SUSTAINABILITY REPORT 2021
Accelerating Growth While Ensuring Environmental Stewardship, Social Well Being & Ethical Governance
ENVIRONMENTAL
Our 2021 Environmental, Social & Governance (ESG) Performance Report captures the past, present and future of our sustainability strategy.
I am delighted to present the 2021 edition of AD Ports Group’s Sustainability Report.
This report reveals how our strategy for sustainability is being successfully integrated into every segment of our operations. We can be proud in the knowledge that the responsible growth of our Group in turn advances the sustainable development of our Emirate.
In a year where the United Nations branded the threat of climate change as ‘code red,’ the importance of integrating sustainability into our operations cannot be understated.
Thanks to our strategic approach, in addition to maintaining national supply lines during the global pandemic, AD Ports Group has achieved sustainable business growth through good governance.
This involved implementing robust policies and procedures to manage our environmental and social impact. Furthermore, we have created a dedicated taskforce to implement sustainability initiatives as per the recommendation of our Sustainability Committee.
We also conducted extensive consultation with our internal and external stakeholders to align our strategy for sustainability with their expectations.
“Our stakeholder consultation process ensures that the values of everyone affected by our operations are considered in our sustainability strategy.”
By implementing this strategy, we have bolstered our efforts to support the Sustainable Development Goals (SDGs) through initiatives promoting clean energy, sustainable growth, vibrant ecosystems, and circular resource use.
It gives me immense pride to report that, in 2021, international bodies and organisations endowed us with an array of accolades and accreditations that substantiate the contribution our strategy makes to sustainable development.
None of the above would be possible without our customers, partners, and people. Their ongoing dedication to sustainable growth fills me with confidence that we will continue to rise to the challenges of embedding sustainability into our operations throughout 2022 and beyond. For which I extend my gratitude.
The easing of the challenges of the COVID-19 pandemic in 2021 enabled us to re-focus our attention on promoting sustainable economic growth of the maritime trade and logistics sector.
“As our Group continues to grow economically, so does our determination to deliver innovative and forward-thinking solutions that promote environmental protection and ensure the wellbeing of our customers and employees.”
Whilst reading our Sustainability Report for 2021, you will discover that our sustainability strategy has developed and matured in line with our expansion and growth. This is reflected in the multitude of accolades received by teams across our Group from global authorities in recognition of their innovations and initiatives.
We achieved significant economic growth in 2021 when we issued USD 1 billion of bonds, which were listed on the Abu Dhabi Securities Exchange.
Additionally, we have focused our attention on furthering our sphere of influence to strategic markets, such as Turkey, Jordan, Bahrain, Egypt, and Iraq.
This included reaching a series of agreements with the Aqaba Development Corporation under which we will jointly collaborate to establish a state-of-the-art cruise terminal in Aqaba, tourism and leisure facilities, an advanced Port Community System, a multi-purpose port and the development of King Hussein International Airport.
Alongside this expansion and growth, we are always conscious of strengthening our commitment to safeguarding the environment. One noteworthy achievement has been our Economic Cities and Free Zones’ Cluster entering into an agreement to establish a green ammonia processing facility in KIZAD. The facility will have capacity to produce 200,000 tonnes of carbonfree ammonia annually. This will be achieved through renewable energy delivered by an onsite 800 Mega Watt peak (MWp) solar plant. Furthermore, we initiated the integration of renewable energy into our operations, where two of our warehouses currently under construction at Khalifa Port, and our KIZAD
Headquarters building, will benefit from clean energy delivered by photovoltaic panels. Mugharraq Port is also to be partially solar powered upon completion of the ongoing expansion project at the site.
The continued sustainable growth of our business would not be possible without meeting the needs of our people. Therefore, it gives me immense pleasure to report that in 2021, we have achieved an Emiratisation rate of 67 percent and maintained job satisfaction at an impressive 85 percent.
Furthermore, our CSR department executed 85+ initiatives that have positively impacted the lives of more than 51,565+ people.
Due to the dynamic nature of the environmental, economic, and social systems that we operate within, our journey towards sustainability is perpetual. Accordingly, we are committed to investing in the ingenuity of our people year-on-year to drive continuous improvement of our sustainability performance.
I humbly thank everyone in our Group whose dedication and hard work has contributed to our achievements in 2021.
Mohamed Juma Al Shamisi Managing Director & Group CEO, AD Ports Group
International CSR Excellence AwardBy The Green Organisation
Port & Terminal
Operator Award, Seatrade Maritime Awards
CSR World Leaders AwardBy The Green Organisation
Investors in People Platinum Level Accreditation
Most Valuable Corporate Response to COVID-19 –ZonesCorp, Silver Stevie Awards
USD 1 Billion Bonds Listed
Innovative Ideas Received Through Ibtikar Programme
22% Increase in TEUs handled 2,144
51,565+ Lives Positively Impacted by CSR Activities
71% Increase in Women Employees
41% Increase in Revenues Generated 105% Increase in the General Cargo Handled 72% Increase in Community Investments
63% Increase in Total Training Hours
Note: Throughout the Sustainability Report 2021, the current year performance has been compared with that of 2019.
Translocation of Spiny Tailed Lizards
32% Decrease in Fuel Consumption Intensity per TEU
37 Tonnes of Marine Debris Removed
12% Coral Relocation Monitoring
67% Emiratisation
16,736 Employee Volunteering Hours
85+ CSR Initiatives
Since its inception in 2006, AD Ports Group has enjoyed great success, and grown rapidly. Today, our Group manages a diverse assortment of Digital, Economic Cities & Free Zones, Logistics, Maritime, and Ports Clusters.
AD Ports Group is the region’s premier facilitator of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world.
We are a resilient trade community of five business clusters –Digital, Economic Cities & Free Zones, Logistics, Maritime, and Ports.
With a global network of partners, our Clusters forge long-term contracts to provide end-toend logistics solutions that generate stable performance, consistent growth, and highquality revenue.
Sustainability is embedded into our strategy for expansion and growth.
In 2021 we issued USD 1 billion 10-year bonds under a Euro Medium Term Note Programme, which we jointly listed on the London Stock
Exchange (LSE) and Abu Dhabi Securities Exchange (ADX).
This is representative of our major contributions to the diversification of Abu Dhabi’s economy away from dependence on fossil fuels towards clean, sustainable economic growth.
“The overarching purpose of our five Clusters is to provide the exemplary infrastructure and services that are necessary to promote a diverse, global, vibrant, and sustainable economy for our Emirate."
Located at an intersection of four continents, we command an enviable strategic advantage that enables us to serve multiple time zones. Furthermore, our first-rate infrastructure and extensive portfolio of services facilitate the swift and efficient movements of goods globally.
Our Ports Cluster oversees the operation of our ten ports and terminals across the UAE. Through their multi-purpose functionality, we can offer a suite of diverse services.
KIZAD and ZonesCorp, our fully integrated trade and logistics hub, offers industrial and economic solutions for businesses located in Abu Dhabi.
Our Maritime Cluster hosts SAFEEN, Abu Dhabi Maritime Academy, OFCO, and Abu Dhabi Maritime. It is SAFEEN’s responsibility to deliver maritime and ancillary quayside services across all our ports. Additionally, the next generation of mariners learn their craft at Abu Dhabi Maritime Academy, which also sits under the Cluster.
Furthermore, the Maritime Cluster is home to Abu Dhabi Maritime, the guardian of our waterways and regulator of the Maritime sector. Moreover, through OFCO the Maritime Cluster takes care of transshipment and offshore services to the oil, gas, and construction industries.
Supply chain and freight solutions to local and international clients are provided by our Logistics Cluster.
Our Digital Cluster is home to our innovators who deliver advanced, smart solutions, including PCS, to our trade and port communities.
With their integrated technologies, the ten multi-purpose ports and terminals operated by our Ports Cluster are amongst the most advanced in our region.
The rapidly increasing trade they facilitate through innovation and expansion plays a key role in driving growth of the UAE’s non-oil GDP, and hence sustainable development.
Our Ports Cluster is driving AD Ports Group’s growth through the forging of local and global partnerships and expansion of its facilities".
Furthermore, our Ports Cluster is committed to protecting the precious and sensitive marine environment that it operates within.
The Cluster’s key initiatives in 2021 included Coral Relocation and Monitoring, Mangrove Compensation,
The flagship of our Ports Cluster, Khalifa Port, is the Region's first semi-automated container port.
It currently supports general cargo, container, rollon-roll-off (RoRo), and break-bulk activities and is diversifying into other sectors such as commercial storage for liquid & gas and grain storage.
Khalifa Port’s situation between the Eastern and Western hemispheres provides a strategic advantage to serve the region’s largest markets and accelerate global trade.
It services approximately one hundred international hubs, connects intermodal transport networks via air, sea, and land, and serves over twenty-five shipping lines.
and continued assessments of seawater quality parameters. We describe these initiatives in the ‘Safeguarding the Environment’ section of this report.
In 2021, we significantly enhanced Khalifa Port’s capacity through transformative international partnerships and expansion of its facilities. We signed a 35-year concession agreement with CMA CGM to grow Khalifa Port’s container business through joint construction of an AED 570 million terminal.
