ADNOC Distribution ESG Report 2022 - Eng

ENVIRONMENTAL,
SOCIAL AND
GOVERNANCE
REPORT 2022
adnocdistribution.ae ADNOC Distribution

Environmental, Social & Governance Report 2022
TABLE OF
CONTENTS
ABOUT THIS REPORT 2 LOCAL ENVIRONMENT 74
Water 74
2022 ESG HIGHLIGHTS 4 Waste 75
Biodiversity 79
KEY MILESTONES ACHIEVED IN 2022 6
Environmental Policy, Management Systems, and
A NOTE FROM THE CEO 10 Compliance 80
ABOUT ADNOC DISTRIBUTION 12 WORKFORCE DIVERSITY & DEVELOPMENT 82

Employment 82
ADNOC DISTRIBUTION’S ESG AGENDA 18 Diversity and Equal Opportunity 84
Our Sustainability Strategic Framework 19
Labor Management Relations 85
Governance of the Framework 22
Training and Education 87
Composition of the Sustainability Committee 22
Execution and monitoring the Framework 23 HEALTH, SAFETY, AND SECURITY 90
Reporting 23 Customer Health and Safety 90
Occupational Health and Safety 91
OUR MATERIALITY 24 Oil Spill Response 93
Materiality assessment methodology 24
Stakeholder engagement 29 ECONOMIC & SOCIAL CONTRIBUTION 94
Economic Performance 94
ALIGNMENT WITH GLOBAL AND NATIONAL Business Expansion 94
PRIORITIES AND OUR CONTRIBUTION 34 Sustainable Growth 95
ALIGNMENT WITH THE TASK FORCE Financial Performance 96
ON CLIMATE-RELATED FINANCIAL Future Commitments 97
DISCLOSURES (TCFD) 38 Procurement Practices 98
Supplier Social and Environmental Assessment 100
VALUE CREATION MODEL 40
BUSINESS SUSTAINABILITY 106
OUR CORPORATE GOVERNANCE 42 Anti-Corruption 106
About The Board Of Directors 43
Countering Fraud and Corruption 108
Board Diversity 44
Personnel Training and Communication 109
Committees 44
Reporting Mechanism 110
ADNOC Distribution’s Integrated Management
Future Commitments 111
System (IMS) 45
Anti-Competitive Behavior 111
Corporate Governance and Business Ethics 45
Digitization and Innovation 112
Governance on ESG 45
E-Commerce Advancements 112
Governance Driven by Core Values 46
Cybersecurity 112
ENTERPRISE RISK AND CRISIS MANAGEMENT 50
Understanding Risks and The ERM Process 51 ESG PERFORMANCE DATA 114
ERM Process 51
LOOKING FORWARD 120
ERM Governance 53
Roles and Responsibilities 54 GRI CONTENT INDEX 122
ERM Reporting Structure 55
ABBREVIATIONS 130
CLIMATE, EMISSIONS, AND ENERGY 56
Energy 57
Emissions 61
Climate and Mitigating Climate Risks 68
1
Environmental, Social & Governance Report 2022 Environmental, Social & Governance Report 2022
ABOUT
THIS REPORT
1
We are pleased to bring you the 4th annual Environmental,

Social, and Governance (ESG) Report from ADNOC Accuracy Balance Clarity
Distribution، which depicts the progress of our The information in the report The report aims to provide an The disclosures offered in the GRI
is consistent with the ESG accurate, fair, and objective Content Index have been clearly
sustainability journey for 2022. performance of ADNOC depiction of our ESG and comprehensively described
Distribution. The report identifies performance throughout the in the report.
the data points that have been reporting period.
This report reflects our commitment to public disclosure of every aspect of our non-financial performance, measured or approximated and
which is aligned with the organization’s six pillars. They are: emphasizes the approach, if any,
of computations.
Climate, Economic Workforce Health,

Local Business
Emissions, & & Social Diversity & Safety, &
Environment Sustainability
Energy Contribution Development Security
Completeness Sustainability context Timeliness
Our strategic sustainability framework highlights our goals, initiatives, and impacts. This report highlights our successes The report offers data that The study lists several of our Our commitment to providing
and learnings gained through continuous stakeholder engagement procedures. makes it possible to evaluate the approaches and their effects our stakeholders with timely ESG
profound impacts that ADNOC concerning the UN SDGs data is evidenced in this 4th annual
From January 1 to December 31, 2022, the reporting period captures ESG data for all ADNOC Distribution services and Distribution had throughout the and other relevant national ESG report.
activities within the UAE. This report has been prepared with reference to the Global Reporting Initiative (GRI) Standards reporting period. and international sustainable
(see GRI content Index at the end of this report for full details). Before the effective implementation date of January 1, 2023, development frameworks.
we confirmed our reporting to GRI 2021 disclosure standards. The GRI Reporting Principles of Accuracy, Balance, Clarity,
Comparability, Completeness, Sustainability Context, Timeliness, and Verifiability were considered when developing the
report.
The report is also mapped with the key elements of the Taskforce on Climate-related Financial Disclosures (TCFD),
International Integrated Reporting Council (IIRC) and United Nations Sustainable Development Goals (UN SDGs).
Eight UN Sustainable Development Goals (SDGs) were adopted as focus areas by ADNOC Distribution, serving as a
reference baseline for our work and objectives. Furthermore, we extensively explore the relevance of our initiatives for their
alignment with and contribution to the 2030 Agenda for Sustainable Development. To better understand our sustainability
journey, we encourage our stakeholders to contact us through our website. For feedback and queries on this report,
you may email ir@adnocdistribution.ae.
1. 2-2 Entities included in the organization’s sustainability reporting

2-3 Reporting period, frequency, and contact point
2 3
2022 ESG
HIGHLIGHTS
ADNOC Distribution takes great pleasure in creating
standards for the highest levels of customer service
in the UAE. Our primary concerns are the Group’s
employees, customers, communities, and the environment.
Safeguarding and responsible engagement with these
stakeholders is fundamental to our ability to remain
resilient in the face of global uncertainties.
CLIMATE,
EMISSIONS,
AND ENERGY ECONOMIC
AND SOCIAL BUSINESS
Announced CONTRIBUTION SUSTAINABILITY
a Decarbonization
Roadmap (GHG emissions) Continued investment in The first UAE fuel
To achieve a 25% reduction in the UAE’s infrastructure retailer to secure a
Scope 1 and 2 emissions intensity with the addition of 42 new stations, sustainability-linked loan
by 2030 through higher energy 28 new convenience stores, and the by converting its existing $1.5bn loan
WORKFORCE
efficiency and cleaner fuel initiatives, refurbishment of 42 convenience stores into a sustainability-linked one.
DIVERSITY AND
setting the path to Net-zero by 2050. in the UAE.
DEVELOPMENT
Cash Flow
2,327 GJ Solar Energy 70% 64% predictable cash flow generation
generated and consumed, In-country value contribution increased Emiratization rate. and strong balance sheet to grow in
contributing to a reduction in in 2022 compared to 61% in 2021. domestic and international markets,
GHG emissions equal to 427 elevate customer experience, invest
291 tons of carbon dioxide LOCAL AED 32,112 Million revenue unique courses and training in developing people and local
equivalent (tCO2e). ENVIRONMENT increase in economic value generated processes were conducted across communities, and sustain attractive
by 53%. various topics and subjects. dividend payments to shareholders.
Rooftop solar PV panels AED 11.3 Million
on five service stations. was invested in environment- AED 50,000 42 ISO 9001:2015
related infrastructure, improvement increased sales revenues for highly promising fresh graduate HEALTH, SAFETY, Quality Management Systems.
ADNOC Voyager Green initiatives, studies, risk mitigation, and Al Ghadeer Project , a project talents identified and enrolled at AND SECURITY
series launched, management projects. established to help low-income women ADNOC Distribution. 100%
a 100%carbon-neutral plant-based in the field of sustainable crafts, Zero Fatalities senior management and employee
lubricant range for petrol and 80-90% of the offered free space in ADNOC Oasis Gender Diversity and zero catastrophic incidents. members received anti-corruption
diesel engines. water consumed Convenience Stores to promote and Policy training and communication.
in car wash operations recycled. sell their handicrafts and products to developed a new Gender Diversity
New Euro 5/6 the customers. Policy to enhance our drive to be an Zero high-consequence Launched an Integrated
Emission Standard 100% compliant with equal opportunities employer. work-related injuries. Management System (IMS)
ADNOC Distribution is the first fuel the Abu Dhabi AED 2 Million to seamlessly integrate processes in
distribution Company in the UAE Single Use Plastic Policy invested in CSR and related 71 64 HSE Training Courses line with our current business, leading
to comply with the new Euro 5/6 by removing single-use plastic sponsorship initiatives. nationalities in ADNOC delivered to over 11,000 employees. industry practices, and internally
Emission Standard. bags from ADNOC Distribution Distribution’s workforce. recognized ISO standards requirements.
retail stations.
4 5
KEY MILESTONES
ACHIEVED IN 2022
FULL YEAR
f Opened 68 new stations across the UAE and KSA (42

in the UAE and 26 in KSA), taking our entire network to
f In July 2022, the Company further advanced its
international expansion by entering into an agreement
2022 ACHIEVEMENTS:
568 (502 in the UAE and 66 in KSA). with TotalEnergies Marketing Afrique SAS to acquire REAFFIRMING OUR COMMITMENT
f Opened 28 new convenience stores and
a 50% stake in TotalEnergies Marketing Egypt LLC
(among the top four fuel retail operators in Egypt). The TO DELIVERING SMART GROWTH,
refurbished 42. acquisition was completed in Q1 2023. OPERATIONAL EFFICIENCIES, AN
f Opened a new flagship station in Dubai that
leverages advanced technologies – including smart
f The total number of export network countries of ADNOC
Distribution’s VOYAGER lubricants portfolio rose to 25
ELEVATED CUSTOMER EXPERIENCE, AND
cameras and digital screens at the pump – to deliver markets in 2022 compared to 19 markets at the end ATTRACTIVE SHAREHOLDER RETURNS.
a personalized, digitally immersive, and seamless of 2021. The Company also launched a new ADNOC
customer journey. The station also offers impressive VOYAGER green series, an alternative 100%
sustainability credentials, partially powered by carbon-neutral plant-based lubricant range for petrol
renewable sources – including an energy-generating and diesel engines.
walkway in the first double-story ADNOC Oasis
convenience store. f Reached nearly 1.6 million loyalty members of the
ADNOC Rewards program - a 33% increase compared to
the end of 2021.
6 7
ACHIEVEMENTS BY QUARTERS
Q1 Q2 Q3 Q4
f Opened 18 new stations in the UAE and KSA. f Opened nine new stations in the UAE, including four f Opened nine new stations in the UAE, of which two f Opened 21 new stations in the UAE, including two in
sites in Dubai. were in Dubai, including the Company’s flagship Dubai, crossing the 500 stations milestone in the country.
f Opened four and refurbished three convenience
station that leverages advanced technologies
stores in the UAE. f Added 11 new stations in KSA, taking the entire Saudi f Opened eight and refurbished 26 convenience stores in
and has the first double-story ADNOC Oasis
Arabian network to 66. the UAE.
f Launched the ADNOC Voyager Green series, which convenience store.
offers customers a 100% carbon-neutral plant-based f Opened nine and refurbished two convenience stores f Successfully refinanced an $1.5 billion loan for a five-year
f Opened seven and refurbished six convenience
lubricant range for petrol and diesel engines. in the UAE. term, converted later into a Sustainability-Linked
stores in the UAE.
Loan, and secured a Revolving Credit Facility (RCF) of
f New partners added to the ADNOC Rewards program. f ADNOC Rewards program expanded to include a fuel
f Signed an agreement to acquire a 50% stake in Total AED 2.8 billion from ADNOC PJSC for five years.
redemption option, whereby customers can pay for
f ADNOC Distribution shares were included in Energies Marketing Egypt.
their fuel with their ADNOC Rewards points. f Added new distributors for ADNOC Voyager lubes, taking
FADX15 Index.
f Launched a series of promotions, including the Let’s the total number of countries it is exported to, to 25.
f 100% compliant with the Abu Dhabi Plastic Single
Go Shop and Win Raffle and comprehensive vehicle
Use Policy by removing single-use plastic bags from f Reached nearly 1.6 million loyalty members of the ADNOC
inspection, car wash, and lube change offers.
ADNOC Distribution retail stations. Rewards program, a 33% increase compared to the end
f Utilized green concrete (eco-friendly concrete) in of 2021.
f ADNOC Distribution became the first UAE Company to
constructing new service stations in Abu Dhabi,
comply with the new UAE Gasoline Standard. f Launched an Information Vehicle Management System
Dubai, and the Northern Emirates.
for root optimization and monitoring driver behaviors.
f Optimized the use of reusable water bottles to eliminate

single-use plastics across all locations Offices.
8 9
A NOTE FROM
THE CEO
ADNOC Distribution continues to Distribution GHG emissions intensity financial outcomes in 2022.
evolve its ESG strategic vision in line reduction roadmap. It aims to
with leading local and global ESG minimize our carbon emissions and The Company ensures that its
agendas, such as the UAE Energy energy consumption footprint while operations align with core business
Strategy 2050, the UAE initiative to fulfilling our climate ambitions of a principles and ethical standards,
WE ARE EXPANDING THE achieve Net-zero by 2050, the National 25% reduction in carbon emissions including transparency, fairness,
INTEGRATION OF ESG
Climate Change Plan of the UAE intensity emissions, setting the path integrity, accountability, and
2017-2050, the Environment Vision to Net-zero by 2050. disclosure. With the formation
PRINCIPLES ACROSS 2030 and the Abu Dhabi Economic
Vision 2030. These and others provide Nurturing our workforce
of a comprehensive governance
framework, we are taking ESG to
THE ENTIRE COMPANY valuable insights and guidance on We have demonstrated a diverse the next level. Additionally, we
THROUGH A COHESIVE maximizing our ESG work effectively

and efficiently to achieve long-term
approach to sustainability across our
six-pillar ESG philosophy. As our most
anticipate that our approach will
encourage greater ESG action
OPERATIONAL APPROACH, sustainable growth. valuable asset, two of those pillars amongst other companies in our
WHILE ENSURING THE Future-proofing our business

focus on employee safety and well-
being. We are entirely committed to
industry sector.
UTILIZATION OF A ROBUST for a climate-resilient future. the Health, Safety, and Environment Forward-Looking
DATA MONITORING SYSTEM

According to The Global Risks Report (HSE) of our colleagues by providing Our integrated approach is focused
2022 by the World Economic Forum, 64 HSE training courses to over on maximizing our resources while
TO DRIVE RESULTS. the most significant long-term threat
to the world, with the most severe
11,000 employees. Furthermore,
our approach to responsible human
nurturing our people and transitioning
to a more climate-resilient operation.
impact over the next decade, is capital management includes We remain committed to engaging
‘climate action failure.’ This complex the integration, promotion, and and consulting with our stakeholders
reality has inspired everybody at development of a diverse workforce to identify, assess, and manage our
Eng. Bader Saeed Al Lamki ADNOC Distribution to identify right across the organization. material performance. We also remain
climate-related risks surrounding our fully committed to understanding our
Chief Executive Officer
business, objectively assess how they There are various policies specifically impact across ESG focus areas as we
ADNOC Distribution might threaten the Group’s operations, developed to prioritize our people maintain our position as the leading
and mitigate them by developing and their well-being. In 2022, we fuel distributor and convenience retail
viable solutions. offered employees 168,224 hours operator in the cities and communities
of training and development for their where we operate.
I’m pleased to introduce ADNOC This progress has further increased commitment to embodying our triple- Our approach to a balanced energy professional career growth, and we
Distribution’s 2022 ESG Report our efforts to maintain the bottom-line operation. transition and operational efficiency achieved a 64% Emiratization rate. Our As we look to future-proofing the
for the financial year ending 31st sustainability of the business to will focus on various sustainability goal is to nurture a conducive working Group’s operations for the long-
December 2022. achieve our strategic goal of becoming Over the past years, we’ve paid initiatives, including adopting culture so that all our employees term and to securing sustainable
the region’s leading provider of particular attention to observing, circular economy and climate action are afforded the training and space growth, the organization’s strategic
Founded in 1973, ADNOC convenient mobility solutions as monitoring, and upgrading strategies. This approach includes to do their best and build highly objectives will always align with global
Distribution is the UAE’s leading ADNOC Distribution continues to our Environmental, Social, and deploying compressed natural gas successful careers within a safe and and national agendas on climate
fuel distributor and convenience evolve. We also remain committed to Governance (ESG) principles and their (CNG) fuel for vehicles, developing respectful environment. action, the transition towards a low-
store operator. As we prepare to our overarching vision, which aims to overall effect on our performance. We low-carbon and high-performance carbon economy, and a steadfast
celebrate our Golden Jubilee, we develop and support a sustainable have also aligned our sustainability fuels and lubricants, and introducing Strengthening commitment to making a meaningful
acknowledge the many milestones business model that reflects a positive pillars with the UN Sustainable an electric charging network to meet Responsible Practices and lasting contribution to these
witnessed throughout the long-term impact to benefit the Development Goals (SDGs), which the growing demand for electric To become a sustainable and critical objectives.
Company’s history. Our initial public communities in which we operate. form a best-practice benchmark. vehicles (EVs). Collectively, these will resilient business, we must observe
offering in December 2017 marked By evaluating eight relevant SDGs accelerate the adoption of clean and responsible practices in all our
a turning point in our journey, I am incredibly proud of ADNOC focus areas for our business, we renewable energy sources. operations. Furthermore, we recognize
accelerating our transformation Distribution’s achievements as they can contribute to and positively that responsible business practices
strategy to become an increasingly reflect our alignment with the values impact our operations, people, and We are also pleased to have played an essential part in our ability
business-driven organization. of our shareholders and our firm the environment. announced the launch of the ADNOC to deliver strong operational and
10 11
ABOUT ADNOC
DISTRIBUTION
2
OUR BUSINESS JOURNEY

Abu Dhabi National Oil Company for Distribution PJSC (‘ADNOC Distribution’ or ‘the Company’), was founded in 1973.
OUR VALUES OUR CORPORATE
The Company is primarily engaged in the marketing and distribution of fuel to both retail and commercial customers. It also DIRECTION
operates non-fuel services at its service stations, including convenience stores, car wash, lube change, vehicle inspection, PROGRESSIVE
and leasing of rental properties. We harness the UAE’s spirit of innovation ADNOC Distribution’s long-term goal is to
to ensure our business remains at the safeguard its people’s health and safety while
ADNOC Distribution, which has its headquarters in Abu Dhabi, the capital of the UAE, operates 502 service stations and forefront of the global energy industry. reducing potential harm to the community and the
362 convenience stores across the UAE. The Company also operates 66 retail fuel stations in the Kingdom of Saudi Arabia. environment. This overarching direction is guided by
Additionally, the business exports lubricants to 25 countries in Asia, Africa, and the Middle East. Furthermore, ADNOC COLLABORATIVE the Group’s corporate policy and core values.
Distribution’s working philosophy is deeply rooted in its basic principles, which inspire and guide everyday behavior. We collaborate closely with our partners
They represent the organization’s collaborative dedication to establishing, achieving, and exceeding its goals and its and peers, leveraging our strengths to Committed to a robust ESG framework, we
responsibilities to its stakeholders. deliver mutually beneficial results. embrace a comprehensive viewpoint: sustainability
encompasses more than just environmental
RESPECTFUL concerns. It enables our stakeholders to understand
We encourage a culture of inclusivity and how the Company handles opportunities and risks
OUR OUR mutual respect and always operate to the related to ESG factors.
VISION MISSION highest professional and ethical standards.
The path towards success in creating value for
We harness energy resources Through the partnership, RESPONSIBLE our stakeholders is aligned with global goals and
in the service of our nation. innovation, and a relentless We are committed to identifying ways to frameworks and is split into six strategic pillars
focus on high performance and make a difference in our community while contributing to eight SDGs.
efficiency, we maximize the value maintaining an unwavering commitment to
of energy resources. health, safety, and the environment. The robust process of integrating sustainability into
our corporate strategies and growth aspirations
EFFICIENT allows us to achieve a better working world while
We are a performance-driven Company maximizing the Group’s core capabilities and
dedicated to maximizing the value of strengths.
energy resources for the benefit of our
people, community, partners, and nation.
2. 2-1 Organizational details
12 13
OUR
BUSINESS
3
ADNOC Distribution is a well- OUR PRODUCTS AND SERVICE OFFERINGS

known regional market leader in the
Service Convenience downstream marketing and distribution
stations stores of retail fuels, commercial fuels and
finished lubricants, aviation fuels,
2021 462 346 automotive lubes, compressed natural Fuel services Residential products Convenience stores
502 362
gas (CNG), and liquefied petroleum gas The major fuels that ADNOC The business sells LPG in 25- and ADNOC Distribution runs convenience
UAE 2022 (LPG). Along with providing high-quality Distribution offers include gasoline 50-pound cylinders to residential stores in its stations, in addition to
convenience retailing, it also offers (91, 95, and 98 octanes), gas oil, customers for home cooking and in bulk standalone stores that sell fresh food,
2021 40 2 allied retail services like car wash,

lube change, property management
lubricants, CNG, and LPG. for corporate customers. groceries, drinks, snacks, confectionery
items, hot and cold beverages, etc.
SAUDI ARABIA 2022 66 7 services, and vehicle inspection.
We commit to widening our market

SUSTAINABILITY IN THE SUPPLY CHAIN reach by growing and expanding in
domestic and international markets. Corporate products Non-Fuel services Aviation products
The Executive Management Team of ADNOC Distribution actively involves ADNOC Distribution’s domestic For commercial, industrial, and Many of the Company’s service The business manages fueling
stakeholders in managing ADNOC Distribution’s processes for identifying operations span the seven emirates governmental clients, ADNOC stations also provide non-fuel and distribution services at all
and managing impacts on the economy, environment, and people. The of the UAE, with an additional 66 Distribution provides and distributes services, including car care activities Abu Dhabi airports and several
Company is also investing in low-emission energy sources, such as converting fuel stations in Saudi Arabia as of bulk refined petroleum products such as car washes and lube changes. airports in the Northern Emirates.
its vehicles to biofuel and installing solar panels on its stations. Along with 31 December 2022. such as gas oil, gasoline, LPG, and Additionally, partners and tenants offer It also sells aviation fuel to
managing decarbonization solutions, ADNOC Distribution invests in research lubricants. Additionally, the business services at the Company’s service strategic customers.
and development projects to help identify cleaner and more sustainable sells lubricant goods under its Voyager stations, such as vehicle maintenance,
fuel options. brand to commercial, residential, and repairs, and tire changes. The
ADNOC Distribution also exports governmental clients in the UAE. It Company also manages and leases
Sustainability is embedded in the corporate culture of ADNOC distribution and its Automotive and Commercial exports them to 25 nations in the GCC, retail space inside its service stations
is integrated into all business functions, policies, and activities. The Company Lubricants to 25 countries in the Africa, Asia, and the Middle East. and operates 32 vehicle inspection
sees sustainability as a strategic growth driver and will continue placing GCC, Middle East, and North Africa. and testing centers in Abu Dhabi and
stakeholder value at the forefront of its long-term sustainability successes. the Northern Emirates.
PROCUREMENT PRACTICES (LOCAL PROCUREMENT)

