TRSDC Sustainability Report 2020

2020

SUSTAINABILITY

Report

Laying the Foundation for a Sustainable Destination

TRSDC Sustainability Report 2020

Contents

About this Report

INTRODUCTION CEO Message

4

2020 Performance Highlights

7

About The Red Sea Development Company

8

SECTIONS

Welcome to The Red Sea Development Company’s (hereinafter referred to as TRSDC), inaugural Sustainability Report. In this report, we provide our stakeholders with a comprehensive overview of our approach to integrating sustainability within our operations and our performance across economic, environmental, social and governance topics of material importance. By disclosing our commitments and progress, we aim to improve our accountability and transparency as a responsible company and demonstrate our contribution toward the sustainable development of the Kingdom of Saudi Arabia.

This report has been prepared in accordance with the GRI Standards: Core option. It covers the direct operations of TRSDC as well as the operational activities of third parties within the physical boundaries of The Red Sea Project unless otherwise indicated and includes data for the calendar years 2019 and 2020.

For further information on the GRI Content Index, please refer to Appendix A.

Sustainability at The Red Sea Development Company

17

Unrivaled Experience

37

Creating a Sustainable Destination

45

Human Capital Development and Diversified Growth

67

sustainability@theredsea.sa

facebook.com/TheRedSeaDevelopmentCompany

Looking Forward

99

linkedin.com/company/the-red-sea-development-company/

instagram.com/theredseadevelopmentcompany/

twitter.com/TheRedSeaGlobal

youtube.com/channel/UCMo1fSbA3iOhvvC8OP0IYNA

Let us hear from you We consider reporting as an ongoing and evolving process. We welcome your feedback on the contents of this report, as well as our approach to reporting at:

APPENDICES Appendix A: GRI Content Index Appendix B: Abbreviations and Acronyms

100 108

www.theredsea.sa

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CEO Message

CEO Message We are developing an exquisite, barefoot luxury, regenerative tourism destination, built around a natural environment comprising an archipelago of more than 90 untouched islands, sweeping desert dunes, mountain canyons and dormant volcanoes, coupled with a rich cultural heritage. Our commitment to setting new standards in sustainable development as we bring our destination to life is one that we hope will change the way things are done around the world.

We believe this approach and the immersive experiences we will offer from next year, will help to position Saudi Arabia on the global tourism map. This achievement will be a key contributor to the successful delivery of Vision 2030.

The leadership at TRSDC recognizes that development and the environment do not have to be at odds. If you value your natural capital as much as you value your financial capital, then you’re starting off on the right basis.

Today we are laying the foundation for one of the most technologically advanced and eco-friendly tourism destinations in the world. We realize that sustainable tourism is a cross-cutting activity that contributes to the three dimensions of sustainable development – environment, economy and society - and plays a key role in achieving the global UN Sustainable Development Goals.

TRSDC Sustainability Report 2020

The Red Sea Project is already fostering economic growth, creating local employment and training opportunities, and accelerating the change to more sustainable consumption and production patterns. This is in addition to promoting the preservation of oceans and marine life, promoting local culture, and promoting rural development for local populations at our site.

The positive impact of our operations is not bound within the Project’s borders but runs along the entire tourism economic value chain - from tourism service providers, to adjacent communities, to future guests who will play a part in sustaining the unique net positive ecosystem we are developing.

I encourage you to discover in these pages the ethos of TRSDC, what we do every day, and how we are already making a positive impact on the travel and luxury tourism industries, our employees, and Saudi Arabia.

John Pagano Chief Executive Officer The Red Sea Development Company

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The Red Sea Development Company’s leadership has committed to align with all 17 Sustainable Development Goals to address global challenges as well as the Equator Principles and International Finance Corporation Performance Standards.

Our vision is supported by our Commitments:

Our masterplan for the phases of the destination’s development embeds our sustainability commitments in an effort to generate net positive conservation impacts.

We developed specific targets to achieve our Environmental Sustainability Commitments:

100%

reliance on renewable energy Protect, preserve and enhance the local environment

Offer access to some of Saudi Arabia’s most important cultural treasures

Set a new standard in sustainable development through net positive conservation impacts

30%

Less than 1% of the total Project area (28,000 square kilometers) to be developed 75%

net positive conservation impact

LEED Buildings Accreditation

75%

9

of the destination’s islands will remain undeveloped

islands designated as special conservation zones

6

2020 Performance Highlights

TRSDC Sustainability Report 2020

2020 Performance Highlights

2020 Performance Highlights AWARDS AND RECOGNITION

COMMUNITY

People

Won Developer of the Year at Big Projects Middle East Awards 2020

45 nursery workers from the local community joined TRSDC

Received Excellence in Health and Employee Safety award

Hired 30 Sustainability Stewards from local communities

onboarded

Obtained the ISO 31000:2018 Risk Management System certification

Launched the Ecotecture Competition, with over 600 participants across 29 universities

5,900 construction workers and consultants working alongside 200 of TRSDC’s personnel

Obtained a Green Star in our first GRESB assessment

Conducted “The Future Faces of Tourism” study to understand attitudes towards hospitality and tourism careers

Conducted 12,299 training hours across all our departments and divisions

Environment and Biodiversity

Tagged and released

20 Green Turtles

Completed construction of 100-hectare nursery to provide 15+ million plants for landscaping Completed construction of the green concrete factory and

waste management facility

Launched the Marine Debris Clean-up Program contributing to the removal of 28 tons of debris

Health and Safety

Hired 277 new employees

29 national Elite Graduates

Construction and Development

Maintained our safe construction efforts amidst the COVID-19 pandemic

Signed over 500 contracts worth 14.5 billion SAR, of which 70% was awarded to Saudi companies

Secured a multinational investment in the first Public-Private Partnership (PPP) for a utilities package

Completed construction of a

1,500 pieces of construction plant and equipment on-site

Commenced construction of the Coastal Village

Developed and implemented the

Board approved Shurayrah Island (Coral Bloom) Masterplan

Launched our

Completed over 50% of land-raising works for construction of the Coastal Village, with more than 330 trucks delivering over 25,000 m3 of earth fill each day

Excavated five million m3 from airport landside and

Central Medical Facility

Life Crucial Program

Zero Lost Time Incident (LTI) during the construction of

marine jetties, Coastal Village and Base Camp

#BreakingNewGround Campaign

over 1.5 million m3 of compacted fill has been placed on the runway and other areas

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About The Red Sea Development Company

About The Red Sea Development Company

Our Subsidiaries We have established four subsidiaries during the year, operating in the Kingdom of Saudi Arabia, for the purpose of protecting TRSDC’s long-term value, creating legacy and business positioning and success.

These subsidiaries hold the primary assets of TRSDC and undertake some of our operations as well. Our subsidiaries include the following:

The Red Sea Real Estate Company I

The Red Sea Utilities Company

TRSDC was established in 2018 as a Closed Joint Stock Company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia to drive the development of The Red Sea Project, a regenerative tourism destination along Saudi Arabia’s west coast.

TRSDC is the master developer of The Red Sea Project and will guide its development and delivery to become a landmark destination that is valued by international travelers, the local community and the global business.

We aim to set pioneering standards across every aspect of the destination’s development and management to become a truly global destination, embracing visitors from around the world.

These aspirations are guided in every aspect by our vision, mission and values to conduct our business responsibly, collaboratively and passionately while respecting our stakeholders, the environment and the Kingdom of Saudi Arabia’s culture and heritage.

TRSDC Sustainability Report 2020

We will deliver our vision through a team of experienced, multinational real estate developers, engineering professionals, environmental and sustainability specialists, experienced designers and project finance professionals who share our values and will reflect them in the planning, construction and operation of the destination.

Sustainability lies at the core of TRSDC’s values and is fully integrated into our operations and planning. This integration will position TRSDC as a driver of long-term value creation in the Kingdom of Saudi Arabia.

The Red Sea Coastal Village Hotel

The Red Sea Hotel Operations Company

About The Red Sea Development Company

Vision

Mission

Establish The Red Sea Project as the leading sustainable luxury tourism destination of the world.

To become a global leading real estate company with world class internal capabilities aiming to develop The Red Sea Project. By establishing a vertically integrated development company, we ensure building a unique destination to the highest standards of quality, delivering on our sustainability commitment whilst training Saudi talents, transferring skills to the local market and able to take on future projects.

Values RESPECT

• Respect is at the center of everything we do and is the heartbeat of our values.

• We treat all of our colleagues with respect and embrace different backgrounds and perspectives.

• We have a deep respect for the natural environment and are committed to protecting it for future generations.

• We respect the culture and heritage of Saudi Arabia.

RESPONSIBILITY

• We are proud to be at the forefront of the responsible tourism industry.

• We develop and positively impact the surrounding social community.

• We are helping to increase opportunities both within the destination’s communities and across Saudi Arabia.

• Sustainability drives our actions to conserve and enhance the environment.

• We take responsibility for the natural environment, and we will conserve, protect and enhance it.

COLLABORATION

• We communicate, share knowledge and work together in a caring and diverse culture.

• We embrace opportunities to learn and develop the skills of our colleagues.

• We believe that by coming together as one team, we can achieve the best outcomes for our company and country.

• We work hand in hand with our stakeholders and partners to succeed.

• We affiliate with like-minded partners and suppliers to achieve TRSDC’s ambitious goals.

PASSION

• We are passionate to achieve results with excellence.

• We continually go beyond what is expected of us, to achieve the best outcomes.

• We strive every day to achieve the ambitious targets of our company.

• We are passionate about Saudi Arabia and the opportunity to showcase the culture of warm hospitality to the world.

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About The Red Sea Development Company

About The Red Sea Project The Red Sea Project site encompasses an archipelago of more than 90 untouched islands, miles of sweeping desert dunes and dramatic mountain landscapes. We are the world’s most ambitious tourism development, aiming to offer an exclusive experience of unparalleled diversity for discerning global travelers.

Development Sites

The site of The Red Sea Project, located between the cities of Umluj and Al Wajh, covers an area of 28,000 square kilometers along Saudi Arabia’s west coast. The site is distinguished by mountain canyons, dormant volcanoes and ancient cultural sites.

The Red Sea Project’s Masterplan, approved by His Majesty King Salman bin Abdulaziz Al-Saud in 2018, was developed in partnership with Wimberly Allison Tong and Goo and Buro Happold to deliver unique design concepts.

The destination is set to be completed in two phases. Phase One is scheduled for completion by 2023 and Phase Two by 2030. Upon completion, The Red Sea Project will see the construction of 50 hotels with 8,000 rooms across 22 islands and six inland developments. Annual visitors will be capped at one million to avoid over-tourism and the associated environmental impacts it could cause.

The Red Sea Project will include a new

airport, yacht marinas, leisure and lifestyle facilities, supporting logistics and utilities infrastructure, including 80 kilometers of new roads.

Luxury residential properties and commercial, retail and recreational facilities will also be developed.

TRSDC Sustainability Report 2020

MONO ISLANDS 3-2 Um Kud 3-3 Mizab 3-4 Hur 5-4 Safayih 1 5-5 Safayih 2 5-6 Safayih 3 5-7 Al-Osh Al-Gharbi 6-1 Um Samdaniat 1 6-7 Abu Khalid 7-1 Al-Samdaniat 1 9-3 Ummahat Alshaykh 1 9-4 Ummahat Alshaykh 2 9-5 Ummahat Alshaykh 3 9-8 Um Qadeen 1 9-10 Eiqat Rizk 10-1 Sheybarah South

INLAND SITES Northern Dune Bowl

Wadi Village

High Peaks Desert Rock

4-1

Airport

3-1 8-1

7-4 7-8 7-5 7-10

EFR Southern Dunes

MULTIPLE ASSET ISLANDS 3-1 Um Rumah 1 4-1 Breem 7-4 Mudra 7-5 Abu Laheq 7-8 Sabaq 3/Inland 7-10 Shurayrah 8-1 Quman

SEZ Boundary

Volcano HQ Village

Northern Dune Bowl Wadi Village High Peaks Desert Rock Airport EFR Southern Dunes Volcano HQ Village

About The Red Sea Development Company

We aim to become a global standard bearer in the luxury eco-tourism market by taking an approach that focuses on environmental conservation and enhancement while also driving inclusive, diversified economic growth. We have identified global best practices and standards to guide our journey of setting new standards in sustainable development.

The Red Sea Project will be located within a semi-autonomous Special Economic Zone (SEZ), regulated by a unique and independent set of laws in line with international standards.

The SEZ will provide competitive financial incentives and a regulatory framework conducive to attracting business and investment. The regulations to be developed will aim to facilitate access to land through freehold ownership, permit approval and enable partnership opportunities with the world’s

leading brands and entrepreneurs. The intended business support measures that will be offered by the SEZ, and the anticipated investment, will propel the creation of jobs and diversify the economy while also conserving and enhancing the environment. The SEZ will develop environmental regulatory standards to ensure the ambitious goals for environmental sustainability and enhancement are achieved.

Islands developed

Islands developed

5

22 MASTER PLAN CONCEPT

Inland sites

John Pagano CEO

Inland sites

2

6 Completion of Phase One (2023)

Tourism is integral to Vision 2030 as it forms part of the Kingdom of Saudi Arabia’s ambitions to diversify the economy away from oil and further grow this industry to create more jobs and provide a cultural bridge that enables people from around the world to enjoy the beauty of Saudi Arabia.

Completion of Phase Two (2030)

#BreakingNewGround Campaign We launched a global marketing campaign to raise awareness of the project and showcase progress to date. The campaign targeted countries of the Gulf Cooperation Council, Europe, North America, China, Japan and Russia, and was supported by a constant flurry of media opportunities that resulted in 6,000 media mentions from 154 different countries.

Overall, the campaign has achieved

16

50 Hotels

Hotels

3,000 Rooms

1.4 billion impressions and 59 million video views.

For further details and information

8,000 Rooms www.theredsea.sa

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About The Red Sea Development Company

Our Journey at a Glance

2017 His Royal Highness the Crown Prince announces the launch of The Red Sea Project, an international tourist destination, as part of the Kingdom’s Vision 2030.

TRSDC is established as a Closed Joint Stock Company wholly owned by PIF.

Architectural and Infrastructure Concept Masterplan approved

by His Majesty King Salman bin Abdulaziz Al Saud.

TRSDC announces Global Advisory Board.

Appointment of CEO, John Pagano.

TRSDC announces partnerships to create jobs in local communities and to advance scientific research.

TRSDC is accepted as an affiliate member of the World Tourism Organization.

2019

TRSDC commits to #ACT4SDGs1.

TRSDC awards contracts for Infrastructure, Transportation (Marine, Road and Air), Buildings and a Nursery.

TRSDC and King Abdullah University of Science and Technology (KAUST) unveil ground-breaking approach to conservation and development planning.

Launch of the Marine Debris Clean-Up Program as part of the United Nations Sustainable Development Goals (UN SDGs).

Approval of Airport Design.

2018 1

TRSDC Sustainability Report 2020

A United Nations initiative for the Sustainability of People and the Planet.

About The Red Sea Development Company

TRSDC completes the Environmental and Social Impact Assessment (ESIA) for The Red Sea Project’s Concept Masterplan.

Board approval of Hub Island Masterplan and pre-concept design.

TRSDC celebrates a milestone moment with 500 contracts worth 14.5 billion SAR signed.

Launch of the Elite Graduate Program.

TRSDC wins the SAP Ariba Go Live Award for their achievements in E-procurement and Sustainability.

TRSDC awards contracts to provide waste management and medical services.

TRSDC completes construction of a one million-square meter landscape nursery, the largest in the Middle East, to produce over 15 million plants.

TRSDC establishes four subsidiaries to hold the primary assets of TRSDC.

TRSDC and KAUST publish a scientific paper on Marine Spatial Planning.

TRSDC awards Airport Airside contract to an all Saudi joint venture.

TRSDC secures multi-national investment in the first PublicPrivate Partnership (PPP) for a utilities package.

2020 www.theredsea.sa

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About The Red Sea Development Company

Alignment to Vision 2030 Vision 2030 is a bold blueprint intended to build the best future for the Kingdom of Saudi Arabia. It is designed to harness and showcase the nation’s greatest strengths, build upon its leading role at the heart of the Arab and Islamic worlds, and help create a more sustainable economy by forging new and stronger cultural business connections with the world.

A VIBRANT SOCIETY

A THRIVING ECONOMY

TRSDC plays an integral role in supporting each of the three pillars of Vision 2030 and we are committed to demonstrating our contribution to its achievement through our sustainability reporting.

AN AMBITIOUS NATION

By completion, The Red Sea Project aims to:

Implement a range of community programs in partnership with national ministries and international entities that empower youth and catalyze positive social change through civic engagement.

TRSDC Sustainability Report 2020

Directly employ around 35,000 people and support an equivalent number of jobs in the wider community by creating indirect and induced jobs and opportunities for local businesses, entrepreneurs and supporting industries.

Our estimated contribution to Saudi Arabia’s Gross Domestic Product (GDP) is 22 billion Saudi Arabian Riyal (SAR) once fully operational.

Set new standards in luxury travel and position Saudi Arabia on the global tourism map by providing rare opportunities to enjoy culture and the natural world, together with high-quality personalized accommodation and service.

About The Red Sea Development Company

www.theredsea.sa

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Sustainability at TRSDC

TRSDC Sustainability Report 2020

Sustainability at TRSDC

Sustainability at The Red Sea Development Company

Our target is to enhance conservation values, through increasing marine and terrestrial biodiversity and enhancing the ecological values of biologically diverse habitats, by 30% over the next two decades. 75% of the destination’s islands will remain undeveloped, and nine islands of significant ecological value will be designated as protected areas.

Our Vision for The Red Sea Project Governance at The Red Sea Development Company Identifying and Prioritizing Our Material Topics Our Approach to Stakeholder Relations Risk Management Business Resilience Business Ethics

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Sustainability at TRSDC

TRSDC Sustainability Report 2020

Sustainability at TRSDC

Our Vision for The Red Sea Project Through our unique, innovative and sustainable approach to designing, constructing and operating The Red Sea Project, we aim to become the world leader in sustainability and a pioneer in advancing regenerative tourism.

Our main driver is conserving and enhancing nature and biodiversity - our most valuable asset and greatest inspiration - through extending the frontiers of regeneration and achieving carbon neutrality. We seek to generate socio-economic opportunities for our local communities, create unrivaled experiences for our guests, and contribute to the growth of the Kingdom of Saudi Arabia’s economy in line with Vision 2030.

We aim to push the boundaries of innovative technology and leverage local and global partnerships to enhance livelihoods and the well-being of local communities, and to create a sustainable tourism economy.

Our ambitious vision to deliver unforgettable, personalized experiences in a stunning environment is matched by our commitments, which have guided the development of an integrated masterplan whose implementation will generate net positive conservation impacts.

We aim to achieve our net positive conservation impacts through capitalizing on and investing in scientific research and proven technology to support our vision of innovation, protection, conservation and enhancement of the environment. We are currently developing initiatives to deliver on our commitments and long-term targets, some of which are presented across the report.