The venture will elevate Khalifa Port to elite status by providing it with the capacity to host three of the world’s four largest shipping companies: MSC, COSCO and CMA CGM.
Additionally, the Ports Cluster will soon complete construction of its fully operational South Quay at Khalifa Port, a flagship, deep-water facility for bulk and general cargo handling.
Having been Abu Dhabi’s city-centre port since 1972, Zayed Port plays a crucial role in supporting cruise tourism and cargo operations. With its connections to land, sea and air transport networks, Zayed Port is also a premier regional hub for general and bulk cargo services.
Opened in 2015, Abu Dhabi Cruise Terminal was Abu Dhabi’s first dedicated permanent cruise hub. Its world-class terminal operations and services have increased in popularity with international cruise lines and passengers, year-on-year.
In 2021, we leased the terminal to Abu Dhabi Health Services to support the national vaccination drive during the pandemic. This mitigated the negative financial impacts of suspended cruise operations, which began to resume towards the end of 2021.
One of the UAE’s prime natural and cultural landmarks, Sir Bani Yas Cruise Beach, is the region’s only dedicated cruise beach. In 2021, we opened a new jetty at the island which will double cruise passenger traffic capacity, promoting future growth and enhancing customer experience.
Mugharraq Port primarily serves the offshore oil and gas industries within the Al Dhafrah Region. It also supports the local community through general cargo handling, ferry, and logistics support.
Its infrastructure makes it competitive with the region’s best to serve the oil and gas industry and will be crucial to the Hail and Ghasha Islands development. In 2021, it gained certification as an international port, opening a wealth of opportunities for our Group to expand into new markets.
Musaffah Port accommodates the Musaffah industrial area to service the steel, dredging, and ship-building industries. The port lies in the 53 km Musaffah Channel, one of the world’s busiest waterways.
Since its establishment in 1978, Free Port has been improving cargo, logistics, and recreational facilities on the UAE’s smaller islands. Its specialisation enables it to handle chemical and petroleum cargo in general and bulk capacities.
Fujairah Terminals, formed from a concession agreement with Fujairah Port, continues to be the only multi-purpose facility on the UAE’s eastern seaboard. In 2021, we completed major expansion works including extending the quay wall, deepening the approach, and increasing the size of the container terminal and multipurpose area for general and other types of cargo.
The expansion enables the handling of larger vessels and increases capacity, enhancing the service offering for customers particularly on the East-West Indian Ocean routes.
The provision of general cargo handling, support logistics, and passenger ferry connections our Community Ports provide is vital to our local islands' fishing industries and economies.
Al Mirfa Port
Al Mirfa is primarily a terminal for fishing and leisure vessels, but it also offers shopping and a commercial area for local enterprises.
Shahama Port
Our mixed-purpose port, Shahama, attracts leisure mariners.
Delma Port
Delma Port is a multi-purpose facility located in the Al Dhafra region, it handles general cargo, passenger ferries, and fishing vessels.
In 2021, a major deal was secured with Aqaba Development Corporation in Jordan to revitalise and operate the multipurpose port and create a new cruise passenger terminal in Aqaba, positioning the Group’s expansion into the Red Sea area.
From 2022 and beyond, the Ports Cluster’s strategy for growth will focus on securing opportunities for trade locally, regionally and internationally.
Al Sila Port keeps local communities connected to the mainland by supporting local fishing industries and providing cargo services and recreational activities. In the near future, the addition of general cargo handling infrastructure will support both local industry and oil and gas development in the region.
AD Ports Group’s Maritime Cluster facilitates maritime operations while ensuring safety and sustainability across its services.
AD Ports Group’s Maritime Cluster is recognised as a global player in the maritime industry. The Cluster provides AD Ports Group’s clients with integrated shipping and maritime solutions along a full value chain that reduces risk and is economically efficient.
The business lines that form the Maritime Cluster are:
The Cluster is committed to providing best-in-class services and infrastructure as a top tier provider in each of its business segments in terms of size, efficiency, and economy.
The Maritime Cluster is crucial to ensuring convenient and safe operations across all our ports and marine infrastructure. Waterways are the lifeline of trade in our region, and the Maritime Cluster is committed to providing best-in-class services and infrastructure. "
Port Services (Towage, Pilotage and VTS)
SAFEEN provides a wide range of marine services including, but not limited to,
Oil Spill Response
Bollard Pull, Boom and Fender Hire
Mooring & Slipway Management
Ferry Management Navigation Fleet Maintenance
SAFEEN's fleet comprises of Tugboats, Mooring Tugs, Pilot and Speed Boats besides managing Buoy Maintenance vessels, Bulk vessels, Barges, Landing Crafts and Ferries. Operated by more than 250 high professional marine experts, SAFEEN's fleet provides integrated and tailormade marine services and solutions for customers in the UAE and other key regional markets.
This provides AD Ports Group with the capacity to handle ships with a length overall (LOA) exceeding 400 metres, and vessels with deadweight tonnage (DWT) of up to 150,000 DWT. SAFEEN is committed to providing safe, secure, and sustainable marine services in compliance with global best practices and maintaining certification of ISM, ISPS, ISPO and ISO standards.
The Cluster established SAFEEN Feeders in 2020 to meet the demands from the Group’s mainliner shipping clients by offering increased connectivity and optimised shipping costs.
Operating a fleet of seven container vessels, of which six the Cluster owns, SAFEEN Feeders has introduced two feeder services:
One connecting Abu Dhabi and the UAE’s coastal ports; and another connecting Abu Dhabi, Saudi Arabia, Iraq, India, and Pakistan.
SAFEEN Feeders complies with all international emissions regulations, and ballast water treatment requirements.
Transshipment provides tailormade logistics solutions for dry bulk commodities. In 2021, the Cluster implemented measures to reduce its vessels’ impacts on the environment.
The Cluster achieved this by engineering the vessels with solutions that improve energy-efficiency and prolong their working life.
Offshore International (OFCO) is the GCC region’s leading provider of integrated onshore and offshore marine logistics services. It is a joint venture between Allianz Marine & Logistics Services (AMLS) and SAFEEN Marine Services.
Equipped with a fleet of support vessels, crew boats, landing crafts and tugs, as well as multi-use storage space, they deliver bespoke solutions to customers, offshore drilling, pipe and cable lay support, and oil spill response.
Abu Dhabi Maritime Academy (ADMA) is the region's first one-stop shop for all types of maritime training, academics, consultancy, research and development. It is a one-of-a-kind centre of excellence dedicated to develop world-class national, regional, and international maritime cadres.
Our training teams have internationally recognised qualifications, certifications, experience, and competencies. They bring their extensive maritime industry experience and technical expertise in the classrooms, workshops, and simulator areas. We are proud to have the most advanced, fully equipped, region's first multidiscipline Maritime Simulator Centre
through which our highly experienced instructors provide our students with the training and insight to face potential industry challenges and an in-depth understanding of mitigating possible risks.
Dedicated to excellence, ADMA emphasizes on maritime knowledge dissemination by delivering academic programmes, training programmes and courses of the highest quality which is accredited locally or internationally (MCA (U.K.), MOEI (UAE), MOE (UAE), LR, Tasneef-RINA, FMA, ICS, FIATA, CILT, CII, MTA & PMI) and attracts school leavers and professionals into the sector that are pivotal to the Cluster's plan to position Abu Dhabi as a global maritime hub.
Short and Simulator Courses
ADMA offers a range of regionally and internationally recognised courses including:
Academic Programmes
Research & Development (R&D)
Consultancy
ADMA has also established programmes that accelerate development and fill job vacancies within the Maritime Sector in six months to one year to provide dynamic responses to the maritime industry's needs. These courses include 73 Short and Simulator Courses, 13 Professional Certificate Courses, 4 Academic Courses and 4 PMI Courses. ADMA has more than 600+ students enrolled and certified annually.
Since its establishment in 2020, Abu Dhabi Maritime has been the custodian of Abu Dhabi’s waterways and Maritime sector with the purpose of elevating Abu Dhabi’s standing to a global maritime capital.
In collaboration with the Department of Municipalities and Transport, and operating under AD Ports Group, Abu Dhabi Maritime performs its roles of governing and regulating Abu Dhabi’s maritime sector by developing its strategy, creating and updating maritime regulations, and providing first-rate maritime services.
The entity also upholds impeccable standards of health, safety, environment, and quality standards whilst issuing permits, licensing maritime assets, and building and regulating public maritime infrastructure.
In 2021, a flagship project of Abu Dhabi Maritime was the publication of its ‘Code of Practice for Marina Operations in Abu Dhabi’.
The Code of Practice stipulates the seven main environmental health and safety considerations required of Marina operators during commercial activities:
Guidance on implementing Marina Management Systems
Guidance on implementing Health, Safety, and Environment Management Systems
Guidance on implementing Inspection and Maintenance of Management Systems
Guidance on Administrative Sanctions
1 2 3 4 5 6 7
Guidance on implementing Communications Management Systems
Guidance on implementing Security Management Systems
Guidance on implementing Emergency Management Systems
Abu Dhabi Maritime Safety Map
Another contribution Abu Dhabi Maritime made to the safety of Abu Dhabi waterways in 2021 was the publication of our ‘Abu Dhabi Maritime Safety Map’.