At ADNOC Distribution, procurement procedures act as a centralized function that supports all lines of business by
purchasing goods and services from reliable suppliers who follow laws and regulations for sound environmental and Marketing & Distribution of Non-Fuel
social management. Refined Petroleum Products Retail
f Gasoline (ULG-91,95,98) f ADNOC Oasis
The Supply Chain Division of ADNOC Distribution sources its key fuels from suppliers via chartered marine vessels and Convenience Stores
f Gasoil (Diesel)
the ADNOC Pipeline. The Company stores its fuel products at its eight Supply Chain Terminals in Abu Dhabi, Sharjah,
f ADNOC Lube
and Ras Al Khaimah. Gasoline is among the products the Company supplies to its service stations, business clients, f LPG
Change Service
and airport locations through its own, contracted, and customer-owned road tanker fleet. When necessary, supplies are
f CNG
delivered to clients via marine vessels. ADNOC Distribution also supplies jet fuel to airports from its six Aviation terminals. f ADNOC Car Wash Service
f ADNOC Voyager Lubricants
f Property Management
ADNOC Distribution’s Policies and Procedures directly cover all procurement activities. They aim to increase value
f Jet Fuel Services to lease space at
throughout the procurement value chain, enhance working capital management, and ensures that commercial
ADNOC stations
considerations guide procurement decisions. ADNOC Distribution seeks to minimize supply chain risk while ensuring the f Kerosene Oil
timely provision of goods and services in alignment with its business objectives. It also attempts to maximize value for the f ADNOC Vehicle Inspection
f Base Oil
country’s fuel distribution industry . Services
3. 2-6 Activities, value chain and other business relationships
14 15
OUR STRATEGIC
PILLARS
DOMESTIC Objectives OPEX4 AND CAPEX5 Objectives
FUEL To maintain and grow retail market share in Abu Dhabi and the EFFICIENCY To optimize OPEX to transition towards leading cost-efficient fuel
Northern Emirates, including network expansion in Dubai. retailer – both locally and internationally.
Progress as of 2022 Progress as of 2022 To improve CAPEX efficiency and effectiveness in our transition to a
f Expanded by adding 42 new stations across
Target by 2023 f $103m in like-for-like OPEX Savings sustainable operation.
the UAE (8 in Dubai), taking our UAE network f Single-digit volume growth over 2018 – 2023 from 2019-2022
to 502 (39 in Dubai) Target by 2023
f Maintain leadership position in fuel retail business in UAE f $228m in annual CAPEX over 2019-
f Savings on OPEX of between $100 and $150 million throughout
by 2023 2022, achieving CAPEX efficiencies in
the years 2019 to 2023 compared to 2018, with at least $25
building stations through various value
f Increase ULG-98 contribution as a percentage of retail million like-for-like OPEX savings in 2023
engineering initiatives
gasoline sales by 2023 through increased marketing, use of
f Smart, targeted OPEX optimization approaches include
additives, and international certifications for premium fuels
examining warehousing costs, reviewing operating models for
f Grow commercial fuel sales in Dubai and the retail sites, outsourcing, and vendor negotiations, simplifying
Northern Emirates marketing expenditures and back-office procedures, as well as
optimizing utility usage
DOMESTIC Objectives
f Accelerating expansion CAPEX and improving network efficiency
NON-FUEL Grow the network of convenience stores and improve customer
offerings to provide a superior experience. Objectives
Progress as of 2022 INTERNATIONAL
Target by 2023 GROWTH To expand the presence in international markets (GCC, Middle East,
f Expanded store network to 362 (opened Northern Africa, and Asia Region).
28 new convenience stores in 2022) f Complete store network renovation with a new look and feel Progress as of 2022
f Added 26 new stations in KSA, taking our
Target by 2023
f 42 stores were refurbished in 2022, taking f Optimize product category management
the total number of stores refurbished network in the Kingdom to 66 retail sites f Expand more effectively in Saudi Arabia
f Improve fresh food and premium coffee offerings to boost
over 2020-2022 to 193 stores f Entered into an agreement with TotalEnergies f Complete acquisition of a 50% stake in TotalEnergies
basket size and margins.
Marketing Afrique SAS to acquire a 50% Marketing Egypt LLC
f Increase store conversion rate (fuel to non-fuel conversion)
stake in TotalEnergies Marketing Egypt LLC
f Examine opportunities to expand presence in additional
f expand into e-commerce and franchisee models markets throughout the GCC, the Middle East,
f ADNOC Voyager lubricants exports to
25 countries Northern Africa, and Asia, including potential lubricant
CUSTOMER Objectives export markets
EXPERIENCE To boost customer loyalty and improve the customer experience
through various initiatives, including digitalization, rewards, etc. OUR KEY ENABLERS
Progress as of 2022
f ADNOC Rewards Program continued to grow
Target by 2023
People and Digital and IT Operation and Sustainability
and enhanced its offerings to reach 1.6 million f Extension of the points-based ADNOC Rewards program Performance Culture Infrastructure Customer Excellence Brand and CSR
loyalty members - a 33% increase compared Our people are our We increase our We focus on We continually Our corporate
f Growth of e-commerce channels
to the end of 2021 most important asset. digital competencies operational build our brand social responsibility
f Service expansion for mobile fuel and LPG delivery We are dedicated to by investing excellence to through a customer- initiatives focus on
f Continued expansion of online channel
f Implementation of in-store and station smart tech their growth and well in upgrading effectively, efficiently, centric strategy boosting ICV, local
presence with up to 3,000 products now
being. We do all IT infrastructures. and, most importantly, - a differentiated employment, and
available to order from over 200 convenience
we can to make them sustainably value proposition, entrepreneurship.
stores across the UAE
motivated, realize accomplish our marketing, In addition, we
f Opened a new flagship station in Dubai which their true and full progressive and communications. are committed to
leverages advanced technologies – including potential. We strive objectives. satisfying the nation’s
smart cameras and digital screens at the to have a triumphant energy needs through
pump – to deliver a personalized, digitally team with a great sustainable practices.
drive for success
immersive, and seamless customer journey
f Launched marketing promotions

4. Operating expenses
5. Capital expenditures
16 17
ADNOC DISTRIBUTION’S
ESG AGENDA
ADNOC Distribution continues to work on its long-term OUR SUSTAINABILITY STRATEGIC FRAMEWORK6
strategies in meeting the global journey to reshaping the In alignment with the Company’s overall corporate strategy, ADNOC Distribution has developed a Sustainability Strategic
energy sector by implementing best practices for integrating Framework that summarizes short, medium, and long-term goals, objectives, and KPIs for sustainability. The Framework
drives progress and strengthens any previously established strategies. The Framework is also instrumental in integrating
sustainability across the value chain. sustainability within the Group culture and delivering positive ESG impacts through its well-defined implementation cycle.
Execution and Monitoring

With all the efforts to improve its Distribution’s commitment to driving itself as the first UAE fuel retailer to
Set up a task force to support the
sustainability performance and sustainable growth through constant have a Sustainability Linked Loan.
implementation of sustainability and
commitment, ADNOC Distribution innovation in new energy solutions, CSR initiatives
has developed a comprehensive which are always aligned with the UAE The Company strongly supports
decarbonization roadmap, in line with Net-zero by 2050 strategic initiative. the UAE’s National Sustainability Set up a specialist Sustainability
project management office (PMO)
its sustainability strategy, to reduce its Agenda and UAE Net zero Vision
carbon intensity by 25% by 2030 with Moreover, during the Abu Dhabi by 2050. ADNOC Distribution also Strategy and Planning to monitor progress and provide
Conduct a materiality feedback to Sustainability and Materiality Assessment
a pathway to Net zero by 2050. Sustainability Week in January 2023, aligns with Abu Dhabi National Oil
assessment and stakeholder CSR committees Understand the impact
ADNOC Distribution announced that Company’s (ADNOC) broader strategic
engagement exercise of initiatives
ADNOC Distribution is working on it converted its $1.5bn term loan into vision, recognizing ADNOC’s 2030 Develop initiative cards for
adopting a sustainable energy mix a Sustainability Linked Loan (SLL), Sustainability Strategy as a strong execution, planning, and monitoring Understand the evolution of
Develop the Sustainability
for its fleet of vehicles and using demonstrating its determination to foundation for enabling ADNOC strategic priorities & level of
Strategic Framework in alignment Set up Collaborative Project
implementation of importance to
renewable energy in its service align its funding objectives with the Distribution to improve the overall with global, regional, and ADNOC Management Services (online
external stakeholders
stations, in addition to rolling out Corporate Sustainability Strategy. ESG Performance. Group Sustainability Goals and project management and
lower-carbon products for its The move also serves to future-proof Reporting Frameworks reporting tool) Identify feedback for improvement
customers. The approach to a our business and deliver sustainable
balanced transition underlines ADNOC long-term shareholder value, marking
1 2 3 4 5
Governance Reporting
Approval from management and the Initiate internal quarterly
Board of Directors on the sustainability sustainability KPI reporting
framework and objectives
Initiate external ESG reporting and
A Sustainability Committee is in annual reporting
place to drive sustainability strategy
and oversee implementation
A CSR sub-committee is in
place to drive CSR strategy
and implementation
Additional sub-committees will be

established as and when required
The Board reviews the sustainability

agenda by including a standing
sustainability agenda in quarterly
Board meetings
The Board reviews sustainability

performance by integrating key
targets into the organizational
performance scorecard
6. 2-22 Statement on sustainable development strategy
18 19
IMPACT SDGS ENVIRONMENT 1. CLIMATE, EMISSIONS, AND ENERGY

Optimize carbon emissions and energy consumption footprint.
f Adopt Green Liquid Fuels and plant-based renewable products or green lubricants
f Develop low carbon alternative fuels/energy portfolio (EV, Hydrogen, LCNG)
f Reduce GHG emissions and energy intensity
SDG-5
Gender Equality 2. LOCAL ENVIRONMENT
Adopt a restorative approach to protect and preserve the local environment.
f Recycle water used in our operations and reduce in water consumption
f Reduce waste generation and improve waste disposal methods
SDG-6
Clean Water f Promote the conservation of nature and biodiversity
and Sanitation
SOCIAL 3. ECONOMIC AND SOCIAL CONTRIBUTION

Develop and deliver Corporate Social Responsibility (CSR) projects in priority areas:
SDG-7 f Community – support local communities by focusing on social campaigns
Affordable and
Clean Energy f Environment – support environmental programs contributing to the UAE’s 2050
Net-zero emissions goal
f Economy – create shared value with local businesses, and contribute to the country’s
SDG-8 economic development by participating in the In-country value (ICV) Program
Decent Work
and Economic 4. WORKFORCE DIVERSITY AND DEVELOPMENT
Growth
Promote Diversity, Equity, and Inclusion.
f Fairness – be a fair and meritocratic employer
f Diversity and inclusion – be a diverse and inclusive organization
SDG-11
Sustainable f Employee wellbeing – preserve and improve employee wellbeing
Cities and f Employee satisfaction – provide and promote a motivating, engaging, and fulfilling
Communities working life
5. HEALTH, SECURITY, AND SAFETY

SDG-12 Demonstrate 100% commitment to HSE as 1st Priority.
Responsible
f Planning – implement an HSE five years business plan
Consumption
and Production f Execution – comply with HSE lifesaving rules
f Safety Culture – implement a safety culture transformation strategy
f Asset Integrity – compliance with asset integrity-related HSE standards
SDG-13 GOVERNANCE 6. BUSINESS SUSTAINABILITY

Climate Action
Adopt best practices for business sustainability.
f Corporate Governance – adopt global best practices of management and reporting systems.
THE OBJECTIVES OF THE SUSTAINABILITY STRATEGIC f Sustainability Governance - implement a comprehensive sustainability
SDG-17 FRAMEWORK ARE CLASSIFIED UNDER SIX PILLARS SPREAD governance Frame-work.
Partnership for ACROSS ESG DOMAINS AND IN ALIGNMENT WITH 8 UN SDGS f IT Transformation – modernize and digitize the IT landscape to act as a critical enabler of
the Goals WITHIN THE FRAMEWORK. growth and efficiency
f Future-Proofing – strategy to proactively adapt to the energy transition, mobility
transformation, digital disruption, and impact of climate change on the business
f Ethics and Compliance – align policies such as anti-bribery and corruption, ethics and
compliance, and transparency with global standards
20 21
GOVERNANCE OF KEY OBJECTIVES OF THE COMMITTEE

THE FRAMEWORK
Development of ESG strategy, objectives,
targets, KPIs, and performance plans
The Chief Executive Officer (CEO)
of ADNOC Distribution is the
highest authority responsible for
the development, implementation,
monitoring, and reporting of Communicate ESG Oversight of ESG
commitments, objectives, performance and
sustainability initiatives across
and targets to internal and management across
the organization. external stakeholders ADNOC Distribution
A corporate-level Sustainability
KEY
OBJECTIVES
Committee comprising members
OF THE
from executive management COMMITTEE
has also been established to
Report on ADNOC Identification, assessment,
ensure robust governance of the Distribution’s ESG and management of ESG
framework. The committee meets performance and progress risks and opportunities
monthly and provides insights and
recommendations to the CEO on
activities and policies relevant to
integrating sustainability across the
organization and beyond.
Accountable authority for implementation
of approved policies, plans and decisions
COMPOSITION OF THE SUSTAINABILITY COMMITTEE EXECUTION AND MONITORING THE FRAMEWORK

To monitor key metrics and set internal targets against them, ADNOC Distribution has established an Organizational
Chairman Chief Executive Officer Performance Scorecard, which includes KPIs on Environment, People, and other metrics such as Safety, Profitability,
Performance, and Efficiency.
Deputy Chairman Chief Investor Relations Officer A Sustainability Committee is also set up to support the implementation of sustainability and CSR initiatives. The
members meet monthly or as required and engage with the different business units to ensure that the Sustainability
Strategy Framework is understood across the organization and supports various initiatives under each pillar of the
Committee Members Chief Chief Business Chief Chief General Framework.
Financial & Commercial Operating Marketing Counsel
Officer Support Officer Officer Officer
Sustainability topics are also included as a standing agenda item in the Board of Directors quarterly meetings to review
the sustainability performance and progress initiatives.
Senior Vice Vice Senior Vice
President President President
Human Capital Strategy &
Transformation
Health, Safety
& Environment
REPORTING
This year ADNOC Distribution has published its fourth ESG Report. The organization also discloses its key ESG
Committee Secretary Sustainability Team information within its Annual Report and website. ADNOC Distribution aims to expand its ESG reporting journey by
continuous improvement in the disclosure of information.
22 23
OUR
MATERIALITY
THE MATERIALITY
ASSESSMENT PROCESS
WAS CARRIED OUT (IN
2021) BY IDENTIFYING 37
TOPICS BASED ON THE
ABOVE INDICATORS, AND
25 KEY ESG TOPICS
were identified based on extensive
stakeholder consultation sessions
with ADNOC Distribution’s internal
and external stakeholders, along with
inputs, insights, and feedback from
the Sustainability Committee. The
key ESG topics are indicated below:
MATERIALITY ASSESSMENT METHODOLOGY7
High
■ Environmental Policy and Management Systems ■ Energy Management ■ Local Community Impact
■ Supplier Environmental Assessments ■ Emissions ■ Training and Education
■ Forced Labor and Child Labor ■ Water Management ■ Employee Turnover
ADNOC Distribution continues to show strong performance on its 25 key ESG topics, which were identified through an ■ Waste Management ■ Employee Engagement
Influence of Stakeholder Assessments and Decisions

extensive materiality assessment process in 2021, following a four-step approach: ■ Renewables/Clean Tech ■ Procurement Practices
■ Environmental Compliance ■ Risk and Crisis Management
■ Spills ■ Economic Performance
■ Climate Risk Mitigation ■ Anti-Competitive Behavior
■ Biodiversity ■ Business Ethics and Integrity
Identify
■ Occupational Health & Safety ■ Anti-Corruption
Engage Analyse Validate ■ Customer Health & Safety ■ Board Overview
■ Nationalization ■ Digitization
Identify a preliminary list of topics based on Engage with a Analyze Validate material
■ Diversity and Equal Opportunity
the following: range of internal stakeholder topics with
and external responses to Sustainability ■ Human Rights Assessment ■ Customer Relationship Management
f Industry mega-trends stakeholders understand topics, Committee ■ Security Practices ■ Labor Management and Relations
f Peers’ ESG reporting through their influence, and at ADNOC ■ Supplier Social Assessments
■ Market Presence
targeted surveys their impact based Distribution
f Requirements defined by rating ■ Indirect Economic Impacts
on stakeholder ■ Cyber Risks and Data Privacy
agencies such as MSCI ESG, ISS ESG,
perceptions ■ Public Policy
S&P CSA, FTSE
f ESG topics identified by global and

national ESG standards and guidelines
such as ESG Disclosure Guidance by
Abu Dhabi Securities Exchange (ADX),
Low
Global Reporting Initiatives (GRI), Task Low High

Force on Climate-related Financial Significance of Economic, Environmental and Social Impacts
Disclosures (TCFD)
■ Environmental topics ■ Social topics ■ Governance and other topics
7. 3-1 Process to determine material topics
3-2 List of material topics
24 25
ENVIRONMENTAL PILLAR SOCIAL PILLAR
Energy Management Develop efficient energy solutions Climate, Emissions & Occupational Health Protect the safety of employees and contractors through Health, Safety, and
Energy and Safety diligent planning, identifying potential and existing hazards, Security
Reduce energy intensity levels
and managing risks at every aspect of operational activity
Contribute towards the UAE Energy Strategy 2050
Ensure employee and contractor wellbeing by providing
Emissions Reduce greenhouse gas emissions through products and Climate, Emissions & access to the health insurance coverage and periodic
projects which will provide clean energy options for our Energy medical surveillance
customers, including reduction of emissions from own
Customer Health Ensure customers wellbeing through various programs and Health, Safety, and
operations through abatement projects
and Safety aid offered in service stations (i.e., sanitization kits) and the Security
Water Management Conserve, manage, and recycle water and continuous Local Environment accessibility of safety data sheets across all products
adherence to the HSE standards and regulatory compliance
Procurement practices Ensure supply chain sustainability through robust Economic and Social
Waste Management Waste management in compliance with the Local Environment procurement practices and policies Contribution
regulatory requirements
Nationalization Take part in UAE’s vision in enriching national talents and Workforce Diversity &
Optimize opportunities to reduce and recycle waste across promote the growing presence of UAE Nationals in the Development
the Company’s operations workforce to improve its Emiratization performance, ultimately
Work on developing an efficient waste
management program Diversity and Equal Provide a diverse and inclusive workplace through its Workforce Diversity &
Opportunity policies that would ensure equal opportunities and fair Development
Renewables / Clean Tech Implement clean energy programs such as rooftop solar panels Climate, Emissions & treatment for all the employees
Energy
Local Community Impact Design CSR projects to give more back to the community Economic and Social
Environmental Ensure compliance with applicable legal and Local Environment and that create a meaningful impact on these communities Contribution
Compliance other requirements by practicing the standard
work methodologies Training and Education Ensure employees’ professional growth through various Workforce Diversity &
learning and development programs, as well as maximizing Development
Spills Maintain strict enforcement of procedures to prevent Local Environment the usage of virtual platforms in adjustment with the current
and mitigate any potential effects of operational spills or conditions caused by the global pandemic
minimize impacts that might occur
Employee Turnover Maintain a healthy working environment that attracts and Workforce Diversity &
Climate Risk Mitigation Adapt with and mitigate climate risks applicable to Climate, Emissions & retains a workforce Development
ADNOC Distribution’s business and support energy Energy
transition initiatives Employee Engagement Engage with employees through diverse forms of Workforce Diversity &
communications and regularly check their sentiments to see Development
that their needs are met in professional development, health,
and wellbeing
Biodiversity Protect biodiversity by adhering to the internal biodiversity Local Environment
standards, guaranteeing that no operations performed in
any protected areas without affecting the biodiversity
26 27
STAKEHOLDER ENGAGEMENT8 ADNOC DISTRIBUTION

ADNOC Distribution promotes honest, transparent, and CONTINUES TO
GOVERNANCE PILLAR
mutually beneficial partnerships with its broad stakeholders.
The Executive Leadership Team actively engages with
PRIORITIZE ITS
Business Ethics and Conduct business transparently and ethically, with the Business Sustainability stakeholders in overseeing the Company’s processes LONG-TERM
Integrity corporate governance framework that sets forth the policies
and, most importantly, the code of conduct that guides various
to identify and manage the impacts on the economy,
environment, and people. The Team meets monthly through
SUSTAINABILITY
aspects in decision making, maintaining good performance, the Executive Committee Meetings of the Board of Directors SUCCESSES
THROUGH THE LENS
managing risks, and seeing a remarkable ESG Performance and quarterly through Board Meetings.
Anti-Corruption Conduct business lawfully, ethically and with integrity,

the Anti-Bribery and Corruption policy sets guidelines to
Business Sustainability The relevant stakeholder Groups for the Company include OF CREATING VALUE
FOR ITS ESTEEMED
Employees, Shareholders, Customers, Suppliers and
ensure that none of ADNOC Distribution’s employees or Partners, Local Communities, Government (Federal and
representatives engage in any form of fraud, bribery, or other
types of corruption
Local Governments), and Regulatory Authorities.
STAKEHOLDERS.
ADNOC Distribution employs different engagement
Board Overview Ensure that the Board has the highest responsibility for Business Sustainability
methods for each stakeholder Group to identify
decisionmaking on significant business matters, strategic
critical concerns raised or their topics of interest and
governance, and oversight of executive bodies, as well as
engage with them to address those concerns through
superintending the sustainability goals, programs, risks,
differing mechanisms.
impacts, and opportunities across the value chain
Risk and Crisis Set policies and procedures to make sure that any form Business Sustainability
Management of risk or crisis are managed effectively so that there is
business continuity
Economic Performance Contribute to nation development by creating shared value, Business Sustainability
improved InCountry Value through robust governance in place,
strategic management, and performance management
Anti-Competitive Employees are required to comply with competition laws, Business Sustainability
Behavior so the company ensures that there are no anticompetitive
behavior, antitrust, or monopoly practices in the company
Digitization Improve the IT landscape to join the emerging trends in Business Sustainability
digitization and technology
Through IT modernization, such programs are implemented to

provide timely, accurate data, and mitigate cyber security risk
8. 2-29 Approach to stakeholder engagement
28 29
Key concerns raised/topics of interest Key concerns raised/topics of interest

f Employee engagement activities that target different segments f Visibility on the Company’s growth plans and dividend policy
f Ensuring gender diversity and equality across the business f International expansion growth targets and efficient capital allocation
EMPLOYEES SHAREHOLDERS
f Updates regarding fundamental policy changes, employee engagement f Impacts of the energy transition on ADNOC Distribution
f ESG survey action plans, personal development opportunities and career f ESG survey
f Development of robust and clearly defined strategies for electric
f Employee wellbeing program progression, rewards, and recognition f General assembly meetings vehicles and hydrogen
f Employee engagement survey f Employees’ suggestions in the Employee Engagement Survey f Investor roadshows f Regulatory framework for UAE fuel retail sector
comments that require policy changes
f AskHC portal f Physical and virtual meetings f Sustainability of the backstop guarantee with ADNOC and visibility of
How ADNOC Distribution addresses these concerns cash flows
f Trainings & workshops f Investor feedback survey
f Establish different taskforces and committees such as youth, sport
f Physical and virtual town halls f Participation in f Sustainability of the rent-free arrangements with ADNOC in Abu Dhabi
taskforce, gender balance, and employee engagement committee
equity conferences and visibility of cash flows
f Assign employee engagement champions for all Groups and cooperate with
f Annual Report, Corporate How ADNOC Distribution addresses these concerns
Human Capital Business Partners to support post-employee engagement
Governance Report, and f Disseminate information about long-term strategic growth targets during
survey activities by developing different initiatives across the Company
ESG Report regular investor roadshows and Capital Market Days
f Identify current performance and implementation of initiatives to increase
f The quarterly earnings release, f Provide annual guidance and outlook on the Company’s key
gender diversity by periodic reporting of gender-related KPIs
management discussion, and performance indicators
f Periodic communication to employees via internal newsletter, emails, analysis reports, and quarterly f Future-proof the business by launching a sustainability roadmap to
virtual and physical town halls, and CEO updates to raise awareness about investor presentations decarbonize the Company’s operations and investing in electric vehicle
policy changes, development opportunities, internal vacancies, people and
f Quarterly results charging solutions to meet the evolving needs of EV customers nationwide
business updates, and growth potential
conference calls and unlock new business revenue streams
f Addressing employee comments from the Employee Engagement Pulse
f Press releases f Efficient capital allocation towards growth and investing in
Survey and coordinating to resolve feedback with the Group task force,
value-accretive M&As
including reviewing and modifying policies f SMS distribution
f Updating regular progress against the Company’s annual guidance
f Email distribution
and long-term growth targets, including energy transition and adopting
f Social media low-carbon products
Key concerns raised/topics of interest
f Providing visibility of shareholder returns by implementing a progressive
f Ensuring the health and safety of customers
and attractive dividend policy
f Improving the quality of products and services
CUSTOMERS f Renewal of the Fuel Supply Agreement with ADNOC for another five years,
f Enhancing the diversity of the workforce at stations and including the margin backstop guarantee
f ESG survey convenience stores
f Retail stations
How ADNOC Distribution addresses these concerns
f Social media f In line with leading practices, work towards continuously improving and
implementing health and safety management systems
f Corporate website
f Identifying and addressing customer needs and expectations by
f Customer call centers
implementing a robust quality management system
f Customer satisfaction surveys
f Enhance customer interactions and service levels through workforce talent
and professional development programs
30 31
Key concerns raised/topics of interest Key concerns raised/topics of interest

f Ensuring availability and supplies of products in ADNOC f Initiatives that support, build, and create an overall impact on local
Distribution’s portfolio employment, social development, health, and safety of people
SUPPLIERS AND PARTNERS LOCAL COMMUNITIES and environment
f Enhancement in the tendering process
f ESG survey f Timely response to supplier queries f ESG survey How ADNOC Distribution addresses these concerns
f Undertook various CSR initiatives such as Pink Caravan Campaign, Reach
f Bids and tenders f Communication on new procedures related to supplier performance f Employee volunteering
Campaign, Make Their Life Colorful, and Khalifa Foundation Ramadan
f Supplier portals evaluation and in-country value f Community Meals Partnership
f Regularly meeting with suppliers to discuss SAP ARIBA system issues, program sponsorships
f Post-award communications
Suppliers’ Profile updates at ADNOC, Suppliers’ Performance, ICV f CSR events
f Periodical
Improvement Plan, and Certification
engagement meetings
f Continual assessment and improvement of supply chain management and
inventory management
f Enhancement of tendering process through regular updates in

