ESG & CSR

Walking the Talk

As a Corporation, we are committed to leading by example and will proactively manage ICD’s own ESG responsibilities, which are subject to oversight and monitoring by our ESG Management Committee and, at a Board level, by the Audit Committee.

We continue to seek opportunities within our own operations to reduce our impact on the environment and to ensure that we consume responsibly and minimise waste. Towards the end of the 2023, we relocated our headquarters to One Za’abeel which has achieved the LEED® Gold rating from the US Green Building Council.

Over the last year we have:

• • Created a Group ESG Network forum for ICD and portfolio companies to support each other on our individual ESG journeys, collaborate on emerging ESG-related requirements, and share best practices;
  • Created a dedicated ESG Network portal to share common ESG knowledge and resources that can be leveraged across the Group ESG Network;
  • Established our Carbon Footprint Framework (the Framework) to measure our emissions emanating from our operational activities;
  • Arranged an independent third-party review of the Framework to review its alignment with The Greenhouse Gas Protocol (GHG Protocol) Corporate Accounting and Reporting Standard;
  • Obtained an independent third-party limited assurance report on our carbon emissions from operational activities;
  • Voluntarily offset our 2022 emissions from our own operations through the purchase of carbon credits verified and issued by the Climate Action Reserve;
  • Launched the initial phase of a project to assess climate related risks and opportunities to understand their significance; and
  • Became a member of the International Forum of Sovereign Wealth Funds (IFSWF) and attended its 15th annual meeting. The meeting was under the broad theme of investing in transition and covering diverse topics such as governance, energy, climate change, and cybersecurity.

Our progress on ESG issues is further supported by the contributions of our stakeholders and the achievements of our diverse workforce. We are committed to maintaining a multi-cultural, diverse, and inclusive working environment. As at 31 December 2023, ICD employs more than 29 nationalities; with a ratio of 65:35 male to female employees. We also actively engage in supporting the development and retention of talent, and encouraging staff to regularly engage in physical and mental well-being activities.

We continue to support our communities through initiatives that reflect our organisational values; these are aimed at ensuring we are, and remain, a good corporate citizen.

We focus our community initiatives on education, innovation, and health. In doing so, we are making valuable contributions to the continuing development of an accomplished, healthy, and empowered society for the benefit of our stakeholders.

We encourage our staff to engage individually with our communities and have committed to providing every employee with additional paid leave for community volunteering activities. Details of ICD’s corporate social responsibility (CSR) activities in 2023 can be found in the CSR section below.

We are a strong advocate for good corporate governance practices that promote transparency, protect against risks, and maintain compliance with applicable regulations, including those relating to ESG matters (please see ICD’s Governance section).

Continual Review

We look forward to embracing and meeting the challenges and opportunities involved in integrating evolving ESG requirements into our business activities. As ESG standards evolve so will our ESG Policy and Framework; these will be subject to periodic review and enhancement to ensure that it remains true to our core values, fit for purpose and aligned with best practices.

Investment Approach to ESG

Further details on our investment approach with respect to ESG are also provided in ICD’s Investment Strategy section.

Group Focus on ESG

Members of the ICD Group continue to embrace and develop their ongoing ESG focus through multiple initiatives across industry sectors. A few examples are outlined below:

Emirates Group

Emirates has committed US$ 200 Million to fund research and development (R&D) projects focused on reducing the impact of fossil fuels in commercial aviation, to be disbursed over 3 years. dnata has pledged US$ 100 Million to further enhance eco-efficiency across its global business, in line with its goal to reduce its carbon footprint by 50% by 2030.

In 2023, Emirates embarked on various initiatives to support industry efforts for a future of flying with 100% Sustainable Aviation Fuel (SAF) and help advance the UAE’s sustainability objectives. It orchestrated successful demonstration flights powered with 100% SAF in one engine on both a Boeing 777-300ER and an Airbus A380 aircraft. Emirates also joined the “air-CRAFT” initiative, the UAE-based consortium focused on developing, producing, and scaling SAF technologies. dnata continued to induct hybrid and electric ground support equipment and utilise biofuel in its operations.

Emirates and dnata joined the United Nations Global Compact (UNGC), a voluntary global initiative that promotes responsible business practices and the advancement of the Sustainable Development Goals (SDGs).