The map clearly illustrates what areas of waters are open to who, and the rules they should observe. It serves as a
Digital Slipway Portal
In 2021, Abu Dhabi Maritime launched a Digital Slipway Portal exclusively for leisure mariners. The Portal streamlines the booking of ramps for boats and jet skis, whilst easing congestion at peak times.
In 2021, AD Maritime launched Jet Ski licencing services to ensure adherence to the best maritime safety practices. The service ensures that the jet skis operating in Abu Dhabi's waterways comply with applicable regulations and requirements through inspections, issuance and renewal of jet ski licences.
reference point for routes, speed limits anchorage areas, restricted areas, and passthrough areas.
Its publication enables everyone from leisure to commercial users to observe Abu Dhabi’s waterway regulations correctly and safely.
World-class infrastructure with a hassle-free regulatory environment and turnkey amenities allows start-ups and large investors to establish and grow, with power substations, natural gas feedstock, primary water networks, and discharge systems, all available within our Economic Cities & Free Zones Cluster.
The Economic Cities & Free Zones Cluster oversees the operations of KIZAD and ZonesCorp.
KIZAD is the largest integrated trade, logistics and industrial hub in the region; ZonesCorp is the largest operator of purpose-built economic zones and workers residential cities in the UAE. T Leveraging its land bank of more than 550 km2, the Cluster continued to expand and solidify its
market position in 2021, making up 55% of UAE industrial zones and 12% of industrial zones in the Gulf Cooperation Council (GCC). We are in the process of widening our service offerings by building new capabilities and honing our current core abilities.
• Owns and manages the land with the power of performing commercial activities as needed
• Creates, owns & implements the masterplan
• Coordinates & manages the development of land including intra in the Industrial Zone
• Marketing and sales for the Industrial Zone
• Managing the zone facilities and delivering customer services
• Plans & develops strategic real estate in the industrial Zone
• Ensures efficient delivery of assets to enhance ecosystem for tenants
• Provides all key services in the industrial Zone
• Ensures high level of service delivery though relevant business models
“It is testimony to our commitment towards the safety and well-being of our employees and customers, that we can proudly announce to have won Silver Stevie Awards in two categories – Most Valuable Corporate Response to COVID-19 and Most Valuable Government Response to COVID-19.”
Sustainability and low carbon transformation is at the core of our strategy for growth, and we reflect this through multiple initiatives including:
An agreement to establish a green ammonia processing facility in KIZAD powered by an onsite 800 Mega Watt peak (MWp) solar plant
Developing “Hubs” that ease business and reduce environmental impact by bringing multiple supply chain actors of similar industries together
Hosting multiple industries working on waste recycling
Rolling out energy-efficient infrastructure
Green buildings and warehouses as per Estidama requirements
Established in 2010, and spread over 410 km2, KIZAD is a port-integrated industrial zone with both free zone and domestic industrial zone solutions for land lease, pre-built warehouses, and offices.
in Numbers
KIZAD Free Zone offers a world-class business environment and a meticulously designed industry ecosystem that makes it easier to set up and conduct business in Abu Dhabi.
The Zone provides Investors with an array of business set-up services that streamline their registration and licensing processes.
KIZAD also offers Investors executive offices, flexible workstations, and dedicated desks to complement its overall value proposition.
KIZAD hosts over six hundred companies cutting across industrial sectors such as:
ZonesCorp, a dynamic industrial zone, was launched in 2004, and merged with AD Ports Group in 2020. It is the largest operator of purpose-built industrial zones in the United Arab Emirates. Since its inception, ZonesCorp has helped shape Abu Dhabi’s industrial landscape by developing fully integrated industrial zones spanning 145
Chemicals & Plastics
Industry
km2 of prime investment land in the cities of Abu Dhabi and Al Ain.
ZonesCorp currently houses more than nine hundred manufacturing facilities and is home to many of the world’s leading global industrial players in various sectors.
Our industrial hubs bring both upstream and downstream industrial sectors together at one location so they can benefit from each other and reduce supply chain-related environmental impacts.
We are developing a mega regional food hub and marketplace in partnership with Ghassan Aboud Group and in collaboration with Rungis that will spread over more than 3 km2 and will bring together all stakeholders in the Food value chain.
The Life Science Park is a pioneering, purpose-built zone dedicated to the Life Sciences industry providing spaces for product manufacturing, logistics, research and development, and education. Life Science Park
Rahayel is an ecosystem underdevelopment commodating a full range of auto-related businesses and supporting services such as showrooms, service centres and workshops, auction houses, sector-based regulatory and governing bodies, lifestyle retail, and entertainment outlets.
The integrated Hub will cover 12 km2 and will be the first of its kind in the region.
We are establishing our Speciality Chemicals Hub at KIZAD to serve the rapidly transforming Chemicals sector.
Strategically located between Abu Dhabi and Dubai, the Hub will offer competitive utility rates in the UAE, making it a costefficient location for downstream manufacturing activities in the Chemicals sector.
The Truck Plaza at KIZAD will offer refuelling and recreational facilities covering an area of more than 87,000 square metres.
Additionally, it will include a first-of-its-kind, dedicated, ADNOC distribution service station for trucks, a community centre, several retail outlets, and a mosque.
Since its establishment in 2018, AD Ports Group’s Logistics Cluster has handled the expanded scope of logistics and is driving end-to-end solutions.
The acquisition of MICCO in 2020 allowed the Logistics Cluster to expand its end-to-end solutions to both domestic and international customers. In 2021 alone, our Logistics Cluster moved over 4.9 million tonnes of goods across 42.7 million kilometres.
With an extensive transportation fleet of 400+ vehicles, temperature-controlled warehousing facilities, and services which, among others, include, land transportation, storage, stevedoring, freight management, overseas consolidation, and final mile delivery, the Cluster can serve multiple sectors, including healthcare, polymers, F&B, e-commerce, logistics & cargo networks, heavy lift, industrials, and others.
Working with the HOPE Consortium partners, the Cluster has continued to dedicate its advanced cold and ultra-cold medical warehouse, which is one of the largest of its
kind in the region, to serve as a hub for storage and delivery of essential COVID-19 vaccines and other essential healthcare products. In 2021, the Logistics Cluster, alongside its partners, helped handle and dispatch over 250 million doses of the COVID-19 vaccine across 60 countries around the globe.
We believe that reducing our carbon emissions and improving the efficiency of our operations goes hand in hand. With this in mind, we are implementing exciting technological solutions that will help electrify and automate our transport fleet, significantly improve our fuel efficiency and optimise our delivery operations.”
Looking into the near term, our healthcare business will see significant growth, particularly in the areas of integrated healthcare, vaccine, hospital, and pharma logistics, while at the same time, we will expand our polymers business by developing and operating an advanced polymers storage hub in KIZAD for one of our long-term industry partners.
The hub, which at 180,000 sqm is one of the largest of its type in the world, will serve the global polymers export markets thanks to its close proximity to Khalifa Port.
In addition, we are in the early stages of pursuing a pilot project that would evaluate the feasibility of delivering medical supplies using drones.
Expanding our capabilities to this sphere would greatly enhance our final mile capacities in terms of speed, efficiency, and emissions reductions.
The Cluster understands that greenhouse gas (GHG) emissions are significantly detrimental to the environment, and is committed to mapping, managing, and reducing its GHGs. Some of the initiatives taken towards this goal include replacing older vehicles with more efficient models, trialing the use of fuel additives to increase fleet efficiency and converting some of our existing cargo vehicles from diesel to electric power.
Read more about the GHG reduction initiatives in the 'Safeguarding the Environment' section of the report.
AD Ports Group has built a robust digital infrastructure to bolster trade and logistics business interactions across all our entities and operations.
The Digital Cluster delivers advanced, intelligent, and innovative digital solutions catering to trade and logistics stakeholders.
Much of the Digital Cluster’s activity is undertaken in the service of each of AD Ports Group’s Clusters, where it enhances effective service delivery through technological innovations that improve our Group’s overall productivity.
Established in 2016, Maqta Gateway a wholly owned subsidiary of AD Ports Group is a facilitator of advanced digital solutions for trade and logistics sectors, designed to enable integrated digital global trade.
Maqta Gateway supports AD Ports Group in its strategy of digitalisation and is spearheading the digital mandate of Abu Dhabi’s maritime, trade, and government services.
The technological innovations delivered by the Digital Cluster are crucial to the low-carbon transformation of our business. The digital solutions developed by the Cluster have increased the efficiency and productivity of business interactions, fostering transparency and access to real-time information for all stakeholders.
Since its establishment, Maqta Gateway has efficiently processed more than fifty-one million transactions with full traceability.
As a founding partner of the Abu Dhabi-led HOPE Consortium, Maqta Gateway is leveraging its digital technology and supply-chain expertise to facilitate the Emirate’s drive to deliver enormous quantities of COVID-19 vaccines around the world.
“Looking to 2022 and beyond, the Digital Cluster will continue to the play a pivotal role in driving our sustainable growth by leveraging technology for the benefit of our entire business ecosystem."
In 2021, Maqta Gateway developed and launched the Advanced Trade Logistics Platform (ATLP).
ATLP is an innovative solution that facilitates the global exchange of goods and the movement of people while contributing to Abu Dhabi’s sustainable development.
