SUSTAINABILITY, FROM VISION TO ACTION
Sustainability Report 2022
Sustainability Report 2022
TABLE OF CONTENTS
Group CEO & Managing Director's Message | III |
2022 At a Glance | V |
1. OVERVIEW
Who We Are | 2 |
Our Businesses | 4 |
About This Report | 15 |
2. ESG AT THE HEART OF OUR CORPORATE STRATEGY
ESG, a Journey | 20 |
2030 Corporate Strategy | 22 |
ESG Strategy | 24 |
3. BUILDING TRUST FOR OUR STAKEHOLDERS
Corporate Governance | 30 |
ESG Operating Model | 38 |
Ethics and Compliance | 40 |
Business Resilience | 47 |
Transparency and Accountability | 52 |
Stakeholder Engagement | 54 |
4. ACCELERATING THE ENERGY TRANSITION
Decarbonisation | 60 |
Energy Security | 65 |
Sustainability Business Partner | 71 |
5. SAFEGUARDING OUR RESOURCES
Energy Management | 79 |
Water Management | 82 |
Circular Economy | 89 |
Air Emissions | 98 |
Biodiversity | 99 |
6. GROWING WITH OUR PEOPLE
Occupational Health and Safety | 103 |
Employee Development | 111 |
Diversity and Equal Opportunity | 119 |
Community Engagement | 122 |
Customer Experience | 127 |
7. APPENDIX
Assurance Statement | 131 |
GRI Content Index | 133 |
ADX ESG Disclosures | 148 |
UNGC Communication on Progress | 151 |
SASB Disclosures | 152 |
WEF Disclosures | 156 |
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Sustainability Report 2022
GROUP CEO AND MANAGING DIRECTOR'S MESSAGE
"GRI 2-22
A strong commitment to Environmental, Social and Governance (ESG) values is at the heart of our corporate purpose, vision and mission. In 2022, we announced a comprehensive ESG strategy based on the six areas where our business has the most material impact.
In 2022, the world faced unprecedented disruptions to global energy supplies, with significant impacts on prices and economic growth. As 2023 unfolds, the global energy markets continue to face headwinds, making the trilemma of secure, affordable and sustainable energy a key focus for the world's economies. Our response to these challenges has been to focus on delivering on our business strategy of providing low carbon power and water, while continuing to embed sustainability principles and practices in everything we do.
We achieved several key milestones in our ESG journey in 2022. We finalised the acquisition of a leading stake in Masdar's renewables business alongside Mubadala and ADNOC to accelerate investment in renewables in the UAE and globally. This enabled TAQA, by having more than 28%
of its gross generation capacity coming from renewables, bringing us close to the 30% target set in 2021. We will also own a stake in Masdar's new green hydrogen business, where we will utilise expertise in the renewables business to drive the green hydrogen sector.
Last year, TAQA announced the financial close of a USD 3.8 billion project to power and significantly decarbonise ADNOC's offshore operations. The companies are developing and will operate the first high-voltage, direct current (HVDC-VSC) subsea transmission system in the MENA region. The transmission system will power ADNOC's offshore production operations with cleaner and more efficient energy, to be delivered through the TAQA- owned Abu Dhabi onshore power grid.
In January, the successful pricing of TAQA's green senior secured bonds for an aggregate principal amount of USD 700.8 million (AED 2.6 billion) by Noor Abu Dhabi was the first green bond linked to a large solar plant and a significant achievement for TAQA and its joint venture partners. The project bond, which was oversubscribed by local, regional and international investors, demonstrates
our strong commitment to applying innovative financing solutions to sustainable power generation projects.
A strong commitment to ESG values is at the heart of our corporate purpose, vision and mission.
In 2022, we announced a comprehensive ESG strategy based on the six areas where our business has the most material impact.
Our ESG strategy is aligned with our 2030 corporate strategy and business planning, which prioritises low carbon power and water, and complements those ambitions. TAQA aims to become a partner in the sustainability efforts of our government and other UAE companies through decarbonisation of customer power and water supply, electrification of industrial processes, demand side management and decarbonisation of transportation.
Under this strategy and our focus on the environment, TAQA has committed to a 25% reduction of scope 1 and 2 emissions by 2030 across the Group, including a 33% reduction of UAE portfolio emissions compared to the 2019 base year. We have already committed to be a Net Zero company by 2050 in support of the UAE's Net Zero by 2050 strategic initiative. TAQA is also one of the few major players in the region to have set targets based on an absolute reduction from a base year.
Water management is also at the forefront of our attention. We aim to reduce energy consumption needed for desalination by expanding efficient reverse osmosis (RO) technologies to make
up at least two-thirds of TAQA's desalination capacity by 2030. When fully operational this year, the Taweelah RO facility in the UAE will be the largest RO water desalination plant in the world, sufficient to meet the water demand of more than 350,000 households. We are also upgrading our infrastructure to reduce losses in water distribution by 25% by 2030, compared to a 2021 base year.
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Sustainability Report 2022
We are committed to working with our many stakeholders and partners to achieve a better and more sustainable future for all. Pragmatism remains at the heart of our approach, balancing the ongoing needs of energy security, decarbonisation and good financial performance.
Under the social pillar, we prioritised developing a culture of diversity and inclusion by reinforcing diversity in four groups, including gender, age, nationality and people of determination. We aim to have females represent 30% of management positions by 2030. In parallel, we continue to enhance our occupational health and safety performance across our operations through enhanced transparency of incident reporting and investigations.