We are guided by our commitments to use available resources efficiently and responsibly to achieve the expected return and sustain the socio-economic growth of The Red Sea Project and the local communities.

Our positive socio-economic contributions are manifested through: Establishing the necessary social infrastructure to safeguard the culture and heritage of the Kingdom of Saudi Arabia

Promoting social opportunities and principles of inclusion

Sustainability is at the heart of everything that we do. We are inspired by nature and implementing regenerative development techniques to protect that, not only for ourselves today but for future generations to come.

John Pagano CEO

Providing opportunities to improve the household economy

Offering exceptional cultural experiences to visitors

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Sustainability at TRSDC

Governance at The Red Sea Development Company At TRSDC, we are striving to build a ground-breaking tourism destination through a comprehensive approach of good governance, compliance and risk management. We have embedded a holistic approach to structural governance, risk and compliance at each level of our business operations.

CHAIRMAN

For further details and information

The board of directors

H.R.H. Crown Prince Mohammad bin Salman bin Abdulaziz Al Saud

H.E. Dr. Mohamed Waheed Hasan

H.E. Dr. Majid Al‑Qassabi

Board Member

Board Member

H.E. Eng. Abdullatif bin Abdulmalik Al-Alsheikh2

H.E. Mr. Ahmed Al‑Khatib Board Member

Board Member

H.E. Eng. Abdulrahman Al‑Fadley Board Member

H.E. Mr. Majed bin Abdullah Al-Hogail3

H.E. Dr. Nabeel bin Mohammed Al-Amudi4

Board Member

Board Member

H.E Dr. Fahad bin Abdullah Toonsi

Eng. Nadhmi Al‑Nasr

Board Member and Secretary General

Board Member

H.E. Mr. Yasir Al‑Rumayyan Board Member

Mr. John Pagano Board Member and Chief Executive Officer

Resigned on January 19, 2020 Formally appointed on July 12, 2020 4 Resigned on December 15, 2019 2 3

TRSDC Sustainability Report 2020

H.E. Mr. Majed bin Abdullah Al-Hogail5

H.E. Dr. Nabeel bin Mohammed Al-Amudi6

Chairman

Ex-Chairman/ Member

H.E. Mr. Abdulaziz bin Saleh Al-Furaih

Mr. John Pagano

Mr. Yousef bin Mohammed Al-Mubarak

Chief Executive Officer

Eng. Ahmad G. Darwish

Mr. Ian Williamson

Chief of Staff

Chief Financial Officer

Mr. Nicholas King

Dr. Rusty Brainard

Mr. Mohannad Moussly

Dr. Maryam Ali Ficociello

Chief Development Officer

Chief Environment Officer

Chief Internal Auditor

Head of Governance, Risk and Compliance

Chief Project Delivery Officer

Member

H.E. Eng. Abdulrahman Al‑Fadley

H.E. Mr. Majed bin Abdullah Al-Hogail7

H.E. Dr. Nabeel bin Mohammed Al-Amudi6

H.E Dr. Fahad bin Abdullah Toonsi

Chairman

Member

Member

Member

Mr. Stuart Davies

Advisory board

Mr. Jay Rosen

Member

Executive management

Nomination and remuneration committee

Audit committee

Sustainability at TRSDC

General Counsel

Ms. Aradhana Khowala

Mr. Philippe Cousteau Jr.

Prof. Carlos Duarte

Mr. J. Carl Ganter

Chairperson

Advisory Board Member

Advisory Board Member

Advisory Board Member

Mr. Paul Holthus

Mr. William McDonough

Mr. Fritz Dirk van Paaschen

Mr. Vijay Poonoosamy

Advisory Board Member

Advisory Board Member

Advisory Board Member

Advisory Board Member

Mr. Ahmad Aalem

Mr. Raed Albasseet

Head of Strategy

Head of Corporate Environment and Sustainability

Mr. Ian Simmonds

Mr. Brian Spraker

Mr. Fraser Robertso8

Head of Cost, Commercial and Procurement

Head of Health, Safety and Environment

Head of Global Brand Development

5 6

Formally appointed on July 12, 2020 Resigned on December 15, 2019

7 8

Formally appointed on April 27, 2020 Resigned on November 11, 2020 www.theredsea.sa

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Sustainability at TRSDC

Our Management Committees For continuous support to TRSDC’s Executive Management and cross-functional alignment across divisions, the CEO has established five management committees, each of which has a specific mandate, and is composed of the Heads of the various divisions in TRSDC.

Executive Management Committee

Mandates

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• Coordinating and aligning operational and risk activities of TRSDC in line with overall Company strategy • Supporting CEO in exercising oversight responsibility

Business Resilience Committee

Sustainability Management Committee

• Overseeing Business Resilience Management responsibilities and acting as a Strategic Committee in the event of a crisis

• Reviewing, overseeing the implementation of the Sustainability related strategy, framework, strategic KPIs, targets, programs and initiatives across TRSDC, our projects and subsidiaries

Grievances and Termination Management Committee

• Reviewing, investigating and recommending the appropriate courses of action for grievances raised by employees

Cybersecurity Management Committee

• Approving and overseeing implementation of the Cybersecurity Strategy • Ensuring that the strategy is in line with strategic objectives of TRSDC and is in compliance with the relevant regulations

Redefining Leading Practice Transparency, fairness, accountability and responsibility are at the core of our governance approach. Our business conduct is governed by a set of principles to confirm that TRSDC’s delivery teams conduct business in a unified approach.

Our internal Code of Conduct sets the legal and ethical behaviors we expect across the entirety of TRSDC – covering our Board, employees and construction workers. The Code stipulates critical commitments such as respecting human rights and protecting the environment. We require our employees to declare and attest understanding and complying with the Code of Conduct on an annual basis. Additionally, our

TRSDC Sustainability Report 2020

Anti-bribery and Corruption Policy stipulates common goals and behaviors that are central to our core values.

Our principles extend to the parties and entities we work with, and we developed a Supplier Code of Conduct to confirm that our external stakeholders are committed to the highest standards of ethical conduct.

To promote transparency, we have a dedicated anonymous Whistleblowing Platform that any of our employees and third-party contractors can use to report suspected illegal or unethical behaviors.

Abiding by our ethical standards through the implementation of good governance is at the heart of conducting our business. In fact, good governance is the unifying element amongst our diverse delivery teams.

Dr. Maryam Ali Ficociello Head of Governance, Risk and Compliance

Sustainability at TRSDC

Setting New Governance Standards

Compliance with a Purpose

We aspire to exceed the mandated legal and regulatory requirements by adopting international leading governance practices. We are currently exploring ways to implement international leading practice in our compliance and reporting structures, adopting the Open Compliance and Ethics Group principled performance approach for an integrated Governance, Risk, and Compliance framework, in addition to implementing a tech-driven approach, using an integrated Enterprise Governance, Risk Management and Compliance Platform.

Our compliance procedures are aligned with international reporting frameworks, such as ISO 19600:2014 and are guided by our ambitions to genuinely develop a ground-breaking tourism destination in the most accountable, transparent and responsible way possible.

Sustainability Governance

Subsidiary Governance Framework With the corporate growth and an increase in the number of assets under TRSDC, the Board of Directors has approved a Subsidiary Governance Framework that shall guide the setup, governance and reporting requirements of TRSDC’s subsidiaries. The Subsidiary Governance Framework outlines the governance principles and guidelines for both wholly and partially owned subsidiaries. The main purpose of the Subsidiary Governance Framework is to confirm: • Strategic alignment between TRSDC and its subsidiaries • Appropriate oversight is maintained in line with the objectives of TRSDC • Proper reporting and sharing of information • Adequate decision-making and authorities are in place

Our Environment and Sustainability Policy We have an Environment and Sustainability Policy that articulates our commitments toward conserving and enhancing nature and biodiversity.

TRSDC is committed to delivering a global destination while conserving and enhancing the environment and biodiversity, unique in attracting sustainable destination tourism, while also setting a new global standard for sustainable environmental management based on the precautionary principle using an integrated masterplan design, construction and operations aimed at generating net positive conservation benefits.

Within the policy, we describe how we will meet our commitments and maintain transparency. Our policy is endorsed by our CEO and reviewed annually to confirm that it meets the evolving needs of TRSDC.

We are continually seeking to embed and formalize sustainability within the core of our governance practices. Our approach is built upon our Sustainability and Enhancement Framework, which is overseen by our Sustainability Management Committee.

The structure of the Board of Directors and Corporate Governance Framework has sustainability as a key pillar of its mandate. The Board has shifted from a traditional framework to a stakeholder-based theory of corporate governance. As part of our mandate, we focus on generating a wider range of economic, environmental and social benefits for stakeholders outside of our shareholder base. This multi-stakeholder perspective has been incorporated at the Board level by making certain that Board members represent a diversity of stakeholder groups. Further contributing to TRSDC’s stakeholder-based governance approach, we have an Advisory Board of members from international institutions and subjectmatter professionals.

To support the implementation of our policy, we have identified Nine Principles which we expect our stakeholders to adhere to, namely: Water Consumption Management Principle Solid Waste Management Principle Energy Efficiency Principle Green Certification Principle Greenhouse Gas Emission Principle

SocioEnvironmental Internal Governance Principle Stakeholder Engagement Principle Site Selection Principle Sustainable Procurement Principle

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Sustainability at TRSDC

The objectives of the Sustainability and Enhancement Framework, which are aligned with our overall strategic framework, form the guide for value creation across TRSDC. The values we will create through our approaches and operations will grow the various forms of capital that shape the national economy and will manifest in benefits to the economy, our finances, our processes, our stakeholders and, ultimately, to our sustainability performance.

Living by Our Principles Socio-environmental Governance

LEVERS

Our Sustainability and Enhancement Framework focuses on our commitments to achieve positive economic, environmental and social impacts through our business endeavors and dayto-day operations. Through this framework, we have identified levers and challenges that drive the achievement of the objectives across the three pillars of sustainability.

OUR OBJECTIVES

Sustainability and Enhancement Framework

Implementing a socio-environmental governance structure that upholds ethical values across operations We recognize that professional, effective and transparent governance are core values upon which a building and infrastructure development company needs to operate. Our operations are based on ethical values for the conservation and improvement of socioenvironmental aspects.

CHALLENGES

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ENVIRONMENT

SOCIETY

Economy

Achieve environmental sustainability to safeguard and enhance the environment and our natural resources as well as enhance biodiversity in the area.

Establish the social infrastructure to celebrate local culture, promote social opportunities and principles of inclusion, as well as offer exceptional cultural experience.

Effectively and responsibly utilize available resources to generate expected return and sustain economic growth of the project and continuity in the long-term.

NATURAL ASSETS

STAKEHOLDERS

Enhancement Dimensions

• • • •

• Local population • Destination users • Destination employees and families • Suppliers/Vendors

• • • • • •

Water Land Atmosphere Biodiversity

Self-sufficiency Tourism and local spend Income per capita Foreign direct investment Local content Circular economy

Protection and Enhancement

Development and Enhancement

Development and Enhancement

1. Ecosystem-based management and governance 2. Policies and regulations 3. Permitting and licensing 4. Compliance, monitoring and enforcement 5. Red Sea Partnerships 6. Assessment, monitoring and research 7. Digital technology innovations 8. Engaged and educated stakeholders

1. Management, institutions and governance 2. Policies and regulations 3. Compliance, monitoring and enforcement 4. Effective grievance 5. Red Sea Partnerships 6. Livelihood management 7. Communication and engagement 8. Cultural preservation and management

1. Management, institution and governance 2. Policies and regulations 3. Compliance, monitoring and enhancement 4. Government support 5. Red Sea Partnerships 6. Site survey, monitoring and research 7. Unique investment opportunities 8. Employment opportunities

Building and construction

Unemployment

Waste

Accessibility/Transportation

High capital and operating expenditures

Energy

Population influx

Food

Unfair practices

Transportation

Economic displacement

Human interaction

Infrastructure readiness

Extraordinary events/Circumstances

Inequality of benefit distribution

Predictability of judicial system Market attractiveness for investments Limited census, monitoring and modeling Shortage in required skills Quality goods and services Limited local products

TRSDC Sustainability Report 2020

Sustainability at TRSDC

HOW WE CREATE VALUE

OUR OBJECTIVES

Environment Achieve environmental sustainability to safeguard and enhance the environment and our natural resources as well as enhance biodiversity in the area.

Raise awareness of KSA as a unique tourist destination

Economy

Increase contribution to economic diversification

OUR OUTCOMES

Financial Capital Ensuring TRSDC’s attractiveness for investments

Maximize GDP contribution

Human Capital Ensure project development according to plan

Maximize growth and profitability

Finance

Ensuring skilled, performance oriented and collaborative team

Manufactured Capital

Society Establish the social infrastructure to celebrate local culture, promote social opportunities and principles of inclusion, as well as offer exceptional cultural experience.

Stakeholder

Create opportunities for business in KSA

Ensure benefits for the community

Create network of trusted partnerships

Achieve high stakeholder satisfaction

Create bespoke, exclusive and memorable visitor journeys

Architectural Capital Building unique architectural design to enhance experiences

Sustainability

Create net positive impact

Set new standard in sustainability

Natural Capital Protecting the environment and enhance the ecosystem

Economy Effectively and responsibly utilize available resources to generate expected return and sustain economic growth of the project and continuity in the long-term.

Creating an SEZ supported by required infrastructure and technologies

Processes

Establish attractive working and living conditions

Establish best-practice organizational structure and processes

Create seamless and effortless product and server experience

Social Capital Empowering local people and culture to be celebrated and advanced

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Sustainability at TRSDC

Sustainability Management Committee Our Sustainability Management Committee is responsible for the overall implementation of our Sustainability and Enhancement Framework across TRSDC, our projects and subsidiaries. It plays an integral role in reviewing and recommending sustainability related objectives, strategic Key Performance Indicators (KPIs) and targets, programs and initiatives. Its responsibilities include aligning with our corporate strategy, improving sustainability performance, and delivering on our commitments to create shared value.

The Committee is chaired by our CEO and comprises members of our Executive Management from across TRSDC’s divisions. As a governing body, the Committee supports the integration of sustainability practices throughout our operations.

Sustainability Performance Monitoring at TRSDC With the support of the Sustainability Management Committee, each department at TRSDC is responsible to drive sustainability performance improvements.

Our Corporate Performance Department plays a key role in monitoring progress on sustainability related KPIs and initiatives. It has identified 18 sustainability related departmental targets and KPIs for 2020, and the progress on each was reviewed and reported on a quarterly basis. Our 2020 performance against these sustainability KPIs is highlighted in this Sustainability Report.

Sustainability related corporate activities are assessed by the Head of Corporate Environment and Sustainability, reviewed by the Sustainability Management Committee and approved by the Chairman.

TRSDC Sustainability Report 2020

Eng. Ahmad G. Darwish

John Pagano

Raed Albasseet

Chief Executive Officer Chairman

Head of Corporate Environment and Sustainability

Ian Williamson

Nicholas King

Dr. Rusty Brainard

Chief Project Delivery Officer

Chief Development Officer

Chief Environment Officer

Member

Member

Member

Abdullah AlZahrani

Dr. Maryam Ali Ficociello

Ahmad Aalem

Acting Head of Marketing and Communication

Head of Governance, Risk and Compliance

Head of Strategy

Member

Member

Member

Secretary

Chief of Staff Member

Sustainability at TRSDC

GRESB Assessment

We have set up a dedicated Sustainability Reporting Taskforce to assist with the collation of data, information and updates on initiatives related to sustainability reporting. The Taskforce comprises representatives from across TRSDC’s divisions.

Sustainability Taskforce A cross functional taskforce with representatives appointed by each Head of Department

Division representation from Our Executive Management remains committed to undertake the GRESB real estate benchmarking assessment to further understand our sustainability performance within the industry and in relation to our peers. GRESB follows a detailed methodology to assess and benchmark ESG performance data of real assets and infrastructure, providing standardized and thirdparty validated data to capital markets.

Corporate Environment and Sustainability Taskforce Coordinator

In 2020, our internal GRESB Taskforce, representing individuals across TRSDC’s divisions, undertook the first GRESB assessment of the Management and Development components.

The progress we made in integrating ESG within our business enabled us to achieve a Green Star rating, and a high score in comparison to the peer average. These results are a testimony of our relentless efforts toward improving our ESG performance at TRSDC. Following the assessment, we conducted a gap analysis and developed an action plan to improve our overall score in the 2021 GRESB assessment.

Chief of Staff

Corporate Services

Internal Audit

Special Economic Zone

Legal

Finance and Investment

Marketing and Communication

Governance, Risk and Compliance

Projects Delivery and Procurement

Human Resources

Strategy

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Sustainability at TRSDC

TRSDC Sustainability Report 2020

Sustainability at TRSDC

102-43

Identifying and Prioritizing Our Material Topics A materiality assessment helps to identify and prioritize the sustainability topics that matter most to our business and to our stakeholders. Through this process, we are able to gain a better understanding of where to focus our resources and on what to report.

In 2020, we conducted our first

formal materiality

assessment as part of the process of developing this Sustainability Report.

Our materiality assessment process was initiated following an identification of 32 material topics in line with the GRI Standards. The topics were further prioritized upon engaging with internal and external stakeholder groups in a combination of workshops and one-on-one interviews to identify the most material sustainability topics that merit inclusion in our Sustainability Report.

Our Materiality Assessment We followed a four-step approach to carry out the materiality exercise as presented in our Materiality Assessment Process.

Engagement

Validation • A session was held with our CEO and Head of Governance, Risk and Compliance to validate TRSDC’s Prioritized list of Material Topics and the final Materiality Matrix.

Three groups of internal and external stakeholders were engaged in workshops and one-on-one interviews: • Group One: internal stakeholder workshop for Executive Management • Group Two: internal stakeholder workshop for management • Group Three: key external stakeholder interviews

04

01

Our Materiality Assessment Process

The identified material topics demonstrate alignment with the focus areas of our Sustainability and Enhancement Framework, as well as the concerns of key internal and external stakeholders.

DOCUMENTATION

We will use the materiality assessment results to inform our sustainability strategy under development and reporting over the coming years.

• Results from stakeholder engagement sessions were recorded and organized by groups.

• Notes from stakeholder engagement sessions were recorded along with additional topics mentioned.

02

03

ANALYSIS • Survey results and discussion notes were processed, analyzed and evaluated to determine the Prioritized Material Topics for validation.

• Prioritized Material Topics were plotted on a Materiality Matrix.

Based on the inputs from stakeholders, 23 topics, out of a preliminary list of 32 topics, were determined to be the most material for TRSDC. Our internal stakeholders rated most material topics as critically or highly important stemming from their understanding of TRSDC’s aspirations of delivering an exquisite luxury tourism destination. External stakeholders had more diverse ratings reflecting their varied perspectives and interests. These material topics are mapped on our materiality matrix.