It is a platform for unifying payments and applications, and helping stakeholders better manage resources. It will serve as Abu Dhabi’s
single window trade platform for all economic operators via sea, land, air, industrial and free zones, in addition to enhancing the customer experience within the trade and logistics sectors.
By encouraging paperless trade, ATLP is enabling organizations to conduct their business with fewer physical visits, improved government and customer efficiency, and a substantial reduction in CO2 emissions.
We are growing rapidly and are on a mission to decouple our economic growth from carbon emissions. Through innovation and harnessing solar power, we are improving our energy efficiency, shifting away from fossil fuels, and hence mitigating the Greenhouse Gas (GHG) emissions associated with our growth.
In its recent report, the Intergovernmental Panel on Climate Change (IPCC) described climate change as ‘widespread, rapid, and intensifying’. In response, we are aligning our operations to ‘UAE Net Zero 2050’, a national drive to achieve Net Zero emissions by 2050.
This year, we commissioned a study to identify measures to reduce our GHG emissions across our operations; the purpose of the study is to enable us to define a Group-wide low-carbon transformation strategy.
We have also implemented a comprehensive energy management system to capture all significant energy usage across our Clusters. Optimisation of water consumption is an important pillar of our sustainability strategy, as the majority of our operations occur in water-stressed areas where the production of potable water results in GHG emissions.
We underpin our journey towards a low-carbon transformation through energy optimisation and moving away from fossil fuels through the integration of renewable energy across our operations."
These activities provide us with a deeper understanding of our energy consumption patterns, and help us reduce emission intensity of our two major energy consumption hotspots:
1
Electricity consumption at our ports, offices, and warehouses
2
Fuel consumption of our equipment and fleet
This has enabled us to target mitigation measures where they are most effective, resulting in a steep decline and stabilisation of our energy consumption and the associated GHG emissions. The graphs below reflect our achievements since 2017.
In 2021, our TEU volumes increased by almost 5%, and we also initiated our transshipment operations, which has resulted in an increase in our absolute energy consumption. We are conscious of this increase and are committed to stabilising our energy consumption intensity and implementing measures to reduce it further through our low-carbon transformation pathway.
Our low-carbon transformation strategy aims to reduce direct (Scope 2) from our operations. Most of our direct emissions emanate fuels to operate our ports’ equipment, tugboats, and fleet.
We are working towards electrification of our port equipment and resulting from their fuel consumption. We realise that switching our Scope 1 emissions to Scope 2. However, this would lead to overall UAE grid's emission intensity is projected to significantly reduce commitment to NetZero by 2050. We plan to mitigate the indirect
(Scope 1) and indirect emissions emanate from the combustion of fossil
and fleet to reduce the GHG emissions switching from fuel to electricity shall move overall emission reductions as the due to its alignment with the UAE's indirect emissions generated from our
increased grid electricity consumption by implementing energy efficiency measures, installing solar PV, and offsetting any remaining carbon emissions through Renewable Energy Certificates.
We are also looking into the usage of biofuel and electric vehicles for our fleet to reduce our emissions further. Multiple energy efficiency initiatives are also in progress to reduce our overall energy consumption intensity, thereby reducing the related carbon emissions. The visiting vessels are the major source of scope 3 emissions, we plan to provide shore power facilities and to incentivise green vessels to reduce these emissions. The graphic below summarises our Low-Carbon Transformation Pathway for scope 1 and 2 emissions.
Electrification with partial supply of electricity from solar pv
Electric vehicle/Solar Charged Low-carbon Transformation Scenario
Usage of biofuel for the fleet
UAE's grid emission intensity is expected to reduce over time
We have developed a framework to identify the most significant emissions sources and estimate volumes of emissions across all Clusters. We disclose our Scope 1, 2, and 3 emissions in alignment with the ‘GHG Protocol
Corporate Standard’. The emissions are calculated using locally established emissions factors where possible, and IPCC factors where local factors are unavailable.
Scope 1 - Fuel consumed in equipment, vehicles and boats owned by AD Ports Group Scope 1
354,477
Scope 2 - Electricity consumption by cranes, offices, and warehouses of the company
Scope 3 - Emissions by vessels visiting our ports within our water limits, potable water consumption and waste water treatment.
Figure 06 : GHG Emissions from Ocean Going Vessels
Figure 07 : GHG Emissions from Potable Water Consumption
Due to the pandemic, the number of vessels visiting our ports decreased marginally in 2021, resulting in a slight decrease of GHG emissions from the visiting vessels.
Figure 08 : GHG Emissions from Electricity Consumption
In 2020, we expanded the scope of water disclosure to include CSP Abu Dhabi Terminal, Autoterminal Khalifa Port, MICCO and ZonesCorp, resulting in increased water consumption as well as corresponding emissions in comparison to 2019.
Figure 09 : GHG Emissions from Fuel Consumption (diesel & gasoline)
This year, we initiated transshipment operations, and have included the fuel consumption of the same within the disclosure, which has resulted in a significant increase in emissions from fuel consumption.
To reduce the Scope 1 emissions from our fleet, our Logistics Cluster trialled the BOOSTplus fuel additive. BOOSTplus acts as a lubricant that reduces the engine’s operating temperature and prevents clogging from carbon deposits.
Furthermore, it combines with the fuel’s hydrocarbons and improves combustion rates by up to 23%. The trial indicated a 16% to 30% fuel reduction might be possible through BOOSTplus. This would result in significant emission reduction and a substantial reduction in fuel spending when applied across our fleet. Due to this potential, the Logistics Cluster is exploring the feasibility of employing the additive at scale.
In addition to incorporating BOOSTplus, the Logistics Cluster is retiring old vehicles and replacing them with newer, more efficient models, thereby increasing the overall fuel efficiency of the fleet while reducing the operation and maintenance cost.
Another significant project that the Logistics Cluster is piloting is the application of autonomous trucks. The benefits of such vehicles potentially include improved fuel consumption, enhanced efficiency due to longer hours of operation, greater safety, and reduced vehicle wear and tear. Should the concept prove itself, we intend to incorporate it on a broader scale, once the necessary traffic safety regulatory environment is introduced.
The Logistics Cluster plans to electrify some of the existing cargo vehicles. This would be done by converting internal combustion engines of the vehicles to a battery powertrain using a specialised kit. The powertrain comes with advanced software to optimise vehicle performance and improve fleet management operations, resulting in reduced operational costs, and CO2 emissions.
The conversion shall begin in the third quarter of 2022, with two vehicles earmarked for the pilot. Upon successful conversion of these two vehicles, we aim to convert at least fifty vehicles to run purely on electric power.
To further improve fuel efficiency, the Logistics Cluster has introduced telematics for fleet management. Telematics drives the fleet’s efficiency by:
All of the above initiatives will help us reduce Scope 1 emissions by significantly improving the fuel efficiency of our fleet, while driving operational performance and business competitiveness.
KIZAD continues to attract companies that invest in clean and sustainable technologies. This year, Helios Industry, a privately-owned special project vehicle company (SPV), announced an investment of over AED 3.67 billion for the construction of a green ammonia facility at KIZAD.
The facility is projected to produce 200,000 tonnes of green ammonia from 40,000 tonnes of green hydrogen. Once the facility is commissioned, it is anticipated to reduce 600,000-tonnes of carbon dioxide, a significant contribution to the UAE Net Zero 2050 strategy.
To reduce Scope 2 emissions, we are capitalising on the abundant, clean solar energy that is available to us. In 2021, we began installing solar panels at the South Quay Warehouses 1 & 2, which we expect will produce 1,836,982 kWh of energy annually from September 2022.
We also initiated plans to install panels at our Mugharraq Port warehouse, which will deliver another 1,900,000 kWh of clean electricity annually from March 2023.
Solar Project at South Quay Warehouse 1 and 2
1,836,982 KWh
Annual Generation
781 tCO2e
Emission reduction
Through the Green Ports study, we are also exploring the opportunity to retrofit the existing buildings and warehouses with rooftop solar PVs.
AD Ports Group continuously monitors the air quality and meteorological data at 7 monitoring stations located within KIZAD, Khalifa Port, Al Ain & 4 stations within ZonesCorp (EST, HFM, Mobile and NFF). These locations were selected as potential sources of air emissions exist in the surrounding areas.
95%
Average Compliance for All Criteria Pollutants
Compliance with the Ambient Air Quality Standard
The average air quality compliance for SO2, NOX, CO, Ozone, and PM10 was 95% this year. The graph represents the same for the last three years.
97% Data Capture
10 : Ambient Air Quality
To protect public health and maintain ambient air quality, we have set up a state-of-the-art air quality monitoring system."
The success of any monitoring plan depends on the quality and quantity of data captured.
Our goal for this year was to achieve a data capture rate of 90% and above for the criteria air pollutants. We achieved an average data capture rate of 97% across all seven monitoring stations.
We establish the compliance of criteria air pollutants with the national air quality standard limits and identify exceedances. The percentage compliance in 2021 for SO2, NOX, and CO was 100% at all the locations. The percentage compliance for Ozone and PM10 were 98% and 78%, respectively.