Dubai Aerospace Enterprise (DAE)

DAE continues to make improvements to its ESG risk management practices, which have received a best-in-class ESG Risk Rating from Morningstar Sustainalytics, at 12.5. During 2023, DAE announced the acquisition of a Boeing 737 MAX orderbook, which are up to 20% more fuel-efficient than the aircraft they replace, and increasing DAE’s portfolio to 66% next-generation technology aircraft on a pro-forma basis. DAE continues to make annual disclosures through CDP, S&P Corporate Sustainability Assessment (CSA), and its annual reporting, which has received independent audit assurance.

flydubai

flydubai has invested in aircraft that reduce fuel use and CO₂ emissions. In 2023 the carrier took delivery of 13 Boeing 737 MAX 8 aircraft, growing its fleet of Boeing 737 MAX aircraft to 56 aircraft. flydubai’s 737 MAX aircraft is 14% more fuel efficient than its predecessor and has enabled the airline to realise more fuel efficiency across its fleet resulting in lower carbon emissions. Additional initiatives such as the single engine taxiing and continuous decent have contributed to a reduction of more than 7,600 tonnes of CO₂ emissions in 2023. The flydubai Campus continues to bring the team together in a greener and sustainable working environment with its LEED certification, which provides a framework for healthy, efficient, carbon and cost-saving green buildings.

Emirates Global Aluminium (EGA)

During 2023 EGA announced that its bauxite mining subsidiary Guinea Alumina Corporation and its Al Taweelah alumina refinery each achieved certification to the Aluminium Stewardship Initiative’s Performance Standard. EGA’s Al Taweelah smelter was certified in 2019, and its Jebel Ali Smelter was certified in 2021, making EGA one of few aluminium producers worldwide with all its operational assets certified. ASI certification is the global aluminium industry’s internationally-recognised standard for environmental and social performance and governance. EGA also announced the start of construction of the United Arab Emirates’ largest aluminium recycling plant which is being built next to EGA’s existing smelter in Al Taweelah. The 170 Thousand tonnes per year facility is expected to be completed within three years and will process post-consumer and pre-consumer aluminium scrap into low-carbon, high quality premium aluminium billets.

Dubai Islamic Bank (DIB)

The year 2023 was remarkable for DIB, marked by the significant expansion of its sustainable portfolio and the successful issuance of another Sustainable Sukuk (USD 1 Billion). DIB has reiterated its commitment to support the UAE’s vision of sustainability by pledging to mobilise over AED 1 Trillion in sustainable finance by the year 2030, and participating at COP28 as Associate Pathway Partner. DIB also announced its pledge to plant a tree for every new DIB account making each customer a partner in its environmental journey.

Emirates NBD (ENBD)

Emirates NBD announced the launch of its Sustainable Finance Framework in 2023, allowing the issuance of green and sustainable debt instruments to finance projects and enable the transition to a low carbon and climate resilient economy. The bank has taken the lead in the region in offering carbon future contracts trading, fulfilling growing demand from corporations to manage their carbon emissions offsetting and align with the UAE’s Net Zero action plan.
Emirates NBD was awarded ‘Best Bank for ESG in the UAE’ at the Euromoney Awards for Excellence 2023 in recognition of its strong growth in ESG metrics, swift introduction of green products, changes to its internal ESG structure and landmark sustainable deals. Emirates NBD also joined COP28 UAE as its Principal Banking Partner, which showcased exceptional leadership in sustainable banking and leading by example in promoting sustainable practices across operation and communities.

ENOC

ENOC Group, announced the recognition for its pioneering efforts towards achieving “Net Zero” greenhouse gas (GHG) emissions by being honoured with International Working Agreement (IWA) 42:2022 ‘Statement of Verification and Assurance’ Certificate. ENOC Group announced during COP28 the inauguration of the Group’s first green hydrogen station located within the Service Station of the Future (SsoF) at Expo City Dubai. The new green hydrogen station is a joint venture between ENOC Group and Dubai Electricity and Water Authority (DEWA) and marks a significant step forward to utilise green hydrogen in mobility and contribute to the Dubai Green Mobility Initiative 2030. Additionally, in a landmark achievement for the MENA region, ENOC fuelled the Emirate’s first flight powered by Sustainable Aviation Fuel (SAF).

ALEC Engineering & Contracting (ALEC)

ALEC unveiled its first Sustainability and ESG report, detailing its strategy, implementation plans and quantifying the carbon emissions of its 2022 initiatives. ALEC’s decarbonisation strategy involves investment in sustainable offsite construction practices and delivering prefabricated modular units in UAE & KSA. In 2023, ALEC became a member of the United Nations Global Compact and the Emirates Green Building Council, a UAE-based industry forum focused on enhancing sustainability in the built environment in the region.

Corporate Social Responsibility