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Sustainability at TRSDC

102-44, 102-47

Our Materiality Matrix The materiality matrix on page 31 plots each topic according to the rating for the significance of economic, environmental and social impacts for TRSDC (x-axis) and the influence on stakeholder assessments (y-axis). Topics found closer to the upper right-hand corner of the matrix are of higher influence and impact to both TRSDC and its stakeholders.

Our material topics

To demonstrate our support to the SDGs, we aligned our material topics and accordingly identified how our initiatives work toward contributing to the SDGs throughout the report.

Relevant UN SDG(s)

Sections of the report which are in line with our material topics are identified by relevant icons.

Our material topics

1

Environmental Compliance

13

Labor Management Relations

2

Emissions

14

Human Rights Assessment

3

Energy

15

Forced or Compulsory Labor

4

Water and Effluents

16

Occupational Health and Safety

5

Waste

17

Training and Education

6

Biodiversity

18

Diversity and Equal Opportunity

7

Local Communities

19

Non-discrimination

8

Indirect Economic Impacts

20

Customer Health and Safety

9

Economic Performance

21

Customer Privacy

10

Market Presence

22

Anti-corruption

11

Supplier Environmental Assessment

23

Anti-competitive Behavior

12

Employment

TRSDC Sustainability Report 2020

Relevant UN SDG(s)

Sustainability at TRSDC

102-44

TRSDC MATERIALITY MATRIX

High

Environmental

Indirect Economic Impacts

MATERIAL TOPICS

8

2

Social

Economic

Emissions

7

Local Communities

Environmental Compliance 1

Occupational Health and Safety

Influence on Stakeholder Assessments and Decisions

Labor Management Relations Diversity and Equal Opportunity

18

13

12

Employment

16 Economic Performance

9

22

10

Market Presence Non-discrimination Training and Education

Anti-competitive Behavior 23

Forced or Compulsory Labor

Tax

15

17

14

19

11

5

Biodiversity

Anti-corruption Waste 3

4

Human Rights Assessment

6

Energy

Water and Effluents

Supplier Environmental Assessment

Material

20

Child Labor

21

Customer Health and Safety

Customer Privacy

Procurement Practices

Marketing and Labeling Supplier Social Assessment

IMMATERIAL TOPICS

Socio-economic Compliance

Security Practices

Low

Public Policy

Low

Significance of Environmental, Social and Economic Impacts

High www.theredsea.sa

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Sustainability at TRSDC

102-40, 102-42, 102-46

Our Approach to Stakeholder Relations Our stakeholders are individuals or groups of individuals who have a direct or indirect stake in TRSDC and who can affect or be affected by TRSDC’s policies, objectives and actions.

We believe in building long-lasting relationships with our stakeholders that are based on trust and mutual respect, as good stakeholder relations create mutually beneficial outcomes for the parties involved.

Our Stakeholder Relations Policy is built upon five principles, which we believe are essential to develop successful stakeholder relations. It identifies commitments to specific groups, such as our Shareholders, Board of Directors, Local Communities, Employees and Bank and other Lenders.

We have clear mechanisms in place for stakeholders to resolve any dispute or complaint that may arise.

To live up to our beliefs, we have developed a Stakeholder Relations Policy that sets out the guidelines for TRSDC’s approach toward interacting with our stakeholders.

The rights of stakeholders shall be respected.

Those affected by TRSDC’s business shall have the right to be informed about TRSDC’s activities, participate in a transparent stakeholder engagement process, and be involved in issues and opportunities that affect them.

Shareholders

Employees

The Five Principles of TRSDC’s Stakeholder Relations Policy

Universities

Stakeholders shall be provided with timely, relevant, sufficient and accurate information about the business of TRSDC. TRSDC shall keenly seek out feedback from its stakeholders on its business decisions.

Governmental Entities and Regulators

Giga Projects

Our stakeholders

Non-governmental Organizations

Local Municipalities

Design and Architecture Firms

Suppliers and Health Service Providers

TRSDC Sustainability Report 2020

TRSDC shall ensure that its employees and stakeholders are treated according to the principles of fairness and equity and without any discrimination on the basis of race, gender or religion whatsoever.

Sustainability at TRSDC

Risk Management Sustainability has been identified as a key risk class within our Enterprise Risk Management (ERM) Framework. We have developed a list of key risk indicators that evaluate the potential exposure to environmental and sustainability related risks.

These indicators are monitored on a quarterly basis to maintain a view on risk performance and to enable the development of preventive and recovery strategies against inherent and emerging risks.

To make certain that we have a robust governance structure, we have developed an Internal Controls Toolkit that is

Limited environmental and social governance, stewardship and monitoring capability

periodically reported to the Board of Directors. The Toolkit provides the needed assurance of our vigorous internal controls mechanism to the Board of Directors, shareholders and future investors. The Toolkit constitutes our Corporate Strategy, Departmental Strategies, Departmental Policies, the Delegation of Authority at both CEO and Board levels, in addition to our succession planning. In essence, it provides our multidisciplinary teams an understanding of the ERM Framework and policies at TRSDC that ought to be aligned with our identified environmental and sustainability management risks.

Enterprise risk management

Potential of permanent disruption/damage to biodiversity of site

Climate changes in TRSDC sites impacting the value proposition

9

Zero

Nonconformities were identified during the certification process In 2020, TRSDC obtained the ISO 31000:2018 Risk Management System certification, providing assurance to our stakeholders that our risk management processes in relation to corporate functions and projects are both up-to-date and aligned with international leading practices.

TRSDC is the first developer in the Kingdom of Saudi Arabia to achieve this ISO certification.

Degraded quality of water within the region resulting in biodiversity loss and reduced appeal to consumers

Delay or failure to set effective sustainability standards

The design of the project will alter the existing landscape character permanently

Increased environmental pollution within the project site

Validating Our Risk Management Practices

Our Identified Environmental Sustainability Management Risks9

Inappropriate calculation of water demand levels

Potential for loss or damage to known archaeological sites

Deteriorated air quality

The represented risks are both internal and external in nature and range from medium to very high in terms of likelihood and impact.

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Sustainability at TRSDC

Business Resilience TRSDC’s Business Resilience analyzes possible risks and threats that could have an impact on continued business activity, including economic, environmental or social risks. The Business Resilience function at TRSDC supports a longer-term vision, to confirm the organization is equipped to respond to, and recover from business disruption. The function is responsible to confirm that value-creating activities are protected and to establish business resiliency strategies with actions before, during and after business disruption.

The COVID-19 pandemic has been the most recent global example of the need for organizations to have policies, structures and plans in place to respond and recover should the worst-case scenario occur. The function has led a joint effort across TRSDC for business continuity during the pandemic, with the goal of keeping business disruption to a minimum, while following government guidance and making certain that the health and well-being of our people is at the center of decisionmaking processes.

As part of our commitments to our stakeholders, TRSDC is responsible for the protection of employees, contractors and other relevant stakeholders and to confirm that critical business functions have continuity plans in place to enhance resilience.

Crisis Management TRSDC’s Crisis Management Framework provides a structure to respond to, and recover from, disruptive incidents in a systematic, planned and tested way. The Crisis Management Framework further identifies structures across operational, tactical and strategic levels to support the organization during times of disruption.

TRSDC Sustainability Report 2020

Business Continuity

Leadership and Commitments

Our Business Continuity Management System (BCMS) has been implemented to safeguard life, limit levels of disruption and build a resilient organizational culture, with sustainable practices that support TRSDC’s business continuity effort. This includes both short- and/or long-term disruptions related to people, premises, technology, third-parties, supply chain, environmental and man-made incidents.

The areas of the Business Resilience program will be reviewed and approved annually through our existing Business Resilience Committee, chaired by the CEO and other Executive Management. We will use the International Standard for Business Continuity ISO 22301:2019, as the guidance to structure our business continuity activities.

Our Business Impact Analysis process integrates the impact of loss from an environment and sustainability perspective on TRSDC, making certain that sustainability is integrated into our Business Resilience activity.

Our Response to COVID-19 In response to the global pandemic, we partnered with International SOS (ISOS) to develop and deliver a robust COVID-19 Management and Response Strategy that allowed the safe mobilization of TRSDC employees and stakeholders. The strategy included a testing and individual screening program for site-based personnel to confirm their safe return to work following international travel. The program enabled the safety and well-being of our staff and contractors, which has in turn allowed the business to continue to drive forward and achieve significant project and Health Safety and Environment (HSE) milestones in 2020.

To further protect our employees during these unprecedented times, we regularly informed our employees of the latest COVID-19 precautionary measures and safety arrangements. The Internal Communication and Engagement Team provided employees with continuous notifications on the latest governmental requirements and office policies, such as our Remote Working Policy, that enabled us to conduct over 15 live webinars and over 45,000 online meetings.

Sustainability at TRSDC

Business Ethics Observing and upholding integrity and compliance are at the heart of our business practices, and we have documented our business standards in the following documents.

Anti-corruption

100%

of our operations were assessed for risks related to corruption; we have not identified any significant risks

Conflict of Interest Policy

Whistleblowing Policy

Code of Conduct

Gifts and Hospitality Policy

Transparency and Disclosures Policy

Confidentiality Policy

Supplier Code of Conduct

Our Compliance Department, in coordination with the Legal Division, is committed to conducting business in accordance with the highest ethical standards. Employees are responsible for compliance with regulatory obligations, as well as nonregulatory obligations, such as our internal policies relating to their respective areas of work.

TRSDC does not tolerate bribery or corruption in any form, and we are committed to conducting our business with integrity.

Our Anti-bribery and Corruption Policy sets guidelines for leading an integrity-based business. As part of this policy, we provide information and guidance on how to recognize, deal and comply with bribery and corruption related issues.

The policy elaborates our position on facilitation payments, kickbacks, charitable contributions, and gifts and hospitality.

Personnel who elicit, participate in or condone a bribe, kickback, or any other unlawful form of payment or attempt to participate in any such activity, will be subject to strict disciplinary action, including termination of employment, or any other legal action in line with applicable local laws and regulations.

Violations of our policy involving Executive Management will be reported to the Audit Committee and the Board, while violations involving employees will be reported to the CEO via the Governance, Risk and Compliance (GRC) Division. Any third party who breaches this policy may have their contract terminated with immediate effect.

Anti-competitive Behavior

Reporting Violations

Zero

Cases of corruption We are committed to the highest possible standards of openness, probity and accountability. In line with this commitment, we have a Whistleblowing Policy, which provides guidelines in relation to reporting suspected wrongdoing or malpractice instances or violations of our Code of Conduct, as well as any legal or regulatory requirements, or any other applicable TRSDC policies.

We expect people who have serious concerns about any aspect of our business to come forward and voice those concerns anonymously, via the online Whistleblowing Platform. In 2020, we received three whistleblowing cases that were investigated and resolved.

No employee, who, in good faith, reports a violation of the Code of Conduct or the Company’s policies and procedures and/ or applicable laws and regulations, shall suffer discrimination, including, but not limited to, harassment, retaliation, or other adverse employment or reputational consequences.

We prohibit discriminatory behavior and continually provide our employees with safe means to report incidents of discrimination. We encountered a total of 14 incidents of discrimination during 2020, of which 11 are currently undergoing remediation plans and three incidents are no longer subject to further action.

Allegations are reviewed by our Chief Internal Auditor, and if further proceedings are warranted, a cross-functional investigative team oversees additional investigations and subsequent corrective or disciplinary actions, which are in turn reported to the Audit Committee.

An efficient market untainted by collusive or manipulative business practices is important for us to create a business market that attracts investment. Collectively our Code of Conduct, Supplier Code of Conduct and Procurement Policy address anti-competitive practices, and we have controls in place to competitively select suppliers without bias. www.theredsea.sa

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Unrivaled Experience

TRSDC Sustainability Report 2020

Unrivaled Experience

Unrivaled Experience Visitor Experience

The Red Sea Project is being created as a unique, barefoot-luxury destination that will enhance the natural environment, embrace culture and adventure, and position the Kingdom of Saudi Arabia on the global tourism map.

The destination aims to provide visitors with an unparalleled variety of immersive experiences with the highest standards of personalized luxury service.

It will offer travelers the satisfaction of knowing their visit will help conserve and even enhance the area’s extraordinary natural beauty.

Leveraging current and emerging trends in the luxury travel market, The Red Sea Project will offer a diverse range of unique experiences within an accessible area, providing a wide variety of opportunities for cultural engagement.

With our smart destination vision, we will embed cuttingedge technologies coupled with smart services across various aspects of our services offerings. We envision utilizing digital technologies during our operations to improve visitors’ experience and residents’ quality of life.

The destination is rich in culture and tradition. Visitors will have a wealth of opportunities to explore the history of the region and experience first-hand the fabled hospitality and fascinating culture of Saudi Arabia.

Historic trading routes that date back to the Nabatean civilization traverse this region reflecting the history of the region as part of the Incense Trail and the maritime spice route. The site is notable for its position on the pilgrimage route from Egypt to the Holy Cities of Makkah and Madinah.

Visitors can walk in the footsteps of the ancient traders and explore the relics left behind. The Nabatean City of Mada’in Saleh, a United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage site, is in close proximity to The Red Sea Project, ideally placed for fascinating excursions.

The Kingdom of Saudi Arabia has a long history of warm hospitality. Visitors will experience the unique welcome of the Saudi Arabian people while learning about the distinct culture that characterizes this part of the world, at the crossroads of different civilizations. There will be opportunities to experience vibrant lifestyles, culinary expertise, artistic expression and meticulous craftmanship, which have been honed over centuries.

We aim to offer an unrivaled and seamless customer experience, while embracing the nature, culture and heritage within the vicinity of the destination.

John Pagano CEO

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Unrivaled Experience

Visitor Experience

Celebrating the Kingdom of Saudi Arabia’s Cultural Heritage The Kingdom of Saudi Arabia’s culture has been influenced by Islamic heritage and Bedouin traditions that antecedes the 19th century.

The vicinity of the destination covers a variety of historical and archaeological sites that we aspire to celebrate with our visitors and residents, encouraging them to explore the wonders and rich cultural heritage of Saudi Arabia’s Red Sea Coast. We plan to offer access to some of Saudi Arabia’s most important cultural treasures while protecting our unique heritage.

Establishing an exquisite visitor journey is a vital contributor to our success. We seek to provide guests with an unparalleled experience through leveraging touristic activity zones around the destination.

We aim to establish several distinct experiences, multiple and unique trail networks and delicately selected dive sites based on environmental assessments. These activities will be located across The Red Sea Project’s primary activity zones covering the inland zones as well as the lagoon itself. Within these activity zones, we will curate authentic and bespoke experiences for our visitors that celebrate the culture and heritage of the Kingdom of Saudi Arabia.

Our approach began with seeking to better understand the land and its people, and then working to develop experiences that showcase both. As part of this process we gathered narratives through extensive, structured conversations with local people supported with background research and interviews with subject-matter professionals. These narratives will serve as the foundation of the development for the experiences our future visitors can enjoy.

TRSDC Sustainability Report 2020

The destination’s islands and coastline offer rare opportunities to enjoy culture and the natural world, coupled with the highest quality of personalized accommodation and service, which aims to position Saudi Arabia on the global tourism map.

Unrivaled Experience

SOME OF Our Future Visitor Zones

The Habees Sands

Al Sukhoor

Harrat Lunayyir

Al Janaah

The Lagoon

Habees Sands refers to the region around the Southern Dunes and takes its name from the largest dune in the region. Four experiences have been defined for this region, among them one trail, a north-south traverse of the area. The experiences in the Habees Sands will be multi-activity and include a cultural element. For example, visitors can bike and hike to a yoga class in the dunes, which culminates with a poetry reciting of a famous local poem as the sun sets.

Al Sukhoor translates as “The Rocks” and refers to the area around Desert Rock Resort, including the nearby Jabal al Raal. Eight experiences have been created for this area, incorporating majestic landscapes, the rich cultural heritage and history that will appeal to many tourists.

The volcanic landscapes of Harrat Lunayyir are a major signature of Saudi Arabia, boasting lunar landscapes unlike anywhere else in the Middle East. Jet-black lava fields, cinder cones and moon-like craters – juxtaposed with ancient mountains of red Precambrian granite – characterize this region.

Eight experiences have been defined for this outstanding natural area, including an extensive network of trails that totals over 130 km.

The columnar basalt of the Winged Falls or Al Janaah is a phenomenon associated with volcanic landscapes and extremely rare in the Middle East and North Africa region. A comprehensive network of four trails experiences were defined around the stunning natural formation, covering its most beautiful wadis, peaks, passes, plains, ridgelines and historic relics.

The Al Wajh lagoon is home to the fourth largest coral reef system in the world and the jewel in the Red Sea Destination’s crown. Visitors will be able to dive and kayak on a barrier reef system and explore the thriving corals and a significant number of endangered species.

The destination will offer beautiful sandy beaches with sheltered warm waters amidst mangrove forests.

Whether under or over water, visitors will have access to plenty of coastal areas to explore the Red Sea’s rich biodiversity.

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Unrivaled Experience

Tourists will have much to look forward to as we welcome our first visitors to the destination in 2022. Our visitor activity zones will be easily accessible as they will be situated in and around our key attractions and accommodations under development.

Attractions and accommodations to welcome visitors in 2022-2023

Coastal Village

Southern Dunes Hotel

Our primary mixed-use community development (for residents) Completion Date: 2021 Number of Units: 14,000

Ummahat Alshaykh Completion Date: 2022 Number of Rooms: 90

TRSDC Sustainability Report 2020

Number of Hotels: 1

Completion Date: 2022 Number of Rooms: 80

Sheybarah Island Hotel Completion Date: 2022 Number of Rooms: 73

Shurayrah Island Completion Date: 2023 Number of Hotels: 11

Number of Rooms: 2,480

Unrivaled Experience

Leveraging Smart Technologies Smart Destination is the technology enabler and a critical key differentiator for The Red Sea Project. It consists of a vast portfolio of more than 50 smart services across tourism, environment, mobility, utilities, buildings, administration, security, public realm, retail, logistics, health care and education.

The smart services will be interlinked and integrated with a unified user experience. The aim is to enable a personalized visitor journey with a frictionless arrival and departure process, effective management of assets and facilities, fully integrated security and site operations, cashless payments and touch free experiences. Visitors will be provided with a one-stop-shop for the entire journey.

Positive ecosystem impact

At TRSDC, we aim to leverage technology to improve the lives of our visitors and residents as well as to monitor and enhance our environment.

Ahmed Aalem Head of Strategy

RED SEA SMART DESTINATION VISION Exclusive endto-end visitor experience

Our seamless visitor experience extends beyond solely embedding the necessary digital solutions during customers’ visits. In fact, it is initiated upon a visitor’s first encounter with The Red Sea Project until their departure.

Highest standard of residential living

State-of-the-art intelligent technology infrastructure

Our smart touristic and resident services apply to other groups such as residents, employees and businesses through a wide array of applications, portal and social community smart services. This single interface provides access to city-wide customer services and alerts users of traffic congestion, fires or other threats.