We initiated our seawater quality monitoring programme in 2015 to measure critical seawater quality parameters. The seawater quality monitoring is undertaken through online continuous Water Quality Monitoring Stations (WQMS) located at three different zones named ambient, discharge, and mixing zone within the vicinity of the
Khalifa Port basin. We selected each location based on the discharge points and sensitive areas in the Khalifa Port harbour limits. The WQMS helps us to monitor the compliance with the requirements and standards of the Environmental Agency-Abu Dhabi (EAD) and to measure the impact of our activities on the marine environment.
99%
Average Sea Water Quality Compliance at Mixing Zone
Our state-of-the-art WQMS acquires data every 15 minutes and stores it locally within the data logger. The AD Ports Group’s online web portal allows for near real-time viewing of water quality data derived from the stations.
We achieved a high data capture rate of 99.94% from the three different monitoring stations.
99% Data Capture
The average seawater quality compliance for temperature, pH, Turbidity, Dissolved Oxygen (DO), and Salinity was 99% at the mixing zone this year. The compliance rate has been above 99% for last three years.
11 : Sea Water Quality Compliance at Mixing Zone
Through the monitoring station, compliance with the EAD standards is assessed and exceedances are reported. The percentage compliance in 2021 for temperature, pH, Turbidity, and Dissolved Oxygen (DO) was 100%. The percentage compliance for Salinity was 95%.
We recognise that climate change, biodiversity loss, and pollution are threatening our planet’s life-support systems, and it is our responsibility to mitigate these issues through proper management and disposal of our waste.
Under our sustainability strategy, we have prioritised action on Sustainable Development Goal (SDG) 12, which sets the target of achieving ‘the environmentally sound management of chemicals and all wastes throughout their lifecycle, and significantly reduce their release to air, water and soil to minimise their adverse impacts on human health and the environment.’
We have developed a comprehensive waste management plan covering all types of waste generated across our operations "
We have characterised waste according to its physical and chemical properties (hazardous or non-hazardous), toxicity potential, and potential for us to reuse or recycle.
Based on the above, we have contracted with waste recyclers, treatment, and disposal companies.
We ensure that we use, treat, or dispose of our waste as per local regulatory requirements.
Our team also conducts periodic audits to ensure compliance with the waste management plan.
In 2021, there was a 24% decrease in solid waste generated for AD Ports Group and 15% decrease including the tenants and calling vessels. The decrease in waste generation can be partly attributed to the reduced site activity during the pandemic and also to the relentless efforts we have put in over the years towards promoting circularity within AD Ports Group.
Due to the pandemic, we consumed large volumes of single-use material across our operations, which has resulted in a significant increase in the quantity of waste landfilled and a decrease in % recycled.
13 : Solid Waste Landfilled
The graphs below depict the solid waste and hazardous waste landfilled and recycled from AD Ports Group for the last three years.
Figure 14 : Percentage Solid Waste Recycled
15 : Hazardous Waste Landfilled
16 : Percentage Hazardous Waste Recycled
We kept pushing our efforts towards recycling hazardous waste, which resulted in a decrease in the quantity of hazardous waste sent to the landfill while increasing the recycling percentage.
The graphs below depict the solid waste and hazardous waste landfilled and recycled from AD Ports Group, its tenants and calling vessels combined for the last three years.
With a 70% decline in the populations of mammals, birds, fish, reptiles, and amphibians since 1970, biodiversity is declining faster than at any time in human history. Moreover, according to the International Union for Conservation of Nature (IUCN) Red List, almost a quarter of all species are at risk of extinction.
We have undertaken several initiatives to preserve Ras Ghanada, the largest coral reef in the GCC region.
The entire design of Khalifa Port was configured to protect Ras Ghanada, which houses vibrant marine life, and ensures that natural water currents continue to flow toand-from the reef. We built an environmental breakwater at the cost of billions of Dirhams to safeguard the coral reef.
“We are aware of the importance of conserving marine and terrestrial biodiversity across our operations. Multiple initiatives have been implemented and many are in the pipeline to preserve the rich biodiversity our nation is blessed with."
The Breakwater has been successful in avoiding contamination of marine life and minimising the flow of fine sediments through the extensive use of sediment curtains and environmentally conscious construction management practices. Khalifa Port is the only port in the world with such features to protect adjacent coral reefs and seagrass meadows.
Since its construction, AD Ports Group has implemented an ecological monitoring programme, which conducts three annual assessments. Our latest underwater survey shows that the breakwater and port revetment appear to provide a conducive environment and new habitat for all marine life
and is successfully preserving fish biomass, with endangered species such as the ‘Hammour’ grouper seen on the reef.
The learnings and experience from building the first port island and our ecological monitoring programme will be vital to the construction of two additionally planned port islands at Khalifa Port as well as other similar projects in the region.
The major activities we undertook in 2021 to protect habitat and preserve biodiversity are presented in this section.
AD Ports Group is committed to protecting the Ras Ghanada coral reef and our continued monitoring of it will be key to the success of the conservation efforts.
In 2020, we successfully relocated healthy corals to the environmental breakwater near Ras Ghanada to protect
them from the development footprint of Khalifa Port. In 2021, we collaborated with the research team of a local university to monitor the relocated corals.
As part of our environmental commitment to offset the impacts of our development projects, we have planned to undertake a mangrove compensation strategy and mammal migration study to compensate for the loss of marine habitat from the construction of the Al Fiyay marine facility.
Mangrove compensation will improve the biodiversity of the area while the mammal migration study will provide valuable data on the movement and migration patterns of mammals in the area, including dugongs and dolphins.
In collaboration with the Environment Agency Abu Dhabi, we have commenced a two-year relocation project for spinytailed lizards, which the IUCN list classifies as vulnerable due to their declining population. We identified the species within KIZAD’s future development footprint during the environmental impact assessment study.
We plan to relocate the lizards to a dedicated conservation area to compensate for the loss of habitat from future developments within KIZAD. The project will continue monitoring these lizards for a two-year period to gain insight into their behaviour and ecology. The project would also contribute to the development of a relocation best practice manual for lizards to aid in future conservation efforts.
As an operator of one of the world’s fastest growing ports, industrial development, and logistics hubs, we understand that our growth, and our employees’ growth are interdependent.
We believe in directly investing in our employees to create a healthy culture of diversity, inclusion, equality, and strength within the workplace.
Due to this ethos, female representation within AD Ports Group has increased by 88% since 2018, and the diversity of non-Emirates we employ has risen by 21% over the same period.
We are mindful that job satisfaction plays a key role in bringing out the best in our employees. We therefore conduct an annual employee satisfaction survey to determine where we can do better, and in 2021, the survey revealed 85% employee satisfaction.
Our People Management Framework concentrates on three key areas of development: Emiratisation, Diversity and Training.
“We are delighted that we have retained our Investors in People Platinum (IIP) accreditation, the highest accolade internationally for people management”
We are committed to our employees’ personal and professional development, to achieve sustainably elevated levels of job satisfaction and contentment across our Group."
Training is one of the key principles of our People Management Framework. We systematically assess our employees’ training needs through our in-house “Training Need Analysis” process.
This is instigated by our business units, and by each Cluster head, and then filtered into the rest of our Group.
The wellbeing of our employees is meticulously managed through policies and procedures that are reviewed regularly.
21 : Number of employees
Figure 22 : Number of local employees
With the merger of ZonesCorp with AD Ports Group, the number of our employees increased significantly.
23 : Employee turnover
24 : Percentage of local employees (Excluding blue collar)
We believe that time off for parenthood is a right and responsibility of both parents. Which is why, as per local
regulations, we support all of our employees to take the maternity, or paternity leave they are entitled to.
In line with the United Nations’ Sustainable Development Goals and Global Compact, we weave diversity and inclusion into our sustainability strategy.
At present, we have 304 women employed within AD Ports Group. The following chart depicts the number of women employees over a 3-year period.
Figure 28 : Number of women employees
2019 2020 2021
Women employees also comprise 13% of senior management positions and we are committed to improving the gender diversity at AD Ports Group and, in the coming years, would strive to improve the percentage of women across all clusters.
Our Gain Leadership Opportunities for Women (GLOW) and Advanced Trade and Logistics Graduates (ATLG) initiatives exemplify our approach.
Led by Maitha Al Murar, Vice President of Human Capital & Emiratisation, and developed in partnership with Aurora 50, our nine-week GLOW initiative accelerates the careers of Emirati women within the Group. Under GLOW, we give female executive Emirati employees at managerial level or above the opportunity to realise their full potential to become our future leaders.
Women leave the programme endowed with the skills to strategically plan and maximise their career development and opportunities using designthinking tools.
Launched under the patronage of Her Highness Sheikha Fatima bint Mubarak, the Mother of the Nation, ATLG supports rising female talent in the sector of technology.
The initiative is open to Emirati females who have recently graduated or are final-year undergraduates.
In 2021 we celebrated the graduation of the second cohort of young female talent to complete intensive training under the initiative.
This year’s Graduates were given the opportunity to join our Digital Cluster for a three-month internship, where they contributed to the deliverables of the Advanced Trade and Logistics Platform (ATLP).
The Graduates left the programme with first-hand experience of developing innovative technology that is advancing Abu Dhabi’s trade and logistics sector.
At AD Ports Group, we care about our people and the environment we live in. Through our innovative yet considerate ideas, we have become a leader of sustainable growth in the UAE.