SAP modules
f Updating internal guidelines to respond to all supplier queries within

approved timelines and making centralized announcements and
communication to all suppliers
f On-time replies to suppliers during meetings and through

email communications
Key concerns raised/topics of interest

f Contribution of the organization to building and supporting the local
economy, increase in customer convenience, employment opportunities,
GOVERNMENT (FEDERAL AND environment, and community development
LOCAL GOVERNMENTS) AND
f Commitment to strengthening the regulatory framework governing the sector
REGULATORY AUTHORITIES
f Annual and quarterly reports
f Investing in expanding the country’s networks and renovating the
f Public reporting convenience store network to contribute to national infrastructure
development, increased employment opportunities, and higher access to
f Virtual and face-to-face meetings
fueling and convenience services
f Providing and developing low carbon and green energy products such as
compressed natural gas, lubricants for hybrid engines, green lubricants,
and premium products offering improved engine efficiencies such as
Octane-98 gasoline
f Addition of new station formats utilizing the latest innovative technologies

with significantly lower carbon footprint and running on significantly less
power, such as ADNOC On the go and ADNOC Oasis Autonomous Store
f Investing in digital solutions to offer greater customer convenience, such as

contactless payments, digital ordering, online ordering, self-service checkouts, etc
32 33
ALIGNMENT WITH GLOBAL

AND NATIONAL PRIORITIES
AND OUR CONTRIBUTION
ENVIRONMENT VISION 2030
ADNOC Distribution’s
Impact and
Goals Focus Contribution
ABU DHABI SECURITIES EXCHANGE (ADX) GUIDELINES f Consolidate and coordinate local f Sustainability capabilities across f Strengthened the strategic
sustainability response environmental, economic, and sustainability framework to enhance
social pillars overall sustainability performance
Impact and f Promote Abu Dhabi’s natural
Goals Focus Contribution heritage by enhancing f Critical focus on climate f Embarked on a journey of assessing
f Enhance ESG performance of f Guide the disclosure of 31 critical f Published annual ESG reports resource efficiency change, air and noise climate change-related risks
publicly listed companies in ESG indicators in line with GRI Standards and pollution, water resources, and and opportunities in line with
the UAE ADX Guidelines waste management TCFD recommendations
f Align disclosures with leading
f Promote and support voluntary standards (GRI, UN SDGs, f Aiming to seek third-party f Developed a Decarbonization
disclosure of ESG data WFE, SSEI) assurance on ESG disclosures roadmap to accelerate its journey
and announced the target to reduce
carbon emissions intensity by 25%
by 2030
ABU DHABI ECONOMIC VISION (2030) UN SUSTAINABLE DEVELOPMENT GOALS

ADNOC Distribution’s ADNOC Distribution’s
Impact and Impact and
Goals Focus Contribution Goals Focus Contribution
f Provide a framework for the f Enhance the talents and f Promoted employment of local f Sets development framework f Improve global progress against f Mapped UN SDG goals and targets
long-term transformation of capabilities of the local workforce workforce and instilled talent and covering 17 broad topics, a diverse set of ESG focus areas with ADNOC Distribution’s KPIs,
Abu Dhabi’s economy development culture including affordable and clean objectives, and sustainability strategy
f Build infrastructure resilience f Promote organizational
energy and climate action
f Reduce reliance on the to withstand economic shocks, f Invested in future mobility involvement in advancing the f Utilize disclosures such as the
oil sector develop EV charging infrastructure solutions such as electric vehicle f Guides organizations in reporting global ESG agenda annual ESG Report to promote UN
and drive future productivity charging stations against each topic’s indicators SDGs to stakeholders
34 35
DEMAND SIDE MANAGEMENT AND ENERGY

RATIONALIZATION STRATEGY (DSM) UAE NET ZERO BY 2050
ADNOC Distribution’s ADNOC Distribution’s
Impact and Impact and
Goals Focus Contribution Goals Focus Contribution
f Reduce electricity consumption f Secure Abu Dhabi’s future f Promoted water and energy f Achieve Net zero emissions f Reduce GHG emissions across f Developed a decarbonization
in Abu Dhabi by 22% by 2030 energy and water resources conservation through various by 2050 UAE’s sectors and industries strategy and roadmap to lead a
training, awareness campaigns, successful transition toward a
f Reduce water consumption in f Enhance sustainability of f Align to international f Increase the size of UAE’s green
and water-saving and recycling decarbonized economy
Abu Dhabi by 32% by 2030 water and energy use through decarbonization agendas such economy (e.g., clean energy)
programs across assets and
the reduction of associated as the Paris Agreement f Contribute to the Net-zero ambitions,
operations, including using recycled
GHG emissions ADNOC Distribution is building and
water at our service stations
promoting decarbonized product
portfolio such as electric vehicle
UAE ENERGY STRATEGY 2050 charging stations, low-carbon and

green products such as CNG and
ADNOC Distribution’s green ADNOC Voyager lubricants
Impact and
Goals Focus Contribution UAE CENTENNIAL 2071
f Increase the contribution of f Reducing the carbon footprint of f To limit the reliance on conventional ADNOC Distribution’s
clean energy in UAE’s total power generation by increasing energy sources, ADNOC Distribution Impact and
energy mix from 25% to 50% clean energy contribution invested in solar energy generation
by 2050 through rooftop installation of solar f Provides a long-term roadmap f Enhance the resilience of f Impart future-oriented learning and
f Invest resources in sustainable
panels on stations to enhance the UAE’s global the UAE workforce’s skills development programs, promote
f Increase consumption efficiency energy programs
reputation and capabilities and capabilities employment of UAE nationals, and
of individuals and corporations f The Company is implementing
support existing social initiatives in
by 40% energy optimization initiatives to f Promote skills and talents of the f Promote a happy and
the UAE
reduce energy consumption UAE’s youth, especially in critical cohesive society
future focus areas such as AI
NATIONAL CLIMATE CHANGE PLAN OF THE UAE 2017-2050

UAE STRATEGY FOR THE FOURTH INDUSTRIAL REVOLUTION
Impact and ADNOC Distribution’s
Goals Focus Contribution Impact and
f Identify, assess, and manage f Effectively manage the UAE’s f Developed its decarbonization
the causes, impacts, and risks of GHG emissions with minimal roadmap to reduce carbon intensity f To achieve future water and food f Strengthen UAE’s position f Adopting cutting-edge
climate change disruptions to the economy’s by 25% by 2030, setting the path supply security using bioengineering as a global hub for the 4th technologies in the Company’s new
growth trajectory to Net-zero sciences and advanced renewable Industrial Revolution and adopt service stations and convenience
f Plan the UAE’s successful
energy technologies leading-edge technologies stores to provide a seamless
transition to a resilient f Build a framework for the robust f Invested in new age clean mobility,
and modern experience to its
sustainability-driven economy identification and management which contributes to mitigating f Enhance economic security by f Innovative education
customers, including its ADNOC
of climate-related risks across GHG emissions, such as EV adopting digital economy and
f Artificial intelligence Oasis autonomous store, which is
the UAE’s economic sectors charging stations to futureproof the blockchain technologies in financial
powered by Artificial Intelligence,
business while meeting growing transactions and services f Intelligent genomic medicine and
and the latest flagship station where
customer demands and diversifying
f Develop advanced defense f Robotic healthcare customers and staff movement also
revenue streams
industries by developing contribute to providing energy via
f Optimize the utilization of
national sectors in robotics and power-generating walkways
satellite data in planning
autonomous vehicle technologies
future cities
36 37
ALIGNMENT WITH THE TASK

FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (TCFD)
ADNOC Distribution has embarked on a journey to assess climate change-related risks and opportunities in line with
recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD).
TCFD was established by the Financial Stability Board. Its core objective is to guide organizations on how to operate
effectively and in a way that contributes to the transition toward a low-carbon global economy. Alignment with TCFD
recommendations will enhance climate-related disclosures and improve the management and reporting of climate-related
risks. This is an essential step in moving forward together to improve transparency and build a better understanding of
potential climate-related impact.
CORE ELEMENTS OF ADNOC DISTRIBUTION’S CLIMATE CHANGE EFFORTS
GOVERNANCE STRATEGY RISK MANAGEMENT METRICS & TARGETS

f Oversight and f Aligning with UAE’s f Risk Management f Achieve the set targets
governance of Board National Vision and Policy, Manual for each of the 25 key
of Directors and UN SDGs and Guidelines material topics
Sustainability
f Designed in f Risk mitigation f Organizational
Committee
accordance with strategies Performance
f Sustainability GRI Standards Scorecard including
f Ensure integration
committee KPIs on ESG metrics
f Sustainble Strategic with the Company’s
managing the
Framework with six Enterprise Risk f KPI Targets on GHG
climate-related risks
focused pillars Management systems reduction qualified
and opportunities
as ambitious and
f Introducing a GHG
f CSR Sub-committee obtained a positive
emission intensity
to develop and Second Party Opinion
reduction roadmap
maintain the CSR
Strategy, initiatives, f Linking the Company’s
and Annual Plan financial objectives
in alignment with with sustainability
ADNOC Distribution’s performance, by
Sustainability converting its
Strategy $1.5bn term loan
into a sustainability
linked loan
38 39
VALUE CREATION
MODEL
As a fully integrated energy Company, ADNOC Distribution is well-positioned to capitalize on emerging opportunities and
navigate geopolitical and economic headwinds.
DELIVERING RESPONSIBLE GROWTH

INPUT OUTPUT OUTCOMES UN SDGs*
NATURAL CAPITAL 764 tonnes of total waste diverted from disposal f Mitigating global warming
(recycling) f Promoting the use of eco-friendly fuel
1,411,782 GJ/ton Total energy consumption f Resource stewardship
2,032,157 m3/ton Water consumed 291 tCO2e emissions saved in 2022 as a direct
result of solar/renewable energy
231,359 m3 water recycled

HUMAN CAPITAL ADNOC DISTRIBUTION’S 64% Emiratization Rate f Safer working environment
MISSION AND VISION 404 number of employed Emirate Women f Enhanced employee engagement
13,122 Total employees f Bringing inclusiveness to education
168,224 Training Hours
Risks and Strategy and f Enhanced workforce demographics
12.82 Training Hours per Full-time employees
Opportunities Resource Allocation
INTELLECTUAL CAPITAL 94% Customer satisfaction index f Driving innovation culture
f Concerted collaborations
+50 partners in ADNOC Rewards program Providing services and convenience to customers, f Creating a digital ecosystem
AED 118 million invested in while delivering high-quality and innovative products
technology infrastructure and services
MANUFACTURED CAPITAL INPUT >> BUSINESS ACTIVITIES >> OUTPUT >> OUTCOMES 25 Countries Automotive and commercial lubricants are f World-class infrastructure facilities
exported to (GCC, Middle East, and North Africa) f Energy security
Service stations
BUSINESS
MODELS f Strong supplier relationships
502 UAE 42 new service stations in the UAE
f Market leader in downstream marketing
66 Saudi Arabia 26 new service stations in Saudi Arabia
42 refurbished convenience stores and distribution
Convenience stores
Performance Outlook
362 UAE
7 Saudi Arabia GOVERNANCE
FINANCIAL CAPITAL AED 32,111 million Revenue f Sustainable cash flows
f Strong EPS
AED 11.3 million
on environment-related investments
SOCIAL AND RELATIONSHIP CAPITAL 7 CSR community engagement initiatives f Building sustainable livelihoods
f Enhanced quality of life of people
AED 2 million 1,000 CSR Employee voluntary hours f Effective stakeholder engagement
CSR Community investment
OUR BUSINESS MODEL IS DESIGNED TO DELIVER

*Impact SDGs: SDG 5 Gender Equality, SDG 6 Clean Water and Sanitation, SDG 7 Affordable and Clean Energy, SDG 8
Decent Work and Economic Growth, SDG 11 Sustainable Cities and Communities, SDG 12 Responsible Consumption and
SUSTAINED GROWTH, BUILDING ON PROGRESS AND Production, SDG 13 Climate Action, SDG 17 Partnership for the Goals
EMBRACING THE DIGITAL REVOLUTION TO MAXIMIZE

VALUE FOR OUR STAKEHOLDERS
40 41
OUR CORPORATE
GOVERNANCE
9
ADNOC Distribution strongly recognizes the critical role governance plays in creating a culture focused on long-term value ABOUT THE BOARD OF DIRECTORS10
creation. A robust governance framework is required to meet stakeholders’ and communities’ needs and interests. The
Company has designed its governance structures and processes to ensure ethical and responsible practices and enhance The Board of ADNOC Distribution implements and oversees its corporate governance framework. It acts as the highest
accountability to inspire positive change in the industry. decision-making body with accountability for the Company’s business operations and services, including embedding
sustainable strategies across the value chain.
The corporate governance framework is developed in compliance with all governance requirements and standards applicable
to public joint-stock companies in the UAE. Also, it ensures that the Framework is consistent with leading global practices. The Board complies with the corporate governance requirements applicable to public joint stock companies listed on the
Abu Dhabi Securities Exchange, as set out in the Governance Rules and Corporate Discipline Standards issued on 2 February
Paving the way for enhanced transparency and building stakeholder trust, ADNOC Distribution publishes an annual Corporate 2020 pursuant to UAE Securities and Commodities Authority Resolution No. 3/Chairman of 2020 and its amendments (the
Governance Report detailing the Company’s corporate governance processes. For further details on ADNOC Distribution’s Corporate Governance Rules).
corporate governance, kindly refer to the 2022 Corporate Governance Report.
ADNOC Distribution’s Board of Directors comprises seven directors elected at the Annual General Meeting on 16th March
9
2021. All directors are independent non-executive directors within the meaning of the Corporate Governance Rules. Pursuant
7/7
to ADNOC Distribution’s Articles of Association, each director serves a three-year term, after which a director may be elected
to a successive term or terms.
INDEPENDENT DIRECTORS BOARD MEETINGS CONDUCTED
95% 14.28% H.E. Dr. Sultan Ahmed Al Jaber

Chairman
BOARD MEETING ATTENDANCE FEMALE MEMBER REPRESENTATION
OF THE BOARD
H.E. Ahmed Jasim Al Zaabi H.E. Ahmed Tamim Al Kuttab H.E. Mohamed Hassan Alsuwaidi
Deputy Chairman Director Director
Khaled Salmeen Mariam Saeed Ghobash Abdulaziz Abdulla Alhajri

Director Director Director
9. 2-17 Collective knowledge of the highest governance body 10. 3-3 Management of material topics 2-12 Role of the highest governance body
2-18 Evaluation of the performance of the highest governance body 2-9 Governance structure and composition 2-10 Nomination and selection of the
2-11 Chair of the highest governance body highest governance body
42 43
BOARD DIVERSITY11 ADNOC DISTRIBUTION’S INTEGRATED GOVERNANCE

MANAGEMENT SYSTEM (IMS) ON ESG14
On 16th March 2021, Ms. Mariam Saeed Ghobash was Where Board vacancies arise, ADNOC Distribution will
elected to the Board of Directors. Ms. Ghobash also serves actively seek out excellent female representation while For seamless integration of processes This project will help us accelerate the Decisions related to managing
as Chairperson of the Nomination and Remuneration at the same time considering all qualified candidates, in line with our current business, realization of ADNOC Distribution’s environmental, social, and governance
Committee and is a Member of the Executive Committee. regardless of gender, and recognizing that the appointment leading industry practices, and organizational ambitions relating issues across the value chain are
Currently, the Company has one female member of the of directors is a matter reserved for the shareholders of requirements of ISO standards – an to customer excellence, employee governed by ADNOC Distribution’s
Board of Directors, which complies with SCA’s Corporate ADNOC Distribution. internationally recognized benchmark engagement, and operations Board of Directors, the organization’s
Governance Rules.12 of quality, we have launched the excellence, and is planned to be highest decision-making body. The Board
Integrated Management System conducted in a phased manner under oversees ESG targets, programs and
(IMS). Launch of IMS is a Company- the leadership of the Project Steering initiatives, risks, and progress on a broad
COMMITTEES13 wide project focusing on all ADNOC Committee, comprising of Chief range of ESG matters that are important
Distribution functional processes, as Business and Commercial Support to the business.
To assist the Board in discharging its duties, the Board has established the following committees: the Audit Committee, well as the following ISO Standards: Officer, SVP of Human Capital, VP of
the Nomination and Remuneration Committee, and the Executive Committee, in addition to the Insider Dealing Committee, f Environmental Management HSE, and VP of Audit and Assurance. ADNOC Distribution established a
Sustainability Committee, and CSR Sub-Committee. (ISO 14001) Sustainability Committee in 2021 to
An IMS support team is in place to oversee the management of ESG
f Occupational Health and Safety
Committees support the committee in coordination topics at a management level. For
(ISO 45001)
with ADNOC Distribution functions further information on our Sustainability
f Energy Management (ISO 50001) and manage the project delivery. Committee, please refer to the
Board Management f Security and Resilience ‘Governance of the Framework’ section.
Committees Committees
(ISO 22301) In addition, ADNOC Distribution has also
f Asset Management established the CSR sub-committee to
Nomination & Insider
Audit Executive Sustainability Gender Balance CSR (ISO 55000 and ISO 55001) develop, implement and manage CSR
Remuneration Dealing
Committee Committee Committee Committee Sub-Committee strategy and initiatives.
Committee Committee f Collection and Maintenance of
Data (ISO 14224)
Audit Committee Nomination and Remuneration Executive Committee
(Board Committee) Committee (Board Committee) (Board Committee)
Assists the Board of Directors in Determines the balance of skills, ERM and oversight of Sustainability CORPORATE GOVERNANCE AND BUSINESS ETHICS
discharging its responsibilities knowledge, and experience and Strategy and Plan for the Board
concerning financial reporting, the structure, composition, and CORPORATE UNDERSTANDING The Internal Audit function conducts
external and internal audits, and performance of the Board of GOVERNANCE BUSINESS ETHICS AND internal audits for all the operations
internal controls Directors and its Committees POLICY CODE OF CONDUCT in the organization based on ADNOC
Corporate Governance Policy provides ADNOC Distribution’s Code Distribution’s code of conduct.
clear guidelines on the following: of Conduct demonstrates its
Insider Dealing Sustainability Gender Balance CSR Sub- commitment to compliance and The organization conducts periodic
Committee Committee Committee Committee f ADNOC Distribution’s corporate ethical behavior. The purpose of the training sessions on the Code for
(Management (Management (Management (Management governance structure and the Code of Conduct is to: its stakeholders. All employees and
Committee) Committee) Committee) Committee) interface between the Company suppliers must comply with the
and its stakeholders f Set out the minimum standard
Ensures compliance To establish and oversee To drive new initiatives Develops and maintains Code of Conduct and confirm their
of conduct that we expect from
with the Insider the management of focused on women’s the CSR Strategy, f The authorities and decision- compliance annually.
anyone working for or on behalf of
Dealing Policy ESG topics and issues. empowerment across initiatives, and Annual making mechanisms within
ADNOC Distribution
and Share Dealing Assists and advises the organization Plan in alignment with the Company and between
Code across all the CEO by formulating and unlock the ADNOC Distribution’s its stakeholders f Provide a set of basic rules and
business activities recommendations on Company’s full potential Sustainability Strategy standards to ensure that our
f The role and responsibilities
and operations activities and policies through diversity and Plan business is conducted ethically,
of the Company’s corporate
relative to ESG practices competently, and in alignment with
governance function
and initiatives our core values
11. 3-3 Management of material topics 14. 2-13 Delegation of responsibility for managing impacts
12. Compliant with SCA’s Corporate Governance Rules 2-14 Role of the highest governance body in sustainability reporting
44 13. 3-3 Management of material topics 45
2-20 Process to determine remuneration
GOVERNANCE DRIVEN BY CORE VALUES15 GIFTS AND procedures are detailed in the anti- HUMAN RIGHTS
ENTERTAINMENT POLICY corruption section of this report. ADNOC Distribution operates mainly
CORE VALUES DRIVE THE GROUP’S GOVERNANCE FRAMEWORK: As part of ADNOC Distribution’s code in the United Arab Emirates (UAE), and
of conduct framework, the Gifts and ENERGY MANAGEMENT human rights policies are aligned with
Entertainment Policy provide a robust POLICY the UAE Labor law. The UAE guarantees
framework for managing the giving and ADNOC Distribution is focused on human rights under its constitution.
receiving gifts and entertainment in a maximizing the value of our hydrocarbon It strongly prohibits torture, arbitrary
business context. Anything of value resources for the benefit of our people, arrest, and detention while protecting
WE ARE WE ARE WE ARE WE ARE WE ARE provided or received in the context our communities and the nation. We civil liberties, including freedom of
RESPONSIBLE RESPECFUL PROGRESSIVE COLLABORATIVE EFFICIENT of business (as opposed to personal) seek to do this through its commitment speech and press, peaceful assembly
f Corporate f Business f Incentives and f In-Country Value f Compliance interaction can be included in the of using energy in the most efficient, and association, and religious beliefs.
Governance Policy Ethics Processes Compensation Program Investigations definition of gifts and entertainment cost-effective, and environmentally Nine conventions of the International
Policy Policy. On the contrary, anything with responsible manner possible. Energy Labor Organization (ILO) related to the
f Code of Conduct f Non-Discrimination f Gender f Dividend Policy
Divrsity Policy f Conflicts of
no legitimate business reason to offer Efficiency is deeply embedded in rights of workers have been ratified by
f Gifts and f Human Rights f Equity Overview or accept, inconsistent with ethical, ADNOC Distribution’s culture. The the UAE, which protects labor rights,
Interest Policy
Entertainment f Quality
f Related Party f Suppliers and cultural, or professional norms, such four critical pillars of our growth – implements Labor Laws for the private
Policy Policy Statement f Whistle-blowing
Transactions Partner Code as cash or cash equivalents, which People, Performance, Profitability, sector and laborers, and sets up
Policy
f Anti-Bribery/ Policy f Assets of Ethics may potentially improperly influence and Efficiency forms the core of our channels to resolve labor disputes.
Anti-Corruption Policy Statement f Insider Dealing
f Data Privacy and compromise objectivity, is treated Energy Management Policy, which
Policy Policy
Policy and as inappropriate. further details the Energy Management RELATED PARTY
f Energy Systems agenda of the Company. The concept TRANSACTIONS POLICY
Management Policy Appropriate gifts and entertainment of “efficient energy management” has The Related Party Transaction Policy
can build goodwill in business been applied to a variety of industries. It of the Company is designed to
relationships; however, accepting helps us achieve our goals of maximizing ensure that:
or offering inappropriate gifts and profitability, enhancing our position f Transactions with related
entertainment breaches the code of in the market, and offering the best parties are conducted on arm’s
conduct and is treated as unethical, possible services to our clients. The length terms
putting the organization’s reputation commitment we have to our workers, f The Board of Directors and
at risk. In case of non-compliance or the environment, and the communities senior management are aware
improper offers, all ADNOC Distribution in which we operate is furthered by our of the steps required to approve
employees must report the matter to efforts to consume less energy. transactions with related
their respective line managers, ethics, parties; and
and compliance representatives or via NON-DISCRIMINATION f A legitimate business case is
the Takallam platform. ADNOC Distribution maintains a presented and supports the
zero-tolerance approach to any form relevant related party transactions,
ANTI-BRIBERY AND ANTI- of discrimination or harassment at including their arm’s length nature.
CORRUPTION POLICY the workplace. It actively promotes
ADNOC Distribution follows a zero- and supports a core value of non- In alignment with this policy, we may not
tolerance approach to fraud, bribery, discrimination across its business enter into a related party transaction
and all other forms of corruption. activities and services, covering all unless it has been approved by: (i)
The Organization’s Anti-Bribery and stakeholders, including employees, our Board of Directors, where the
Anti-corruption Policy delineates the customers, and suppliers. The transaction’s value does not exceed
requirements to ensure none of our Company’s policies, processes, and 5% of the value of our share capital;
employees or representatives engage actions regarding non-discrimination or (ii) our shareholders at a General
in such activities and expect them to are guided by its core value of ‘WE ARE Assembly, where the transaction’s
conduct business lawfully, ethically, RESPECTFUL’ and are directed towards value exceeds 5% of our share capital.
and with integrity. Further details on promoting equality and embracing
ADNOC Distribution’s Anti-bribery diversity. In 2022, there were no The preceding requirements do not
and Anti-corruption policies and reported cases of discrimination. apply to transactions with ADNOC
15. 2-23 Policy commitments
2-24 Embedding policy commitments
3-3 Management of material topics
46 47
and other ADNOC group companies. accredited with ISO 27001:2013 SUPPLIER AND PARTNER that may arise from other activities,
However, as long as ADNOC owns Information Security credentials and CODE OF ETHICS including preventing situations that
more than 50% of our shares, we may is fully committed to the objectives of ADNOC Distribution has formulated the appear to be a conflict of interest. As
not enter into transactions with ADNOC UAE’s Personal Data Protection Law. Supplier and Partner Code of Ethics Employees, officers, and directors
or other ADNOC Group companies in line with its commitment to act with will engage in legitimate social,
unless our Board of Directors has GENDER DIVERSITY integrity in everything it does. Working financial, and business activities
approved such transactions. This POLICY with ADNOC Distribution means outside the scope of their work for
includes a majority of independent ADNOC Distribution is committed that you support this commitment. us, this policy promptly discloses the
members of the Board of Directors, to building equality across the The Code sets out basic rules and appropriate course of action which
subject to certain thresholds under organization, constantly recruiting more standards necessary to conduct can be taken to protect ADNOC
our Delegation of Authority Matrix. women in all areas of our business ADNOC Distribution business in an Distribution’s interests.
Refer to ADNOC Distribution’s 2022 and working on a series of initiatives ethical and compliant manner and
Corporate Governance Report for to advance women’s career growth sets the minimum standard of ethical WHISTLEBLOWING
further details on the Related Party across the Company. We have created business practice we expect from POLICY
Transactions Policy. a Gender Diversity Policy to support any Supplier or Partner. Refer to the Our commitment to integrity is
our inclusivity agenda, ensuring female section Procurement Practices for supported by an open, honest,
SUSTAINABILITY- employees obtain all necessary training more details on ADNOC Distribution’s and transparent culture. Our
RELATED and development opportunities. Procurement Practices. Whistleblowing Policy encourages our
COMPENSATION AND ADNOC Distribution. The goal is Moreover, dividend payouts will depend employees to report concerns about
INCENTIVE SCHEMES16 QUALITY POLICY to achieve optimal value from the on, among other things, future profits, COMPLIANCE unethical behavior concerning our
ADNOC Distribution’s Annual STATEMENT nation’s oil and gas resources, and the Company's business plan, at INVESTIGATIONS business by assuring confidentiality
Performance Scorecard includes ADNOC Distribution aims to deliver encourage private-sector the discretion of the Board of Directors POLICY18 and protecting good faith whistle-
Environmental, Social, and Governance innovative, value-added products partnerships, catalyze socio- and approval of the Shareholders. ADNOC Distribution’s commitment blowers from retaliation, even if
(ESG) KPIs, such as nationalization, and services for our customers economic development, enhance Under the Articles of Association, the to operating with integrity involves the concerns raised are mistaken.
GHG Emission reduction, In- and focuses on the core values: knowledge transfer, and leverage Company may distribute quarterly, appropriate investigation, which is Employees can raise concerns
Country-Value contribution, and the Progressive, Collaborative, Respectful, national talent. In 2022, ADNOC semi-annual, or annual dividends essential to addressing allegations of through various channels, including
variable compensation of executive Responsible and Efficient, with Distribution achieved an ICV of to shareholders from operating or ethical misconduct. Our Compliance the Takallam reporting platform. In
management is determined by the embedded Quality, Health, Safety, 70%, compared to 61% in 2021. accumulated profits. Since its IPO, the Investigations Policy and supporting 2022, 17 whistleblowing cases were
Nomination & Remuneration Committee Security, and Environmental culture Refer to the ICV Program section of Company has historically aimed to pay procedures set out our approach reported, of which 15 were resolved
of ADNOC Distribution’s Board of through partnership, innovation, and a the report for further details. a dividend twice each fiscal year. to investigations relating to alleged as of 31 December 2022. The two
Directors based on the rating of relentless focus on high-performance violations of: outstanding cases were closed in
Performance Scorecard. and efficiency to maximize the value DIVIDEND POLICY EQUITY OVERVIEW f ethical business practices January 2023.
of energy resources. ADNOC Distribution’s Dividend Policy ADNOC Distribution is a Public Joint f integrity in our interactions and
DATA PRIVACY POLICY lays down clear and transparent criteria Stock Company listed on the Abu Dhabi arrangements with third parties; and INSIDER DEALING POLICY
AND SYSTEMS17 ASSET INTEGRITY and methods for distributing profits Securities Exchange (ADX) on December f applicable laws, regulations, policies, ADNOC Distribution has a zero-
ADNOC Distribution abides by several POLICY STATEMENT to serve the interests of both ADNOC 13, 2017, with the symbol ADNOCDIST. and procedures regarding ethical tolerance approach to any activities
policies and initiatives to manage ADNOC Distribution strives to achieve Distribution and our shareholders. The business practices and integrity. that prevent the requirement to
data privacy and cybersecurity and sustain the highest standard payment of dividends is subject to The Corporation’s equity governance have fair and transparent dealings in
issues. It believes its customers of Asset Integrity and Maintenance consideration of the following: is closely monitored following its status In the case of any investigation, all of our securities. The obligations and
have a right to know how their Performance in line with local and f The cash management as a public-joint stock Company with our personnel are expected to fully and responsibilities of our employees,
information is gathered, analyzed, international standards to prevent requirements of the Company total paid-up share capital equal to truthfully cooperate and avoid engaging officers, and directors with respect
and used responsibly. The Company's incidents and meet business needs. for operating expenses, interest AED 1 billion, divided into 12.5 billion in certain activities that may hinder or to dealings in our securities are
Privacy Policy sets out the basis on expense, and anticipated capital shares, each with a nominal value of AED interfere with an investigation process. ensured by ADNOC Distribution’s
which personal data is collected or IN-COUNTRY VALUE (ICV) expenditures; and 0.08. As of December 2022, ADNOC Insider Dealing Policy and Code. The
provided and will be processed to In line with leading practices f Market conditions, the then-current Distribution’s market capitalization CONFLICTS OF INTEREST Company set up an Insider Dealing
ensure it is protected and processed and following the ICV program operating environment in our was AED 55.1 billion. Refer to the 2022 POLICY19 Committee that is aligned with the
fairly, transparently, and lawfully. pioneered by ADNOC in 2018, the markets, and the outlook for the Corporate Governance Report and The Conflicts of Interest Policy Insider Dealing Policy to oversee
The Company utilizes Information In-Country Value (ICV) Program business of the Company. Annual Report for further details on delineates requirements for avoiding its implementation.
Security Management System (ISMS) has been proactively taken up by ADNOC Distribution’s Equity Overview. and managing conflicts of interest
16. 2-19 Remuneration policies 18. 2-27 Compliance with laws and regulations
17. Data Privacy Policy & Systems 19. 2-15 Conflicts of interest
48 49
ENTERPRISE RISK AND