Through augmented reality and virtual reality, our exclusive travel guide presents information of interest to potential travelers in an attractive and inviting manner, accessible before and during their visit to the destination.

Upon arrival at the destination, visitors benefit from our digital experience through biometric technology installed across our borders. The biometrics are integrated with law enforcement systems to identify visa verifications, watch lists and entry/ exit registration. Our automated hotel check-in and check-out provides unobstructed walk-through with zero waiting queues.

Furthermore, the smart destination will provide integrated, interdisciplinary ecosystem observations to help monitor the environment and enhance visitor experience opportunities.

Building Strong Partnerships Communications and Information Technology Commission (CITC) Our agreement with CITC aims to advance communications and information technology services we offer on par with the aspirations of Saudi Arabia and its Vision 2030.

We are working to confirm that our projects are compatible with the Communications Act, its bylaws and any additional relevant decisions made by the Commission. The Commission will provide TRSDC with support and assistance in line with its role as the regulator of the communications and information technology sector in the Kingdom of Saudi Arabia.

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Unrivaled Experience

Our smart luggage management enables tracking travelers’ luggage throughout the entire luggage life cycle and shares the information with the traveler in real time for enhanced security. Visitors are provided with smart wearables during their accommodation to enable secure payments.

A Unique Experience for Everyone We aim to extend our experiential offerings to all our visitors, particularly those with special needs and health conditions. We will leverage augmented and virtual reality to offer our visitors a once-in-a-lifetime experience of swimming with turtles from the comfort of their rooms.

TRSDC Sustainability Report 2020

To elevate visitor convenience, The Red Sea Project Smart Lagoon Navigator helps nonprofessional pilots navigate their boats safely in the lagoon area through a dedicated mobile app.

It shows the pilot the navigation channels in the lagoon area as well as the location and movement of the boat.

Wearable Technologies We aim to utilize wearable technologies to replace conventional plastic cards that are traditionally used to access hotel rooms.

Our wearable wrist solution will allow tourists to access their room and pay for their food and beverages, while keeping track of their children’s whereabouts to enhance parents’ sense of safety.

Unrivaled Experience

Customer Health and Safety

The health and safety of our visitors will be at the forefront of providing an unrivaled experience. Although we are yet to welcome visitors, we are planning to provide a destination that safeguards customer health and well-being.

Our customer health and safety practices are governed by our health care strategy that covers our mission and action plans.

The health care strategy will enable us to cater to tourists, citizens, employees and neighboring residents.

We plan to provide primary and partial secondary health care across the destination in partnership with a medical facility operator.

Our medical facility will be designed to accommodate 82 hospital beds, covering an area of 20,000 square meters,

Customer Privacy

As a smart destination, the use of digital technology will be ubiquitous. While this will enhance and create a seamless visitor experience, we recognize that it creates risks. A Data Management Framework for The Red Sea Authority is currently being prepared and a Data Management Office will be established to verify that data privacy is governed in line with local regulations and international standards.

We have a dedicated Cybersecurity team responsible for maintaining the security of TRSDC’s data and technological assets, complying with the national mandates - such as those set by the National Cybersecurity Authority (NCA) and other leading international standards. We are currently working toward implementing a robust cybersecurity system to safeguard customer data.

The compliance with NCA’s Essential Cybersecurity Controls covers technology implementation, policies, procedures,

Zero

Down-time achieved

by IT department

94%

Compliance with the National Cybersecurity Authority’s (NCA) Essential Cybersecurity Controls (ECC -1:2018)

23

Cybersecurity awareness emails were circulated

Two

Anti-phishing campaigns were conducted

introducing new workflows and educating senior management and employees about the changes before rolling them out. With The Red Sea Project being a pioneer in capitalizing on latest technologies and smart destinations, it is pivotal that all the Cybersecurity domains are covered.

to serve the population around the vicinity of the destination, including visitors.

The hospital will be in the Coastal Village with a network of smaller clinics on the islands to respond to emergencies and to provide basic health care services around the destination.

As a luxury destination with an emphasis on sustainability, we take a holistic approach to improve the quality of life and promote healthy living for those at The Red Sea Project as part of our strategy for sustainable living.

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Sustainable and Smart Destination Destination Creating a Sustainable

TRSDC Sustainability Report 2020 TRSDC Sustainability Report 2020

Creating a Sustainable Destination

Our design, construction and operating principles are grounded in sustainability in its fullest sense. Our masterplan is informed by the marine spatial planning simulation and modeling the environmental impact of developing and operating the destination through a value driven approach. We will leverage next-gentechnology to support the development of our sustainable destination.

Creating a Sustainable Destination

Assets to be delivered in Phase One

Desert Rock Resort

The Red Sea International Airport Ummhat Alshaikh Resorts

Shurayrah Resort

Construction Village Coastal Village Southern Dunes Resort

Building Design and Construction Transportation

Sheybarah Resort

Safeguarding the Environment Horticulture

Our work at TRSDC embeds sustainability considerations across the planning, design and construction of our regenerative tourism destination.

We are continually breaking new ground through innovative construction techniques by applying science and technology to help guide the development in ways that both conserve and enhance the environment.

We have partnered with leading architects, designers and scientists to help us transform our vision to reality and breaking new ground, every day.

This is a pivotal moment for us as we seek to build a new kind of tourism destination in Saudi Arabia, aligned with Vision 2030.

We are committed to pushing the boundaries of what it means to be sustainable and investing heavily in renewables, water conservation and re-use to set new standards in sustainable development.

John Pagano CEO

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Creating a Sustainable Destination

Building Design and Construction

100%

20

75%

25%

62%

71%

Asset designs applied for sustainability accreditation

LEED Buildings Accreditation

MOSTADAM Green Building Accreditation

Off-site manufacturing ratio in hotels (cumulative)

In 2020, we completed the construction of the residential complex for the construction labor force along with the management village - TRSDC’s Base Camp for on-site project management. Teams located at our Base Camp continue to oversee the construction of roads, jetties and a bridge connecting the hub island to the shore.

We have excavated five million m3 from airport landside and over 1.5 million m3 of compacted fill has been placed on the runway and other areas. Throughout the year, we awarded several contracts for the completion of the power, water and sewage treatment facilities which are prerequisites for the construction of our main buildings.

Our progress thus far has seen the completion of the first 60 km of network road and the building of the Green Concrete Factory, Waste Management Center and Central Medical Facility. The progress could only be achieved through the commitment of our 5,900 construction and on-site consultants working alongside 200 of TRSDC’s personnel.

We are currently progressing in the construction of

With over 1,500 pieces of major construction plant and equipment on-site, we have substantially progressed earth works, as well as, raising the land for our Coastal Village to a height of four meters to protect against sea level rises and storm surges. As people are at the heart of TRSDC, we are currently building the central hub for employees – the Coastal Village – which has realized 50% completion of land-raising works, with more than 330 trucks delivering over 25,000 m3 of earth fill each day.

TRSDC Sustainability Report 2020

71 buildings of the Coastal Village comprising 18 professional accommodations of either single or doubles beds, in addition to

40 hospitality staff accommodation, 13 studio apartment buildings and 200 villas and townhouses.

We aim to achieve the United States Green Building Council (USGBC) accreditation of the Leadership in Energy and Environmental Design (LEED) for Cities and Communities (Plan and Design) of Masterplan Phase One.

Number of sustainability accredited asset designs

Off-site manufacturing ratio in residential areas

The Red Sea Project was designed following stringent sustainability goals, which aims for a 30% net conservation benefit by 2040. As the entire project is underpinned by this commitment, we are implementing innovative construction techniques to minimize our environmental footprint during the construction phase.

Ian Williamson Chief Project Delivery Officer

During the year, we have worked with the USGBC to achieve certification on several buildings on-site, including 15 hotels, an international airport and staff accommodation buildings.

The achievement of such accreditation is on par with our goals of lowering carbon emissions, creating a healthier environment and striving to improve the quality of life for our residents.

Creating a Sustainable Destination

Living by Our Principles

Green Concrete

Site Selection

Offsetting development impacts and applying the precautionary principle to minimize disruption to sensitive terrestrial or marine habitats and wildlife The building and construction of the destination is guided by our site selection principle to offset development impacts on sensitive terrestrial or marine habitats.

We aim to conserve land value, conserve and restore ecosystem functions, and provide a sustainable transport system that supports community connectivity and promotes well-being and accessibility to local services.

These commitments form part of our reporting requirements and drive us to follow our principle through applying these considerations: Preference to areas near planned pedestrian, bicycle, and transit networks Preference to site location that does not encompass critical habitat; if the site is required to be developed near critical habitat, mitigation measures will be implemented during design and construction Diversion of development to sites that do not pose risks to terrestrial, marine habitats or threatened and endangered plant and animal species Design that mitigates potential disturbance to terrestrial and marine habitats including light and sound pollution Design that allows species connectivity (habitat corridors) throughout the site

We have partnered with Al Falah Ready Mix for the supply of green concrete characterized by low-carbon concrete using recycled raw materials to meet existing and upcoming project demand while adhering to our environmental sustainability goals.

An estimated 700,000 m3 of concrete will be required for the initial construction work at the destination, which includes accommodation for 10,000 workers, a management hotel, residential buildings, utilities and infrastructure. The manufactured concrete is designed to withstand up to 100 years of weather conditions in the region.

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Creating a Sustainable Destination

Transportation VEHICLE FLEET

Airside Vehicles

Off-road Leisure Pursuit Vehicles

Vertical Take-off and Landing Aircrafts

E-bikes

Facilitating mobility is fundamental to creating an accessible and operationally efficient destination. Our land, sea and air transportation modes are guided by our multi-modal transit networks as part of our site selection principle.

The principle portrays the necessity for developing a sustainable transport system that supports and enhances community connectivity while promoting walkability and the use of sustainable electric vehicles, to reduce the use and need of private vehicles.

Maintenance Vehicles

Buses

Vans

Helicopters E-vehicles

Cars

Boats

Trucks

Passenger Ferries

Golf Buggies

Seaplanes

To achieve our sustainable transportation commitment, we commenced a comprehensive analysis of the total land, sea and air transport requirements for the development and operation of the site.

The analysis will form the foundation for our planned destination-wide clean mobility strategy that will cover the assessment of a vehicle fleet and infrastructure requirements for electric and hydrogen vehicle charging hubs.

Embarking on such an initiative is in line with our commitments of powering the destination with

100% renewable energy via solar and wind power and becoming a carbon-neutral destination.

As part of establishing transportation infrastructure, we plan to construct 77

km of roads, including a 10 km highway, a 13 km airport access road, interconnecting roads and an access road connecting the main hub islands.

TRSDC Sustainability Report 2020

Creating a Sustainable Destination

Airport Operation

Sustainable Transport Planning

Living by Our Principles Green Certification

Attesting the quality and design of assets for their sustainability performance Our green certification principle is the key driver behind our desire to validate our efforts. By achieving certifications in line with global leading practice standards for sustainability, we will provide our stakeholders with confidence that we are living up to our commitments on sustainability.

We are committed to deliver The Red Sea Project’s state-of-the-art airport to provide a seamless visitor experience. We appointed daa International as The Red Sea Project’s airport operator. daa International will provide airfield and terminal operations, aviation services, facilities management and commercial activities, as well as corporate and financial services.

As part of our commitment to become a carbon neutral destination, we appointed Mott MacDonald to provide consultancy services to determine the optimal sustainable vehicle and fleet configuration at the destination and deliver a green mobility plan. A robust analysis of the total land, sea and air transport needs will be conducted for the development and operation of The Red Sea Project, from its opening in 2022 to its completion in 2030. A destination-wide strategy will be built around clean mobility using electric and hydrogen vehicles, boats and aircrafts.

As our approach evolves, we may identify new or additional certification standards to meet. Currently, we have identified the following green certification schemes for the asset types under construction and those yet to be developed: Buildings • LEED v4 Building Design and Construction – Platinum/ Gold Golf Courses • Audubon International Signature Sanctuary Beaches and Marinas • Blue Flag (Compliance only)

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Creating a Sustainable Destination

Safeguarding the Environment At TRSDC, our approach to creating a regenerative tourism destination entails placing the natural environment, its conservation and enhancement at the center of The Red Sea Project’s development approach to ensure the overall value we want to create. At the onset of planning the development of The Red Sea Project, we initiated studies of the natural and social environment and the existing conditions of the site.

The foundational studies informed our understanding of the marine, terrestrial and human ecosystems that will influence the development of the site.

Setting new standards of sustainable development entails that we pro-actively address the challenges of climate change, biodiversity loss and land degradation. While these global challenges pose risks to the development of our site, they also present opportunities to demonstrate innovation in reconciling tourism, conservation and development through adoption of technology. Environmental conservation and enhancement will be enabled via monitoring and advanced data analytics underpinned by a state-of-the-art technology infrastructure.

Across energy, water and waste management, we are implementing strategies and setting targets for the reduction of emissions, effluents and waste, and for adhering to compliance with the applicable standards and regulations.

For further details and information

Understanding the Potential Environmental Impacts TRSDC, in partnership with KAUST, carried out an ESIA of The Red Sea Project’s Concept Masterplan in 2019 to further inform the design process.

A key stage within the ESIA process was the collection of preliminary baseline information on the environmental and social conditions at the site. The information was collected through surveys and documentation of biodiversity, marine ecology, sea water quality, air quality, water resources and hydrology, climate, land-use, socio-economic conditions of communities, archaeology and cultural heritage, and waste management practices. Through the ESIA process, the relevant and applicable legislation, policies, performance standards and international conventions were also documented.

The ESIA process at the Concept Masterplan stage identified the potential impacts on key habitats, species and Valued Environmental Receptors arising from The Red Sea Project.

These impacts could be further reduced during the detailed design stages through assignment of appropriate and prioritized mitigation and enhancement measures. Considering the sensitivity of the receiving environment, the residual significant impacts that were identified were mostly related to marine ecology or sea water quality.

Through the ESIA process, it was determined that the detailed design stages of the islands’ development should respect the buffer zones established in the Concept Masterplan, implement the proposed mitigation measures, and consider layout modifications or relocation to reduce direct impacts.

In addition, detailed ESIAs will be produced at the programs and assets level. These ESIAs will present the Framework construction environmental and social management plans, according to which contractors will develop detailed plans to manage potential disturbance to the receiving environment and socio-economic activities in The Red Sea Project’s area.

TRSDC Sustainability Report 2020

Our concern for environmental protection, conservation and enhancement is embedded across every aspect, from destination planning all the way through to welcoming our guests in 2022. At a base level this includes a commitment to 100% renewable energy and carbon neutrality, as well as a ban on single-use plastics, waste management, green mobility and sustainable food production.

Dr. Rusty Brainard Chief Environment Officer

Creating a Sustainable Destination

Our Value Driven Approach Environmental and socio-economic value creation is a core tenet of TRSDC and its aspiration for The Red Sea Project.

To assist this tenet, we have created a bespoke approach to ecosystem services known as the Value Driven Approach (VDA). The VDA integrates assessment of environmental and social considerations into design outcomes to embed conservation and enhancement as criteria for the long-term functionality of an asset.

For instance, on Shurayrah Island we have built the VDA to account for key ecological aspects that are now integrated into the island masterplan. From the masterplan, design guidelines will be shaped to inform how each of the assets within this world-class, multi-use development can be designed constructed and operated. This approach will help achieve the objectives of minimizing negative impacts on the environment, valuing ecosystem health and connectivity, and enhancing biodiversity within our development.

On the socio-economic front, we have developed a stakeholder engagement plan for one of our future visitor zones – Desert Rock – and we are in the process of conducting a site-wide archaeology survey, with additional

plans to conduct a social baseline survey. Similarly, we will apply the VDA to understand the results of stakeholders’ surveys and assessments and, thereby, identify mitigation and enhancement measures for the benefit of the local communities and economy.

Our VDA guides and informs design considerations through translating the results of assessments into actions and guidelines for the sustainable development of The Red Sea Project. We have created a design rationale that fosters both a short- and long-term appreciation of how the masterplan and related assets could lead to key environmental and socio-economic enhancements, rather than a mere focus on the minimization of negative impacts resulting from development.

At the level of operations, we take pride in the unique approach we have adopted for the development of this destination. Our VDA represents a defensible and science driven program helping integrate globally significant content, such as ecosystems services, into our regenerative tourism philosophy.

TRSDC is creating a model of sustainable development based on ecological enhancement. Our Value Driven Approach is quintessentially aligned to our ethics of regenerative tourism and is raising the bar by creating new industry standards beyond what we understand today as sustainability.

Raed Albasseet Head of Corporate Environment and Sustainability

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Creating a Sustainable Destination

Marine Spatial Planning In partnership with KAUST, we developed a Marine Spatial Planning simulation, utilizing a model to assess the impacts of development and set the foundation for the conservation and enhancement of the environment of Al Wajh lagoon.

The lagoon’s habitats were classified into 27 types and mapped through a combination of remote sensing, in situ ground truthing and biodiversity assessment surveys.

Using the model, we investigated multiple uses of the marine environment and how these uses interacted with vulnerable species and their habitats. The uses comprised energy and utilities, recreation, conservation, transportation and shipping, and aquaculture. We examined five conservation scenarios to detect the priority areas that require protection as per our conservation objectives and targets.

An interdisciplinary, multi-stakeholder team was assembled to explore the scenarios and associated potential impacts.

These scenarios enabled the creation of a three-layer conservation zoning scheme, supported by actions to remove existing pressures and generate net positive conservation outcomes. The results led to the reconsideration of the locations of some developments in order to avoid potential negative impacts.

The Marine Spatial Planning exercise informed our masterplan and inspired ideas for habitat protection and enhancements to the coastal development to increase its conservation value.

TRSDC Sustainability Report 2020

Creating a Sustainable Destination

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Creating a Sustainable Destination

Energy and Emissions

In line with our development ambitions and in alignment with Vision 2030, we have made a commitment that The Red Sea Project will be carbon neutral. We are presently exploring various options to sequester large amounts of carbon dioxide each year by adopting large-scale Marine Microalgae Production Farms, enhancing biologically-diverse habitats, adopting naturebased solutions for removing carbon and direct air capturing.

The Red Sea Project will be powered by 100% renewable energy to be the largest off-grid renewable energy systems in the world and the world’s largest tourism destination to be powered solely by renewable energy.

The Red Sea Project will include an interconnected solar, wind and energy storage system - the world’s largest battery storage facility with a capacity of one gigawatt will be built as part of the package. The size and scale of our battery storage facility will put The Red Sea Project at the forefront of the global transition toward carbon neutrality.

TRSDC Sustainability Report 2020

In 2020, we signed a PPP contract in a 25-year commitment that includes the delivery of sustainable energy to power the assets of Phase One of The Red Sea Project. Through this PPP, we expect to generate up to 650,000 megawatt-hours of 100% renewable energy to supply the destination and other utility systems over the course of the concession agreement. We will commence designing and constructing the Sustainable Energy Network in 2021.