TAQA, with its global presence, has a far- reaching impact on our internal and external stakeholders. Through partnerships and other initiatives, we will continue to ensure Corporate Social Responsibility (CSR) is an integral part of our organisation's values. Focusing on education equality and environmental initiatives, we will progressively increase CSR spending both nationally and globally to create long-term value in the communities where we operate.
Corporate governance helps ensure that we continue to be trusted and secure our ESG strategy. By adopting best practices over and above local regulations and requirements, TAQA's ambition is to achieve corporate governance excellence within the context of the countries and regions we operate and across our assets.
We are also engaging with many stakeholders in the UAE, MENA region and internationally, to support collective action, raise awareness and explore innovative solutions to advance ESG ambitions. In 2022, we became a member of the UN Global Compact, the IRENA Alliance for Industry Decarbonization and have signed the UAE Ministry of Climate Change and Environment's private sector climate pledge. In addition, last year TAQA launched the World Utilities Congress, providing a unique platform for industry players to explore the latest technologies, research advancements, technical services and product solutions that are helping drive the energy transition.
This year we have already established a green finance framework and announced the successful placement of our first corporate green bond issuance valued at USD 1 billion. We will also invest in accelerating electric mobility readiness in the UAE. TAQA has entered an agreement with ADNOC Distribution, the UAE's largest fuel distributor and convenience store retailer, to establish a mobility joint venture, E2GO, to build and operate electric vehicle infrastructure.
TAQA has already realised improvements across several key performance metrics related to our ESG Strategy in 2022. As part of the environmental pillars, our scope 1 and scope
2 GHG emissions reduced by 8%, compared to
2021 and by 11% in comparison to the base year of 2019. Various improvements were also noted within the social pillar, whereby occupational health and safety metrics also showed enhancements with our Group recordable injury rate (RIR) reducing by 4% and volume
of spills reducing by 87%. As we continued to focus on supporting our local communities, our community investment more than doubled in 2022 compared to 2021. A TAQA Youth Council and a Women's Council were established to drive youth and women related initiatives with the goal of empowering these groups and improving our diversity and equal opportunity performance. We have solidified ESG considerations within our Corporate Governance in line with best practices through the establishment of a Sustainability Committee at the levels of the Board and the Executive Management.
Our ESG performance has been recognised by leading ESG rating providers. TAQA Group has received a two-grade uplift (from 'B' to 'BBB') by MSCI. As of August 2022, TAQA's ESG Risk Rating from Morningstar Sustainalytics has upgraded the company from "Severe" to "Medium" ESG Risk Rating Category, placing TAQA in the top 33rd percentile of Morningstar Sustainalytics' "Utilities" industry globally.
Our people are our greatest asset, and our progress would not be possible without their dedication and hard work. We will continue building and strengthening existing capabilities and performance of our workforce. With our robust ESG strategy and targets, including a strong focus on diversity and equality, we will continue to enhance our employee experience, productivity and workplace culture.
Our sustainability reporting continues to evolve, and the improvements are evident through stronger governance, targets and reporting mechanisms to help us track and deliver material progress against our mission and ESG targets. In this report, we present our ESG strategy, which forms the basis and framework that guides our reporting and sustainability ambitions. This report has been prepared in accordance with the GRI Sustainability Reporting Standards.
We are committed to working with our many stakeholders and partners to achieve a better and more sustainable future for all. Pragmatism remains at the heart of our approach, balancing the ongoing needs of energy security, decarbonisation and good financial performance.
The announcement of the 'Year of Sustainability' by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, which will culminate in the UNFCCC's 28th Conference of the Parties (COP) in the UAE, highlights our country's substantial commitment to support climate action. As a company, TAQA Group will leverage its strong position and partnerships to build solidarity, drive action and advance the energy transition.
Jasim Husain Thabet
TAQA Group CEO and Managing Director
April 2023
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Sustainability Report 2022
2022 AT A GLANCE
Performance1
DECARBONISATION
28% | 8% | 16% | 17% |
renewables in gross power | reduction in GHG emissions | reduction in GHG intensity based | reduction in global GHG intensity |
generation capacity | on revenue | based on generation compared to 2019 |
31% | 11% |
reverse osmosis in gross | reduction in GHG emissions |
water production capacity | compared to base year 2019 |
9%
reduction in GHG intensity based on generation of international assets
8%
reduction in GHG intensity based on oil and gas production compared to 2020
ENERGY SECURITY
96.7% | 99.3% | 99.99% |
commercial availability of power | power transmission availability | service availability2 |
generation | 81% | |
99.4% | 97.8% | |
reduction in residential | ||
commercial availability of water | water transmission availability | disconnections |
production | ||
9%
reduction in SAIFI (average number of interruptions for each customer served)
6%
reduction in SAIDI (average outage duration for each customer served)
ENERGY AND WATER MANAGEMENT
9% | 20% |
reduction in energy use | reduction in energy use for water |
4% | production |
18% | |
improvement in generation | |
efficiency | reduction in energy intensity for |
3% | water production |
100% | |
reduction in water withdrawal | |
and water discharge | water quality testing frequency |
compliance |
1.69%
transmission power losses
845
customer connections for recycled water in 2021
1,697km
of pipeline for recycled water in 2021
1.24%
transmission water losses
14,205 MWh
electricity savings by ADES
54,932m3
water savings by ADES
1 | Reduction numbers expressed are in comparison to 2021 unless otherwise specified | V |
2 | Ability to meet customer demand |
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TAQA - Abu Dhabi National Energy Company PJSC published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 12:02:02 UTC.