022.

3-3; 308-1; 409-1; 414-1;

ALEC Sustainability & ESG Report | 58


OVERVIEW

ALEC ESG Report 2022 - Sections

SUSTAINABILITY STRATEGY

ENVIRONMENTAL

SOCIAL

Pages

DFM ESG reporting guidelines

ESG & Climate Risk Oversight & Management

45

E8; E9; G8.1

2-12; 2-13; 2-14; 2-16; 2-17; 2-24; 3-3

Data Privacy & Cybersecurity

48

G7.1; G7.2

3-3;

Board composition

49

G1.1; G1.2

2-9; 2-10; 2-11; 405-1;

ESG 2022 disclosures

50

E1

Reporting criteria

53

Reporting framework mapping index

57

UN Global Compact

GRI

GOVERNANCE

SASB Engineering & Construction Services (IF-EN) IF -EN-160a.2

SDGS 7.a; 8.2; 8.3, 9.1; 9.4

APPENDICES

REMARKS IF-EN-410b.1; IF-EN-410b.2; IF-EN-410b.3 not reported.

APPENDICES 2-15: Each Board member declares any matters relating to conflicts of interest at the beginning of a Board meeting and withholds from voting on such items. 2-16: All critical concers are communicated to the Board during board meetings. IF-EN-510a.2; IF-EN-510a.1.2

E2: Emissions intensity will be reported in subsequent report.

2-2; G9.1; G9.2;

Disclaimer: The content of this report is provided by ALEC for information purposes only. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information contained in this report by ALEC. ALEC shall not be liable for any loss or damage incurred or suffered and claimed to result from the use of or reliance upon any information contained in this report including, without limitation, any direct, indirect, incidental, special or consequential damage. Statements or terms in this report used to describe ALEC’s relationship with third parties do not, and should not be construed to acknowledge or establish any legal relationship between ALEC and such third party, acknowledge or establish any fiduciary duty on the part of ALEC to such third party or otherwise, or acknowledge or establish any responsibility for or liability in respect of the actions of such third parties. The copyright to this report is held by ALEC. Unauthorised reproduction or conversion is strictly prohibited. Copyright © ALEC Engineering and Contracting, 2023.

ALEC Sustainability & ESG Report | 59


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