The key challenge lies in designing a Sustainable Energy Network on a large-scale project that will be developed over 28,000 square kilometers from the ground up, with no preexisting infrastructure in place.

Our planned smart operational services will include a smart electric grid and metering designed to track utility consumption and share consumption information through communication technologies.

Net zero

carbon emissions

100%

Powered by renewable energy

Building Strong Partnerships Ministry of Energy (MOE) We collaborate with the MOE to support our efforts to achieve a circular carbon economy.

Creating a Sustainable Destination

Living by Our Principles Energy Efficiency

Targeting net zero carbon emissions over the lifetime of The Red Sea Project Greenhouse Gas Emissions

Targeting net zero carbon emissions for the building assets and incorporating innovative carbon sequestration technologies Our energy efficiency and greenhouse gas emission principles are the key drivers behind our approach to energy and emissions management. To this end, we prioritize maximizing energy efficiency and minimizing climate change impacts across TRSDC projects by meeting and exceeding applicable requirements, such as those of the Kingdom of Saudi Arabia’s Energy Code, and existing global standards, such as LEED. This entails identifying and acting on opportunities to maximize energy recovery

through innovative technological solutions, such as energyfrom-waste, and selecting refrigerants and insulation materials with low global warming potential, such as chlorofluorocarbon-free (CFC-free) blends.

We employ a systems-based approach to asset design and operations. This starts with designing low energy demand assets and ends with leveraging building energy management systems to optimize operations. Projects that will be commissioned by independent third parties shall confirm energy efficiency measures and their effectiveness.

For cooling equipment and plants, refrigerant systems shall be monitored for leakage and maintained regularly following supplier specifications, while insulation shall be manufactured with CFC-free materials.

We seek to maximize electric carriers on both land and sea.

We aim to transition transport carriers in-use to renewable, zero-emission, electric propulsion technologies. We have initially identified biofuels as an acceptable option. However, promoting walkability in combination with a sustainable transport system that enhances community connectivity is preferred.

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Creating a Sustainable Destination

Water and Effluents

We prioritize the management of water consumption to achieve our near-zero water discharge target and meet or exceed compliance against our masterplan commitments and green certification requirements.

In line with our water strategy, we have structured our water management approach around four categories:

01

02

03

04

Sourcing of water for construction from legal and managed resource points by our contractors remains a challenge. TRSDC issued instructions to contractors to only use water sourced from Saudi Arabia’s Saline Water Conversion Corporation (SWCC) where TRSDC signed a contractual agreement with SWCC for the provision of up to 5,000 m3/day. To support The Red Sea Project, TRSDC has provided potable water collection points across the site.

We considered the use of appropriate groundwater wells and we are in consultation with the relevant authorities for the temporary use of groundwater during the construction of the airport.

Near-zero

water discharge Meet or exceed compliance against our masterplan commitments and

green certification requirements

Building Strong Partnerships KAUST

Potable

Irrigation

Stormwater

Wastewater

The Red Sea Project’s potable water supply will be generated from an on-site sea water reverse osmosis desalination plant that will be fully powered by renewable energy.

In 2019, we started to build a 12,500

desalination plant that will be

m3/day

commissioned in 2021, with additional supply capacity to come online in 2022-23.

Our wastewater will be treated and used as Treated Sewage Effluent (TSE) for irrigation. We are in the process of designing and building the TSE network and infrastructure to be completed in 2022-23. In 2020, we commenced the construction of a wetland that will receive TSE. Design and construction will continue into 2021, and in 2021-22 the wetland will start providing water for irrigation. Stormwater will be captured and managed with near-zero discharge to the lagoon area.

TRSDC Sustainability Report 2020

To further extend our consumption management endeavors, we intend to employ a smart water system to perform daily customer meter readings and identify water leaks.

Additionally, our smart water irrigation solution will enable the efficient irrigation of The Red Sea Project-wide green areas by conducting real-time measurements of water levels, moisture in soil and computing the exact amount of water required.

Population growth, economic development and rapid urbanization in areas with little fresh water have led to a rise in the use of desalination technologies to meet growing demand.

However, the effluent at the end of the desalination process is brine, a highly concentrated saline discharge. The Middle East region has the highest concentration of desalination plants and produces over half of global brine discharge.

Managing the disposal of brine discharge is a long-standing environmental challenge that continues to face the scientific community. At The Red Sea Project, identifying a sustainable solution for this effluent is key to uphold our commitment to achieve 100% wastewater re-use.

Our MoU with KAUST provides collaborative opportunities in the areas of applied research - marine sustainability, food production sustainability, waste management systems, energy conservation systems, smart destination, guest experiences - exchange of personnel, access to facilities and fund innovation.

Building upon the MoU, in 2020 we signed a Master Research Agreement (MRA) between KAUST and TRSDC to guide and provide mechanisms for collaborative research and development. Areas of research include: marine ecosystem assessment, monitoring, and habitat enhancement; circular carbon economy and carbon neutrality; water desalination and brine discharge: waste management systems; sustainable food production; artificial intelligence and data management, and other research and development activities. We’ll be developing a joint TRSP-KAUST Marine Lab and Coral Conservation Center to support long-term marine ecosystem monitoring and research to inform successful implementation of the ambitious environmental conservation and enhancement objectives.

Creating a Sustainable Destination

Living by Our Principles Water Consumption Management

To address the Brine challenge, we launched the Brains-forBrine Challenge in 2019 with the support of KAUST’s Water Desalination and Reuse Center. The initiative offered academics, scientists, engineers and water industry experts an opportunity to contribute to finding alternative uses for brine discharge that are both sustainable and commercially viable.

In November 2019, we selected three winners of the Brains-forBrine Challenge during the Aquatech Amsterdam International Water event. Each winning entry received 10,000 USD to fund their research. Winning ideas will be developed further in partnership with TRSDC for potential pilot projects and eventual commercial application with TRSDC acting as the lead investor.

Targeting near-zero water discharge by focusing on water efficiency strategies Our water consumption management principle is the key driver behind our approach to water management.

We prioritize maximizing water use efficiency by optimizing systems and processes to conserve water through effective demand management. Through the implementation of integrative design, we seek to consider the life-cycle impacts in the extraction, processing and discharge of water.

Our 2019 Brains for Brine Challenge Winners First place: ”Molding the Future with Salt” by Sebastian Castano, Shihan Lou, Indah Puspita and Nouran Bahgat (Wetsus Academy in the Netherlands) Second place: Red to Dead – “Brine Saves the Dead Sea” by Sarah Almahfoodh and Professor Noreddine Ghaffour (KAUST) Third place: “Valorisation of Brine using Pellet softening as Pretreatment” by Maria Nava Ocampo (KAUST)

From the onset and throughout the life-cycle of The Red Sea Project we acknowledge that each development has a role to play in delivering on our water-based commitments. As such, each development must provide water strategies to demonstrate how it will achieve the following: Near-zero water discharge Compliance against our masterplan commitments and green certification requirements While meeting the above, each development must provide evidence, such as compliance and commission reports, material approvals, technical feasibility report and construction performance reports, at the end of construction.

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Creating a Sustainable Destination

Waste

Zero

Solid waste to sea

31 tons

Weight of waste removed from target areas

Minimize waste to landfill during construction through implementation of sustainable waste management

Zero

Single-use plastics

Zero

Solid waste to landfill during operation

2.4 km

2

Total SEZ areas cleared from waste

We leverage the waste hierarchy by prioritizing waste prevention, followed by re-use, recycling and other recovery options, such as energy-from-waste technology, before disposal. This approach ties in with our commitments to achieve zero solid waste to sea and zero landfill disposal during operation, in addition to zero single-use plastics and minimize waste to landfill during construction through implementation of sustainable waste management.

To meet the environmental standards envisioned for The Red Sea Project, we awarded a solid waste and sewage collection management services contract in 2020. The contract covers collection and recycling of solid waste generated by administrative offices, residential facilities and construction activities. Currently, sewage from The Red Sea Project site is collected and transported via tanker to a sewage treatment plant until the construction and commissioning of the temporary sewage treatment plant on-site are completed.

Our Solid Waste Management Center We have completed the construction

of our solid waste management center at The Red Sea Project site,

which is scheduled to begin operations in 2021.

The center will handle the waste generated from the construction phase including municipal solid waste.

The center is expected to process 10 tons/hour of municipal solid waste and 40 tons/hour of construction and demolition waste, to incinerate 100 kg of waste per/hour, and to compost 10 tons of waste per day.

At these rates across our primary waste streams, we intend to meet our waste diversion commitment for the construction phase. The waste management center has been designed with its future expansion in mind to accommodate waste quantities that will arise from operations in the next phases.

Following segregation, recyclable materials from the municipal and construction and demolition waste streams will be transferred to other sites for further processing or used on-site as fill material on The Red Sea Project site. Organic-rich waste and food waste will be converted to compost using in-vessel technology.

The compost will be used for The Red Sea Project’s landscaped areas and in our nursery. Non-recyclable waste will be incinerated using clean incineration technology to generate ash that will be mixed with cement for the production of bricks.

Living by Our Principles Solid Waste Management

Targeting zero solid waste to landfill, as well as zero single-use plastics during operations, minimize waste to landfill during construction through implementation of sustainable waste management Our solid waste management principle is the key driver behind our approach to waste management. To this end, each development within The Red Sea Project is required to produce a set of waste management plans and strategies during the design stage, outlining how the development will: Zero solid waste to landfill during operation Prevent waste from reaching water bodies Avoid single-use plastics during operation Present intended sustainable procurement practices Avoid hazardous waste generation during construction and operation Embed suitable recycling and recovery infrastructure within site boundaries Before construction commences, each development is required to produce a construction waste management plan at the end of the design phase, which must be updated on a quarterly basis thereafter as a minimum and also when required.

By requiring and monitoring the implementation of these strategies, TRSDC will be able to meet its wastebased objectives.

TRSDC Sustainability Report 2020

Creating a Sustainable Destination

Marine Debris Clean-up Program As part of #ACT4SDGs and in line with our desire to support Ocean Conservancy’s fight for trash-free seas, we launched the Sustainability Stewards Initiative to lead efforts to locate and remove marine debris from our vast coastal shorelines. Through this program we are supporting the local population with paid work and providing educational opportunities that highlight the importance of minimizing the use of single-use plastics and disposing of waste materials in a sustainable manner.

Supporting several of the UN SDGs, our Sustainability Stewards Initiative is a long-term undertaking to protect the environment at our destination from the impact of marine debris, while supporting local communities.

Creating a Greener Office Since 2019, we have rolled out a series of initiatives within our Corporate Head Office to reduce resource consumption and waste and contribute to a healthier working environment.

As part of our green office initiative we have:

Limited the use of disposable cups and started recycling coffee capsule10 Started using rechargeable batteries Joined the HP Planet Partners Program to recycle toner and ink cartridges Placed paper receptacles for recycling throughout the office Replaced plastic plates with eco-friendly alternatives Introduced plants and green walls Lighting control 10 The use of disposable cups has been reintroduced on a limited scale due to COVID-19 safety measures.

Our approach moving forward rests on five pillars helping to guide us as we identify new opportunities: Waste and recycling Paper, printing and office supplies Food, beverages and dishware Energy and water use Sustainability planning and leadership

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Creating a Sustainable Destination

Biodiversity

Achieve a

net positive impact on biodiversity

27%

Completion status of assessment of areas suitable for habitat enhancement

The assessment of critical habitats was based on five criteria following the International Finance Corporation (IFC) Performance Standards (PS) guidance:

As The Red Sea Project is located in an untouched environment, it is TRSDC’s responsibility to safeguard the terrestrial and marine ecosystems, achieve a net positive impact on biodiversity and embed sustainability aspects throughout the design, planning, construction, delivery and operation of The Red Sea Project.

We aim to deliver a net positive conservation benefit of up to 30% increase in conservation value through enhancement and offsetting efforts related to marine and terrestrial biodiversity within the next two decades through enhancing biologically diverse habitats, such as mangroves, seagrass, corals and land vegetation.

We have embarked on a research journey with local and international research centers and universities to create opportunities for the enhancement of ecosystem services.

As part of ‘initial’ baseline environmental surveys conducted during the master planning phase, we identified two potential marine areas as critical habitats: • Al Wajh Bank which was identified as an Important Bird Area; and • The outer coral wall forming the lagoon and the interface of the Red Sea with the mainland

TRSDC Sustainability Report 2020

Criterion 1 Critically Endangered (CR) and/or Endangered (EN) species Criterion 2 Endemic and/or restricted-range species Criterion 3 Migratory and/or congregatory species Criterion 4 Highly threatened and/or unique ecosystems Criterion 5 Key evolutionary processes

The Red Sea Project area is known to contain: • The Critically Endangered Hawksbill Turtles and the Endangered Green Turtles, as identified in the International Union for Conservation of Nature (IUCN) Red List • A number of breeding bird species using the islands for feeding and breeding, and that are listed as species of High Conservation Priority • A wide range of species classified as vulnerable within the IUCN Red List including fish and marine mammals

Creating a Sustainable Destination

The ‘initial exploratory’ baseline surveys revealed the presence of the following natural assets:

Eight types of coral reef habitats distributed across the project site were identified. All coral habitats are considered important biodiversity hotspots and are subject to various environmental conditions such as currents, water salinity and temperature.

Two types of Endangered sea turtles: the Critically Endangered Hawksbill and Endangered Green Turtles were identified to have nesting grounds in 38 out of 49 islands that were surveyed so far, where 43 islands are yet to be surveyed.

Up to seven species of seagrass were identified inside Al Wajh Lagoon and along the coast.

Marine mammals were occasionally spotted, namely the Indian Ocean bottlenose dolphins and the IUCN Endangered Indian Ocean humpback dolphin, in addition to a potential sighting of the IUCN Vulnerable dugong.

Two species of mangroves (grey and red) and forests were found along the shoreline of islands and creeks in the inter-tidal habitats such as on Umm Rumah and Al Wajh Lagoon.

Mangroves could also extend into shallow water some meters away from the shoreline along the main coast.

Nearly all islands were found to be a very important nesting habitat for seabirds, mainly the white-eyed gull a Red Sea/Gulf of Aden endemic species and sooty falcon, which are both IUCN Near-Threatened species, in addition to other breeding birds such as Osprey, brown Booby, Goliath heron, crab plover, swift tern and Caspian tern.

Based on the available data from the surveys carried out so far, there is limited evidence that the terrestrial areas include the presence of Critically Endangered or Endangered species or endemics, as per the criteria of the IFC PS guidance. This does not preclude that few terrestrial habitats may be critical during peak breeding seasons. The terrestrial ecology survey detected the presence of bats, reptiles, small rodents, mainland birds, red fox, feral cats and several species of rats (house mouse, brow and black). www.theredsea.sa

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Creating a Sustainable Destination

Our planned marine ecosystem and wildlife population tracking, and monitoring system will allow the study of animal resources and ecosystem functions, to monitor changes and prevent exploitation of these resources.

Integrated, Interdisciplinary Ecosystem Monitoring and Observing System Coral surveys

Wildlife viewing cameras with geo-referencing

Satellite collars and tags

TRSDC Sustainability Report 2020

Embeddable radio-frequency identification

Global system for mobile communications

Air/underwater sonar and thermal imagery laser scanners, along with an artificial intelligence back-end cloud for marine patterns recognition analysis

Telemetry tags

Global positioning system

Creating a Sustainable Destination

Reducing Light Pollution to Support Biodiversity

Following the ‘initial exploratory’ environmental baseline of The Red Sea Project area and as part of our nature enhancement commitments, we will develop an iterative Biodiversity Action Plan (BAP) covering the marine and terrestrial ecosystems to offset the potential impacts on the marine environment and restore impacted land. Revisions to the BAP will occur on an annual basis, as updated information is collated and digested from ongoing marine and terrestrial field surveys.

Furthermore, we will develop The Red Sea Project Metrics system to assess and measure the effectiveness of the BAP and to monitor the environmental impacts resulting from The Red Sea Project on the baseline conditions.

We plan to follow the requirements of the IFC PS on Environmental and Social Sustainability by implementing a hierarchy of mitigation measures. Priority will be given to impact avoidance followed by minimization, restoration and then offsetting/compensation. The BAP process will address the need for No Net Loss for natural habitats and Net Gain for critical habitats through its development, implementation and monitoring procedures. We also plan to implement an Ecosystem-based management approach to balance ecological well-being with socio-economic well-being.

We will seek the active engagement and participation of relevant stakeholders, such as but not limited to national and international agencies, research institutes and regulatory authorities, through the development and implementation of the BAP.

We are seeking an international accreditation that protects our nocturnal environment and recognizes the threat of light pollution and the impact it has on the environment, such as the nesting of critically endangered hawksbill turtles. The International DarkSky Accreditation from the International Dark-Sky Association aims to position us as the largest certified Dark-Sky Reserve in the world, with an exceptional quality of starry nights and a commitment to protecting the nocturnal environment.

We have partnered with an international consultancy providing engineering, design and sustainable solutions to develop a lighting strategy that will provide enough lighting for safe movement around the site, while meeting the stringent International Dark-Sky Accreditation criteria. During the year, we recorded the baseline condition, surveying the existing lighting equipment and installation details on existing assets including building-mounted general lighting, feature lighting, landscape lighting and street lighting. In addition to recording the lighting condition, sky quality measurements will be made across the destination.

The combination of the survey information and measurements will provide a baseline condition of the quality of the existing dark skies that people experience and how existing lighting contributes to sky glow.

A Lighting Management Plan will be developed that will describe improvement works throughout the existing lighting at the destination and inform the lighting design for each of the new assets, including hotels, the airport and residential properties.

Turtle Tagging Sea turtles are an iconic species of The Red Sea, and we are committed to their protection along with all forms of marine life within The Red Sea Project area. We are working with KAUST to protect these endangered species and minimize disturbance to their habitat during the development of The Red Sea Project.

In 2019, we tagged and released

20 Green turtles using satellite tagging in Breem Island within The Red Sea Project area.

Moving forward, we aim to expand our turtle tagging program to tag and monitor

20 Hawksbill turtles.

Monitoring sea turtles’ migratory pathways, feeding and inter-nesting habitats represents an important step toward protecting these endangered species. From the first tagged group, we have learned that they collectively migrated over 9,740 km within the Red Sea. The tracking data has led to the identification of key habitats that are highly valuable to conservation planning.

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Creating a Sustainable Destination

Environmental Compliance

Zero

We conducted in 2020:

20%

100%

Incidents of environmental non-compliance in 2019 and 2020

Completion status of a preliminary SEZ environmental emergency response plan

Complying with applicable environmental laws and regulations is important in upholding our commitments to protecting and enhancing the environment. We have instituted robust systems to track environmental non-compliance, consisting of an environmental investigation program to identify potential non-compliance issues through analyzing root causes and developing mitigation plans.

We conduct regular audits and identify how to integrate different requirements into our plans at the design phase with management. Management audits covered how requirements have been integrated into the design and site audits covered whether the design requirements are being adhered to.