CRISIS MANAGEMENT
20
The risk management process identifies and mitigates UNDERSTANDING RISKS AND THE ERM PROCESS
exposure to uncertainty wherever possible and enhances ADNOC Distribution ERM process has been developed in line with ISO 31000, which defines Risk as the effect of
exposure to opportunities by identifying, understanding, and uncertainty on objectives, noting that an effect is a deviation from the expected. It can be positive, negative, or both and
can address, create, or result in opportunities and threats. Also, the risk is usually expressed in terms of risk sources,
managing risks in alignment with a defined risk management potential Events, Consequences, and Likelihood.
policy and set of procedures.
Hazard Risks
Protecting and creating value for our on our risk management to ensure referencing the ISO 31000:2018 Hazard Risks are future Events that will only yield adverse
stakeholders is our primary purpose that risks and opportunities are standard. The Policy defines the outcomes and must be eliminated. This program is managed by
in advocating a risk assessment and effectively managed. goals for risk management, the the Health Safety Environment Division.
management culture throughout the governance structure, and the duties
business operations. We adhere to our The ERM framework identifies, and responsibilities of the Board of ENTERPRISE
Enterprise Risk Management (ERM) understands, and manages risks Directors, the audit committee, the RISK Uncertainty Risks
program as a crucial component of that are a product of impact and management team's ERM function, MANAGEMENT Business Risks come in the form of uncertainties, i.e., future Events
the Company's fundamental business likelihood and are continuously and the internal audit function. The that may prevent the achievement of short and long-term objectives,
operations to reduce the uncertainty updated to proactively stance objective of ERM is to: which need to be reduced or eliminated. The business Risk program
brought on by global events, new challenges. ADNOC Distribution’s is managed by Strategy and Business Development Divisions.
climate realities, and unheard-of ERM Policy is aligned with national and
circumstances. We act promptly international best practices, explicitly
Opportunity Risks
Opportunity Risks are future Events that may facilitate the
achievement of objectives and must be maximized. The
Provide management opportunity Risk program is managed by Strategy and Business
Facilitate Risk
with transparent Development Divisions.
mitigation projects for
ADNOC Distribution and consistent Risk
information
ERM PROCESS
OBJECTIVES OF
The six sections outlined within the ERM Process guide the
ERM
Scope, Context, Criteria
management of enterprise Risks in a structured way.
Communication & Consultation

Risk Assessment
Divisions must follow the steps to understand the
Monitoring & Review

requirements when complying with the ADNOC Distribution Risk Identification
Take improvement Decision making
ERM Policy Framework.
actions in a coordinated tool that sustain a Risk Analysis
way across Buisness focus on high-priority

The creation of the ERM Risk Register should be linked to Risk Evaluation
Units and Divisions areas of Risk
the Business Planning cycle to understand the key Risks
that need to be managed in achieving short- and long-term
business plans. RISK TREATMENT
ERM conducted risk assessments for departments within the Company in 2022 and has developed risk registers The ERM Policy Framework is supported by an ERM
Recording & Reporting
highlighting risks, controls, risk rating, and mitigation actions to lower risk levels. Risk mitigation plans are tracked and Toolkit, which contains all the relevant templates to deliver
monitored with departments monthly to track progress and successful closure. the requirements.
20. 3-3 Management of material topics
50 51
The Scope, Internal and External and risk resources would then Consultation remain among ADNOC In 2022, ADNOC Distribution conducted a Maturity Assessment for its ERM and developed the ERM Improvement Plan 2022.
Context, and Risk Criteria set the be evaluated. Distribution’s key priorities to enhance LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5
scope for the rest of the ERM our risk management practice and
Q1 2022 Q2 – Q3 2022 Q2 – Q4 2022 Q3 – Q4 2022 2023+
process to work on the accurate risk- Once the assessments have maintain the trust and confidence
management assessment within our been analyzed, evaluated, and of our various stakeholders. We CORPORATE OPERATIONAL CORPORATE CONTINUOUS
INTEGRATION
operations. The process has three prioritized, ADNOC Distribution will commit to informing them of our risk ENGAGEMENT ENGAGEMENT MONITORING IMPROVEMENT
basic parameters to manage the take appropriate risk responses to drivers, including potential impacts
potential impact of the risks relevant mitigate risk to an acceptable level on our people and the community, TOP-DOWN Fully integrate BOTTOM-UP Fully embedded Monitor and
to the organization. The process starts considering a reasonable cost. The our partners in the business, and approach to Policy and approach to ERM linked improve
with identifying and assessing risks four risk responses are risk treatment, the environment, to ensure that we identify key Framework in line extend the to business effectiveness
to observe which might significantly transfer, tolerance, and termination. efficiently and sustainably manage risks across with ADNOC ERM coverage to planning and across ADNOC
ACTION
impact our business and their impact These will be consulted and verified our operations. Furthermore, the company Business units performance KPIs Distribution
Endorsed by CEO
in the short, medium, and long run. The by risk owners and included in the stakeholders’ consultation will be & Divisions & Update
ELT Workshop
potential impact of each regulation ERM system. progressively improved to consider ERM Systemz
Workshops
or event through risk analysis, the the long-term sustainable value.
& Awareness
likelihood of its occurrence, and Among the six sections of the
sessions
detailed consideration of uncertainties ERM process, Communication and
Robust Tier 1 Matrix aligned Tier 2 Risk Handshake Complete Self-

Corporate Risk with ADNOC’s Management between Assessment
COMMUNICATION AND CONSULTATION Management ERM Standards process is TOP-DOWN and continues
TARGET
process roll out successfully rolled and BOTTOM-UP improvement of
Integrated
MISSION, VISION AND BUSINESS STRATEGY out and updated in Embedding ERM ERM
company Risk
ERM system in BP
Registers
ADNOC DISTRIBUTION
ADNOC DISTRIBUTION OBJECTIVES
FUNCTIONAL OBJECTIVES
ERM GOVERNANCE
RISK CHAMPIONS
ADNOC Distribution utilizes a robust risk management
process and governance structure to focus on sustainable
RISK RISK growth and create shared value for our stakeholders.
ASSESSMENT TREATMENT
f Risk Identification f Avoid
and Prioritization f Reduce The ERM governance structure includes the following:
RISK f Control Assessment f Share ACTIONS
OWNERS f Risk Analysis f Tolerate OWNERS
and Evaluation
RISK REFRESH RISK REFRESH Clear roles and responsibilities of
AND CHANGE SCOPE, AND CHANGE various committees
MANAGEMENT CONTEXT KEY RISK MANAGEMENT
ERM AND CRITERIA
DASHBOARD INDICATORS
LINKED TO KEY
RISK RISK
MONITORING PERFORMANCE
REPORTING
INDICATORS Scope, context, and criteria to
f Reporting and f Mitigation Plan
Review Mechanism f KRIs understand relevance and impact
f Quarterly Update
RISK CHAMPIONS
Communication and consultation process

to maintain confidence and trust and to
develop a common understanding
52 53
ROLES AND RESPONSIBILITIES ERM REPORTING STRUCTURE

ERM comprises the Board of Directors, Audit Committee, Chief Executive Officer (CEO), Executive Leadership Team (ELT),
Enterprise Risk Management Team, Internal Audit function, ERM Coordinators and Integrators.
CHAIRMAN Internal Crisis Management and Strategic Business

AND BOARD Audit Business Continuity Planning
OF DIRECTORS
f Updates risk registers to Management (BCM) f Identifies any new risks
AUDIT respective Internal Audit emerging from the Business
f Conducts Business Impact
COMMITTEE
function every 3rd quarter of Analysis (BIA) exercise Plans, considering the
ADVISORY
the year and BCM cascaded Strategic
CEO
BODY: ERM Business Objectives
f Communicates key audit f Communicates any new
findings to the management ‘High’ or ‘High-Medium’ f Identifies emerging risks
rated risks identified during arising from a dynamic
f Creates an annual risk-based
the BIA exercise that has a business landscape, sectoral
CFO internal audit plan
business impact as per the advancements, and peer
f Provide high-level feedback Group benchmarking – both
ERM matrix
on the ERM process and locally and globally
ENTERPRISE RISK HEAD – AUDIT & corporate risk profile
MANAGER ASSURANCE
Risk Owner* Risk Owner* Risk Owner* Risk Owner*
Risk Risk Risk Risk

Champion Champion Champion Champion
Business Business Business Business

*Risk Owners can Line 1 Line 2 Line 3 Line 4
be identified as
Department Heads
BUSINESS FUNCTIONS
Direct Reporting
THIRD LINE OF
Governance Reporting FIRST AND SECOND LINES OF DEFENSE DEFENSE
Flow of Information
The roles and responsibilities of different business units are integrated at all operational levels to interlink the risk
assessment with the managerial decision-making process. Internal audit, crisis management, business continuity
management, and strategic business planning represent the ERM reporting structure.
54 55
CLIMATE, EMISSIONS,
AND ENERGY
Understanding ADNOC Distribution’s Environmental Impact and its Management Climate change is the most impactful challenge facing the world today. The responsibility of reversing this emerging
grim reality lies with every individual and entity. As a leading energy player in the UAE, we are committed to minimizing
Managing the environmental impact of our operations is our environmental footprint and leveraging ADNOC Distribution’s unique position to support the country’s priorities in
addressing the climate change. To mitigate any adverse environmental impacts caused by its business operations, ADNOC
integral to our sustainability strategy. The Company set Distribution continuously works to develop and maintain policies, guidelines, processes, and management systems in line
targets aligned with ADNOC Distribution’s Sustainability with leading practices, standards, and regulatory requirements.
Strategic Framework to improve the Group’s overall

ENERGY21
environmental performance. The Company has also developed
a decarbonization roadmap to reduce energy consumption, ADNOC Distribution is reinforcing The Company aligns its energy ADNOC Distribution’s leadership
its position as the UAE’s leading fuel efficiency policies, programs, looks to the following environmental
minimize emissions, and mark its contribution to solving the and convenience retail operator by initiatives, and strategic approach policies and visions as the Company
issue of climate change. developing more efficient energy to energy management with all navigates through the complexities
solutions and products, facilitating applicable national visions and of the energy landscape,
the global energy transition to cleaner strategies, including UAE Energy aligned under the following UAE
energy sources (such as electric Strategy 2050. To substantiate Government initiatives:
vehicles), and lowering organizational’s its drive to support a local
energy intensity levels. and national green economy,
Environment Vision 2030 UAE Net Zero by 2050

Consolidate and coordinate local sustainability Increase Achieve Net Zero emissions by 2050
response and promote Abu Dhabi’s natural and align to international decarbonization
heritage through enhancing resource efficiency. agendas such as the Paris Agreement.
National Climate Change Plan 2017- 2050 UAE Energy Strategy 2050
Identity, assess, and manage factors that Increase the contribution of clean energy to
cause climate change and its impacts, and plan UAE’s total energy mix from 25% to 50% by
the UAE’s successful transition to a resilient 2050 and increase the consumption efficiency
sustainability-driven economy. of individuals and corporations by 40%.
Demand Side Management and Energy Rationalization Strategy (DSM)

Reduce electricity consumption in Abu Dhabi by 22% by 2030 and reduce water consumption by
32% by 2030.
56 57
OUR ENERGY ACHIEVEMENTS22 COMMITMENT TO CLEAN ENERGY

ADNOC Distribution’s strategies, initiatives, and programs ADNOC Distribution’s direct energy and indirect energy ADNOC Distribution is exploring potential partnerships with ADNOC Group and other local entities in the UAE to support
towards enhancing its energy performance continued to (i.e., electricity consumption) have increased over four the decarbonization agenda by increasing the availability of electricity from clean energy sources. The Company also
roll out throughout 2022. years due to expanding business operations and growth collaborates with partners to develop an infrastructure for clean energy sources, such as electric vehicle charging stations.
(approximately 34% increase in service stations in the UAE
In 2022, the Company saw a reduction in the energy over 2018-2022). However, the organization’s increasing ADNOC Distribution has developed short, medium, and long-term targets to efficiently manage its energy commitments:
intensity ratio (based on Revenue). This reduction was focus on diversifying its energy mix and improvements in
mainly attributed to the increase in the Company’s revenue energy efficiency across operations and assets is expected
in 2022 due to higher crude oil prices and volumes sold. to improve its energy performance. SHORT-TERM MEDIUM-TERM LONG-TERM
This was also supported by ADNOC Distribution’s relentless

f Enhancing energy f Invest in solar power and f Accelerate the clean energy
focus on enhancing the energy efficiency of its business Energy consumption
efficiency of business clean energy solutions. transition including to electric
operations, services, and assets through innovative energy
1,411,782
operations and assets vehicle charging
solutions and by improving the energy efficiency of physical f Focus on clean fuel offerings
1,305,109
assets. These include smart metering and energy demand- f Training and awareness to (e.g. CNG) across ADNOC f Become the leading mobility
1,113,250
1,106,491
1,073,150
1,041,030
employees and customers Distribution stations service provider
1,030,641
side initiatives, training, and awareness campaigns.
865,969
862,750
820,000
Increasing the consumption of clean energy sources

(such as solar energy – refer to section ‘Clean Energy’) is a
critical pillar in the Company’s strategic energy objectives CLEAN ENERGY
to enhance ADNOC Distribution’s energy mix by including Thanks to ADNOC Distribution’s increased emphasis on using affordable clean energy sources in its business operations,
clean energy sources. the use of solar energy for electricity has increased gradually over the past four years.
Energy Intensity Ratio based on Revenue As part of its decarbonization roadmap, the Company has set several initiatives to optimize energy and increase its
operations’ share of renewable energy usage. They include solar power to reduce reliance on conventional energy sources
69 2018 2019 2020 2021 2022
62 and promote using clean energy. Such initiatives aim to achieve ADNOC Distribution’s target of reducing its emissions
48 50
44 Indirect Energy (Electricity Consumption) (GJ) intensity by 25% by 2030 and contribute to the broader local, national, and international goals, such as the UAE’s Net-zero
Total Energy Consumption with the Organisation (GJ) by 2050 strategy.
In this context, ADNOC Distribution has gradually increased its use of clean energy over the last four years through
2018 2019 2020 2021 2022
several initiatives - including installing solar PV panels at its service stations. ADNOC Distribution has also held energy
Energy Intensity Ratio(GJ/Million AED
conservation training sessions to promote energy efficiency improvements. It has also launched awareness projects and
campaigns directed at its key stakeholders, including all Company employees and customers.
ENERGY EFFICIENCY AND

CLEANER FUELS INITIATIVES
ARE THE CORE OF ADNOC
DISTRIBUTION’S STRATEGY
TO ACHIEVE A 25%
REDUCTION IN SCOPE 1 AND 2
EMISSION INTENSITY
22. 302-1 Energy consumption within the organization
302-3 Energy Intensity
58 59
Case Study/ Initiatives Case Study/ Initiatives EMISSIONS

SOLAR ENERGY CONSUMPTION LEED CERTIFIED STATIONS
In alignment with the national, regional, and international climate change plans, including the UAE’s Net-zero by 2050
In pursuit of its clean energy strategy, ADNOC In 2015, ADNOC Distribution successfully secured strategic initiative and the UAE’s National Climate Change Plan 2017–2050, ADNOC Distribution is dedicated to reducing
Distribution has increased its strategic focus the prestigious LEED Building and Construction the greenhouse gas (GHG) emissions across its business operations and services.
and investments in clean power solutions. In Certification in energy efficiency for its Yas-1 and
2022, ADNOC Distribution increased its energy Yas-2 solar power at ADNOC distribution service OUR AMBITIONS
contribution from solar energy by 16% to 2,327 GJ, stations by implementing various initiatives and
supported by higher number of solar PV panels in programs such as energy monitoring, smart Clean mobility is the focus area to tackle Scope 1
its service stations. metering, and the use of technological innovations emissions with initiatives such as introducing biofuels
and tools. Key benefits of the LEED certification in the ADNOC Distribution vehicle fleet. We will also
The Company aims to increase the share of renewable program include the following: utilize clean chemical additives across the fleet for
energy usage for its operations by installing solar PVs cleaner combustion, vehicle fleet management to
f Improved energy performance of ADNOC
across more service stations in 2023 and beyond, improve fuel efficiency, and optimizing station refilling
Distribution’s physical assets, such as
further reducing the Company’s grid electricity from the depot. Moreover, to tackle Scope 2 emissions,
buildings, plants, and service stations
energy consumption and contributing to a reduction the Company focuses on Green Building initiatives
THE COMPANY
in carbon emissions. ADNOC Distribution also aims to f Build stakeholder confidence and trust in such as installing solar panels on gas station roofs to
optimize energy by identifying Energy Conservation ADNOC Distribution’s energy objectives reduce grid electricity, identifying energy conservation
Opportunities (ECOs) at its facilities and retrofitting and performance opportunities at facilities, and retrofitting existing HAS DEVELOPED A
COMPREHENSIVE
existing building services. building services.
f Reduce energy-related costs
Solar Energy Consumption In alignment with ADNOC Distribution’s Sustainability

Strategic Framework and recommendations of its
DECARBONIZATION
ROADMAP COMMITTING
2,327
2,014 corporate-level Sustainability Committee, the Company
1,768
1,548
has planned initiatives and programs to maintain its
commitments toward a cleaner environment.
TO ACHIEVE A
25% REDUCTION
2019 2020 2021 2022
ADNOC Distribution is looking into potential partnerships
with the ADNOC Group and other government entities IN SCOPE 1 AND 2
Energy Consumption from Solar Energy (GJ)
in the UAE to build a network of hydrogen-fueling EMISSIONS INTENSITY
BY 2030 THROUGH
infrastructures and other clean energy sources, such as
solar energy.
At a customer level, ADNOC Distribution is actively