Our CSR activities have been part of that growth and are created beneath a framework of six key focus pillars: Health, Employee Welfare & Development, Environment, Supporting Our Communities, Equal Opportunities and Philanthropy. Under these pillars, we conduct CSR initiatives that also align with the Sustainable Development Goals (SDGs) and the United Nations Global Compact (UNGC) principles, to assist in the sustainable improvement of our community’s health and wellbeing.
85+ CSR Initiatives
51,565+ Lives Impacted
Year-on-year
the activities delivered under the five pillars of our CSR framework, have led to AD Ports Group being recognised as an ethical business both locally and internationally."
Our CSR department has gained international recognition for its socially responsible efforts and initiatives. We were the first Middle Eastern company to be awarded the Gold Accreditation for Excellence in Corporate Social Responsibility (CSR) in 2020, from the UK-based CSR Accreditation (CSRA). We won the International CSR Excellence award and CSR World Leader award in 2021. The award ceremony was held in the Houses of Parliament, London, UK in November 2021.
Our CSR approach to each of these pillars is presented below.
Our health campaigns help to raise awareness on the prevention of disease and support those in recovery from chronic health issues, such as cancer patients and those who need blood transfusions.
We encourage our employees to volunteer in charitable activities and build a better sense of community welfare and development by engaging them through purpose.
Our environmental campaigns encourage ecological conservational efforts toward climate change and the preservation of biodiversity.
AD Ports Group benefits the communities it operates within through educational campaigns that promote skill development and by providing course scholarships, development programmes and career guidance.
AD Ports Group has undertaken activities to protect or promote equality for all, amongst its employees as well as the communities irrespective of gender, ethnicity, disability etc.
Every year we invest in our community by donating and collaborating with nonprofit organisations and charities in the UAE.
Through seven consecutive programmes at ADMA, fourteen local secondary students gained world-class maritime education and training during their 2021 summer holidays.
As health and safety in the workplace is paramount to the health and wellbeing of its people, we signed an MoU in partnership with National Ambulance, to develop awareness on how best to assist in emergency responses within the workplace.
Moreover, AD Ports Group and National Ambulance have agreed to further collaborate on raising awareness of cardiopulmonary resuscitation, external defibrillation, first aid emergencies, and emergency medical services available in the UAE.
As part of our commitment to making our services accessible to all, we have signed an MoU with the Zayed Higher Organization (ZHO) for People of Determination (PoD). Under this agreement, AD Ports Group will provide retail space at Marsa Mina, Abu Dhabi to ZHO, for PoD to sell their commercial products.
ZHO will also be training our team in sign language and will print sales brochures in braille. This will improve the lines of communication between our team members, our customers, and PoD.
We are committed to helping those less fortunate, including PoD from families in need. In 2021, we supported two PoD students from families in need, by offering sponsorships for study.
AD Ports Group also encourages PoD to participate in national and international events. In 2021 this included the 50th National Day of the United Arab Emirates, which was attended by 16 PoD.
In 2021 AD Ports Group launched its 8th Annual Initiative. In conjunction with the annual “Safety in the Heat” programme launched by the Abu Dhabi Public Health Centre, our HSE team held lectures and webinars about the risks and symptoms of heat stress.
The initiative raises the awareness of heat stress management and how to stay safe whilst working in extremely hot weather. In total, 9,336 of our employees, stakeholders and customers attended 568 training awareness webinars, under this initiative.
Ocean pollution and marine debris are huge threats to marine life, marine vegetation, and in turn the environment.
In 2021 we launched a seabed clean-up initiative entitled Dive Together! During the activity, a group of divers removed 30 kg of debris from the seabed in Khalifa Port.
World Paper Free Day is an annual campaign that aims to reduce the amount of paper generated by humans on a daily basis.
In collaboration with the Association for Information and Image Management, AD Ports Group encouraged its employees to go paperless for the day. The participation of 42 of our people saved approximately 135 kg of paper.
For certain members of our community IT equipment can be too expensive to purchase.
A lack of access to IT equipment limits opportunities for education, training, and employment.
So, in cooperation with IT Management, AD Ports Group donated 571 pieces of IT equipment including laptops, monitors, printers, and desktop PCs to Emirates Red Crescent to benefit digitally excluded members of our communities.
In cooperation with Asset Management, we donated redundant sets of office furniture, such as tables, chairs, and drawers to the Emirates Red Crescent for the benefit of those in need.
The 337 pieces of furniture donated, provided needy families with a more comfortable home.
‘Safe, secure & sustainable’ operations are fundamental to our values and critical to our sustainability strategy. We operate under a robust value system, that we instill in all our employees to promote a culture of excellence.
Maintaining an absolute focus on safety while operational efficiency is key to our growth.
ISO 45001:2018 - Occupational Health & Safety is one of the twelve management systems we have incorporated and implemented across operations into our Integrated Management System (IMS). By managing health and safety in this manner, we ensure that we protect every
individual and asset within AD Ports Group operations through stringent and standardised health and safety measures.
Furthermore, the integration of our management systems delivers multiple efficiency benefits including:
“AD Ports Group ensures that those personnel within health and safety roles have the relevant expertise required and that their responsibilities are communicated across the organisation, as well as documented."
Both employees and contractors take responsibility for the health and safety aspects of our IMS, over which they have control.
Through these stringent policies and procedures within the management system, we can proactively and systematically identify, prioritise, and control our health and safety risks and opportunities.
We follow a set of established risk assessment techniques and risk tolerability criteria that form the basis for identifying hazards and assessing associated risks across our operations and activities.
We ensure health and safety management within our IMS is fit for purpose through periodic reviews of the policies and procedures.
Our reviews include Health, Safety, and Environmental audits, reporting on non-conformities, communicating
HSE targets and objectives to all clusters and corporate units, delivering HSE training programmes, and regular Management Review Meetings.
The table below provides a summary of our safety performance in 2021.
In 2021, we initiated 12 internal audits and two third party audits alongside 1,956 inspections, and 202 incident investigations. To ensure that the Group’s contractors are
operating according to our health and safety standards, we also reviewed and approved EHS procedures of 770 contractors.
We reflect on the learnings from incidents occurred in the past and strive to achieve zero-incidents on site and in offices. ”
:
34 : Serious injuries
Figure 36 : Total Recordable Injury Rate
The man-hours worked have increased year-on-year since 2019. In 2021, the number of man-hours worked increased by 33% in comparison to 2019. However, due to a health
and safety incident, the man-hours worked without LTI has decreased to 8.11 million hours in 2021, in comparison to 10.85 million hours in 2019.
At AD Ports Group, we recognise and reward responsible health and safety behaviour through our NEESHAN Awards.
NEESHAN celebrates the contributions of individuals, government, private entities, and our partners that have improved our HSE performance with the purpose of promoting HSE excellence.
Individual award categories include:
Best HSE Performance for Supervisory & Non-Supervisory
Best HSE Observation Reporter
Best HSE Representative
Best HSE Auditor
NEESHAN is based on a set of key indicators that measure and monitor the performances of the participants. Our NEESHAN Committee selects winners by evaluating individuals and entities’ efforts against the indicators.
While the Business Units awards include:
Best HSE Performance
Best Contractor Management
Best Risk Management
Best Management of Change
Best Environmental Performance
Best Sustainability Performance
Best HSE Innovation
We award the winners of each category with a certificate of appreciation and an honorary plaque. Continuing with last year’s format, we held the fourth cycle of the awards virtually on October 2021.
Throughout 2021, trainings and campaigns were organised and conducted by the HSE teams of each Cluster. Where
13,007
Individuals Trained
applicable, we also included participants from other business units and contractors in the sessions.
53,616
HSE Toolbox Talk Attendees
Health and Safety in the Heat Campaign Emergency Drills
In 2021, AD Ports Group launched its 8th annual initiative named ‘Safety in Heat’. In conjunction with the annual ‘Safety in the Heat’ programme launched by the Abu Dhabi Public Health Centre, our HSE team held lectures and webinars about the risks and symptoms of heat stress.
The initiative raised our employees’ awareness on heat stress management, and how to stay safe while working in the extreme summer temperatures. A total of 9,336 employees attended 568 webinar training awareness sessions under the campaign.
29,319
HSE Training Hours
Our Incident Command Operations Centre (ICC) ensures that employees understand how to manage emergency scenarios occurring at AD Ports Group through standardised emergency drills. In 2021, a total of eight drills were conducted at our busiest hubs; Khalifa Port, KIZAD and Zayed Port.
We conduct drills including Fire Incident, Rescue and Medical, HAZMAT, Business Continuity, and Tabletop, in which approximately 95 employees participated.
GRI: 403-3, 403-4, 403-5
The COVID-19 pandemic gave most businesses limited time to prepare for the disruptions it created. This highlighted the importance of effective internal occupational health and safety systems, and their role in steering the organisation through uncertain times.
Consequently, AD Ports Group has set up a Business Continuity Management System to manage significant
disruptions to our operations and future growth plans. We have designed all our business continuity procedures with the intention of providing clear operational guidance during uncertain periods and restoring the Group’s ability to service customers according to advice from subject matter experts.