In 2020, we conducted an Environmental Crucial Campaign to raise awareness on important environmental aspects which need to be constantly adhered to on site. We also instituted a Controls and Tasks Program to cascade a comprehensive set of environmental measures from the Corporate Environmental Compliance Department to the Projects Delivery Team to contractors.

TRSDC Sustainability Report 2020

In 2021, we will be developing and implementing an environmental compliance and monitoring program built upon management system compliance, oversight and assurance, and physical environmental monitoring. Overall, the program will establish a formalized approach and greater corporate ownership by TRSDC over process, data quality and issue rectification.

Building Strong Partnerships Ministry of Environment, Water and Agriculture (MEWA) We collaborate with the MEWA to regulate the ongoing environmental work and to monitor compliance at the destination, building on MEWA’s experience and guidance on the environmental assessments, in partnership with an independent third-party assessor.

Six environmental audits Three management audits Three site audits

of the corrective actions were implemented, surpassing our target of 60%

Environmental Compliance Program The Environmental Compliance Program seeks to meet TRSDC’s goal of minimizing the negative impact on the environment.

The Environmental Compliance Program is structured in a manner that allows us to align with leading international industry practices and the Kingdom of Saudi Arabia’s laws and regulations. Through this program we make certain that environmental compliance is achieved across corporate, delivery and contractor levels.

As a result of our environmental commitments, the Shurayrah Island Masterplan is now predicated on environmental guidelines related to ecosystem services under which the specific assets on Shurayrah Island will be designed and operated.

Creating a Sustainable Destination

Horticulture We aspire to provide locally sourced native seeds for large-scale habitat enhancement and restoration and revegetation projects within The Red Sea Project.

A team of 45

employees from the Umluj and Al Wajh communities underwent an intensive training program in gardening and landscaping to equip them

Landscaping

to operate the nursery.

As part of our commitment to enhance the environment and support biodiversity, landscaping The Red Sea Project plays an important role by providing essential ecosystem services. In 2020, we completed construction of one square kilometer of our nursery.

Further information on the Nursery Training Program is presented in the Learning and Development Section of the report.

Our nursery is one of the largest in the region and will provide more than

15 million plants

for landscaping by 2030.

Sustainable Food Production

50%

Completion status of preliminary sustainable food production plans We will propagate turfgrass for our championship golf course, hotels and residential properties. The plants grown in the nursery will be predominantly native species that are fully adapted to the climate conditions around the destination, both coastal and inland. Additional desert-dwelling species may be included, after ensuring that any introduced species will adapt and flourish with the local flora and fauna.

Within the nursery, there are six water tanks with a combined capacity of 108,000 m3 that are connected to an irrigation station and electrical operations room to control 20 pumps with a capacity of 95 m3/hour. The nursery site hosts four shade houses, covering an area of 125,280 m2. Precise irrigation control and targeted application of water will reduce the nursery’s dependence on desalinated water. Once the enabling infrastructure for the Phase One development is completed, TSE will be used for irrigation.

Building local supply chains is an important element for TRSDC to meet its commitments to support local economic development. Through local supply chain development, we are able to capitalize on opportunities for mitigating negative environmental impacts associated with transporting goods long distances to fulfill the needs of the development’s attractions.

To this end, we are working to support local food production systems that will provide high-quality, sustainably produced agricultural products. We have partnered with Red Sea Farms and KAUST to explore innovative solutions through efficient biosaline farming. We are identifying opportunities to sustainably farm seafood and exploring options to establish environment-friendly recirculating aquaculture systems to grow high-value seafood products for the destination. We find great promise in implementing circular systems to establish a local source of sustainably produced food over the coming years.

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Human Capital Development and Diversified Growth

TRSDC Sustainability Report 2020

Human Capital Development and Diversified Growth

Human Capital Development and Diversified Growth Employment Learning and Development Occupational Health and Safety Local Communities Tourism and Local Industry Development

The Red Sea Project will be a catalyst for a new tourism industry in the Kingdom of Saudi Arabia diversifying the country’s economy by attracting tourists as part of the Kingdom’s Vision 2030 plan. Grounded with strong local roots we aim through our development to simultaneously produce economic, environmental and social co-benefits for local communities.

We acknowledge that human capital is essential to inclusive economic growth and well-being. Building human capital is, therefore, critical for the country and our success. Employees are our greatest asset - with over 600 people representing 35 nationalities, we work toward providing a safe, inclusive, innovative and meritocratic work environment.

As a company dedicated to serving people, we aim to become an employer of choice by recruiting and retaining exceptional talent, promoting Saudization and supporting gender diversity. We are committed to cultivating a people-oriented culture where our primary focus is geared toward empowering our employees and enhancing their commitment to better serve our residents and visitors.

As a tourism development company, we aspire to continually increase our revenues, support local suppliers and employ local talent. Achieving those aspirations will support us in improving our contributions to the Kingdom of Saudi Arabia’s economic growth and development.

We believe The Red Sea Project will create as many as 35,000 direct jobs, as well as 35,000 indirect and induced jobs, while also contributing an estimated 22 billion SAR towards Saudi Arabia’s GDP once fully operational in 2030.

John Pagano CEO

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Human Capital Development and Diversified Growth

Employment At TRSDC, we aspire to increase the employment opportunities we offer and that are in compliance with the Kingdom of Saudi Arabia’s Ministry of Human Resources and Social Development Labor Law. We seek to safeguard our employees’ rights through adherence with the International Labor Organization and the United Nations guidelines that stipulate the importance of promoting trust, treating employees fairly and supporting their progress to drive a sustainable business.

These fundamental elements are embedded in our Code of Conduct and Labor and Human Resources (HR) policies, which clearly describe how we encourage a healthy work environment, how we safeguard the rights of our employees, and the minimum set of expectations required from employees.

The Labor and HR policies fall under the responsibility of the HR Division to annually visit and recommend improvements based on any amendments to the Kingdom of Saudi Arabia’s Labor Law. We communicate our policies through the employee handbook, provided to each employee as part of the induction program. We conduct regular awareness raising workshops to reiterate the company’s policies, procedures and requirements and to enable employees to voice any concerns or queries.

Information on employees and other workers

11

TRSDC Sustainability Report 2020

Breakdown by gender

All TRSDC employees are on permanent contracts and employed on a full-time basis

2019 Breakdown by nationality

331 314

184

2020

229

512 93 2019

2019 2020 Total number of employees11

Saudi Non-Saudi

133

645

645 people representing 35 different nationalities.

Male Female

320

In 2020, our workforce comprised

413

68

2020

Human Capital Development and Diversified Growth

Talent Attraction and Retention

We welcomed a total of 277

Total number of new employee hires during the reporting period

2020

New employee hires during the reporting period by gender

2019

154 19

104

41

58 189

230

2019

47

232

277

2019 2020

Under 30 30-50 Over 50

Male Female

56

Our HR policy guides our efforts at attracting qualified candidates to fill vacant positions using the most appropriate methods of sourcing, screening and selecting applicants in a fair, consistent, cost-effective and timely manner. We aspire to treat employees fairly and censure any unlawful discrimination, harassment or abuse of any kind. We employ candidates based on the principles of merit, fairness and equal opportunity, confirming that the most qualified and best-suited candidates are selected. During the year, we implemented an artificial intelligence software to automate the scanning of resumes in an effort to reduce potential unconscious bias around age, gender and race of job candidates and support our fair recruitment processes.

New employee hires 288

Attracting the right caliber of talent is pivotal to our success and applying the correct talent acquisition mechanisms is governed by our Talent Acquisition Policy, which forms a fundamental part of the HR Policy at TRSDC.

2020

New employee hires during the reporting period by age group

new employees

to TRSDC in part due to the benefits and initiatives we implement to

attract and retain talent.

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Human Capital Development and Diversified Growth

As people are at the heart of TRSDC, we are currently building the Coastal Village - the central hub for employees to live, work and relax - designed around the latest concepts in co-working and community living.

The Coastal Village is constructed with the objective of establishing leading practices for staff accommodation fostering comfortable homes for employees at the destination.

The Village will offer a range of amenities such as hospitals, schools and leisure facilities including fitness centers, cricket pitches, basketball courts, beach clubs and dining outlets.

The Coastal Village is expected to become home to the

14,000 employees who will operate the

destination by the end of 2023.

Programs to improve employee attraction and retention

Benefits provided to employees: • • • • •

Housing, repatriation and relocation Medical and life insurances Education allowance Well-being allowance Salary increments, bonuses and compensation for performance • Parental leave Engagement activities with employees: • Winter camp • The Red Sea Project site visit • Annual town hall meetings Appreciation Program: • Rewards program • Compensation for overtime

TRSDC Sustainability Report 2020

TRSDC Employee Benefits TRSDC employees benefit from medical and life insurance packages that provide leading class coverage of life insurance, physical health – including cosmetic surgeries, mental wellness, vision and dental insurance, covering dependents as well.

We also provide employees a well-being allowance to take care of their health and wellness. The allowance includes gym membership, fitness equipment, mindfulness courses, retreats, personal training sessions, meditation courses, life coaching, sleep therapy and personal finance advice.

Employees benefit from our educational allowance for up to four of their dependents between the ages of 0-22 years old who study at a recognized schools or pre-schools in the Kingdom of Saudi Arabia or their home countries.

Our overseas employees are provided a relocation allowance that covers the expenses of relocating from their home country.

Human Capital Development and Diversified Growth

Parental Leave In compliance with the Kingdom of Saudi Arabia’s Labor Law, female employees are entitled to 10 weeks of maternity leave, while male employees are entitled to three days of paternity leave.

PARENTAL LEAVE Male Female

Male Female

12

Male Female

12

8 4 1

5

4 1

2019

2020

Total number of employees that took parental leave

2019

4 1

1 1

2019

2020

2020

Number of employees that returned to work after parental leave ended

Number of employees that returned to work after parental leave ended that were still employed 12 months after their return to work

These benefits and ongoing engagement with our employees cultivate a sense of commitment demonstrated in the low turnover rates of 6% in 2019 and 7% in 2020.

TURNOVER 47

Under 30 30-50 Over 50

Male Female

39 25

22

8

3 2019 2020 Total number of employees leaving employment during the reporting period

2019

2020

Number of employees leaving the employment period by gender

15 2 2019

21 8

18

8

2020

Number of employees leaving the employment period by age group

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Human Capital Development and Diversified Growth

Diversity and Equal Opportunity

We promote diversity and equal opportunity, offering an inclusive work atmosphere regardless of one’s gender, age or nationality.

In 2020, we worked toward diversifying our workforce to include a talented pool of senior, middle management and staff across various age groups.

Under 30

30-50

Over 50

Breakdown of Senior Management by Age Group

Breakdown of All Employees by Age Group 18.2%

13.8%

22.5%

12.1%

1%

28%

0%

2019

2020

2019

2020

68.0%

65.4%

71%

72%

Breakdown of Middle Management by Age Group 18.4%

4.4%

12.8%

5.6%

2019

2020

77.2%

81.6%

TRSDC Sustainability Report 2020

28%

Breakdown of Staff by Age Group 52% 0%

55% 0%

2020

2019

48%

45%

Human Capital Development and Diversified Growth

Ensuing from our diversity commitments, we place emphasis on empowering our female employees.

Currently, female employees account for

21% of the total workforce.

Women holding senior management positions comprise 11%, an increase from 10% in 2019.

Male

Female

Breakdown of All Employees by Gender 77%

23%

2019

79%

21%

2020

Breakdown of Senior Management by Gender 90%

10%

2019

89%

11%

2020

Breakdown of Middle Management by Gender 76%

24%

2019

80%

20%

2020

Breakdown of Staff by Gender 55%

45%

2019

69%

31%

2020

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Human Capital Development and Diversified Growth

Saudization

We identify, attract and develop a talented national workforce by promoting the professional development of the local workforce and building the future human capital of the Kingdom of Saudi Arabia. We are progressing in the attainment of Saudization by pursuing initiatives and partnerships that provide Saudi citizen employees the opportunity to reach their full potential.

Saudi

Over 50% of our employees are Saudis, who have demonstrated their professional competency and commitment

to excellence.

Non-Saudi

Breakdown of All Employees by Nationality

45%

55%

51%

Breakdown of Senior Management by Nationality

49%

20%

80%

20%

80%

Building Strong Partnerships University of Prince Mugrin (UPM)

2019

2019

2020

2020

We have collaborated with the UPM to provide

120 scholarships for Saudi students to study for a Bachelor of Science degree in International Hospitality Management.

Breakdown of Middle Management by Nationality 55%

The degree is accredited by the Ecole Hôtelière de Lausanne, recognized globally as one of the most prestigious schools in its field. It is our ambition to support the accelerated pace of development in the Kingdom of Saudi Arabia through the creation of educational opportunities, suited to the requirements of a rapidly expanding tourism sector.

TRSDC Sustainability Report 2020

45%

2019

48%

52%

2020

Breakdown of Staff by Nationality 77%

23%

2019

88%

12%

2020

Human Capital Development and Diversified Growth

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Human Capital Development and Diversified Growth

Learning and Development In 2020, we were able to facilitate

526 Online training opportunities and 600 LinkedIn e-learning seats

94%

Overall training satisfaction

Our Talent Development Department aims to elevate the skills and capabilities of our employees at each level of their career path. We foster a working environment where continuous Talent Development is encouraged to support employees in their roles, improve motivation and enhance retention.

Our Talent Development programs are governed by the Talent Development Policy of our overarching HR Policy, ensuring employees have an equal development opportunity irrespective of their gender, civil status, religion, disability, age or race.

Our Talent Development Channels

The Talent Development Department is responsible for updating the Talent Development Policy annually and is responsible for following a rigorous Talent Development process to empower employees and support them deliver the company’s goals and objectives.

On-the-Job Training

Employee observing, receiving training from or being assisted by a colleague or peer with more experience in performing a task or job

In-House Training Programs

Courses, seminars, and workshops that are delivered by TRSDC Employees

Our training and development programs are delivered via distinct channels to meet the objectives and requirements of each training program.

E-Learning

Courses administered electronically, hosted online on the intranet or through other digital media, as applicable

Local/International External Training

Learning programs that are administered by institutions or specialized training providers locally, regionally or globally

Professional Certification Programs

Professional certifications and accreditation programs related to employee’s position/ job technical competencies and business requirements

Career Development Programs

Trainings to support employees at specific stages of their careers and prepare them for future roles

Executive Coaching

Provision of coaches to provide guidance and feedback to Executives to build self-awareness and support personal development and growth

TRSDC Sustainability Report 2020

Human Capital Development and Diversified Growth

At TRSDC, we offer various training programs to support our employees. During the year, through the PIF training program, our employees acquired skills in negotiation, financial modeling and project management via the following Talent Development programs:

To enhance local employment and in collaboration with Sakan, a local non-governmental organization, the Umluj Municipality and the University of Tabuk, we provided a Nursery Training Program involving:

40

Ground workers

216

Training hours

Five

Supervisors

144

Theoretical training hours

One

English course with a focus on horticultural terms

Negotiation and Influence

Project Management Professional

Emotional Intelligence

Financial Modeling Program - Beginner

Financial Modeling Program – Advanced

Finance for Non-Finance Professionals

Valuation Level 1

The pioneering Nursery Training Program emphasized the core skills needed for the nursery workers to narrow the skill gap between theoretical training and on-the-job experience, and therefore excel in their work.

As a trainee in TRSDC’s unique Nursery Training Program, I am proud of gaining the necessary skills and knowledge to embark on my upcoming journey as a full-time employee with the company, where I will be provided with the chance to directly implement all that I have learnt.

Ahmed Darwish Chief of Staff

Mohammad Ayid Almarwani Trainee

Valuation Level 2

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78

Human Capital Development and Diversified Growth

We offer a graduate training program to attract Saudi graduates to join TRSDC. Our Elite Graduate Program (EGP) equips eligible Saudi graduates with hands-on experience to prepare them for future jobs at TRSDC. Participants work alongside our multicultural teams and benefit from on-the-job-training.

The EGP program equipped me with hands-on experience and on-the-job -training that fostered my smooth transition to a full-time role at TRSDC. I am proud of being one of the young Saudis driving the development of a sustainable luxury destination.

Lena Abudawood Trainee

The Elite Graduate Program The EGP is based on the 70:20:10 Model, where 70% of training is conducted on the job, 20% comprises mentoring and coaching, and 10% focuses on classroom courses.

Our first EGP commenced in 2019 and resulted in hiring

29 Elites in our

current reporting year.

After the successful commencement of the first EGP graduates, we plan to launch the second EGP in 2021.

For further details and information

TRSDC Sustainability Report 2020

Human Capital Development and Diversified Growth

At TRSDC, we seek to embrace inclusion at the workplace through the training programs we offer.

In 2019, we provided an

Arabic Language Training Course for 35 non-Arabic speaking employees.

12,299

Training hours were delivered across all departments and divisions

Average training hours per employee per department

9.3

CEO Office

The Red Sea Authority

Internal Audit

Development

Legal

Marketing and Communication

Health, Safety and Environment

Corporate Environment and Sustainability

Strategy

Governance, Risk and Compliance

Chief of Staff Office

Human Resources

Cost, Commercial and Procurement

2.5

Decrease from 2019 primarily a result of COVID-19 pandemic.

Environmental Sustainability

12

Finance and Investments

Breakdown by employment level

Corporate Services

202012

Projects Delivery

7

11

41 2019

21

140 73

Senior Management Middle Management Staff

4.0

6.3

Breakdown by gender

9.4

11.0

12.5

202012

15.0

17.0

18.0

17.0

15 17 2019

22.0

21.0

20.7

70 93

24.0

25.0

Male Female

8.0

Average hours of training that TRSDC’s employees have undertaken

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Human Capital Development and Diversified Growth

Occupational Health and Safety

Safeguarding Our Employees To improve our occupational health services, we appointed ISOS to provide integrated medical and emergency response services for our personnel and contractors that include: Primary Care:

At TRSDC, we strive to create an incident and injury-free environment for those who work in or interact with our business operations. We achieve this through fostering an uncompromising safety culture where our people embrace ownership of the safety of themselves and others.

We have a dedicated Health, Safety and Environment (HSE) Department that is responsible for setting the highest possible standards; ensuring compliance with our robust Health and Safety (H&S) Management System and establishing departmental goals and objectives that allow us to create an environment where health and safety is integrated into everything we do.

Our occupational health and safety practices are governed by our H&S Management System, which has been designed in line with the legislative requirements that govern our business activities and is also aligned with international leading practices that promote the adoption of market leading H&S standards above and beyond statutory legal requirements. The H&S Management System is approved by our CEO and is subject to

TRSDC Sustainability Report 2020

an ongoing review process to keep it current and in line with the health and safety needs of the business.

In 2019, we developed and issued a Project Health and Safety Management Plan and Health and Safety Management Manual in line with the applicable national requirements and international guidelines.

• Care for acute illness and injury.

• Primary care monitoring of chronic diseases, with the ability to refer to an appropriate local medical facility for specialist care for workers with long-term chronic medical conditions.