HIGHER ENERGY
pursuing and promoting the delivery of clean alternative EFFICIENCY AND
fuels, including low-carbon fuels such as CNG, across its
network of service stations and introducing 100% plant-
CLEANER FUELS
based lubricants. INITIATIVES AND
The Company is also capitalizing on energy transition DEMONSTRATING ITS
opportunities, including EV charging while remaining a COMMITMENT TOWARDS
SUSTAINABLE GROWTH.
reliable supplier of our customers’ energy needs. In this
connection, ADNOC Distribution recently, in January
2023, partnered with TAQA to work together to establish
a mobility joint venture, E2GO, to build and operate EV
infrastructure in Abu Dhabi and the wider UAE.
60 61
COMPRESSED NATURAL GAS MANAGING EMISSIONS23 (EAD) and the Abu Dhabi Distribution Company). For fugitive
We plan on establishing CNG service stations and conversion centers across the UAE. To effectively manage GHG emissions in alignment volatile organic component (VOC) emissions, ADNOC
with best practices and all relevant legal and regulatory Distribution utilizes estimation factors from Australia’s
Objective: Facilitate transformation towards clean energy sources and minimize GHG emissions.
requirements and standards, ADNOC Distribution launched National Pollutant Inventory. ADNOC Distribution does not
a series of strategic, tactical, and operational initiatives and currently monitor its Scope 3 emissions due to its current
projects in 2022. operational business model.
ZERO CARBON ELECTRICITY
We plan to increase contribution of decarbonized electricity (from the grid and/ ADNOC Distribution has developed a comprehensive GHG In 2022, the Company saw increased direct and indirect
or from its own renewable energy sources) where applicable and feasible. mitigation strategy that will serve as the basis for all its absolute GHG emissions due to its rapid business expansion.
policies, procedures, goals, and initiatives to reduce carbon The Company’s total direct emissions (Scope 1) increased
Objective: Facilitate transformation towards clean energy sources and emissions. Through innovation, the Company is tackling by 30% in 2022 compared to prior year. This was mainly
minimize GHG emissions. Scope 1 and 2 emissions by adopting a new energy mix to attributable to maintenance in one of its fuel depots and
drive growth while mitigating carbon intensity and providing temporary use an alternative depot, resulting in a longer
people with the energy they need. mileage distance. However, ADNOC Distribution continues
OPERATIONAL IMPROVEMENTS to develop and implement initiatives to reduce the emissions
We will assess and implement operational improvements in aviation fuelers if deemed feasible. Currently, the Company does not include Scope caused by its direct fuel consumption and operations.
3 emissions as part of its recently developed
Objective: Achieve carbon footprint objectives and targets, contribute to decarbonization agenda. decarbonization roadmap. However, ADNOC Distribution The Company has a set of initiatives as part of its roadmap
fully understands the importance of Scope 3 emissions to reduce direct emissions through introducing biofuels in
reduction and is working on measuring Scope 3 emissions the ADNOC distribution vehicles fleet, which is currently in a
ENVIRONMENTAL REPORTING AND MONITORING in coming years. By adopting a new energy mix, we can pilot stage, utilizing clean chemical additives to improve the
We will refresh our reporting and monitoring systems to track environmental KPIs grow our business while mitigating carbon intensity, fleet’s combustion process. Fleet management through real-
in alignment with best practices. providing people with the energy they need. time fleet activities improving fuel efficiency and optimizing
station refilling from the depot.
Objective: To support delivery of objectives as defined under sustainability The Company will work with its customers to make
strategic framework. reducing carbon intensity a shared ambition. At ADNOC Indirect emissions (Scope 2) - (representing c.80% of
Distribution, we believe that the mobility of the future does ADNOC Distribution’s total emissions from scopes 1 and 2)
not call for a single solution but an array of technologies. - increased marginally by 1% compared to 2021.
EMISSIONS BASELINE AND VERIFICATION The Company is committed to driving an implementable
We aim to carry out verification of our GHG emissions in line with leading assurance standards.
market strategy to grow our business. The Company’s
Indirect GHG Emissions (Scope 2)
Objective: Enhance confidence of GHG data and ensure targets and KPIs are SMART. current efforts address and manage its Scope 3 emissions
by introducing low-carbon products such as CNG, EV, and 129,566 130,850
ADNOC Distribution engaged with an external consultant to establish and assure the baseline of green lubricants. To build stakeholder confidence and
Company’s GHG emission roadmap (Year 2021) and the calculation methodology. establish accuracy, completeness, and reliability of Scope 110,105
1 and Scope 2 data on its operational energy consumption
and emissions, ADNOC Distribution has developed a
USE OF BIO-DIESEL verified methodology for its 2021 energy and emissions 2020 2021 2022
We will increase the use of bio-diesel, a clean fuel, in our fleet of road tankers. data through an independent external consultant. Indirect GHG Emissions (tC02e)
Objective: Reduce GHG emissions associated with transport and contribute The Company identifies, assesses, measures, and reports Direct GHG Emissions (Scope 1)
to bio-diesel uptake. its direct GHG emissions (Scope 1) and indirect GHG 27,320
emissions (Scope 2). ADNOC Distribution measures its GHG 20,388 21,060
19,257 20,045
emissions in line with leading global practices, including the
ROADMAP TO NET ZERO BY 2050 United States Environmental Protection Agency (EPA) GHG
Execute the GHG Emission Intensity Reduction Roadmap 2030 and set path to Net zero by 2050. emissions calculator and the relevant grid emission factor
for Scope 2 emissions (i.e., Environment Agency - Abu Dhabi
Objective: To mitigate the impact of Greenhouse Gas (GHG) emissions caused by our business 2018 2019 2020 2021 2022
operations and services on climate change. Direct GHG Emissions (tC02e)
305-1 Direct (Scope 1) GHG emissions
305-2 Indirect (Scope 2) GHG emissions
305-4 GHG emissions intensity
305-6 Emissions of ozone-depleting substances
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions
62 63
Despite an increase in ADNOC Distribution’s direct and It is worth highlighting that the 2022 fugitive volatile organic Case Study/ Initiatives Case Study/ Initiatives
indirect emissions in 2022 compared to 2021, its emissions component (VOC) emissions remain significantly lower
CNG SERVICE AND UTILIZATION OF GREEN CONCRETE IN
intensity ratio (based on revenues) has steadily decreased than the 2018 level. However, VOC emissions did increase
CONVERSION CENTERS THE CONSTRUCTION OF ADNOC
since 2019. This is mainly due to higher revenues. slightly in 2022 because of the resurgence of mobility
DISTRIBUTION SERVICE STATIONS
following the pandemic. In addition, ADNOC Distribution’s
VOC emissions have also steadily decreased since 2018
because of tactical and operational improvements and ADNOC Distribution has successfully utilized Green
robust emission-related corrective action mechanisms. concrete in the construction of its new service
Emissions Intensity Ratio for the organization - stations. Green concrete is a form of eco-friendly
Based on revenue Volatile Organic Compound (VOC) Emissions
concrete that is manufactured using adding
54,785,000
8.9 9.1 supplementary cementitious materials (SCMs) that
8.1
7.2
are more friendly for the environment, and requires
4.9
less energy for production. Compared to traditional
concrete, Green concrete produces less carbon
15,098,142
15,012,586
15,456,430
13,670,000
dioxide and is considered to be more durable. The
2018 2019 2020 2021 2022
aim of using green concrete is to lessen the burden
Emissions Intensity Ratio for the Organization (tCO2e/Million AED)
on natural resources while increase reliance on
recyclable materials.
ADNOC Distribution’s robust energy management system,
2018 2019 2020 2021 2022
global best practice alignment, and compliance with Although utilizing Green concrete in construction
Volatile Organic Compound (VOC) Emissions (Kg)
applicable environmental regulations have allowed it to was not mandatory for ADNOC Distribution service
continually manage its nitrogen oxide (NOx) and sulfur oxide stations in most of UAE regions, ADNOC Distribution
(SOx) emissions. In 2022, NOx and SOx emissions slightly ADNOC Distribution aggressively refrains from using chose to adopt such environmentally responsible
increased compared to 2021 due to business expansion. any chlorofluorocarbons (CFCs) or other compounds initiative in line with the Company’s strategic plan to
that deplete the ozone layer (ODSs). One of ADNOC ADNOC Distribution believes that charging stations decarbonize its assets and operations. The Green
NOx and SOX Emissions Distribution’s recent projects and activities was the for electric vehicles and natural gas for vehicles concrete was used in ADNOC Distribution’s recent
tendering of a significant project that involved installing (NGV) will be crucial in transforming the UAE’s construction projects in Dubai, such as the new
188,180
rooftop solar panels. transportation industry to Net zero emissions by flagship station (station# 222) and Al Nahda-1 Service
173,340
2050. NGV uses compressed natural gas (CNG) as an stations, as well as in several other service stations
336,220
GHG Emissions reduced as a result of

309,110
alternative fuel for transportation and may be used in which are under construction in Abu Dhabi and
solar/renewable energy
both passenger cars and commercial vehicles. It is a Northern emirates.
373
safe, affordable, and practical alternative fuel.
312,000
294,000
291
281,000
252
ADNOC Distribution offers CNG conversion of

174,000
164,360
157,500
vehicles, performed by qualified professionals in

alignment with leading European specifications and
2020 2021 2022 international standards to encourage the adoption
GHG Emissions reduced as a result of solar/ renewable energy (tonnes CO2e) of clean fuels in the UAE. ADNOC Distribution has
invested in maintaining advanced capabilities to offer
2018 2019 2020 2021 2022
The Photovoltaic (PV) panels on rooftops of our five service alternative low-emissions natural gas for vehicles.
NOX Emissions (Kg) SOX Emissions (Kg)
stations caused total GHG emissions reductions of 291
tons of CO2e in 2022. The Company operates 31 service stations with
CNG fueling capacity and continues growing its CNG
As part of the Company’s decarbonization roadmap offering across its network. Between 2018 and 2022,
initiatives, we are working on installing more solar panels the Company allowed for the cumulative reduction
on ADNOC Distribution’s stations in 2023 and beyond to of approximately 131 tons of CO2 emissions by
increase power sourced by clean energy and contribute to providing CNG fuels to vehicles.
the reduction of emissions.
64 65
Case Study/ Initiatives REDUCING EMISSIONS THROUGH CLEAN MOBILITY

DEVELOPMENT OF CARBON-NEUTRAL PLANT-BASED LUBRICANTS Case Study/ Initiatives Case Study/ Initiatives
IVMS: INFORMATION VEHICLE APPLICATION OF ADBLUE

MANAGEMENT SYSTEM: DRIVERS’ IN ADNOC DISTRIBUTION VEHICLES
BEHAVIOR MONITORING
Live and offline monitoring of drivers’ behaviors

during driving is captured 24x7 and analyzed daily,
weekly, and monthly.
Out of these various parameters, Harsh braking

(HB) and Harsh acceleration (HA) are the ones that
contribute to excessive emissions.
Through effective monitoring and regular coaching,

an overall reduction of 14% in HA and HB violations
ADNOC DISTRIBUTION HAS BEEN ABLE TO DEMONSTRATE ITS was achieved in 2022 compared to 2021 for ADNOC
ALIGNMENT WITH THE GLOBAL DIRECTION OF ENVIRONMENT- Distribution owned Heavy Duty Vehicles.
FRIENDLY OPERATION, AS WELL AS WITH UAE NET ZERO 2050
OBJECTIVE. The same strict monitoring for Contracted
Heavy Duty Vehicles began in November 2022
In line with UAE Net zero 2050 Distribution’s overall strategy to As the global direction moves and onwards to further cascade the positive
Objective, this engine oil is branded continue expanding its sustainable to more sustainable operations, environmental impacts.
as ADNOC VOYAGER, having 100% and environmentally friendly carbon-neutral products is the key
carbon-neutral plant-based engine product range, supporting reduced area where most industry trends
oil. It was exhibited at the Abu Dhabi carbon footprint and conforming converge. This market dynamic is AdBlue is a consumable for diesel-engine vehicles
Sustainability Event on 17th – 19th to the highest levels of quality one of the main drivers that has worldwide and is injected into the SCR catalyst to
January 2022. During the event, it and efficiency in alignment with enabled the Lubricants Division to break down soot and unburnt fuel into water and
was presented to international standards. One of the take on this challenge. nitrogen. Both elements are harmless once they exit
H.E. Dr. Sultan Al Jaber, Minister of main objectives set for this effort is the exhaust system of the vehicles. This way, the
Industry and Advanced Technology, to continuously develop products emissions are controlled.
Managing Director & Group CEO that have the least possible THIS INITIATIVE
of ADNOC, who showed support environmental impact while meeting WHICH AIMS TO For ADNOC Distribution 26 Supply Chain Main
for the initiative. Furthermore, it industry and application standards. HELP REDUCE Fuel transportation Heavy Duty vehicles, ADBlue
was also introduced during the The product was developed to is regularly added, contributing to reduced
International Petroleum Technology qualify API and OEM specifications
EMISSIONS, IS hazardous emissions.
Conference (IPTC) held on 21–23 for engine oil applications. Though ALSO ALIGNED
February 2022 in Riyadh, Kingdom there were some technical WITH UAE Furthermore, as part of the periodic replacement of
of Saudi Arabia. roadblocks since the properties and
NET-ZERO 2050 the older fleet, in the next four years, all the remaining
characteristics of these plant-based older ADNOC fleet will be replaced and converted to
Voyager PX Green is developed materials significantly differ from
AMBITION. use Ad Blue for their exhaust system.
for petrol engines and Voyager conventional crude-sourced ones,
DX Green for diesel engines. the Lubricants Division leveraged its Efforts are being made to implement the same for all
They contain zero sulfur and can in-house research team expertise contracted vehicles working for ADNOC Distribution
be immediately applied without and production facilities to attain through effective contract management.
any pre-modifications. The new success in this innovation.
products are part of ADNOC
66 67
CLIMATE AND MITIGATING CLIMATE RISKS24

AMOUNT INVESTED (AED)
ADNOC Distribution takes into consideration the threats that climate change brings to its business when establishing its
2018 2019 2020 2021 2022
strategic goals and mitigation measures. The Company actively assesses the risks associated with climate change by
identifying various scenarios and defining mitigation strategies. These are designed to take advantage of opportunities
inherent in transitioning to a low-carbon energy future and increase business resilience. They also aim to invest in R&D ENVIRONMENTAL
projects to help identify more environmentally friendly fuel sources and promote decarbonization strategies. ASSESSMENT AND
AUDIT COST
By investing in future mobility trends, including installing EV chargers at its stations, expanding the CNG fueling network, ADNOC Distribution has
piloting hydrogen fueling stations, and developing a portfolio of green fuels, the Company is dedicated to supporting the applied its risk principles to 1,714,783 2,123,572 910,303 385,800 128,060
energy transition and mitigating the climate risk. understand the human and
ecosystem health impacts
of the Company’s business
The Company invests in low-emission energy sources to cut carbon emissions from its operations, such as converting operations through its
its fleet of vehicles to CNG or EVs and installing solar panels on its stations. In 2022, ADNOC Distribution spent AED 11.3 HSEIA system.
million on projects involving environmental management, risk mitigation, and infrastructure improvements.
WASTEWATER
MANAGEMENT
Contractors have been

instrumental in developing
704,533 704,533 704,533 3,000,000 3,000,000
solutions and procedures
for our wastewater
management, meeting
all legal obligations and
industry best practices.
WASTE MANAGEMENT
Expenditure to support HSE

obligations and compliance 2,911,710 2,394,000 4,357,574 4,622,199 4,622,199
regulations governing the
treatment of hazardous and
non-hazardous waste
VAPOUR RECOVERY
Investment in 4,500,000 8,000,000 2,300,000 1,400,000 3,500,000

vapor recovery
related installations.
68 69
ADNOC DISTRIBUTION’S SUSTAINABILITY JOURNEY TO NET ZERO GHG EMISSION INTENSITY REDUCTION ROADMAP
Key milestones and announcements
ADNOC DISTRIBUTION’S COMPREHENSIVE ADNOC DISTRIBUTION SCOPE 1

SUSTAINABILITY GOALS CONTRIBUTE TO TO ACHIEVE A 25% Clean Mobility
THE UAE'S STRATEGIC VISION AND ADNOC REDUCTION IN SCOPE BIOFUEL

GROUP'S LONG-STANDING COMMITMENT TO 1 AND 2 EMISSIONS Introduce biofuels in ADNOC Distribution in
ENVIRONMENTAL AND SOCIAL STEWARDSHIP. INTENSITY (PER SITE) vehicles fleet.
FROM THE BASELINE

YEAR 2021 THROUGH
FUEL ADDITIVES
January 2023 2023 - 2024 2023 - 2030 2030 Utilize clean chemical additives to ADNOC
ADNOC Distribution Develop other Execution of the Set path to Net zero ENERGY EFFICIENCY Distribution’s fleet fuel to improve the
unveiled its
decarbonization
environmental, social
and governance
Decarbonization
Roadmap
by 2050.
AND CLEANER FUELS combustion process.
roadmap and announced initiatives to prioneer (GHG emissions INITIATIVES VEHICLE FLEET MANAGEMENT
the Sustainability Linked ESG + Scope 3 reduction initiatives).
Loan (SLL). assessment. A system providing real-time fleet activities
(vehicle monitoring, route optimizations) to
improve fuel efficiency and optimize station
refilling from the depot.
SCOPE 2
Green Building
PV SOLAR
Solar panels are installed on roofs of service
stations to reduce electricity consumption
from the grid.
ENERGY INTENSITY OPTIMIZATION

Identify Energy Conservation Opportunities
(ECOs) at the Company’s facilities and retrofit
existing building services to reduce the overall
energy consumption of ADNOC Distribution
facilities. And for future developments to
optimize energy use through energy-efficient
systems and optimized building designs.
70 71
ADNOC DISTRIBUTION’S ADNOC DISTRIBUTION IS THE FIRST

SUSTAINABILITY STRATEGY UAE FUEL RETAILER TO TAP INTO
IS ALIGNED WITH A SUSTAINABILITY-LINKED LOAN.
ACCELERATE 100X
ADNOC Distribution obtained positive Second Party Opinion regarding its commitments toward Sustainability Targets
In alignment with ADNOC Group, ADNOC Distribution is adopting a 100X mindset that empowers its employees to and successfully converted its five-year term loan of $1.5 billion into a Sustainability-Linked Loan (SLL). The Company’s
embrace disruptive thinking, maximize growth, and future proof its business during the energy transition. “ Accelerate targets qualified as ambitious, and ADNOC Distribution aims to achieve this through the following KPIs:
100X ” is the next phase of ADNOC’s transformation as a reliable and sustainable energy leader in an evolving global
energy landscape. At ADNOC Distribution, we will accelerate the ideas and solutions for a low-carbon energy system, and
drive decarbonization across our portfolio. This will see us continue to build on a proud legacy of driving economic growth KPI 1 KPI 2
and prosperity for our nation in the decades to come.
GHG emission intensity Renewable energy
Transforming ADNOC Distribution towards a common sustainable future creates Higher Shareholder Value reduction per site sources for own consumption
(Scope 1 and 2 “Tones CO2e” / )MWh consumption per year(
Number of sites)
f Accelerate network f Drive decarbonization f Become a leader in f Implement digitized

growth and ADNOC of our assets EV mobility in UAE operating models.
Distribution business,
f Reduce our carbon f Pioneer hydrogen and f Drive data-enabled
both domestic and
emissions intensity by promote low carbon value creation
international, to
25% by 2030 fuels such as CNG and monetization
generate higher profits
and bio-diesel
f Champion f Provide superior
sustainability with a f Expand sustainable customer experience
low carbon footprint finished lubricants and position ADNOC
through the robust such as ADNOC Distribution as
execution of our Distribution a destination of
ESG strategy Green lubricant choice in the fuel
and convenience
retail industry
72 73
LOCAL
ENVIRONMENT
WATER25 at several service stations, which Water Discharged into WASTE27
can be reused for subsequent car Municipality Sewage
Water consumption at ADNOC wash operations. 1,755,852
Distribution is limited to 2,032,157
1,288,943
consumption in the Company’s The Company periodically monitors
offices, service stations, terminals, and verifies the performance of Improve its waste performance Conserve natural resources to
car wash facilities, and vehicle these on-site water recycling across all service stations, minimize waste generation.
inspection centers. facilities during HSEMS audits. terminals, and other assets.
Discharged water that complies

Water Consumption (m3)
with established domestic 2020 2021 2022 ADNOC Distribution follows the waste
2,032,157
sewage parameters is handled by Water Discharged into Municipality Sewage (m )
3 management guidelines created and
1,755,852 Adopting initiatives such as Comply with legal requirements and
verified and approved third-party 1,288,943 included in the HSE Management
recycling to minimize the amount adopt global best practices to dispose
contractors in municipal sewage System of ADNOC Group. It also
of waste sent to landfills. any generated hazardous waste safely.
treatment facilities. Discharged The amount of water that complies with all necessary legal
water exceeding these parameters ADNOC Distribution recycles has standards for waste management.
(including cylinder wash water continuously increased, primarily The Company follows the
2020 2021 2022
from the Company’s LPG plants because of its on-site vehicle Operations, Activities, Services where Waste is Generated requirements of several regulatory
Water Consumption (m3)
is managed as hazardous effluent wash recycling facilities. To fulfill authorities, including the Abu Dhabi
and safely transported to a third- its commitments and local as well Waste Management Center (Tadweer)
party licensed treatment facility for In 2022, ADNOC Distribution’s water as national targets, the Company and Dubai Municipality. Third-party
appropriate water treatment. consumption increased by 16% continues to aim to recycle more Environmental Services Providers,
Supply Chain Activities
compared to 2021 due to continued water. ADNOC Distribution recycled approved by Tadweer, transport all
including Logistics, Fuel Station Convenience
The Company is dedicated to expansion in its network and a higher 231,359 m3 of water in 202226. It will waste quantities and are obliged
Storage and Supply of Network Operations Stores
protecting natural resources and number of car wash transactions continue to improve the performance to comply with applicable legal
Fuel Products
refrains from dumping effluents into compared to the prior year, which of its water and effluents in the requirements in Abu Dhabi.
water bodies. Our HSE guidelines was impacted by COVID-19 years to come by looking into future
offer a foundation for keeping our restrictions. During HSEMS audits, improvement opportunities. ADNOC Distribution hired a third-
sewage discharges within regulatory the Company routinely checks and party service provider to conduct
and legal limits. The HSE Impact verifies the effectiveness of on-site its environmental assessments
Assessment (HSEIA) investigations water recycling facilities. and determine the waste produced
are the reference for identifying Car Wash and Lube Vehicle LPG Bottling Plant by its customers to assess the
the environmental effects of water Water consumption data for Change Centers Inspection Centers and Distribution environmental impact resulting
use and recommending appropriate historical years, 2020 and 2021, from waste generated. ADNOC
restrictions to prevent any have been reinstated as a result of Distribution is registered with
permanent effects. improved monitoring mechanisms Tadweer’s BOLISATY system,
which include portable water. where all waste and related data is
To reduce the consumption of water tracked from source to destination
resources, the Company works on Water used by ADNOC Distribution (place of disposal). Moreover,
optimizing its water use through is primarily for domestic purposes, Head Office Fueling and the Company keeps track of the
Lube
several initiatives in alignment with with a significant portion directed and Branch Refueling Services compliance levels of its contractors
Blending Plant
its Health, Safety, and Environment towards municipal sewage systems. Office Operations at Airports by conducting audits and monitoring
Management System (HSEMS). A through Tadweer’s BOLISATY
key initiative was the introduction of monitoring portal.
on-site recycling of car wash water

303-1 Interactions with water as a shared resource
303-2 Management of water discharge related impacts
303-4 Water Discharge
303-5 Water Consumption
26. Figure based on revised methodology recommended by independent consultant as part of our environmental data baseline establishment project for 2021. 27. 3-3 Management of material topics
Revised methodology is based on total number of cars washed during the year multiplied by an average volume of water used to wash each car. Out of the 306-1: Waste generation and significant waste-related impacts
total water consumed in car wash operations, 80%-90% is recycled. 306-2: Management of significant waste related impacts
74 75
SOLID WASTE GENERATED28 ADNOC Distribution prides itself on its commitment to

“Reduce, Reuse, and Recycle” is the hierarchy followed Expired Chemicals (Tons) actively improving the environment. Recognized as a
by ADNOC Distribution for waste disposal. The waste 135
Company dedicated to protecting and maintaining the
generated in 2022 increased compared to 2021 due to environment would significantly enhance its already
business expansion and increase in business activities by esteemed reputation.
the tenants at our service stations and depots.
The business keeps track of its inventory levels and 21 18

10 10
disposes of solid waste and expired chemicals, including
firefighting foam, through external third-party contractors 2018 2019 2020 2021 2022
who adhere to all relevant legal waste disposal regulations.
Additionally, the business periodically analyses a list of
chosen contractors to ensure compliance. Hazardous solid
waste is delivered to Central Environmental Protection Paper and Cardboard (Tons)
Facility BeAAT's treatment facility, while non-hazardous
1.6
domestic waste is disposed of in landfills.
1.0
In addition to recycling used lube oils, the Company also 0.79
recycles solid waste, including paper and tyres through
0.4
third party.
-
2018 2019 2020 2021 2022
Non-Hazardous Domestic Type Waste (Tons)
12,674
11,955
10,955
10,440
9,488
2018 2019 2020 2021 2022
Waste Lube Oil (Tons)
1,506 1,537
1,100
737
2019 2020 2021 2022
28. 306-3: Waste generated
76 77
Case Study/ Initiatives Case Study/ Initiatives BIODIVERSITY29

SAVE A TREE – OPTIMIZATION OF WATER
A PAPER RECYCLING PROGRAM PLASTIC BOTTLES
ADNOC Distribution began the ‘Save a Tree’ This project aims to eliminate the one-time use of
paper recycling program in 2017, which resulted plastic water bottles supplied to all offices in ADNOC
in recycling approximately half of the Company’s Distribution by deploying water coolers in all our sites
paper consumption. The workflow of all incident and providing employees with reusable water bottles.
reports, HSE Observations, or memos which used to
be manually disseminated using papers, was made
paperless by adopting digital technologies. Recycling
stations are established at its head office and many Case Study/ Initiatives
ADNOC Distribution stations, allowing customers and PLASTIC AND SINGLE-USE
colleagues to dispose of their waste responsibly. PLASTIC BAN
ADNOC Distribution is 100% compliant with the
Case Study/ Initiatives Abu Dhabi Single Use Plastic Policy. Alternatives
being provided at ADNOC Distribution’s service
PROJECT CONSTRUCTION IN stations to its customers, including reusable plastic
PAPERLESS ENVIRONMENT bags of a certain thickness at a nominal charge of
Digital platforms for document exchange (ACONEX AED 0.50 to discourage the usage of plastic bags and
and BIM360) between ADNOC Distribution project encourage eco-friendly alternatives.
teams and third parties to massively reduce
paper consumption.
OPERATIONAL SITES OWNED, LEASED OR

MANAGED BY ADNOC DISTRIBUTION DO NOT
OVERLAP WITH PROTECTED AREAS OR AREAS OF
HIGH BIODIVERSITY IN THE REGION
Health, Safety, and Environmental consideration a risk-based approach. (ENVID) studies for critical projects.
(HSE) standards have been It requires objective, site-specific Moreover, the business regularly
established, to cover the scope monitoring, sampling, testing, and examines these reports to ensure
of Biodiversity and guide suitable scientific analysis throughout the its commitment to safeguarding
methods and approaches for life cycle of the projects. To ensure biodiversity. According to the most
environmental assessments. The that the proposed and continuing recent HSEIA investigations, no
Standard guidelines have been operations do not change the adverse effects on biodiversity have
developed considering international biodiversity profile of the surrounding been identified. ADNOC Distribution
best practices and the latest environment, including any potential abides by the regulations set forth
legislative framework for biodiversity impacts on endangered species, by the Environment Agency of
or environmental assessment the Company undertakes Health, Abu Dhabi (EAD) in the Emirate of
and survey methods. Particularly Safety, and Environmental Impact Abu Dhabi to ensure that none of
for the survey component, the Assessment (HSEIA) studies and the Company’s proposed operations
framework provided taking into Environmental Impact Identification harm biodiversity.