The steps that AD Ports Group has taken include:
Developed a comprehensive Business Impact Analysis (BIA) report for Business Continuity Management for all departments and units (34 BIA reports)
Modernised the structure and response team for emergencies and Crises Management
Developing the policy and procedures for the management of the COVID-19 pandemic to support the management of business continuity 1 2 3 4 5 6
Obtained the IMS Integrated Management accreditation, which includes NCEMA 7000: 2021 National specification For Business Continuity Management System 22301: 2019, ISO Certification in Risk Management 31000:2018
Developed an integrated program to train National Service employees to support the government’s efforts in managing vital business continuity
Developed a structure of critical functions to support business continuity management efforts
Due to these proactive measures and the resilience provided by our management systems, our Group is now well prepared to manage the impacts of any future unforeseen disruptions to business.
We are also committed to preserving stakeholder interests in the event of disasters by learning from our internal and external environments and developing capabilities related to emergency and crisis responses.
In 2021, the Business Continuity Management (BCM) team conducted 130 business continuity related trainings
involving more than 2300 participants. The objective was to help employees anticipate, prepare, and respond to crises, as well as provide guidance for recovery under different scenarios threaten business continuity.
The combination of our IMS and Business Continuity Management Systems ensures that AD Ports Group has the necessary resilience for safe and sustainable growth, regardless of unforeseen future shocks.
Our mission is to position Abu Dhabi at the frontier of global trade, by managing world-class global logistic value chains, driving operational excellence by leveraging digital technologies, meeting stakeholders’ dynamic needs, forging relationships, and maximising shareholder value.
Our vision is to drive global trade through an integrated portfolio of world-class ports, industrial zones, and logistics supply chains.
Ready to respond
Eager to collaborate
Safe, secure & sustainable
Innovative for excellence
Fair & committed
The integration of sustainability into the realisation of our mission, vision and values requires robust governance structures.
The fostering of sustainability is dependent upon good governance; our leaders have the skills and expertise to build the necessary structures that support our robust sustainability strategy".
The building of robust governance structures enables us to implement sustainability strategy across our Clusters whilst managing performance, strengthening relationships with external stakeholders, and ensuring overall accountability.
At a supervisory level, AD Ports Group is overseen by a Board of Directors, four male and one female, whose members, except for the Group Chief Executive Officer, are independent.
Alongside a responsibility to deliver financial stability and growth, the Board is accountable for the identification and management of the impacts our operations have on our local environment and communities.
Our Board members are strategically selected executives and leaders from key businesses
and ministries that work closely with AD Ports Group.
The collective expertise held by the Board in areas including real estate development, mergers and acquisitions, environmental protection, waste disposal and energy, empowers us to implement the robust governance structures that are necessary to integrate sustainability into our business strategy.
Our Board is supported by three committees:
The ARC provides a structured, systematic oversight of our governance, risk management, and internal control practices.
Through the ARC we determine the adequacy of the processes that govern our business, and our compliance with laws and regulations.
The ARC also deals with matters raised by external auditors, and our performance against our sustainability strategy.
The purpose of the RHRC is to assist the Board in discharging its corporate governance responsibilities to exercise due care and diligence in ensuring oversight of the nomination and selection process of the Board.
It also oversees succession planning of senior management, and governs the administration of our compensation and benefits plans, and People, Culture and Performance framework and practices.
The SIC oversees the implementation of AD Ports Group’s strategy, and investments approved by the Board.
It reviews and endorses AD Ports Group's strategy, annual budget, business plan, mergers & acquisitions, and material treasury activities.
There are multiple Management-level Committees set up at AD Ports Group to support the day-to-day activities of the organisation.
One such Committee is the Sustainability Committee, which oversees the implementation of the policies, strategies and activities that drive our sustainable growth.
Executives of eight departments from across our Group sit on the Committee, ensuring we integrate sustainability into every aspect of our operations. To maintain the momentum of our sustainability projects, the Committee meets quarterly to review progress and plan for future activities.
The management of risk and ensuring ethical behaviour are integral to our business strategy.
As a large organisation operating across five Clusters, AD Ports Group’s operations are exposed to many risks.
Our Corporate Governance, Risk and Compliance Framework enables us to identify the risks inherent to our operations and the appropriate mitigation measures to manage them, which include:
Exposure to legal penalties
Financial forfeiture
Material loss and
Reputational impact
We are committed to acting ethically and professionally across everything we do, this commitment is embraced across the organisation and applies to all those with whom we interact and do business with.
Our Code of Conduct governs critical issues including social responsibility anti-corruption, protection of assets, conflict of interest, dealing with contractors, equal opportunity, ethics, communication, risk management, harassment, and violence.
The Board of Directors charge AD Ports Group’s senior management with ensuring that our Code of Conduct and the Company’s Corporate Policies govern all business activities of the Company without exception.
To promote sustainable growth, organizations must consider their impact on many economic, environmental, and social issues.
Moreover, due to limited resources, decisions must be made regarding what issues should be tackled first, and what action is most impactful. Thus, it is vital that we establish which courses of action regarding our sustainability strategy have potential to be most effective and aligned to our stakeholders’ values.
This year we undertook an assessment where we engaged with key internal and external stakeholders.
Our key internal and external stakeholders included our employees, government rganisations, customers, suppliers and
communities. Throughout the year, we engage with them through multiple modes of communication like surveys, meetings, workshops, publications, social media channels and others.
The gleaning of insight into our Group’s sustainability activities were primarily through surveys and workshops capturing quantitative and qualitative information on our teams’ contributions to sustainability in 2021.
We also asked each team to complete a materiality survey ranking which of our sustainability aspects were most important to them.
However, we are conscious that it is necessary to remain current with our external stakeholders’ values and needs. So, the process of developing our sustainability report for 2022 will involve an extensive consultation of both internal and external stakeholders.
The information that we gathered from our stakeholder consultation and materiality survey has enabled us to objectively identify our Group's sustainability priorities. This is represented in the materiality matrix below.
We are driving the sustainable development of our industry through our agile multi-faceted Innovation Strategy that promotes considerate use of natural resources and respect for nature and society.
The purpose of AD Ports Group’s Innovation Strategy is to continually seek out new innovations that foster leadership and drive long-term growth in five focus areas across its Clusters:
SMART TECHNOLOGY
Implementation of technology that enables our Group’s ports to be the most advanced in the MENA region
SPACE LOGISTICS
Investments that support our long-term business diversification through space technology
FUTURE TRADE & LOGISTICS
Investing in expansion across our value chain to actively lead the fields of logistics, trade, and manufacturing
GREEN PORT
Transformation of AD Ports Group to become a leader in sustainable practices in the core clusters of activity internationally.
PORTS-EMIRATE DUALITY
Forging collaborations to positively impact our Group and its communities
“Industry leaders recognise AD Ports Group as a worldwide hub for ports and logistics innovation, incubating the most futuristic products and ideas."
We have aligned our strategy with the UAE Vision and initiatives and the Abu Dhabi Plan.
The UAE Abu Dhabi AD Ports Group AD Ports Group Innovation
The UAE National Vision 2021
The National Innovation Strategy (NIS)
The Science, Technology and Innovation Policy (STI Policy)
Abu Dhabi Economic Vision 2030
Abu Dhabi Plan
Abu Dhabi Award for Excellence in Government Performance
Corporate Strategy 2018-2022
Innovation Strategy
Our Innovation Strategy promotes a culture where innovation is a process that is open to all our stakeholders including employees, port users, tenants, shipping lines, service providers, industries, universities, equipment manufacturers, and government entities.
Under our strategy we implement innovative solutions that are steering transformation of our sector towards modes of business that promote healthy economies, environments, and communities.
This surmounts to powerful contributions to the achievement of the United Nations Sustainable Development Goals, whilst ensuring full compliance with applicable legislation as well as our commitments to the UAE National Innovation Strategy.
AD Ports Group attracts the best creative talent to positions across its Clusters. The ideas our employees produce often have the potential to make a difference to our Group, and the world, in the form of revenue generation, cost savings, design, and engineering.
They also put forward simple suggestions for improving day-to-day living. Since 2013, our innovation platform, IBTIKAR, has enabled our employees to bring such ideas to life. IBTIKAR is a cornerstone of innovation, supporting and influencing various other employee engagement programmes across the Group.
2021 was a record year for input into the programme with 2,144 ideas submitted.
2,144
IBTIKAR ideas Submitted
18 Innovative Ideas Implemented
48 Sustainability Related Ideas
We strive for excellence in the arena of innovation through innovationrelated trainings, domestic and global benchmarking exercises; and seeking out third party accreditations.
In 2021, the development and approval of our Innovation Strategy enabled the creation and capture of new value across our Clusters.
Water conservation and supporting local entrepreneurs are both key to AD Ports Group’s Sustainability Strategy. As such, we are delighted to share news of AD Ports Group’s Innovation department’s collaboration with Abu Dhabi based deep tech start up MANHAT.
Together they are evaluating MANHAT’s innovative solutions that produce freshwater through a distillation process that captures natural condensation from the water cycles of large waterbodies.
Historically, water purification has been energy-intensive and expensive, MANHAT’s solutions harness clean, free solar energy to produce water pure enough to drink.
This means MANHAT’s innovations have potential to offer sustainable freshwater production with zero
electricity use, zero CO2 emissions, and zero brine that is suitable for industrial and agricultural uses as well as human consumption.