• In-patient observation for up to 24 hours (Medical needs that require in-patient care that extend over 24 hours or specialist care will be referred and evacuated to an appropriate medical facility.)

• Pre-employment examination, periodic examination and exit medical examination.

Emergency Medical Services: • Medical response within the defined response targets.

• Marine and remote location response.

We are setting high standards of safety and health at our project in an effort to prevent potential critical work-related injuries.

Brian Spraker Head of Health, Safety and Environment

Occupational Health Services: • Pre-employment, periodic and exit examinations.

• Wellness services.

Human Capital Development and Diversified Growth

During the year, we improved our approach to hazard identification, risk assessment, incident investigation and overall contractor management, through the development of an organization-specific health and safety management system.

This system has been designed around the requirements specified in the ISO 45001:2018 standard for Occupational Health and Safety Management Systems.

All H&S processes are developed in accordance with the relevant legal clauses and requirements as identified in TRSDC’s Health, Safety and Environment (HSE) Legal Register ensuring it meets the applicable local statutory requirements.

We developed our H&S Management System in accordance with international standards and best practice models taken from the recognized and established H&S frameworks from around the world.

Our H&S Management System applies to all TRSDC assets that are under construction and to assets that have been completed and have moved into operations. It covers, and is applicable to, all TRSDC personnel, contractors, consultants, visitors and any affected stakeholders.

4,742

Workers covered by an occupational health and safety management system

1,456

We continually encourage everyone to refrain from any task that could jeopardize their personal safety and health, as explicitly communicated in our Incident Reporting and Investigation procedure, where it is stressed that the priority is to prevent injury to oneself and/or others. To confirm that risk assessments and hazard analysis remain robust and relevant to the risk profile of TRSDC, the HSE department continuously conducts risk assessment reviews. The data gathered during daily workplace inspections and site reviews is fed back into risk assessments and the overall Health and Safety Management System to keep current data in line with the changing risk profile of the business.

100%

Percentage of employees and other workers covered by an externally certified system

2019 2020 Number of employees and other workers covered by an externally certified system

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Human Capital Development and Diversified Growth

We cultivate an open and transparent approach toward identifying and communicating hazardous situations or conditions, where employees and contractors are recognized and rewarded when unsafe acts and conditions are reported. This has led to an organizational culture where all stakeholders feel empowered to be part of the solution when it comes to hazard management and rectification.

Despite the challenges faced during to the COVID-19 pandemic, our HSE department increased its headcount by 58% throughout 2020. TRSDC also launched a major drive to enhance HSE communications in 2020. Toolbox talks and HSE bulletins are developed daily and sent out to TRSDC employees and contractors to brief them on key health, safety and environmental topics. This has helped shape the organizational HSE culture and promote leading practices at site through this daily engagement with employees and contractors.

Zero fatalities

Target

Actual

Actual Lost Time Injuries

Target

Near Miss Reports

76 20

25

Target

Actual

John Pagano CEO Actual Emergency Drills

TRSDC Sustainability Report 2020

Target

100

Actual

115

COVID-19 presented some challenges for us but through the hard work of our employees and the support from our stakeholders, we managed to maintain momentum and remain on track to welcome our first guests by 2022.

OUR OCCUPATIONAL HEALTH and SAFETY KPIs - 2020

2.5

Annually, we set occupational health and safety KPIs and targets which we monitor at regular intervals throughout the year. During the year, we achieved and exceeded our targets set for 2020, which going forward will be developed further in support of our continual improvement process.

0.07

82

Life Crucial Audits

12 Target

Human Capital Development and Diversified Growth

Key HSE achievements

The marine jetties contractor celebrated two million man-hours without a Lost Time Incident (LTI)

The contractors responsible for the construction of the Coastal Village Housing achieved one million man-hours without an LTI

Excellence in Health and Employee Safety Award

The contractors responsible for the construction of the 10,000-person labor camp worked two million man-hours without an LTI

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Human Capital Development and Diversified Growth

Helicopter Medical Services

As the safety and welfare of our workers are of utmost priority, we appointed The Helicopter Company (THC) to operate a helicopter and provide a crew for Emergency Medical Services (EMS) and operational requirements.

This service allows aerial EMS support for our staff and construction workers throughout the vast and remote areas of our project sites ensuring a swift response is taken for any medical emergencies.

Our medical services provider works closely with THC to provide the necessary medical crew, equipment and support to seek an effective response is taken to all medical emergencies with the overall aim to preserve life.

Having the ability to rapidly respond to medical emergencies is a crucial component of our worker welfare program, as we expect to have up to 30,000 workers in multiple locations over a 1,000 square kilometers development area.

TRSDC Sustainability Report 2020

TRSDC Life Crucial Program

During the year, we developed and launched the Life Crucial Program. This program identified the key project specific hazards and risks that if not managed could lead to devastating consequences. This program also had the advantage of being able to promote a range of HSE related tools and indicators that are key measures of success.

The program was also established to promote knowledge sharing as well as educating contractors and project stakeholders on the key health and safety risks faced during the construction and operation of our assets. The program established a common framework for carrying out sitebased inspections and audits, which has helped influence best practice behaviors at site and create a scoring tool that is used to compare and rank contractors’ HSE performance.

Contractors’ support for this Program was evident through their cooperation and display of life crucial posters across the construction sites. Contractors also assisted in the translation of the rules into different languages to aid communications with their workforce.

The program has promoted health, safety and environmental awareness among TRSDC employees and contractors, which has had a positive impact on HSE performance at site. This in turn influences and promotes the adoption of correct behaviors by workers as they follow defined and common processes that can be transferred to future assignments.

Human Capital Development and Diversified Growth

Safety performance statistics Units:

Work-related injuries for all employees

Number

Rate

Work-related ill health

Zero fatalities as a

0 0

result of work-related injury in 2019 and 2020

2019

(Zero rate of fatalities in 2019 and 2020)

1 0.16

2020

Zero

fatalities as a result of work-related ill health in 2019 and 2020

2019

2 0.33

2020

Recordable injuries

2019

1,217,896

0 0

624,128

High-consequence (excluding fatalities)

Zero

cases of recordable work-related ill health in 2019 and 2020

2020

Hours worked

Work-related ill health

Work-related injuries for all workers who are not employees but whose work and/or workplace is controlled by TRSDC 2

Zero fatalities as a

result of work-related injury in 2019 and 2020 (Zero rate of fatalities in 2019 and 2020)

2

0.28

0.05

2019

2020

Zero

fatalities as a result of work-related ill health in 2019 and 2020

1,424,915

7

3

Recordable injuries

0.42

0.18

2019

2020

2019

7,894,161

High-consequence (excluding fatalities)

Zero

cases of recordable work-related ill health in 2019 and 2020

2020

Hours worked

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Human Capital Development and Diversified Growth

Local Communities

Our approach to community engagement seeks to establish the social infrastructure to celebrate local culture, bridge local community priorities, promote social opportunities and principles of inclusion while committing to international standards in sustainability.

To support us in achieving these goals, we have developed a three-pillar Community Engagement Strategy, which aims to achieve specific objectives through incorporating economic and social impacts considerations.

Through our Community Engagement Strategy we aim to:

Structure community engagement by shifting our effort from philanthropic donations and ad hoc practices to a more sophisticated, strategic approach Align development priorities of the local communities with the goal of the business Develop and initiate community engagement targeting the population in The Red Sea Project area and its neighboring cities and villages Enhance skills and behavioral patterns toward more positive impact

OUR COMMUNITY ENGAGEMENT STRATEGY

COMMUNITY ENGAGEMENT PILLARS AND OBJECTIVES

Socio-economic

Education and skillsets

Socio-cultural values

Build partnerships

Encourage knowledge sharing

Preserve culture

Support NPO’s Enhance the livelihood

TRSDC Sustainability Report 2020

Raise awareness Build capacities

Support philanthropy

5,500 hours

Number of educational and vocational coursehours delivered to community members

Eight families

Number of supported local families who opted out from Social Security benefits

100%

Completion status of community engagement strategy

Human Capital Development and Diversified Growth

Building Strong Partnerships Ministry of Human Resources and Social Development (MHRSD) We have signed a renewable MoU with the MHRSD. Through this partnership we aim to unify efforts to support the development of impactful corporate social responsibility initiatives that target communities surrounding The Red Sea Project area. As part of the MoU, the MHRSD will play an important role in assisting TRSDC with the development of a framework and plan for the activation of corporate social responsibility initiatives based on national priorities. Through the provision of socio-economic data, the MHRSD will further support TRSDC needs-based programs within local communities.

King Abdulaziz University (KAU) We partnered with KAU to facilitate a series of initiatives across learning and development, Research and Development, and Corporate Social Responsibility projects. The agreement facilitates opportunities across marine research and monitoring with KAU’s Faculty of Marine Sciences. Through this MoU, TRSDC will advise KAU on the academic disciplines required for students to find work in the tourism and hospitality industries and specifically at TRSDC. In addition, TRSDC will conduct educational research and surveys in collaboration with KAU to develop future academic and training programs for both parties.

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Human Capital Development and Diversified Growth

Social Impact Assessment In 2019 we partnered with KAUST to undertake a Social Impact Assessment (SIA) as part of the ESIA of The Red Sea Project’s Concept Masterplan. The assessment aimed to identify and develop the understanding of the potential social and economic sensitivities and the negative and positive impacts associated with The Red Sea Project.

The SIA reported on the socio-economic baseline conditions prior to the project implementation. It described the general profiles of the communities living in The Red Sea Project area, the political, governance and administrative structures at the

national, provincial and local levels, in addition to the traditional governance structure and roles and responsibilities.

The SIA examined 14 receptors and 33 associated impacts, including positive ones, with the majority having a low or minor significance after the implementation of mitigation measures.

It is noteworthy that The Red Sea Project is expected to generate positive economic impacts due to projected increase in economic value-add due to tourism activities, creation of new local markets and jobs, in addition to a reduction in poverty and unemployment levels.

The SIA also introduced a Social Management Framework for the Concept Masterplan of The Red Sea Project. The framework will form the basis of the detailed Social Management Plan listing potential impacts and the corresponding mitigation measures. The Social Management Plan will include an institutional mechanism with defined roles and responsibilities, along with a monitoring program to follow on the implementation of the proposed mitigation measures and compliance with relevant national and international regulations.

The SIA study indicates that The Red Sea Project area contains the following broad groups of residents:

Permanent residents whose household within the area is their main, official place of residence.

This includes: • People/families employed in surrounding towns and villages in both public and private sectors • People/families employed at other locations within the area • Elderly people, beyond working age, who have either never lived elsewhere, or returned for retirement

• Farm/livestock and business owners, caretakers/managers, operators, or employees and their families • Workers housed at their place of work

Semi-permanent residents who live elsewhere but retain homes, land, or other interests or assets inside the area

Owners of property that are absent from the area who either live in cities or elsewhere, and may have inherited it

Farmers who are either owner-operators or rent/lease the land they farm, either formally or informally

TRSDC Sustainability Report 2020

Human Capital Development and Diversified Growth

Sustainability Stewards Building and embedding a culture that values sustainability within TRSDC and the communities surrounding The Red Sea Project forms part of our strategy to live by our values and uphold our commitments.

In 2020, TRSDC hired

a team of Sustainability Stewards from the local communities to support the delivery

of several ongoing and new programs at The Red Sea Project site.

As members of the local communities around The Red Sea Project site, the Sustainability Stewards have a vested interest in protecting the habitats and species that call our site home. Through a tailored training program, we will seek to add to the wealth of local knowledge the team brings.

This program will equip our Sustainability Stewards with an understanding of biodiversity, maintenance of ecological balance, and protection of flora and fauna. Additional topics will be brought into focus as the training program evolves.

Historically, local tribespeople have been responsible for the protection of flora and fauna in their territories, under a conservation system known as hima. We are keen on tapping into the deep-rooted local knowledge through the reinforcement and revival of himas, while simultaneously benefitting the local community by providing professional employment opportunities. By confirming that local communities play a key role in our ambition to safeguard our environment and promote a wider appreciation for achieving environmental sustainability practices, the sustainability related program directly contributes to the Saudi Vision 2030.

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Human Capital Development and Diversified Growth

Ecotecture Competition As we continually seek to engage young talents within the Kingdom of Saudi Arabia, during the year we invited architecture students to submit designs for a state-of-theart community center at the Coastal Village. Students were expected to propose eco-friendly designs that complement the area’s natural environment and historical value.

The judging panel was composed of internal experts from our team, covering the fields of design, construction and development. Submissions were judged based on creative architectural and engineering ideas and concepts, integration of smart technology solutions, maturity of designs, functionality, constructability, authenticity and environmental considerations.

The winning designer will have the opportunity to play a part in the creation of Saudi Arabia’s world-leading tourism destination.

TRSDC Sustainability Report 2020

Human Capital Development and Diversified Growth

Share the Warmth Campaign

Encouraging Local Artists

TRSDC created The Red Sea Art Competition to identify and place a spotlight on Saudi art talent and artists in the Kingdom of Saudi Arabia by showcasing the beauty of the Red Sea through their artwork. From 29 November to 24 December 2020, adults and kids were invited to register and share their art to give their perspective of the Red Sea.

Sixteen winners will have their artwork displayed in TRSDC’s soon-to-be-built Coastal Village Hotel in addition to monetary prizes.

The shortlisting and judging process will extend from 27 December 2020 through to 20 January 2021.

The objectives of the initiative are to: • Provide the opportunity for Saudi artists to contribute to the identity of our luxury regenerative tourism destination • Enrich the hospitality and luxury eco-tourism industry with Saudi artwork • Build relationships with the local artist community • Capture the beauty of The Red Sea area through art • Provide a platform for local artists to showcase their artwork to our visitors and stakeholders

Our employees extended their support to the local communities as part of the Share the Warmth Campaign in partnership with a local company.

The company provided donation containers in eight locations across the district where TRSDC Headquarters are located in Riyadh, to give the opportunity to companies and visitors to donate clothes, fabrics, shoes and bags and to encourage their families and kids to share the warmth with families in need. Through this campaign, we have collected over 475 kilograms of donations.

Painting/Calligraphy Winners

Wall Installation Winners

Photography Winners

Coloring Winners

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Human Capital Development and Diversified Growth

COVID-19 Awareness Campaign

We sponsored an awareness campaign led by Sakan, a local non-governmental organization, to support families in allaying children’s fear, anxiety and tension resulting from the global pandemic. Through the educational and home recreational materials, we endeavored to comfort children and lessen their worries.

In 2019, we signed MoUs and agreements with various nonprofit organizations to support, empower and enable local community members especially underprivileged people by providing them with the requisite training and education to improve their access to the job market.

We engage with the local communities to assess the impact of our development programs.

A total of 75

local communities’ needs.

individuals were selected from the local

In 2019 and 2020, 50% of our local community development programs were based on the

communities who were identified as in need of training and access

to job opportunities.

In 2021, we are planning to implement a site-wide grievance mechanism as an engagement channel to track and remedy any issues raised by the local community.

TRSDC Sustainability Report 2020

Building Strong Partnerships University of Tabuk Our MoU with the University of Tabuk aids us in serving the local community by developing programs and campaigns such as the beach clean-up campaign in Umluj and Al Wajh. The University of Tabuk offered to host our Nursery Training Program at its Umluj campus.

Human Capital Development and Diversified Growth

Living by Our Principles Stakeholder Engagement

Engaging with our stakeholders who impact and influence our long-term resilience, to develop mutually supportive relationships Our stakeholder engagement principle is the key driver behind our approach to stakeholder engagement. We are committed to engaging cooperatively and reliably with our stakeholders to develop mutually supportive relationships through:

Using sustainability reporting metrics to boost employee engagement, motivation, recruitment and retention of talent, work-life balance, teamwork, and leadership development

Implementing a Stakeholder Management Plan, which sets out our method of engagement with stakeholders who impact and influence our longterm resilience

Identifying our stakeholders and communicating with them in an appropriate, inclusive, timely and responsive manner

Performing our obligations under legislative and regulatory guidelines and any agreements entered with the stakeholders, including encouragement of business and contracting opportunities

Managing external risks by understanding the impacts of our operations on our stakeholders and promoting effective working relationships

By requiring and monitoring the implementation of these actions, we will be able to live up to our stakeholder engagement principle.

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Human Capital Development and Diversified Growth

Tourism and Local Industry Development Tourism is identified as a strategic growth industry in the Saudi Vision 2030. Currently, the tourism sector makes up 3.5% of Saudi Arabia’s GDP and developing the tourism sector represents an enormous growth opportunity to strategically contribute to the success of Vision 2030.

Economic Performance The Red Sea Project offers numerous investment opportunities, enabling companies of different sizes and sectors to contribute to this one-of-a-kind development, elevating the Kingdom of Saudi Arabia’s position as a global investment powerhouse.

OUR STRATEGIC CORPORATE OBJECTIVES

Financial

Maximize growth and profitability

John Pagano CEO

ECONOMIC

TRSDC Sustainability Report 2020

Raise awareness of Kingdom of Saudi Arabia as a unique tourist destination

Develop project according to plan

Increase contribution to economic diversification Maximize GDP contribution

Human Capital Development and Diversified Growth

Direct and Indirect Economic Impacts

Our Future Faces of Tourism Research Project We embarked on a research project to understand the perceived attitudes toward careers in the hospitality and tourism sector. The research project targeted 715 prospective national employees and 140 parent influencers in Riyadh, Jeddah, Dammam, Qasim and Madinah.

An economic impact assessment was conducted to assess the potential economic impacts of The Red Sea Project on the economy.

Young Saudis expressed a growing interest in securing jobs in the tourism

and hospitality sector and away from jobs in

the traditional oil and gas sector.

Socio-Economic Impact Assessment Results By 2030, at steady state, The Red Sea Project’s operations will generate 22 billion SAR per year.

Construction and 10 years of steady state operations are expected to generate cumulative revenues of 464 billion SAR by 2044.

Parents shared a similar outlook toward the future of the sector, where the majority believed that it can provide promising employment opportunities for young Saudis.

This shift in the interests of the younger population and their influences concurs with Vision 2030 and the Kingdom of Saudi Arabia’s ambition to diversify its economy.

By 2040, at steady state, The Red Sea Project economy will support a total of 70,000 jobs.

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Human Capital Development and Diversified Growth

Procurement Practices

TRSDC aspires to partner with local suppliers to support the delivery on our ambitions. We signed over 500 contracts worth 14.5 billion SAR, of which 70% of the value was awarded to Saudi companies.

These contracts and other supplier-related projects are managed by our Procurement Department and follow our Procurement Policy. The Policy provides definitions and clarification of the various procurement guidelines to align the understanding and implementation of our procurement practices. The Policy is annually reviewed to confirm that it is up to date and serves our strategy.

Our Supplier Code of Conduct contains the policies that relate to the legal and ethical standards of conduct that suppliers are expected to comply with. The Code is intended to help suppliers focus on areas of ethical risk, provide guidance to recognize and deal with ethical issues, provide mechanisms to report unethical conduct, and foster a culture of honesty and accountability.