304-1: Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
78 79
ENVIRONMENTAL POLICY, MANAGEMENT SYSTEMS, Case Study/ Initiatives

AND COMPLIANCE ISO 45001 ISO 14001 ADNOC DISTRIBUTION BECOMES THE FIRST
f ADNOC Distribution f The Company FUEL RETAILER IN UAE TO COMPLY WITH UAE
The business operations and services of ADNOC Distribution are governed by a commitment to environmental
Health and Safety maintains an effective NEW GASOLINE STANDARD (UAE.S 5018: 2021)
stewardship aimed at safeguarding and preserving the local environment and managing any potential environmental
systems are in line environmental - EURO 5/6 EMISSION STANDARD
impacts resulting from the Company’s operations and activities.
with ISO 45001 and management system The Ministry of Industry and Advanced Technology
strives to improve in compliance and (MoIAT) released the new UAE Standards for Gasoline
The Company develops and maintains robust and leading environmental policies, processes, and management systems
employee safety, alignment with in 2022 with an initial implementation date of
to ensure the following:
reduce workplace risks ISO 14001 March 2022. However, based on the feedback and
and create better, safer requests from the National Oil Companies, MoIAT
Complies Manage working conditions for decided to postpone the implementation of the
Monitor, assess
with the standards by and mitigate all of its employees Gasoline Standard until November 2022.
and evaluate the
environmental effects regulatory bodies, such any negative
of its operations across as the Environment environmental Based on these updates, ADNOC Distribution and
Agency of Abu Dhabi impacts caused American Petroleum ADNOC Refining worked to implement the new
waste, water, and Energy Management
biodiversity and the Ministry of by its activities Institute (API) Gasoline Standard. ADNOC Distribution became
Climate Change and and operations
Systems
management Certification ready and started supplying ULG-91, ULG-95, and
Environment f An Energy Management
f ADNOC Distribution ULG-98, meeting the new UAE Gasoline Standard
System is maintained by
has been a member (UAE.S 5018: 2021) from June/July 2022, even before
ADNOC Distribution
of the American the deadline, as the first Company to comply with the
to ensure optimization
Petroleum Institute, new standard in UAE.
ENVIRONMENTAL COMPLIANCE of energy consumption
and has obtained
ADNOC Distribution makes sure that alignment with leading international ADNOC Group’s HSE Standards are in line with these Below are the main changes implemented in the new
an API lubricants
all of its business operations and standards and global best practices aligned with all applicable legal and requirements Gasoline Standard:
certification
activities comply with all applicable to ensure it doesn’t exceed regulatory requirements, and the
f Energy performance of since 1993 Old New
legal and regulatory standards regulatory limits. Company adopts global HSE best
the Company is managed Parameter Standard Standard
established by authorities in the practices. f ADNOC Distribution Sulfur content (ppm) 50 10
through a robust and
jurisdictions in which it operates. The Company periodically reviews adopted the API’s Aromatic content (%V) 40 35
periodic audit process,
For all physical projects, it conducts HSE Impact Assessment studies to ADNOC Distribution ensures environmental Benzene content (%V) 1.5 1
and annual external
Health, Safety, and Environmental assess the efficacy of any suggested that it manages and enhances its requirements to align Manganese content (ppm) 5 2
third-party verification.
Impact Assessment (HSEIA) control measures. Roles and duties environmental performance. It its environmental
ADNOC Distribution
studies and Environmental Impact for managing environmental issues continually complies with all applicable safety performance The new UAE standard and ADNOC Distribution
encourages continual
Identification (ENVID) assessments are established inside the Company. legal and other requirements by with API’s best gasoline are aligned with the most up-to-date
improvement in its
to identify potential environmental Environmental problems are generally developing various systems and practice frameworks requirements of the European Gasoline Standard,
energy performance by
impacts and predict how they might addressed by the HSE Department processes in line with leading which meets the conditions set out in the Euro 5/6
aligning it physical assets
impact the environment. Then, it takes throughout all business assets standards and frameworks in pursuit Emission Standards.
in line with international
the necessary control measures to and operations. of environmental leadership.
best practices The new ADNOC Distribution Gasoline will have the
manage those potential impacts in
and standards following benefits:
1. Reduce the emissions from vehicles equipped
with exhaust emission control systems.
2. Protect the Exhaust Emission Control System.
3. Reduce Engine deposits, wear, particle formation,
and tailpipe emissions, including HC, CO₂, NOx,
and pre-ignition risk.
4. Improve the Fuel Economy.
5. Reduce the toxic benzene emissions (a
human carcinogen) from vehicle exhaust and
during refueling.
80 81
WORKFORCE DIVERSITY
& DEVELOPMENT
EMPLOYMENT30 2020 2021 2022
Parental Leave F M F M F M
ADNOC Distribution aims to continue EMPLOYEE TURNOVER31 Employee Allowances
Entitled to parental leave 930 10,533 1,239 12,563 1,295 13,027
its transformation journey and ADNOC Distribution requires f General Allowance
become an employer of choice in the employees who wish to leave the Took parental leave 82 149 75 155 81 202
f Social Allowance
United Arab Emirates. Company to serve a notice period. Returned to work after parental leave 82 149 75 155 79 202
They will receive a notification letter f Statutory Children’s Allowance
Returned to work after parental leave
At ADNOC Distribution, we understand from our Human Capital Department 82 149 66 146 72 198
f Furniture Allowance and still employed after 12 months
the critical role that our organization containing the notice period duration
plays in promoting sustainable according to their grade category. f Remote Area Allowance
development and contributing to a Employees are well-informed of policy f Shift allowance
better future for all. Our employment changes with clear communication
policies and practices are aligned for notification and acknowledgment. f Site Transportation Allowance
with this vision and are designed Our Human Capital team works f Telephone Allowance
to promote diversity, equity, and with the Communication and Line
f Duty Travel Allowance
inclusiveness in the workplace. Management teams to ensure a
proper management communication f Duty Transportation Allowance
We have implemented various plan is well-implemented within our
f Meal Allowance
initiatives to support our employees’ business.
well-being, including flexible work f Supplemental Allowance
arrangements, health and wellness EMPLOYEE BENEFITS32 Other Benefits
programs, and opportunities for We believe employee benefits are
f Professional Membership
professional development. Our essential to developing a motivated
benefits package is designed workforce. Benefits will also help us f Long Service Awards
to provide our employees with hire the most talented employees and f Statutory Pension Scheme
comprehensive support, including retain those we consider assets to our
health insurance, retirement plans, Company. Employees benefit from f Farewell Gifts
and paid time off. the ADNOC Distribution employee f Non-UAE National End-of-Service
recognition award program and a Benefits
We are committed to ensuring that comprehensive range of benefits and
f Parental Leave
our employees are treated fairly and allowances for full-time employees,
respectfully. We have implemented such as life insurance, health care,
policies and procedures to prevent disability and invalidity coverage, The Company develops programs
discrimination, harassment, and parental leave, retirement provisions and policies that support a
retaliation in the workplace. Our and others. gender-sensitive and flexible work
employment practices comply with environment. In 2022, 283 employees
Full-Time Employee Benefits
all applicable laws and regulations, took parental leave in line with all
Loans/Financial Assistance
and we regularly monitor and assess applicable legal and regulatory
f Personal loan
our progress in these areas. In requirements, and 281 employees
addition, we actively engage with our f Educational assistance who did so subsequently returned
employees and solicit their feedback to to the workplace. The organization
f Car Purchase Loan
continuously improve our employment continues to track the effectiveness
policies and practices. We believe that Medical Benefits of its employees’ policies and
our employees are our most valuable f Medical Health/Life and flexibility arrangements.
asset and are committed to creating Accident Insurance
a safe, supportive, and inclusive
workplace for all.

31. 402-1 Minimum notice period
32. 401-2 Benefits to employees
82 83
DIVERSITY AND EQUAL OPPORTUNITY EMPLOYEE DIVERSITY AND EQUAL OPPORTUNITY34 35

We strive to provide equal opportunity Furthermore, ADNOC Distribution employed across different operations.
NATIONALIZATION33 Number of Employed Emirati Women to current and potential employees regularly conducts periodic monitoring This brings worldwide exposure to our
64%
ADNOC Distribution continues to 412 regardless of age, gender, nationality, of employee diversity. In 2022, our business, as we boost our local and
provide opportunities for UAE’s and background. workforce included employees from international brand in the market.
404
National talents and further develop 402 402 a total of 71 different nationalities
their skills and capabilities through EMIRATIZATION RATE To strengthen this area, we released a
Diversity of workforce - ADNOC Distribution Total Workforce
employment, competency training, 388
new Gender Diversity Policy to further Number of Nationalities
13,122
and professional development and offer its Fresh Graduate Program for enhance our drive to be an equal
enrichment. We always aim to invest in UAE national employees in 2022 – a opportunities employer and improve 71 11,690 11,413
11,929
68 11,183
the UAE’s best talents. These have the program we first launched to support transparency. 63 62
potential to serve as our best assets local talents in 2021. 2018 2019 2020 2021 2022
in achieving our overall goals and This new policy will serve as our guide
improving our business operations In 2022, we successfully identified and on thinking and decision-making
2019 2020 2021 2022 2018 2019 2020 2021 2022
and activities to ensure business enrolled over 42 up-and-coming fresh that considers gender diversity.
Number of Nationalities Number of Employees including Permanent
continuity and resilience. graduate talents who recently joined and Temporary
ADNOC Distribution.
For 2022, we have employed 1,849
UAE Nationals across our business, CLOSING THE GAP36
incurring a 64% Emiratization rate The Company has taken bold steps to CEO Total Compensation to Median male compensation
across our corporate functions. The pay employees based on their skill set median Full Time Equivalent (FTE) to median female compensation
total compensation
rate has decreased over the years, rather than their gender and to provide
but the organization is working to equal opportunities to all employees. 2018
implement our 10-year business plan 6.98:1 1.00:1
on recruitment to mitigate the attrition We have also attempted to narrow the 2019
rate of our Emiratis employees. pay gap between top management 8.25:1 1.01:1
and other employees. 2020
ADNOC Distribution launched several 7.47:1 1.04: 1
initiatives that focus on attracting and In 2022, we saw a change in the 2021
10.6:1 0.93: 1
retaining UAE nationals. As of this year, gender and CEO pay ratios.
all service station managers are UAE 2022
9.65:1 0.96: 1
nationals. The ‘Tomooh’ Leadership
Training Program is intended to help
local talents develop into service
leaders. Cohort 3 of this program saw LABOR MANAGEMENT RELATIONS37
53 new enrolments in 2022, with 40
completing the program. Employee Engagement local, national, and international and initiatives toward improving
The Company consistently adheres laws and regulations. The Human labor-management performance
Since the launch of the Tomooh to labor-management relations, Capital (HC) services work annually for 2023. We plan to enhance
program, more than 350 high-potential which benefit our people. We aspire to develop employee engagement communications of HC initiatives and
UAE Nationals have participated in to positively impact our employees studies to recognize our employee’s policies to ensure awareness among
this program, contributing to the with our practices to ensure their insights towards the Company, our employees. We also work to
Company’s target of achieving 100% engagement, Company perspective, their engagement level, and how improve our employee engagement
Emiratization among leaders of and the environment wherein they the Company can improve as an initiatives for our people by applying
ADNOC Distribution’s service stations live and operate. Along with pursuing employer. HC services excellence, HC
in the UAE. the best practices across our human customer satisfaction, and enhanced
capital services, we also ensure ADNOC Distribution looks forward employee engagement.
In addition, the Company continued to that we operate within all significant to anticipated events, commitments,
33. 3-3 Management of material topics 34. 3-3 Management of material topics 36. 2-21 Annual total compensation ratio
405-1 Diversity of governance bodies and 35. GRI 2: Total number of permanent and temporary employees 37. 3-3 Management of material topics
employees
84 85
EMPLOYEE ENGAGEMENT PROGRAM ADNOC

At ADNOC Distribution, the Employee engagement
program aims to improve involvement, commitment, DISTRIBUTION
and employee belongingness to the organization. This INVESTS IN ITS
EMPLOYEES’
includes a set of efforts such as one-on-one meetings with
managers, opportunities for skill development and career
progression, a supportive work environment, recognition
and rewards, and open communication channels for
PROFESSIONAL
EMPLOYEE ENGAGEMENT SURVEY feedback and suggestions. DEVELOPMENT TRAINING AND EDUCATION38
ADNOC Distribution adequately addresses
labor-management relations and their related impacts. Our employee engagement programs aim to create a
BY PROVIDING The Company believes training they are equipped with the required
We always rely on our required actions on the annual workplace where employees feel valued, motivated, and MANY and development are essential skills and capabilities. Hence, we
employee engagement survey, which determines the
areas we are doing well and the areas we need to improve.
fulfilled, leading to higher productivity. Our employee
engagement programs include annual surveys, action LEARNING AND aspects of an organization’s growth
and success. Its processes help
have enabled them to achieve
individual development goals by
In 2022, the survey focused on the following: plans, and implementations. Furthermore, we have DEVELOPMENT employees to perform their job utilizing the SAP Success Factors
PROGRAMS AND
empowered various committees and engagement functions more effectively and Personal Development Program
1 champions under the employee engagement committee to efficiently, improving job satisfaction (PDP) system to address evolving
Engagement Drivers
the work experience
plan and execute employee wellbeing programs.
OPPORTUNITIES. and helping employees to acquire new
skills, knowledge, and competencies
learning needs.
2 Engagement Outcomes
Ongoing opportunities for teamwork and collaboration,
as well as regular check-ins and performance reviews, are
necessary for personal and
professional growth.
We will continue to ensure that
our staff members have sufficient
Say, Stay, and Strive) in place, fostering a sense of community and providing opportunities to participate in
3
employees with a clear understanding of their role within Regular and consistent training and education and development programs
Business Outcomes the organization. It creates a positive and productive work development programs can help and the resources they need to do
(Talent, Operational, environment. Furthermore, the Employee Engagement organizations attract and retain top so successfully.
Customer, and Financial) Program makes us a great place to work and stay with talent and create a positive work
per the engagement model the brand. environment. At ADNOC Distribution, The procedures for learning and
we provide training and development development include identifying
The Company tracks a three-step engagement cycle: ADNOC Distribution’s ‘Ask HC’ portal was launched to opportunities to our employees the learning needs, designing and
Pre-Survey Preparation, Launching, and Post survey address employee issues, provide services to Company through in-house programs, developing training programs,
(review and action plan) for 2022. This system guides employees, and resolve any inquiries raised. Through workshops, conferences, online and implementing and evaluating
the organization to recognize employees’ perception of the Virtual Majlis, the Human Capital Group engages with courses, and mentoring programs. training effectiveness.
the Company and how it, as an employer, can improve its Company employees regularly to update the Company’s These programs range from basic
position and reputation. latest policies. job-related training to more advanced ADNOC Distribution has provided
management and leadership its employees with practical courses
LABOR CAMPS development programs. Practical over the past few years as part of
Case Study/ Initiatives As part of its commitment to promoting a safe and healthy training and development programs the Company’s dedication to their
work environment, ADNOC Distribution offers an optional also help employees align their continued professional growth and
The employee engagement program is one of the accommodation to its employees that adheres to 100% personal goals with the organization’s development. Their interpersonal
most significant projects undertaken in 2022 to Health, Safety, and Environment (HSE) practices and mission and goals. skills will be further developed,
improve our labor management performance, by guidelines. The Company’s accommodation facilities are and they will be prepared for
reviewing and refreshing our HC policies along fully air-conditioned and equipped with necessities to Our employees must receive leadership positions.
with relevant policies. Also, with the support ensure the well-being of its employees during their stay. learning and development to ensure
of consultancy, we managed to organize a Additionally, by adhering to HSE practices and guidelines,
comprehensive review and benchmarking study of the Company is also mitigating potential risks related to Average Hours of Training Provided to Employees (by Gender)
our policies and developed a set of refined policies employee health and safety.
140 151
to support domestic and international growth. With 131 134 140
this, we are ensuring a fit-for-purpose policies for ADNOC Distribution recognizes the importance of 111 115
106
employee benefits and allowances. providing a safe and secure accommodation for its 96 98 93 93
employees, especially those who work in remote locations
Additionally, we were supported by another or require long-term accommodation. Its accommodation
consultant in reviewing 11 policies and reflecting it facilities are designed to meet the highest HSE standards,
with the New Labor Law. Through these initiatives, with timely maintenance and inspections to ensure their
we are proud to differentiate ADNOC Distribution continued safety and suitability.
from other companies in terms of labor management
2017 2018 2019 2020 2021 2022
relations policies.
Female (average no. of hrs/employee) Male (average no. of hrs/employee)

404-2 Programs for upgrading employee skills and transition assistance programs
86 87
Case Study/ Initiatives
In 2022, as part of the leadership development

path for Service Station Managers, we undertook
the “Tomooh” program for 53 UAE nationals with
high potential who can play a pivotal role in our
expansion ambitions and help us realize the 100%
Emiratization goal for leading service stations.
In accordance with the objectives of the UAE

government, the People Development Division of
Human Capital established a unique learning and
development program named “Tomooh” to upskill
and develop our UAE nationals into service leaders
at our stations.
The following are examples of additional initiatives made by the Company to promote employee learning and development
for 2023:
Retail training academy f Capability Assessment
f Identify individual personal roadblocks and employ f Leadership Programs

a range of coaching programs in alignment with the f Acting Opportunity, the successor will gain additional
Learning and Development Department knowledge and experiences
f Create the coaching calendar and deliver as per the
business requirements across the regions Continue conducting leadership programs mentioned
above for leaders
f Increase the internal training capabilities and facilities
f Core leadership development programs
f Define the core pathway of delivering implementation
and excellence on the ground
Developing internal coaches for front liners
f Contribute to the improved performance of the
Retail Group
Succession planning (Successor’s developments)
f Talent and Succession Dept. is building a solid

successors pipeline to ensure business continuity. The
successors’ development plan includes
f Encourage the successors to create their Personal