A collaborative team from AD Ports Group led by members from Innovation, Facility Management, SAFEEN and many others are providing MANHAT with the facilities and support in installation and monitoring to evaluate three of their prototypes on our premises at Freeport, Zayed Port and Khalifa Port.
With MANHAT, we hope to realise the potential of their innovation to tackle freshwater scarcity and contribute to the UAE Water Conservation Strategy 2036 and Sustainable Development Goal 6.
We have formed an international alliance with German company SICC Gmbh, provider of Superior Innovative Climate Coatings (SICC), whose specialised patented coatings reduce buildings’ energy consumption by controlling heat transfer.
Following successful proof-of-concept in 2020, in partnership with SICC Gmbh, we conducted a research and development exercise to evaluate the effectiveness of their coatings for reducing energy expenditure on cooling.
The exercise will result in the development of an AI tool, that will allow users to self estimate the energy consumption of their premises.
This research is ground-breaking because all competing tools currently on the market are designed for energysaving applications in cold climatic conditions, meaning they do not accurately capture the impact of solar irradiation.
The data that we collected in the study from approximately one million points is of excellent quality and provides a solid foundation for an AI-based modelling tool we are developing that will enable the accurate projections of energy savings delivered.
We envisage significant potential for this project to deliver impact on global and local carbon reduction goals because approximately 70% of the UAE’s energy demand is cooling-related.
We and SICC Gmbh intend to offer the custom-made state-of-the-art AI tool as a free to use online application to all potential clients through a simple interface that we will share via our website.
We are making significant investments into IoT technology that is driving sustainable economic growth.
Our Logistics Cluster explored the potential for Radio Frequency Identification (RFID) technology, which is twenty-five times faster than barcode scanning, to monitor, track and trace, assign, follow-up on workflows,
Reducing human errors Improving validation
The implementation of smart innovations of this kind to trade and ports communities are a catalyst for development and trade.
and contribute towards automating entire supply chains with the intention of re-defining the future of logistics throughout the industry.
At our leading healthcare supply chain facility in KIZAD deployment of this technology is increasing efficiency as presented below.
Eliminating incorrect shipments Preventing unauthorised movements
Enabling automatic inventory updates
AD Ports Group delivered a record revenue and profit growth in 2021 and completed a USD 1 billion issue of 10-year bonds listed on the Abu Dhabi Securities Exchange (ADX) and The London Stock Exchange (LSE).
We also signed multiple long-term partnerships with major global players such as Mainline Shipping Company, CMA CGM, and Shandong Holdings Group of China.
“As we expand our presence, we recognise the importance of maintaining sustainability within our business and revenue models. Our overarching goal is to increase value to our stakeholders whilst positively impacting our environment and communities."
We provide details of our financial performance in the charts below:
In 2021, we became the first organisation in the Middle East within the Ports, Logistics, and Industrial sectors to be MSI 2000 accredited.
Criteria for MSI Certification
The certification process investigated two significant aspects of our financial operations:
Financial Solidity
Financial Performance
We prioritise local and sustainable procurement of goods and services for the operations of all our clusters and corporate units. Local procurement yields reduced environmental impact, shorter delivery and lead times, and reduces logistical costs.
Each year, we conduct a Supplier Survey to address concerns and assess overall satisfaction. In 2021, the supplier satisfaction score stood at 86%, which exceeded our target of 82%.
Furthermore, we have formed an advisory body, the Tender Board, to ensure that we follow our procurement our procedures correctly, including compliance with the provisions of our Procurement Policy.
Adherence to the Group’s Procurement Policy, and our rigorous vetting procedures ensures
efficient purchases, cost-effectiveness, and enables customer-centricity.
During our supplier registration process and awarding of contracts, we require our contractors to explicitly comply with local labour and environmental regulations
We also maintain strong and symbiotic relationships with our suppliers to foster a culture of trust and transparency.
All the goods and services that we procure are scrutinised through a lens of ethics and sustainability."
Figure 47 : Percentage of local suppliers
Figure 48 : Number of suppliers
The number of our suppliers varies year-onyear depending on our ongoing projects and the need for external support. The data in the charts demonstrates that, typically, more than 90% of our procurement is local.
Figure 49 : Annual spend on suppliers
GRI
Standard Disclosure
GRI 101: Foundation 2016
General Disclosures
Organisational profile
Page number(s), URL(s) and/or direct answer
102-1 Name of the organisation AD Ports Company PJSC
102-2 Activities, brands, products, and services 12, 13
102-3 Location of headquarters 12
102-4 Location of operations UAE, Guinea
102-5 Ownership and legal form Government owned
102-6 Markets served 12, 13
102-7 Scale of the organisation 12, 72
102-8 Information on employees and other workers 72
102-9 Supply chain 112, 113
102-10 Significant changes to the organisation and its supply chain
There are no significant changes to AD Ports Group and its supply chain as compared to the previous year.
102-11 Precautionary principle or approach 66, 67
102-12 External initiatives 78, 79
102-13 Membership of associations "International Port Community System Association." Strategy
102-14 Statement from senior decision-maker 5, 6, 7
Ethics and integrity
102-16 Values, principles, standards, and norms of behavior 94, 95 Governance
102-18 Governance structure 96, 97
102-21 Consulting stakeholders on economic, environmental, and social topics 98, 99
102-22 Composition of the highest governance body and its committees 96,97
102-23 Chair of the highest governance body 95
Note : 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. The service was performed on the English version of the report.
Reporting practice
102-45 Entities included in the consolidated financial statements
Specialized Economic Zones Company (ZonesCorp) Sole Proprietorship LLC
MICCO Logistics Sole Proprietorship LLC
Abu Dhabi Marine Services Safeen LLC
Khalifa Industrial Zone Company LLC
Abu Dhabi Free Zone LLC
Al Awaid Project Management & Property LLC (Al Awaid)
Al Howaitha General Contracting & Logistics LLC (Al Howaitha)
Al Yaher General Trading Ltd (Al Yaher) Maqta Gateway LLC
Fujairah Terminals Operating Co –Fujairah Terminals LLC
Abu Dhabi Ports Operating and Logistic Company LLC
Auto terminal Khalifa Port LLC
Abu Dhabi Maritime Academy – Sole Proprietorship LLC
OFCO Offshore support – & Logistics services LLC
102-46
102-48 Restatements of information
Some of the information has been restated, and are spelled out in the respective sections of the report
102-51 Date of most recent report
102-52 Reporting cycle
102-53 Contact point for questions regarding the report customerservice@adports.ae
102-54 Claims of reporting in accordance with the GRI Standards
This report has been prepared in accordance with the GRI standards : Core Option
GRI 200 Economic Standard Series
GRI 103: Management Approach 2016
GRI 201: Economic Performance
GRI 103: Management Approach 2016
GRI
GRI 103: Management Approach
103-1
GRI 103: Management Approach
GRI 306: Waste 2020
Environmental Assessment
GRI 103: Management Approach 2016
GRI 308: Supplier Environmental Assessment
GRI
GRI
Management Approach 2016
GRI 103: Management Approach 2016
GRI 403: Occupational Health and Safety
Health and Safety
Diversity and Equal Opportunity
GRI 103: Management Approach 2016
GRI 405: Diversity and Equal Opportunity 2016
Local Communities
GRI 103: Management Approach 2016
GRI 413: Local Communities 2016
Supplier social assessment
GRI 103: Management Approach 2016
GRI 414: Supplier Social Assessment
To, AD Ports Group.
Abu Dhabi, UAE.
Subject: Conformity Audit on sustainability performance disclosures verification of AD Ports Sustainability Report 2021 version dated 13Jul2022.
This has reference to the above said audit which was conducted by auditor of QSZ Certifications Services on sustainability performance disclosures verification of AD Ports Sustainability Report 2021 version dated 13Jul2022 for the reporting period 1st January to 31st December 2021
As per the audit report (ver1.0 dated 1Aug2022), we confirm the conformity of verification of all sustainability performance disclosures reported for the year 2021. Details of the assessment are incorporated in the audit report. Corrective action on all findings raised during the audit has been closed
Should there be any further question/s please feel free to contact undersigned.
With warm regards,
For QSZ Certifications Services.
Regional Director (Dr. Sameer Kumar)
Date: 10th Aug 2022
Ref No.: QSZCS/2022/ADP/072
Note: The Audit was focused only on evidence cross verification and adequacy of various Data fields as per AD Ports Sustainability Report 2021. Subjective fields are not audited during this process.
AD Ports Group's Sustainability Report 2021 has been prepared in accordance with GRI Standards: Core option. Throughout the report we publicly disclose our sustainability performance to our stakeholders.
During the preparation of the report, AD Ports Group has adhered to the following principles to ensure quality: Accuracy, Comparability, Balance, Reliability, Clarity, and Timeliness.
AD Ports Group has also abided by the following reporting principles to define the content:
Identifying stakeholders and understanding their reasonable expectations and interests.
The report presents AD Ports Group's performance in the wider context of sustainability covering environmental, social, governance and economic considerations.
Covering material topics across boundaries, to reflect the Environment, Social, Governance, and Economic impacts.
Reflecting significant Environment, Social, Governance, and Economic Impact and influence the assessments and decisions of stakeholders.