100%

Contract with obligation to comply to TRSDC sustainability standards

Won

The SAP Ariba Go Live Award for achievements in E-procurement and Sustainability

The Supplier Code of Conduct is provided to suppliers who are required to acknowledge that they understand and will comply with the Code. TRSDC contracts with suppliers that are governed by and subject to the laws of their countries in which they are headquartered and to the applicable laws, rules and regulations of the Kingdom of Saudi Arabia.

Our Supplier Code of Conduct sets out expectations for suppliers on the following:

Building Strong Partnerships General Authority for Small and Medium Enterprises (Monsha’at) Through our work with Monsha’at, we engaged with the local private sector to encourage their participation in The Red Sea Project and provide valuable insights on the procurement process at TRSDC.

TRSDC Sustainability Report 2020

Treating People with Dignity and Respect

Ethical Business Practices

• • • • •

• • • • • •

Human Rights No Forced or Child Labor Diversity and Inclusion Anti-harassment Wages and Hours

Business Integrity Fraud Fair Competition Laws Ethical and Anticounterfeit Sourcing Conflict of Interest Gifts and Business Courtesies

Environmental, Health, Safety and Security Practices

Corporate Social Responsibility

Safe and Healthy Workplace

Confidentiality

Intellectual Property

Monitoring and Compliance

Human Capital Development and Diversified Growth

Living by Our Principles

Key Contracts Awarded in 2020 Airport Airside Package awarded to an all Saudi JV

Coastal Village Management Residence

Hotel 11 (Ummahat Alshaykh Island) OSM Timber Villas

Coastal Village Workers’ Accommodation

Coastal Village Studio Apartments

Coastal Village Villas and Townhouses

Shurayrah Crossing

Site-Wide Utilities Sewage and Waste Management

Signature Architect Shurayrah Island

Sustainable Procurement

Implementing procurement requirements across the supply chain to develop assets in line with green certification and relevant sustainability targets Our procurement practices are governed by the sustainable procurement principle, which provides us with direction on the most important considerations as we work toward achieving our sustainability ambitions.

We consider the following as part of our principled approach to procurement:

Achieving sustainability requirements in the supply chain through purchasing and contracting

Requiring consultants and contractors to be responsible for the identification and management of environmental and sustainability compliance Incorporating sustainable procurement in the specification requirements in design and construction related works Providing incentives for contractors to seek innovative solutions to achieve ambitious environmental sustainability objectives

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Looking Forward

TRSDC Sustainability Report 2020

Looking Forward

2021 will be another significant year as we continue our journey to further integrate sustainability into the core DNA of TRSDC. We have in place robust programs and proficient people who continue to drive our sustainability ambitions. We look forward to sharing with our stakeholders the continued progress of TRSDC on sustainability performance in 2021 as we advance our development efforts and edge closer to the completion of this unique destination and welcoming our first visitors in 2022.

Looking Forward

Our 2021 ASPIRATIONS at a Glance Sustainability Strategy • Finalize sustainability strategy in line with national and international frameworks – Saudi Vision 2030, SDGs, Equator Principles and IFC Environmental Protection • Develop and implement an Environmental Compliance and Monitoring program • Conduct comprehensive baseline assessment of coral reef communities and fish populations across the SEZ • Complete the site-wide birds survey • Conduct the mangroves survey and marine environmental baseline surveys on Shurayrah Island • Continue our journey to ensuring that the ESIA studies are undertaken for all projects and that the VDA is part of all studies • Continue to undertake habitat mapping of sensitive ecosystems • Develop key environmental indicators to be monitored during procurement

Water • Commission the Sea Water Reverse Osmosis facility and start producing irrigation water from the constructed wetland • Develop a project to manage surface water runoff with near-zero discharge to the lagoon • Develop a process for monitoring and analyzing data associated with sustainable water usage • Develop innovative new solutions to manage brine

Waste • Supply compost produced by the waste management center to TRSDC’s nursery and the landscape within The Red Sea Project area

Energy • Commence the design and construction of the Sustainable Energy Network to include wind, solar and energy storage facilities

Health and Safety • Initiate the HSE ‘Contractor Recognition Program’ • Establish emergency response and localized site based medical clinics • Further develop TRSDC’s H&S Management System, and work towards system certification to the relevant international standards such as ISO 45001:2018; ISO 14001:2015 etc.

Local Communities • Finalize the site-wide archaeology survey • Establish the socio-economic baseline through the site-wide social survey • Prepare and implement a Grievance Mechanism for the local community

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Appendices

Appendices Appendix A: GRI Content Index Our 2020 sustainability reporting boundary considers the material impacts that result from the direct operations of TRSDC and The Red Sea Project. We report our impacts and data outside our reporting boundary – this includes our suppliers in which we do not own the assets or directly employ

GRI Standard

the workforce - where these are highly material to TRSDC and its sustainability performance. For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for Disclosures 102-40 to 102-49 align with appropriate sections in the body of the report.

Disclosure

Page number(s) and/or URL(s)

Omission

GRI 101: Foundation 2016 General Disclosures GRI 102: General Disclosures 2016

Organizational Profile 102-1 Name of the organization

The Red Sea Development Company

102-2 Activities, brands, products, and services

8, 10-11

102-3 Location of headquarters

Riyadh, Saudi Arabia

102-4 Location of operations

Saudi Arabia

102-5 Ownership and legal form

8

102-6 Markets served

Saudi Arabia

102-7 Scale of the organization

8, 10-11, 68

102-8 Information on employees and other workers

68

102-9 Supply chain

96

102-10 Significant changes to the organization and its supply chain

There are no significant changes. This is TRSDC’s inaugural Sustainability Report.

102-11 Precautionary Principle or approach

23, 24, 26, 33

102-12 External initiatives

14, 27, 30, 59

102-13 Membership of associations

41, 54, 56, 64, 74, 87, 92, 96

Strategy 102-14 Statement from senior decision-maker

4

Ethics and Integrity 102-16 Values, principles, standards, and norms of behavior

TRSDC Sustainability Report 2020

9

Financial statement information is confidential.

Appendices

GRI Standard

Disclosure

GRI 102: General Disclosures 2016

Governance 102-18 Governance structure

Page number(s) and/or URL(s)

Omission

20-22

Stakeholder Engagement 102-40 List of stakeholder groups

32

102-41 Collective bargaining agreements

Labor unions are prohibited in the Kingdom of Saudi Arabia.

102-42 Identifying and selecting stakeholders

32

102-43 Approach to stakeholder engagement

29

102-44 Key topics and concerns raised

30-31

Reporting Practice 102-45 Entities included in the consolidated financial statements

TRSDC and its subsidiaries

102-46 Defining report content and topic Boundaries

This report covers all of TRSDC’s direct operations as well as operational activities of third parties within the physical boundaries of TRSDP, unless otherwise indicated. Content for inclusion in this report was identified as a result of our materiality assessment as described on page 32.

102-47 List of material topics

30

102-48 Restatements of information

There are no restatements of information.

This is TRSDC’s inaugural Sustainability Report.

102-49 Changes in reporting

There are no changes in reporting. This is TRSDC’s inaugural Sustainability Report.

102-50 Reporting period

1 January 2020 to 31 December 2020.

102-51 Date of most recent report

This is TRSDC’s inaugural Sustainability Report.

102-52 Reporting cycle

TRSDC plans to report annually moving forward.

102-53 Contact point for questions regarding the report

3

102-54 Claims of reporting in accordance with the GRI Standards

3

102-55 GRI content index

100-108

102-56 External assurance

This report has not been assured by a third party.

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102

Appendices

GRI Standard

Disclosure

Page number(s) and/or URL(s)

Material Topics GRI 200 Economic Standard Series Economic Performance GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

3, 94

103-2 The management approach and its components

94

103-3 Evaluation of the management approach

94

201-4 Financial assistance received from government

Zero

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

3, 74

103-2 The management approach and its components

74

103-3 Evaluation of the management approach

74

GRI 202: Market Presence 2016

202-2 Proportion of senior management hired from the local community

74

103-1 Explanation of the material topic and its Boundary

3, 95

103-2 The management approach and its components

67, 86, 88, 94

103-3 Evaluation of the management approach

88, 95

203-2 Significant indirect economic impacts

95

103-1 Explanation of the material topic and its Boundary

3, 35

103-2 The management approach and its components

35

103-3 Evaluation of the management approach

35

205-1 Operations assessed for risks related to corruption

35

205-3 Confirmed incidents of corruption and actions taken

35

103-1 Explanation of the material topic and its Boundary

3, 35

103-2 The management approach and its components

35

103-3 Evaluation of the management approach

35

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

In 2020, TRSDC did not identify any legal actions for anti-competitive behavior, anti-trust and monopoly practices.

GRI 201: Economic Performance 2016 Market Presence

Indirect Economic Impacts GRI 103: Management Approach 2016 GRI 203: Indirect Economic Impacts 2016 Anti-corruption GRI 103: Management Approach 2016 GRI 205: Anti-corruption 2016 Anti-competitive Behavior GRI 103: Management Approach 2016 GRI 206: Anti-competitive Behavior 2016

TRSDC Sustainability Report 2020

Omission

Appendices

GRI Standard

Disclosure

Page number(s) and/or URL(s)

Omission

GRI 300 Environmental Standards Series Energy GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

3, 54 - 55

103-2 The management approach and its components

54-55

103-3 Evaluation of the management approach

54-55

GRI 302: Energy 2016

302-1 Energy consumption within the organization

The information is currently unavailable. TRSDC intends to collect and report on this information moving forward.

302-2 Energy consumption within the organization 302-3 Energy intensity 302-4 Reduction of energy consumption 302-5 Reductions in energy requirements of products and services

Water and Effluents GRI 103: Management Approach 2016 GRI 303: Water and Effluents 2018

103-1 Explanation of the material topic and its Boundary

3, 56 - 57

103-2 The management approach and its components

56 - 57

103-3 Evaluation of the management approach

56 - 57

303-1 Interactions with water as a shared resource

56 - 57

303-2 Management of water discharge-related impacts

56 - 57

303-3 Water withdrawal

The information is currently unavailable. TRSDC intends to collect and report on this information moving forward.

303-4 Water discharge 303-5 Water consumption Biodiversity GRI 103: Management Approach 2016 GRI 304: Biodiversity 2016

103-1 Explanation of the material topic and its Boundary

3, 60

103-2 The management approach and its components

60-63

103-3 Evaluation of the management approach

60-63

304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

60-62

304-2 Significant impacts of activities, products, and services on biodiversity

60-62

304-3 Habitats protected or restored

60-62

304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations

60-61

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104

Appendices

GRI Standard

Disclosure

Page number(s) and/or URL(s)

103-1 Explanation of the material topic and its Boundary

54-55

103-2 The management approach and its components

54-55

103-3 Evaluation of the management approach

54-55

Omission

Emissions GRI 103: Management Approach 2016 GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

The information is currently unavailable. TRSDC intends to collect and report on this information moving forward.

305-2 Energy indirect (Scope 2) GHG emissions 305-3 Other indirect (Scope 3) GHG emissions 305-4 GHG emissions intensity 305-5 Reduction of GHG emissions 305-6 Emissions of ozone-depleting substances (ODS) 305-7 Nitrogen oxides (NOx), Sulfur oxides (SOx), and other significant air emissions

Waste GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

3, 58

103-2 The management approach and its components

58

103-3 Evaluation of the management approach

58

GRI 306: Waste 2020

306-1 Waste generation and significant waste-related impacts

58

306-2 Management of significant waste-related impacts

58

306-3 Waste generated

The information is currently unavailable. TRSDC intends to collect and report on this information moving forward.

306-4 Waste diverted from disposal 306-5 Waste directed to disposal Environmental Compliance GRI 103: Management Approach 2016 GRI 307: Environmental Compliance 2016

103-1 Explanation of the material topic and its Boundary

3, 64

103-2 The management approach and its components

64

103-3 Evaluation of the management approach

64

307-1 Non-compliance with environmental laws and regulations

64

Supplier Environmental Assessment GRI 103: Management Approach 2016 GRI 308: Supplier Environmental Assessment 2016

TRSDC Sustainability Report 2020

103-1 Explanation of the material topic and its Boundary

3, 96

103-2 The management approach and its components

96-97

103-3 Evaluation of the management approach

96-97

308-1 New suppliers that were screened using environmental criteria

96

Appendices

GRI Standard

Disclosure

Page number(s) and/or URL(s)

103-1 Explanation of the material topic and its Boundary

3, 68

103-2 The management approach and its components

68-70

103-3 Evaluation of the management approach

68-70

401-1 New employee hires and turnover

69, 71

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

70

401-3 Parental leave

71

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

3, 68

103-2 The management approach and its components

68

103-3 Evaluation of the management approach

68

GRI 402: Labor/Management Relations 2016

402-1 Minimum notice periods regarding operational changes

We provide our employees with reasonable notice of significant operational changes. The notice periods differ depending on the significant changes encountered that usually extend from a notice period of one week up to three months.

Omission

GRI 400 Social Standards Series Employment GRI 103: Management Approach 2016 GRI 401: Employment 2016

Labor/Management Relations

Occupational Health and Safety GRI 103: Management Approach 2016 GRI 403: Occupational Health and Safety 2018

103-1 Explanation of the material topic and its Boundary

3, 80

103-2 The management approach and its components

80-82

103-3 Evaluation of the management approach

80-82

403-1 Occupational health and safety management system All employees and workers who are not employees but whose work and/or workplace is controlled by TRSDC are covered by such a system. This system is internally audited and certified by an external party.

403-2 Hazard identification, risk assessment, and incident investigation

81

403-3 Occupational health services

80

403-4 Worker participation, consultation, and communication on occupational health and safety

80, 82

403-5 Worker training on occupational health and safety

84

403-6 Promotion of worker health

80

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

80-84

403-8 Workers covered by an occupational health and safety management system

81

403-9 Work-related injuries

85

403-10 Work-related ill health

85

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106

Appendices

GRI Standard

Disclosure

Page number(s) and/or URL(s)

103-1 Explanation of the material topic and its Boundary

3, 76

103-2 The management approach and its components

76

103-3 Evaluation of the management approach

77-79

404-1 Average hours of training per year per employee

79

404-2 Programs for upgrading employee skills and transition assistance programs

76

Training and Education GRI 103: Management Approach 2016 GRI 404: Training and Education 2016

Diversity and Equal Opportunity GRI 103: Management Approach 2016 GRI 405: Diversity and Equal Opportunity 2016

103-1 Explanation of the material topic and its Boundary

3, 72

103-2 The management approach and its components

72

103-3 Evaluation of the management approach

72-73

405-1 Diversity of governance bodies and employees

72-73

103-1 Explanation of the material topic and its Boundary

3-35

103-2 The management approach and its components

35

103-3 Evaluation of the management approach

35

406-1 Incidents of discrimination and corrective actions taken

35

103-1 Explanation of the material topic and its Boundary

3, 68

103-2 The management approach and its components

68-69, 96

103-3 Evaluation of the management approach

68-69, 96

103-1 Explanation of the material topic and its Boundary

3, 22, 96

103-2 The management approach and its components

22, 96

103-3 Evaluation of the management approach

22, 96

103-1 Explanation of the material topic and its Boundary

3, 86

103-2 The management approach and its components

86

103-3 Evaluation of the management approach

86-93

413-1 Operations with local community engagement, impact assessments, and development programs

86, 88, 92

413-2 Operations with significant actual and potential negative impacts on local communities

88

Non-discrimination GRI 103: Management Approach 2016 GRI 406: Non-discrimination 2016 Forced or Compulsory Labor GRI 103: Management Approach 2016 Human Rights Assessment GRI 103: Management Approach 2016 Local Communities GRI 103: Management Approach 2016 GRI 413: Local Communities 2016

TRSDC Sustainability Report 2020

Omission

Appendices

GRI Standard

Disclosure

Page number(s) and/or URL(s)

103-1 Explanation of the material topic and its Boundary

3, 43

103-2 The management approach and its components

43

103-3 Evaluation of the management approach

43

103-1 Explanation of the material topic and its Boundary

3, 43

103-2 The management approach and its components

43

103-3 Evaluation of the management approach

43

418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

43

Omission

Customer Health and Safety GRI 103: Management Approach 2016 Customer Privacy GRI 103: Management Approach 2016 GRI 418: Customer Privacy 2016

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Appendices

Appendix B: Abbreviations and Acronyms Acronym

Full Form

Acronym

Full Form

Acronym

Full Form

BAP

Biodiversity Action Plan

IFC

International Finance Corporation

PIF

Public Investment Fund

BCMS

Business Continuity Management System

ISO

International Organization for Standardization

PPP

Public-Private Partnership

CEO

Chief Executive Officer

IT

Information Technology

PS

Performance Standards

CFC-free

Chlorofluorocarbon-free

IUCN

International Union for Conservation of Nature

SAR

Saudi Arabian Riyal

CITC

Communications and Information Technology Commission

ISOS

International SOS

SEZ

Special Economic Zone

EGP

Elite Graduate Program

KAU

King Abdulaziz University

SIA

Social Impact Assessment

KAUST

King Abdullah University of Science and Technology

SMART

Specific, Measurable, Achievable, Realistic, and Timely

KPI

Key Performance Indicator

SWCC

Saline Water Conversion Corporation

LEED

Leadership in Energy and Environmental Design

THC

The Helicopter Company

LTI

Lost Time Incident

TRSDC

The Red Sea Development Company

MEWA

Ministry of Environment, Water and Agriculture

TSE

Treated Sewage Effluent

EN

Endangered

ERM

Enterprise Risk Management

ESG

Environmental, Social and Governance

ESIA

Environmental and Social Impact Assessment

GDP

Gross Domestic Product

GRC

Governance, Risk and Compliance

MHRSD

Ministry of Human Resources and Social Development

UN SDGs

United Nations Sustainable Development Goals

GRI

Global Reporting Initiative

MOE

Ministry of Energy

UNESCO

United Nations Educational, Scientific and Cultural Organization

H&S

Health and Safety

Monsha’at

General Authority for Small and Medium Enterprises

UPM

University of Prince Mugrin

HR

Human Resources

MoU

Memorandum of Understanding

USGBC

United States Green Building Council

HRH

His Royal Highness

NCA

National Cybersecurity Authority

VDA

Value Driven Approach

HSE

Health, Safety and Environment

PCR

Polymerase Chain Reaction

WATG

Wimberly Allison Tong and Goo

TRSDC Sustainability Report 2020

@TheRedSeaSA

The Red Sea Development Company

@TheRedSeaGlobal

TheRedSeaDevelopmentCompany

TheRedSeaDevelopmentCompany

TheRedSeaDevelopmentCompany

5th Floor, MU04 Tower, ITCC Complex, Al Raidah Digital City, Al Nakhil District 3807, Riyadh 12382 – 6726, Saudi Arabia

www.theredsea.sa