Development Plan (PDP).
f HIPO program (9 box grid) to cultivate a high-quality

talent pipeline
88 89
HEALTH, SAFETY,
AND SECURITY
CUSTOMER HEALTH AND SAFETY39 OCCUPATIONAL HEALTH AND SAFETY
Our priority is to provide a safe and compliance with Safety hazards and For 2022, we identified no significant ADNOC Distribution’s utmost priority and Safety (OHS) and ISO 14001:2015 with the Company’s overarching
healthy place to all stakeholders of caution signs installed in our service negative impact on Customers is safety, which is embedded in the on Environmental Management sustainability strategy. ADNOC
ADNOC Distribution, especially our stations. Aside from that, we have from our activities. Hazard control organization’s core values. To protect System (EMS). The HSEMS is an Distribution’s Executive Leadership
customers. We ensure that all health an annual audit program to verify the measures are effectively controlled to our employees, contractors, and third integral part of the ADNOC Integrated Team, along with these strategies, can
and safety protocols within our HSE Management System (HSEMS) avoid any potential impact. parties, we have adopted ADNOC Management System (IMS), which evaluate and develop decisions on
operation’s premises are followed implementation at these stations. Group’s HSE Management System has its manual that summarizes the the efficiency of the procedures set
f HSE Policy of ADNOC Distribution
by customers, which will help avoid All the audit findings are transferred HSEMS, which has a strategic goal “context of the organization,” while the by ADNOC Distribution on handling its
accidents on-site or any adverse and tracked through the action f Programs and campaigns on and commitment to navigate our IMS framework is for comprehending performance on safety and health.
health effects. Our Service Station tracking system. customer health and safety for the programs, practices, and a working and achieving the needs and
staff are responsible for monitoring year 2022 culture that promotes safety at each expectations of interested parties. ADNOC Distribution ensures effective
organization’s level. We pursue the management of health and safety
quality of life and productivity by The scope of HSEMS was depots, performance that is executed through
escalating and defending our people’s service stations, vehicle inspection a robust process including:
physical and mental health and overall centers, aviation filling facilities,
well-being. and project sites. Suppliers or
services supplied to various strategic Establish a five-year HSE
The HSEMS is categorized with partners are beyond the scope of Business Plan and CAPEX
various performance indicators and the Company’s HSEMS. ADNOC Identification for all HSE Projects.
system procedures with alignment Distribution looks forward to achieving
to laws and legal requirements, and IMS certifications, OH projects, and Cascading of HSE Performance
best practices across the globe. The an annual monitoring program that of the Company and contractors
Health and Safety topics across the will represent commitment towards across sites.
organization’s assets, operations, enhancing the Company’s health and
and service stations are managed safety performance for 2023. Constantly track and report
and supervised by the ADNOC development measures
Distribution’s HSE Division and HEALTH AND SAFETY and compliance status
constantly reviewed and updated AT WORK to ADNOC Distribution’s
if needed. ADNOC Distribution ensures executive management.
effective implementation and
ADNOC Group HSEMS comprised consistent improvement of the Detailed submission of the
78 HSE Standards composing HSE HSEMS through our HSE Policy. This Annual HSE Performance
governance, Occupational Health, statement is communicated to all Report promptly.
Environment, Operational Safety, Risk stakeholders, including employees
Management, Crisis Management, and contractors, and executed across Adhere to ADNOC HSE
and Emergency Response. The the organizational boundary. Standards in mitigating risks and
ADNOC Group HSE Team in Audits and monitoring hazards.
ADNOC Distribution’s Internal Audit Health and safety performance data
function are responsible for verifying is consistently collected, assessed,
compliance. Also, ADNOC Distribution and reported to achieve objectives All our employees have access to
has ISO 9001. and targets in this topic. ADNOC comprehensive and high-quality
Distribution’s HSE Governance medical and healthcare services
The ADNOC HSEMS corresponds Framework records the goals and through Daman, with a detailed
with a commonly used high-level targets in terms of health and safety schedule of benefits available.
framework structure and applies the performance, distinctly characterizes
‘Plan-Do-Check Act’ cycle (PDCA) the roles and responsibilities for health
on the requirements of ISO Standard and safety management beyond
45001:2018 on Occupational Health the organization, and corresponds
416-1: Assessment of the health and safety impacts of product and service categories
416-2: Incidents of non-compliance concerning the health and safety impacts of products and services
90 91
HAZARD IDENTIFICATION AND RISK initiatives and programs across all sites and assets, and EMPLOYEE ASSISTANCE conducting leadership site visits ensure that the courses in respective
ASSESSMENT40 ongoing awareness campaigns and initiatives. Moreover, PROGRAM to guarantee to employees that we learning areas are catered to and
The organization assesses and determines its HSE risks the Company did not report any employee fatalities. We value the physical health of our improve our management system training audiences are identified.
using a Risk Assessment Matrix. We execute recurring There were also zero recorded cases of ill health employees, which is why we extend regarding health and safety. HSE Furthermore, critical HSE issues
inspections and reviews across the organization’s assets among employees. our assistance to all employees Awareness Materials and Standards are presented during the Executive
and operations, including service stations, using qualitative with health insurance. This will allow can be accessed on the intranet portal Management Forum, attended
and quantitative risk assessment tools: QRA, HAZOP, Lost Time Injury Frequency (LTIF): them to access extensive medical for all staff members and continuously by ADNOC Distribution’s top
HAZID, JSAs, ENVID (Environmental Impact Identification), Number of LTIs/Million Man Hours and healthcare services with the provided printed materials. The management. In 2022, 64 different
OHID (Occupational Health Identification), FERA (Fire & 0.08 0.07 help of our partnered leading health related data is ensured to be HSE training courses were delivered to
0.06
Explosion Risk Assessment) and other leading international insurance specialist in the UAE. The accessible as this is a crucial element 11,009 employees in the organization.
0.06
risk frameworks. employee assistance program, with to the Company’s overall safety
0.04 0.03 0.03
the supervision of ICAS, started during performance. To further enhance
The organization’s operations are supervised monthly 0.02
0 the outbreak of COVID-19 to help these actions, teams are issued with OIL SPILL
by qualified and competent HSE Inspectors to safeguard 0
2018 2019 2020 2021 2022
employees cope with the adverse HSE alerts to explain lessons learned RESPONSE42
its compliance with the HSE standards and other effects of the pandemic. We also from any incidents that may have
Lost Time Injury Frequency (LTIF): Number of LTIs/Million
requirements. Occupational Health Risk Assessments and Man Hours provided legal advice relating to family occurred across the organization. ADNOC Distribution keeps spill kits
Occupational Health Identification assessments have been and work pressure, managerial skills on hand at all terminals. There were
regulated for all facilities, and actions are verified every Rate of Recordable programs, and even financial inquiries The Learning and Development no major oil spills across ADNOC
quarter. At the same time, critical HSE Key Performance Work-Related Injuries to the employees and their families Department delivers training that Distribution in 2022.
Indicators (KPIs), including occupational health, safety, to cope with anxiety and stress and follows Training Matrix Guidelines to
0.1 0.09
and process safety indicators, are reported and tracked improve their mental well-being.
every month. 0.08
0.06
0.06 EMERGENCY
When any incident happens, an investigation according 0.04 0.03 PREPAREDNESS AND
to the timeline set considering the severity of the incident 0.02 0.01 RESPONSE
will be done. A root cause analysis is also conducted 0 HSEMS has a pivotal framework to
0
to comprehensively identify the underlying causes and 2018 2019 2020 2021 2022 establish emergency management
contributory factors. It is imperative to promptly respond during unprecedented times while
to any incident with recommendations given to avoid the operating within the organization.
recurrence of such happening. Organization’s HC system is The content of crisis management
the source of man-hours data for our full-time employees and emergency response includes
that are used to calculate different KPIs. At the same time, Oil Spill Response, Fire and Rescue
data is collected via the submission of monthly reports Operations, Emergency Response,
for contractors. Crisis Management Process, and
Emergency Response Plan.
ADNOC Distribution employees can effectively report
work-related health and safety hazards or any hazardous TRAINING AND
situation through the organization’s One ERP system AWARENESS ON
to ensure immediate identification and implementation HEALTH, SAFETY, AND
of health and safety risks and corrective actions. This ENVIRONMENT41
is an SAP-based system used to report HSE incidents ADNOC Distribution continually
and observations. conducts surveys to evaluate
employees’ insights regarding their
ADNOC Distribution recorded only one minor work-related daily working health and safety to
injury in 2022, while it recorded zero high-consequence ensure the effective execution of HSE
work-related injuries during the year, due to its robust Management. We regularly coordinate
and effective HSEMS, which enhances the organization’s through meetings, feedback forms,
and sharing of opportunities, and
40. 403-2 Hazard identification, risk assessment, and incident investigation 41. 403-4 Worker participation, consultation, and communication on occupational health and safety
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 403-5 Worker training on occupational health and safety
403-8 Workers covered by an occupational health and safety management system 403-6 Promotion of worker health
403-9 Type of injury, disease, lost days, absenteeism, work-related fatalities 42. 3-3 Management of material topics
92 403-10 Work-related ill health 93
ECONOMIC &
SOCIAL CONTRIBUTION
ECONOMIC PERFORMANCE43 SUSTAINABLE GROWTH44
ADNOC Distribution strives to improve its economic ADNOC Distribution strives for long-term growth by The Company also introduced its flagship station in Dubai,
performance by establishing annual goals in business focusing on the economy, the environment, and the leveraging advanced technologies – including smart cameras
expansion, customer experience, profitability, health and community, thereby safeguarding and improving the quality and digital screens at the pump – to deliver a personalized,
safety, local and international investments, local contributions, of life for future generations. By expanding its reach and digitally immersive, seamless customer journey.
employment, and development opportunities for UAE growing its network to provide increased fuel and retail
nationals. By engaging with its stakeholders regularly, the IN 2022, ADNOC convenience, the Company delivers sustainable energy to In line with ADNOC Distribution’s commitment to
Company can prioritize the needs of its customers and
communities, achieving its goals and achieving a more
DISTRIBUTION its customers and communities safely and conveniently. driving sustainability across its business, the station
strongly emphasizes renewable power as it is partially
significant impact on its stakeholders. ADDED 42 NEW ADNOC Distribution also manages resources efficiently powered through built-in photovoltaic (PV) panels and
As the largest fuel and convenience retail brand in the UAE STATIONS IN THE and responsibly by introducing a unique drive-through
concept with tablet-based ordering at “On the Go” Stations.
solar and wind-powered trees. Inside the convenience
store, customers and staff movement also contribute
and a leading marketer and distributor of fuels, ADNOC UAE AND 28 NEW These innovative stations allowed the Company to reduce to providing energy via power-generating walkways; in
CONVENIENCE
Distribution aims to develop a sufficient and resilient its environmental impact by running on 50% less power line with ADNOC Distribution’s commitment to driving
infrastructure capable of supporting anticipated economic than traditional stations, where the Company added 26 new sustainability across its business, the station places a
growth for commercial, industrial, and government customers
throughout the UAE. The Company has aligned its vision with
STORES, On the Go stations to its portfolio in 2022. strong emphasis on renewable power.
the Abu Dhabi Economic Vision 2030, which aims to transform REFURBISHED 42
the emirate’s economy by establishing a plan that includes
less reliance on the oil sector as a source of economic activity.
CONVENIENCE ADNOC ADNOC
As a result, the long-term plan anticipates a future economy STORES AND DISTRIBUTION’S
with a greater emphasis on knowledge-based industries.
EXPANDED ITS FLAGSHIP STATION IS
FRESH FOOD AND STATIONS RUN ON PARTIALLY POWERED
BUSINESS EXPANSION
HOT BEVERAGES 50% LESS POWER THROUGH BUILT-IN
ADNOC Distribution operates its service stations across all
seven emirates, and it is committed to providing high-quality
OFFERINGS. IN IN COMPARISON PHOTOVOLTAIC (PV)
services to its customers and improving their experience in ADDITION, THE TO TRADITIONAL PANELS, IN ADDITION
all locations. Our ambition is to be a regional mobility retailer
of choice, an enabler of sustainable mobility, and a provider
COMPANY EXPANDED STATIONS TO SOLAR AND
of exceptional customer experience. ITS PRESENCE WIND-POWERED
The Company aims to increase access to its service
OUTSIDE THE UAE TREES
stations, convenience stores, and other car care services. BY ADDING 26 NEW
STATIONS IN THE
ADNOC Distribution is also committed to renovating its
convenience store network, improving product assortments,
and offering freshly prepared food and hot beverages in
modern environment. While remaining focused on its growth
KINGDOM OF
strategy, the Company is committed to optimizing its costs, SAUDI ARABIA.
running its day-to-day operations sustainably, strengthening
its brand, and allocating capital efficiently to generate higher
shareholder value. With these, ADNOC Distribution remains
committed to contributing to the country’s economic
development by participating in the In-country value (ICV)
Program by dealing with local suppliers, increasing job
opportunities, and contributing to local communities.
43. 3-3 Management of material topics 44. 201-2 Financial implications and other risks and opportunities due to climate change
94 95
ADNOC Distribution continues to acknowledge the external trends that may impact the future demand for fuel products. FUTURE COMMITMENTS
Current trends include energy transition and changing mobility trends such as electrification, shared mobility, etc. The
Company is committed to capitalizing on energy transition opportunities and investing in future mobility trends through ADNOC Distribution intends to improve In Egypt, ADNOC Distribution’s recent Beyond that, ADNOC Distribution
installing EV chargers at its stations, expanding its CNG fueling network, piloting hydrogen fueling stations, etc. its economic performance further by partnership with TotalEnergies to is evaluating inorganic growth
increasing its EBITDA. The Company acquire a 50% stake in TotalEnergies opportunities in international markets,
This was proven by the Company’s recent partnership with TAQA to establish E2GO, to build and operate electric vehicle will maintain its commitment to Marketing Egypt reaffirms its focusing on efficient capital allocation
charging points in Abu Dhabi and across the wider UAE. In addition, as part of its commitment to decarbonize operations, contributing to UAE’s economic growth commitment to expanding business toward growth, including potential
the Company may be required to invest in low-emission energy sources, such as biofuels, in its fleet. It should also utilize and creating more job opportunities. In in attractive international growth export markets for lubricants. The
cleaner chemical additives across its fleet to improve the combustion process and enhance fleet vehicle management. It addition, the Company plans to open markets. Egypt’s fuel retail, lubricants, Company is on track to execute a clear
should also use cleaner energy and renewable sources such as PV solar panels on its service stations. 25-35 new stations in 2023. and aviation markets are highly and measurable strategy to increase
attractive, with potential future growth. EBITDA to more than AED 3.67 billion
ADNOC Distribution has a fully Due to its young and expanding ($ 1 billion) by 2023.
operational team in the Kingdom of population, alongside a series of
FINANCIAL PERFORMANCE45 Saudi Arabia. Following the addition of progressive economic reforms, Egypt
64 new stations in Saudi Arabia since has recorded positive GDP growth
In 2022, ADNOC Distribution achieved record-breaking Revenues the beginning of 2021, the Company with a strong outlook. The acquisition
32,111
financial performance as compared to 2021. The Company is currently working on revitalizing and of a 50% stake in TotalEnergies
achieved a 53% increase in 2022 revenue driven by higher rebranding its network in the Kingdom. Marketing Egypt was completed
21,337 20,921
selling prices of fuel products and growth in fuel volumes in Q1 2023.
16,132
and non-fuel retail business. It also recorded an increase of
15% year-on-year in EBITDA.
2019 2020 2021 2022
Our CSR investments last year stood at AED 2 million Direct Economic Value Generated - Revenues (AED million)
bringing our economic value retained to AED 599 million.

Operating Costs
26,987
In addition, ADNOC Distribution also achieved 1000 hours
of community volunteering by the employee, including 19,984
16,262
senior management, the CEO, customers, and employees’
families, exceeding the year’s target of 100 hours. This 11,018
proved that the Company is progressing toward its CSR
initiatives.
2019 2020 2021 2022
Operating Costs (AED million)
Operating costs increased in 2022 by 64% compared to
2021 due to the increase in fuel supply costs caused partly
Employee Wages and Benefits
by the higher price of crude oil.
1,772 1,674
1,603
1,423
Employee wages46 and benefits increased in 2022 by 18%
in line with the Company’s network expansion.
ADNOC Distribution’s shared value as Payments to 2019 2020 2021 2022
Providers of Capital increased by 3% in 2022 due to higher Employee Wages and Benefits (AED million)
interest rates.
Payment to Providers of Capital
2,756 2,851
2,691
2,113
2019 2020 2021 2022

Payments to Providers of Capital (AED million)
45. 201-1 Direct economic value generated and distributed
46. Employee wages include staff costs and payment to providers of capital include dividend paid to shareholders and
finance cost
96 97
PROCUREMENT PRACTICES The program delivers ICV by concentrating on three primary objectives:
ADNOC Distribution’s procurement Business Code of Ethics ADNOC launched the ICV program,
processes are a centralized function and conducts Integrity Due Diligence a procurement-led initiative to
that supports all of the Company’s (IDD) analysis before engaging maximize the value of our nation’s
business lines. Vendors and suppliers in business or partnership with oil and gas resources. The program GDP Emiratization localization
must declare their compliance the Company. has now been adopted by the UAE’s
(Gross Domestic Product) Emiratization and personal The localization of strategic
with the ADNOC Distribution Code Ministry of Technology and Advanced
diversification through increased development opportunities for capabilities for critical supply
of Conduct during registration, To enhance the In-Country Value (ICV) Technology (MoIAT) and has grown
spending on local goods UAE Nationals in the private sector. chain functions in the oil and
prequalification, and tendering. performance indicators percentage beyond the oil and gas industry
and services. gas industry.
To support our strong ethics and in 2022, the organization identified to encompass other sectors. The
compliance agenda, ADNOC and granted improvement plans program shall ensure a standardized
Distribution requires suppliers and to vendors. Due to this strategy, certification procedure to promote
partners to comply with the Supplier the Company’s ICV contribution economic growth and efficiency in
and Partner grew to 70% in 2022. In 2018, the UAE. To fulfill the program’s objectives, ADNOC Distribution intends to improve its ICV % in the following years through proactive
interaction with existing suppliers in the local market to increase local spending, employment, and the Company’s local
supplier base.
98 99
SUPPLIER SOCIAL AND ENVIRONMENTAL ASSESSMENT ENVIRONMENTAL ASSESSMENT

Suppliers’ adherence to environmental issues is assessed
Supplier sustainability assessments provide the Company at several points, including during registration, tendering,
with a comprehensive understanding of the supplier’s and execution of agreements. The criteria for suitable
strengths and limitations regarding its sustainability categories were given weight in the 2022 assessment at
performance. They also enable the Company to work with the initial evaluation (Gate 1), the bid evaluation (Gate 2), the
suppliers to discuss how they can enhance their sustainability performance evaluation, and the HSE audits (Gate 3).
performance. ADNOC Distribution conducted Supplier
Sustainability Assessments throughout 2022 to ensure a Our assessment report indicated that suppliers were
100% OF NEW
sustainable supply chain in our business operations. This actively involved in sustainability-related concerns. By SUPPLIERS
assessment increased awareness and understanding of
supplier threats and enhanced the Company’s supply chain
conducting a thorough evaluation based on our proprietary
process, we identified the areas where the supplier’s
THAT WERE
requirements. sustainability performance needs improvement. The SCREENED USING
ENVIRONMENTAL
Company assures that these controls will continue to be
Choosing the correct technology suppliers and ensuring used and enhanced in 2023.
they positively impact the Company’s sustainability CRITERIA FOR 2022
performance becomes critical for every responsible firm
as every organization looks to digital transformation and suppliers assessed
for environmental
harness technology to gain a competitive advantage. impacts
100% OF SUPPLIERS
ASSESSED FOR
new suppliers that
were screened
using environmental
SOCIAL ASSESSMENT
ENVIRONMENTAL
criteria
The social evaluation is a requirement for suppliers to

0% 20% 40%
2022
60% 80% 100%
IMPACTS FOR 2022
register to acknowledge approval of the ADNOC Suppliers
Declaration, which refers to all applicable rules and
regulations, including but not limited to those in the UAE.
When functioning on behalf of the ADNOC Group, the LOCAL COMMUNITY IMPACT AND
Supplier shall comply with all applicable laws relating to INVESTMENT47
anti-corruption and improper payments. The Supplier shall ADNOC Distribution is a brand associated with the national
ensure that all its employees comply at all times with the pride of the UAE. Decisions are guided by the ideals
100% OF NEW
ADNOC Group Supplier and Partner Code of Ethics. of cooperation, respect, responsibility, and efficiency,
inspired by one of the core Code of Conduct values, “We
The Centralized Registration was used in 2022 to evaluate
Suppliers. All suppliers are subject to a biannual HSE
SUPPLIERS THAT are Responsible.”
evaluation as part of the Agreement execution and must WERE SCREENED CORPORATE SOCIAL RESPONSIBILITY
consent to the terms and conditions and HSE standards
throughout the tendering process. One of the criteria is the
USING SOCIAL STRATEGY
ADNOC Distribution aligns its Corporate Social
health and well-being of suppliers’ employees. CRITERIA FOR 2022 Responsibility (CSR) programs with the local and national
strategies focusing on the country’s overall development
and prosperity, including aligning with the national plan
Suppliers assessed 100% OF SUPPLIERS such as the ‘The UAE 2031’ vision and the Abu Dhabi
ASSESSED FOR
for social impacts Economic Vision 2030.
New suppliers that

were screened
using social criteria
SOCIAL IMPACTS
FOR 2022
0% 20% 40% 60% 80% 100%
2022
413-1 Operations with local community engagements, impact assessments, and development program
100 101
Every year, we set clear targets and

have been meeting and performing
OUR CSR OBJECTIVE: CREATE GROWTH AND LEARNING
Enable the UAE’s economic
SPORTS, HEALTH, AND
WELLBEING
beyond our agreed targets year-on- LOCAL OPPORTUNITY, GROWTH, ambitions by supporting STEM Invest in sports to enhance the
year. In 2022, we met our full-year
target for CSR Reach by achieving
AND POSITIVE IMPACT IN EVERY education and empowering local
business communities
quality of life and well-being of
existing and future generations
2.5 million reach through various CSR COMMUNITY WE OPERATE IN AND
campaigns held during the year. We
aspire to continue the momentum.
BUILD A STRONG RELATIONSHIP ADNOC CSR
THEMES
WITH OUR STAKEHOLDERS
CULTURE AND NATURAL HERITAGE AND
The CSR engagements conducted every year are aligned Under the Sustainability Committee, a CSR Sub-Committee COMMUNITY ENVIRONMENT
with UN SDGs and ADNOC CSR pillars of: has been established to develop CSR strategies, policies, Preserve the cultural heritage Protect and preserve the
and initiatives while monitoring their implementation. and drive cohesive communities ecosystem in every environment
In addition, they are the primary focus for the Group in where we operate where we operate
Community
assisting and advising the CEO to make informed decisions
Support local communities by focusing
on social campaigns on crucial CSR matters as the Delegation of Authority and
the CSR Policy govern them. ADNOC Distribution maximizes digital platforms such as social media promotions, direct customer engagement with
ADNOC Rewards, and announcements on digital devices. During 2022, ADNOC Distribution invested AED 2 million in CSR
Aligning CSR projects with: and related sponsorship initiatives, while employees contributed 1,000 volunteer hours.
Environment
Support environmental programs that f CSR priority areas (Community, Environment, and
contribute to UAE’s 2050 Net-zero
Economy)
emissions initiative
f The 8 UN Sustainable Development Goals (SDGs)
adopted by ADNOC Distribution
Economy
Create shared value with
local businesses
102 103
Case studies on social initiatives and community development programs by ADNOC Distribution: lives through early detection and In 2022, ADNOC Distribution collected
raised awareness about this dangerous total donations of AED 400,000 to
health issue. support the Reach Campaign, enough
to provide treatment to 400,000+
patients. This included AED 155,271
in donations collected from the
physical boxes across the network and
was hugely complemented through
online donations through the ADNOC
Distribution app., with total contributions
of AED 244,729.
PINK CARAVAN
Since partnering with Pink
STEM SUMMER CAMP AL GHADEER RAMADAN IFTAR Caravan in 2011, ADNOC
COMPETITION – UAE CRAFTS BOXES DISTRIBUTION Distribution has contributed
‘BEAT THE HEAT’ CAMPAIGN AED 260,000+ in direct REACH CAMPAIGN
We increased sales revenues monetary support, conducting
Three student projects to be from Al Ghadeer UAE’s 70 employees spent 60+ 100K+ clinical examinations, Providing community
considered among the ‘Beat stands at ADNOC Oasis from volunteer hours to distribute and detecting 100+ cases of support beyond the physical
the Heat’ measures in next AED 21,000 to AED 50,000 in 150,000 iftar boxes in 2022 breast cancer at an early stage presence of our network and
year’s campaign one year into the world to combat a
In collaboration with our partners at Pink Caravan is a national campaign global pandemic
Participating students are enrolled ADNOC Distribution extended its the Emirates Red Crescent, ADNOC during international breast cancer
in a 10-day training program. They partnership with the Emirates Red Distribution employees volunteered awareness month in October. The An ongoing CSR partnership with MAKE THEIR
attend a series of virtual workshops Crescent project, Al Ghadeer UAE to deliver special iftar boxes at select initiative was created in 2011 by the the UAE’s Emirates Red Crescent, LIFE COLORFUL
to provide innovative solutions to Crafts, for a second year in 2022, locations within the ADNOC service Friends of Cancer Patients Group, and the Reach Campaign aims to raise
help workers at ADNOC Distribution following the remarkable success of station network. This offered motorists we’ve since partnered with them to help awareness of the river blindness Providing support to local
sites overcome the challenging heat the cooperation during the first year. breaking their fast on the road a healthy raise awareness about the disease. In disease (caused by the parasitic worm communities affected by
conditions in open-air settings during and nutritious Iftar meal. The packages addition to ADNOC Distribution’s direct Onchocerca volvulus) and provide the recent adverse weather
summer. The project falls under ADNOC Distribution supported the included dates and water. monetary contribution to support necessary support to prevent it from conditions in the UAE
ADNOC Distribution’s annual ‘Beat the initiative by allocating retail space at the cause, the Company also offers spreading worldwide.
Heat’ awareness campaign to maintain select ADNOC Oasis convenience KHALIFA FOUNDATION physical space at its service stations A joint initiative between ADNOC
the health and safety of Company stores in Al Bateen, Mahwi, Al Ain, and RAMADAN to enable the campaign’s mobile The devastating medical condition Distribution and the Emirates Red
employees whose jobs might require Dubai regions to showcase artifacts MEALS PARTNERSHIP screening and examination clinics to affects millions of people worldwide, Crescent - Volunteer aims to support
working in open-air settings during the created by Al Ghadeer’s craftswomen. provide free consultations and health especially in Africa. However, it can the local communities affected by the
hot summer. 5,000+ LPG cylinders distributed screenings to the public. be easily treated at a minimal cost of adverse weather conditions that hit
In 2022, we increased the number of among 194 participating families two dirhams per patient, enough to parts of the UAE in 2022, including
In 2022, 10 projects were presented, stands allocated for Al Ghadeer UAE to prepare 900K+ hot Ramadan In 2022, ADNOC Distribution supported cure the case and protect the patient heavy rains and floods in the eastern
of which three were selected as the Crafts to showcase their products to 9 Iftar meals the Pink Caravan with a direct monetary from re-contracting it for up to one region. The program provides those in
winners. The winning projects will at ADNOC Oasis locations, generating contribution of AED 60,000, providing year. ADNOC Distribution promotes need with moral and in-kind support
be considered among the solutions sales exceeding AED 50,000 in value. In partnership with the Khalifa bin Zayed Al the required physical space and and encourages customers to provide to help repair damaged houses and
and measures to be deployed in next Nahyan Foundation, ADNOC Distribution volunteers’ support to ensure the charitable donations to support the provide basic needs in times of need.
year’s ‘Beat the Heat’ campaign. provided LPG cylinders to hundreds of campaign’s success. This has resulted cause through the ADNOC Distribution
participating families, who took part in in conducting 2,505 examinations, 311 app and by placing special collection
a cooking challenge to provide hot Iftar screenings, and 604 mammograms, boxes across the Company’s national
meals to thousands of underprivileged which has saved so many precious service station network.
fasting people across the UAE.
104 105
BUSINESS
SUSTAINABILITY
ANTI-CORRUPTION48 Achievements in 2022 include:
ADNOC Distribution has a zero-tolerance approach towards bribery and corruption and is committed to maintaining an Rolled out comprehensive policies and procedures 01 Training sessions on Anti-Bribery and Corruption, 02
effective compliance program to address any bribery and corruption risks. Our commitment to combating bribery and such as Integrity Due Diligence, Competition Law, Gifts and Entertainment, Confidentiality and Social
corruption is reflected in our Code of Conduct and the Anti-Bribery and Corruption Policy, Gifts, Entertainment, and International Trade and Sanctions, Fraud Risk Media Usage, Insider Dealing, Sanctions, and
Conflict of Interest Policy, which reflects our best practices. Management, Dawn Raid policy, and practical guides Recusal Procedure Guide
ADNOC Distribution’s Codes, Policies, and Programs in countering fraud and corruption include:
100% completion rate achieved for Conflict- 03 Kicked off the Data Privacy Programme to ensure 04
of-Interest Declaration for desk-based staff complete alignment and compliance with the new
data privacy laws coming into effect in the UAE
Anti-Bribery Conflicts Code of Gifts and Utilization of data analytics under the Fraud Risk Management program to monitor and control fraudulent 05
and Corruption of Interest Policy Conduct Entertainment activities and theft at ADNOC Distribution service stations.
Policy Policy
Finally, the Company also undertakes Integrity Due Diligence on 3rd party transactions. As our M&A activities accelerated in
2022, this has required regularly conducted detailed IDD.
Supplier and Takallam – ADNOC Whistle Blowing

Partner Code of (whistleblowing Distribution and Non-
Ethics portal) Compliance Retaliation Policy
Policy
106 107
COUNTERING FRAUD AND CORRUPTION49 PERSONNEL TRAINING AND COMMUNICATION50

Corruption manifests in various ways, including fraud, bribery, money laundering, conflicts of interest, and asset ADNOC Distribution emphasizes the entertainment, and conflicts of interest its Supplier and Partner Business
misappropriation. Corruption has serious consequences not only for ANDOC Distribution but also for those involved. All significance of workplace ethics. The have communicated the message to Code of Ethics, which suppliers must
ADNOC Distribution personnel must not engage in, encourage, agree to, ignore, assist, or otherwise be involved in fraud, organization regularly conducts anti- their respective divisions and teams. agree to before entering into business
bribery, or other forms of corruption. ADNOC Distribution has set four fundamentals for countering these risks: bribery and corruption training and or partnership with the Company.
workshops across all business units. 100% of ADNOC Distribution The code of ethics outlines the
employees have completed code of expectations regarding anti-bribery
POLICIES TRAINING 100% of senior management including conduct training, which includes topics and corruption that all suppliers and
Clear governance policies supplement the the Executive Leadership Team, have such as anti-bribery and corruption, partners must adhere to.
Company’s actions to combat corruption. Anti-Bribery and Corruption Training are received anti-corruption training gifts and entertainment, and conflicts
The Anti-Bribery and Corruption Policy, Gifts, conducted regularly or in conjunction and communication. Furthermore, of interest.
and Entertainment Policy, and Conflicts of with existing policies. These are intended all senior management who received
Interest Policy are in full operation and are to reflect best practices and ensure the specific training on gifts and In addition, ADNOC Distribution has
in line with the Code of Conduct and the policies’ effectiveness.
Compliance Policy of ADNOC Distribution.
These policies reflect best practices and set
the standards and rules that all employees
must abide by to avoid potential breaches
and non-compliance. These policies
were launched in 2021 and remain fully
operational at ADNOC Distribution.
COMMUNICATION DISCIPLINARY
Policies, programs, and practices regarding Failure to follow the policies will result
anti-corruption are thoroughly cascaded in disciplinary action. Reports are
through various mediums: newsletters, group investigated in alignment with ADNOC
emails, and training, which remind employees Distribution’s Compliance Investigation
of their obligations under the policies and Policy and Procedure, and appropriate
create awareness of any issues or practices recommendations and strategic
that may lead to corruption or fraud. remediation are guaranteed.
The Company conducted a thorough An independent third-party consultant corruption will aid in preventing
risk assessment of corruption carried out the audit. non-compliance. Nonetheless, the
risks across its operations. Bribery, Company continues implementing
misrepresentation of information, In 2022, 100% of ADNOC Distributions measures based on the results
manipulation, and misuse of employee operations were evaluated for to improve existing controls and
and customer data, kickbacks, corruption risks. The findings of the mitigation measures.
leakage of confidential information, assessment of the controls to mitigate
money laundering, and other topics these risks and raising employee
were covered in the risk assessment. awareness about anti-bribery and
49. 205-1: Operations assessed for risks related to corruption. 50. 205-2 Communication and training about anti-corruption policies and procedures
108 109
REPORTING The managers are also responsible ADNOC Distribution maintains an updated regularly in alignment with provide targeted training on Integrity Most of ADNOC Distribution’s revenues
MECHANISM51 for approving conflict of interest and Insider List in compliance with ADX and best practices. Effective remediation Due Diligence to specific Groups (nearly 70% of total fuel volumes) are
gift and entertainment declarations SCA rules. The compliance department strategies were implemented to avoid across the organization. These generated by its retail fuel business,
Takallam is ADNOC Distribution’s after receiving advise from the Ethics reviews and monitors this list to any future re-occurrence. training sessions are intended to raise which is regulated by the UAE’s
whistleblower platform. It is supported and Compliance department. Critical ensure that all employees classified awareness about potential hazards Ministry of Energy and Infrastructure.
by the Whistleblowing and Non- issues are communicated to the as Insiders are included. This ensures ADNOC Distribution conducted and to emphasize the value of ethics in A commercial business sets prices
Retaliation Policy. The Company highest governance body at monthly that adequate measures are in place to various e-learning courses on Anti- the workplace based on global and regional market
encourages employees to report meetings of the Executive Committee prevent Insider dealing. The list is also Corruption and Bribery, including dynamics. With multiple players
unethical behaviors such as bribery, of the Board of Directors and quarterly submitted to ADX quarterly. In alignment Gifts and Entertainment, Conflicts of in the UAE commercial fuel sector
financial misconduct, and corruption. It Board meetings as they occur. with the Insider Dealing Policy, ADNOC Interest, Confidentiality, and Social ANTI-COMPETITIVE (including demand met by product
also promotes workplace transparency Distribution has an established Insider Media Usage to all employees. BEHAVIOR52 imports), there is little room for
and openness. The Whistleblowing As a publicly listed Company, Dealing Committee to oversee the anti-competitive behavior.
Portal provides a channel for reporting the requirement to have fair and ongoing implementation of this policy. ADNOC Distribution is committed
that is guaranteed to be confidential transparent dealings in our securities FUTURE to conducting its business lawfully, As a globally-focused business
and free of retaliation. In addition to is paramount to us. We take a zero- In 2022, ADNOC Distribution COMMITMENTS ethically, and with integrity. ADNOC entering international markets, ADNOC
the Takallam portal, employees can tolerance approach to any activities confirmed one non-material incident Distribution expects everyone working Distribution considers the impact
report directly to line managers or the that would prevent this requirement of corruption involving service station ADNOC Distribution is committed for or representing the Company to of relevant competition laws on its
compliance department whenever from being correctly implemented. personnel. This incident served to ensuring all employees receive act accordingly. ADNOC Distribution everyday business. Although it primarily
ethical standards are breached. A Accordingly, we have implemented an as a platform for the Company to continuous training and awareness on has published its Competition operates in the UAE, the Company
register for the receipt of gifts and Insider Dealing Policy to ensure that reflect on effective methods to anti-bribery and corruption matters. Compliance Policy aligned with is expanding into other jurisdictions
entertainment has been made available the obligations and responsibilities of ensure that existing controls, such as All employees must take anti-bribery international laws and standards on worldwide. We must, therefore, comply
for employees. The Compliance our employees, officers, and directors anti-bribery and corruption policies, and corruption courses, including anti-competitive practices. This Policy with competition laws in other countries
Department, in collaboration with the with respect to dealings in our procedures, and other mechanisms, Gifts and Entertainment and Conflicts aims to set out ADNOC Distribution’s we intend to work within.
Line Managers, reviews these. securities are clearly defined. are strengthened, reviewed, and of Interest. Furthermore, following requirements concerning Competition
business needs, the Company will Law compliance.
51. 205-3 Confirmed incidents of corruption and actions taken 52. 3-3 Management of material topics
2-16 Communication of critical concerns 206-1 Legal actions
2-25 Processes to remediate negative impacts
2-26 Mechanisms for seeking advice and raising concerns
110 111
DIGITIZATION AND completed the onboarding of more establishing cyber security controls.
INNOVATION53 than 200 convenience stores in the They also include the introduction
Talabat delivery app and continues to of multiple security layers to provide
ADNOC Distribution continues its activate new stores. the highest security standards and
efforts to safeguard information protect retail service stations’ data.
systems and data assets in light of With the emerging trends in e-grocery This has also enhanced retail system
recent technological developments and e-commerce in the UAE, the network management operational
and ongoing and future trends. Through Company is committed to focusing efficiencies by integrating security
digital capabilities, the Company strives on superior quality, fast delivery, and network management solutions.
to develop new ways to engage with and offering customers a holistic During 2022, we also continued to
customers and create efficiencies. and seamless retail experience. In operate our testing program and
addition, we have worked to improve security assessments, which help us
In 2022, the Company continued our inventory offering, with up to 3,000 proactively address vulnerabilities and
to roll out its convenience stores active stock-keeping units (SKUs) now security weaknesses before they can
revitalization program, enhancing available in aggregator platforms. be exploited.
its non-fuel offerings and delivering
modern, digitally enabled fuel retail Through these, we have introduced Other successful deliveries in 2022
convenience to customers to make new and broader menu offerings with include implementing Amazon Web
more out of every visit to an ADNOC the launch of Barista and Bakeries Services (AWS) Security restrictions
Service Station. The Company also across up to 100 of the Company’s for mobile app customer data
accelerated its digital transformation active Talabat-partnered ADNOC Oasis protection and Payment Card Industry
strategy to deliver best-in-class stores – this expansion is a core part Data Security Standard (PCI-DSS)
customer service, strengthening its of the e-commerce strategy. We also accreditation. These ensure that the
competitive positioning. plan to expand our e-commerce reach complete customer card payment
to more convenience stores across cycle is secure and the enforcement
In 2022, ADNOC Distribution also multiple stations, including Dubai and of enhanced customer password
opened its new flagship station in the Northern Emirates. complexity and Multi-Factor
Dubai. The Company’s station on Authentication (MFA) for ADNOC
Sheikh Zayed Road leverages advanced wallet customers.
technologies – including smart cameras CYBERSECURITY
and digital screens at the pump – Governance of IT security and risks
to deliver a personalized, digitally ADNOC Distribution’s strategy is to remains a cornerstone to ensure
immersive, seamless customer journey. provide enterprise infrastructure and oversight of its cybersecurity strategy
The station also offers impressive services with the necessary controls implementation, proactively protecting
sustainability credentials, partially to protect our physical and virtual information assets and creating safe
powered by renewable sources – workplaces regarding confidentiality, and resilient infrastructure which
including an energy-generating walkway integrity, availability, and data privacy. empowers the business to thrive.
in the first double-store ADNOC Oasis This is achieved with a dual approach
convenience store. of strengthening our security posture
and preparedness to manage
potential incidents.
E-COMMERCE
ADVANCEMENTS During 2022, ADNOC Distribution
achieved multiple milestones in
The Company is pleased with its cyber security and data privacy.
ongoing success in its e-Commerce They include the execution of the
journey, which began in April 2020. By Retail Service Station Network
the end of 2022, the Company had and Security Revamp Project for
112 113
ESG PERFORMANCE
DATA
TYPE 2018 2019 2020 2021 2022 TYPE 2018 2019 2020 2021 2022
ENVIRONMENT WATER
Water consumed from municipal
ENERGY CONSUMPTION NA NA 1,288,943 1,755,852 2,032,157
supply (m3) - including portable water
Total Indirect Energy (Electricity Water discharged into municipality
865,969 820,000 862,750 1,030,640 1,041,030 NA NA 1,288,943 1,755,852 2,032,157
Consumption) (GJ) sewage (m3)
Total Energy Consumption within the Water recycled (m3) 1,125 1,409 1,355 221,013 231,359
1,106,491 1,073,150 1,113,250 1,305,109 1,411,782
Organization (GJ)
ECONOMIC
Energy Consumption from Solar
NA 1,548 1,768 2,014 2,327 DIRECT VALUE GENERATED
Energy (GJ)
Direct Economic Value Generated
Diesel (L) 6,631,886 7,141,274 6,843,370 6,739,925 9,077,117 22,893 21,337 16,132 20,921 32,111
(Revenues) (AED million)
Gasoline (L) 590,598 475,512 672,641 997,066 1,206,470 Operating Costs (AED million) - including COGS 18,512 19,984 11,018 16,462 26,987
Employee Wages and Benefits (AED million) 1,834 1,603 1,772 1,423 1,674
ENERGY INTENSITY
Payments to Providers of Capital
1,675 2,113 2,691 2,756 2,851
Energy intensity for the organization (AED million)
48 50 69 62 44
(GJ/million AED) – based on Revenue
WORKFORCE DIVERSITY AND DEVELOPMENT
EMISSIONS INTENSITY Total Number of Employees 11,690 11,183 11,413 11,929 13,122
Emissions intensity for the organization NUMBER OF PERMANENT EMPLOYEES BY GENDER
8.9 9.1 8.1 7.2 4.9
(tCO2e/million AED) – based on Revenue Female 811 868 927 1,042 1,172
GREENHOUSE GAS EMISSIONS Male 10,879 10,315 10,464 10,865 11,387
NUMBER OF TEMPORARY EMPLOYEES BY GENDER
Direct GHG Emissions (tCO2e) 19,257 20,388 20,045 21,045 27,320
Female Nil Nil 3 5 2
Indirect GHG Emissions (tCO2e) 184,249 174,648 110,105 129,566 130,850 Male Nil Nil 19 47 1
NOx emissions (kg) 312,000 294,000 281,000 295,000 336,220 PART-TIME EMPLOYEES
Total enterprise headcount held by
SOx emissions (kg) 174,000 164,360 157,500 165,375 188,180 No part time employment in practice
part-time employees
Volatile Organic Compounds (kg) 54,785,000 15,098,142 13,670,000 15,012,586 15,456,430 WORKERS WHO ARE NOT EMPLOYEES
Workers who are not employees 607 552 633 526 560
WASTE GENERATED (SOLID WASTE)
Total enterprise headcount held by
Non-Hazardous Domestic Type 17.7% 17.1% 16.2% 17.4% 17.9%
9,488 12,674 10,440 10,995 11,999 contractors or consultants (%)
Waste (Tons)
NATIONAL EMPLOYEES AS A PERCENTAGE OF EMIRATIZABLE POSITIONS
Paper and cardboard (Tons) 1 1.6 N/A 0.52 0.79 Emiratization Rate (%) 74.0% 73.0% 72.0% 67.6% 63.9%
Waste Lube Oil (Tons) N/A 1,100 1,506 1,537 764 EMIRATI EMPLOYEES (#)
Expired Chemicals (Tons) 21 10 10 135 18 Male 1,738 1,628 1,565 1,470 1,445
Metal Scrap (Tons) N/A N/A N/A 25 0 Female 402 388 402 412 404
Tires (Number) N/A N/A N/A 1,360 1,801 RATE OF NEW HIRES BY EMPLOYEE CATEGORY
Batteries (Number) N/A N/A N/A 215 316 In Senior Management positions (%) 0.1% 0.1% 0.1% 0.1% 0.1%
WASTE GENERATED (LIQUID WASTE) In Middle Management positions (%) 0.0% 0.1% 0.1% 0.1% 0.1%
LPG Cylinders Washing Water (m3) 2,212 1,720 1,506 2,330 2,436 In Professional, Operational, and
2.3% 8.7% 12.4% 15.6% 22.2%
Wastewater from car wash (m3) 1,125 1,409 1,355 221,013 231,359 Administrative positions (%)
Domestic Sewage (m3) 1,046,229 1,408,494 1,289,013 1,780,489 1,361,438
114 115
TYPE 2018 2019 2020 2021 2022 TYPE 2018 2019 2020 2021 2022
RATE OF NEW HIRES BY GENDER TURNOVER BY AGE GROUP

Female Employees 0.1% 1.1% 1.1% 2.0% 2.0% Age group of 18-30 3.7% 3.8% 2.0% 3.3% 4.7%
Male Employees 2.3% 7.8% 11.5% 13.8% 20.3% Age group of 31-50 4.3% 7.9% 7.0% 8.8% 8.4%
RATE OF NEW HIRES BY AGE GROUP Age group of 51+ 0.8% 1.1% 0.9% 0.6% 0.4%
Age group of 18-30 1.8% 6.3% 9.4% 11.5% 14.7% PARENTAL LEAVE
Age group of 31-50 0.5% 2.4% 3.1% 4.3% 7.5% Number of female employees entitled to
NA NA 930 1,239 1,183
Age group of 51-60 0.1% 0.1% 0.0% 0.0% 0.1% parental leave
MALE REPRESENTATION IN ADNOC DISTRIBUTION’S WORKFORCE Number of male employees entitled to

NA NA 10, 533 12,563 11,936
parental leave
In ADNOC Distribution’s workforce 87% 86% 85% 84% 91%
EMPLOYEES WHO TOOK
In entry and mid-level positions 87% 86% 85% 84% 86%
PARENTAL LEAVE
In Senior and Executive Level Positions 94% 100% 93% 93% 95%
Female NA NA 82 75 81
FEMALE REPRESENTATION IN ADNOC DISTRIBUTION’S WORKFORCE
Male NA NA 149 155 202
In ADNOC Distribution’s workforce 13% 14% 15% 16% 9%
EMPLOYEES WHO TOOK PARENTAL LEAVE AND RETURNED TO WORK AFTER LEAVE ENDED
In entry and mid-level positions 13% 14% 15% 16% 15%
In Senior and Executive Level Positions 6% 0% 7% 7% 5%
Male NA NA 149 155 202
AVERAGE HOURS OF TRAINING PER EMPLOYEE (BY GENDER)
EMPLOYEES WHO TOOK PARENTAL LEAVE AND RETURNED TO WORK AFTER LEAVE ENDED THAT STILL
EMPLOYED 12 MONTHS AFTER
Male NA NA 106 115 151
AVERAGE HOURS OF TRAINING PER EMPLOYEE (BY EMPLOYEE CATEGORY)
Male NA NA 149 146 198
In Senior Management positions 978 84 105 115 96
SAFETY
In Middle Management positions 103 119 129 142 92
TOTAL NUMBER OF HOURS WORKED
In Professional, Operational, and
93 94 96 114 174 Number of hours worked
Administrative positions 34.1 30.4 35.4 32.2 25.6
(million-man hours)
EMPLOYEES WHO RECEIVED PERFORMANCE AND CAREER DEVELOPMENT REVIEW
The number of hours worked by workers,
Female NA NA 63% 87% 100% not employees but by work or workplace
8.8 7.3 10.5 8.4 11.0
Male NA NA 79% 91% 100% is controlled by the organization
TURNOVER (million-man hours)
Total number of employees leaving TOTAL NUMBER OF EMPLOYEE FATALITIES AS A RESULT OF WORK-RELATED INJURY
1,025 1,436 1,141 1,117 1,764
employment during the reporting period Number of Fatalities 0 0 0 0 0
TURNOVER BY Lost Time Injury Frequency (LTIF)
0.06 0.07 0.03 0 0.03
EMPLOYMENT CATEGORY (million manhours)
Senior Management Positions 0.0% 0.1% 0.1% 0.1% 22.0% Rate of Recordable Work-Related Injuries 0.09 0.01 0.06 0 0.03
Middle Management 0.0% 0.3% 0.1% 0.2% 8.0% Number of Recordable Work-Related
9 3 2 0 1
Professional, operational, and Injuries
8.7% 12.5% 9.7% 12.5% 14.0%
administrative staff Number of high-consequence work-related
0 0 0 0 0
TURNOVER BY GENDER injuries (excluding fatalities)
Female Employees 0.4% 0.5% 0.6% 1.5% 1.0%
Male Employees 8.7% 12.3% 9.2% 11.3% 12.5%
116 117
TYPE 2018 2019 2020 2021 2022
TOTAL NUMBER OF EMPLOYEE FATALITIES AS A RESULT OF WORK-RELATED ILL HEALTH

Number of Fatalities 0 0 0 0 0
WORKERS COVERED BY OCCUPATIONAL HEALTH AND SAFETY SYSTEM
Number of all workers (including those who
are not, but workplaces are) covered by the 3,060 2,928 4,190 2,655 3,613
OHS System
Percentage of all workers (including those
who are not, but workplaces are) covered 27% 22% 26% 18% 14%
by the OHS System
WORK-RELATED INJURIES FOR ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK OR WORKPLACE
IS CONTROLLED BY THE ORGANIZATION
Rate of Recordable Work-Related Injuries 0 0 0 0 0
Number of Recordable Work-Related
0 0 0 0 0
Injuries
Number of high-consequence work-related
0 0 0 0 0
injuries (excluding fatalities)
Rate of Recordable Work-Related Ill Health 0 0 0 0 0
Number of Recordable Work-Related
0 0 0 0 0
Ill Health
PRODUCTS AND SERVICES
Percentage of products and services
for which health and safety impacts 100% 100% 100% 100% 100%
are assessed (%)
BUSINESS SUSTAINABILITY
BUSINESS PERFORMANCE
Revenue (AED million) 22,893 21,337 16,132 20,921 32,111
Net Profit (AED million) 2,128 2,218 2,432 2,252 2,748

Total assets (AED million) 15,542 15,026 12,404 13,779 7,820
Total Equity (AED million) 3,588 3,749 3,477 3,202 3,445
118 119
LOOKING
FORWARD
ADNOC Distribution remains efficiency, emissions reduction, and Our goals continue to focus on
committed to integrating sustainability cleaner fuel initiatives, further proving maximizing our resources while
across its business in 2023 and its dedication to Sustainable Growth. nurturing our people and transitioning
beyond by engaging with our internal We are constantly working towards to a more climate-resilient operation. BUSINESS
and external stakeholders while transitioning the global energy The additional strategic objectives SUSTAINABILITY
assessing material performance and industry - and energy distribution are aligned with the global and
impacts across environmental, social, - to more innovative, efficient, and national agendas on climate WORKFORCE Develop new product portfolios
and governance. We aim to remain cleaner sources. change while transitioning toward a DIVERSITY AND to ensure the continued success
the leading fuel and convenience low-carbon economy. DEVELOPMENT of ADNOC Distribution services
retail operator in our cities and The Company has launched its and operations
Increase the number of Emirati
communities. Decarbonization Roadmap to reduce Our priority programs for the years Ensure ADNOC Distribution Board
and female employees in
Scope 1 and 2 emissions intensity by ahead, in line with our Strategic HEALTH, SAFETY, of Directors receive sustainability
our organization
Looking ahead, the Company is 25% by 2030. Sustainability Framework, include but AND SECURITY training and development to ensure
committed to adopting energy are not limited to the following: Develop new training and prioritization on ESG topics
professional development Continue achieving our zero-
programs catering to new fatality performance target Launch of ADNOC Distribution’s
innovative topics (e.g., across our operations Integrated Management System
alternative energy, AI) (IMS) focusing on integrating all
CLIMATE, EMISSIONS, LOCAL ECONOMIC Adopt leading security practices the functional business processes
AND ENERGY ENVIRONMENT AND SOCIAL and technologies to protect in line with the leading industry
Align with global and national
CONTRIBUTION our digital and physical assets, practices and ISO Standards,
Continue preserving the including customer data
targets on Net zero emissions including ISO 14001 Environmental
natural environment of the new Enhance the contribution
Standards and ISO50001 Energy
Update organization-wide communities we plan to expand to of ADNOC Distribution
Management Standards.
emissions reductions targets towards local corporate social
Continually align our
responsibility programs
Launch of Decarbonization environmental practices with
Roadmap to reduce 25% Scope 1 leading standards to mitigate any Provide suitable employment
and 2 emissions by 2030. adverse impacts for highly qualified, competent
individuals from a wide range
ADNOC Distribution is the first UAE The Company is 100% compliant
of backgrounds
Fuel Retailer to convert a USD 1.5 with Abu Dhabi’s Single Use
billion term loan into a Sustainability Plastic Ban Policy.
Linked Loan committing to GHG First UAE Company to
Reduction per site and adoption comply with the UAE’s new
of renewable energy sources for Gasoline Standard (Euro 5/6
own consumption. Emissions Standard).
120 121
GRI
CONTENT INDEX
Statement of use ADNOC Distribution has reported the information cited in this GRI content index DISCLOSURE PAGE NUMBER(S), LINK, OR ALIGNMENT WITH ADX ESG
for the period from 1January 2022 to 31 December 2022 with reference to the DIRECT ANSWER DISCLOSURE GUIDANCE
GRI Standards.
2-18 Evaluation of the performance Our Corporate Governance
GRI 1 used GRI 1: Foundation 2021 of the highest governance body
2-19 Remuneration policies Sustainability-related Compensation and G3. Incentivized Pay
Incentive Schemes
DISCLOSURE PAGE NUMBER(S), LINK, OR ALIGNMENT WITH ADX ESG 2-20 Process to determine Committees
DIRECT ANSWER DISCLOSURE GUIDANCE the remuneration
2-21 Annual total compensation ratio Diversity and Equal Opportunity, Closing S1. CEO Pay Ratio
GRI 2: General Disclosures 2021
the Gap
The organization and its reporting practices
Business Ethics and Integrity Corporate Governance and G5. Ethics and Prevention
2-1 Organizational details About ADNOC Distribution Business Ethics of Corruption
2-2 Entities included About the Report G7. Sustainability Reporting Data Privacy Policy and Systems Data Privacy Policy and Systems G6. Data Privacy
in the organization’s
Strategy, policies, and practices
sustainability reporting
2-22 Statement on sustainable Our Sustainability Strategic Framework
2-3 Reporting period, frequency, and About the Report G8. Disclosure Practices
development strategy
contact point
2-23 Policy commitments Governance driven by our Core Values
2-4 Restatements of information Restatements of water consumption
and discharged data for the years 2020 2-24 Embedding Governance driven by our Core Values
and 2021 policy commitments
ADNOC Distribution regularly conducts
2-5 External assurance ADNOC Distribution may seek to obtain G9. External Assurance awareness training, sends frequent emails,
the same for future reports to enhance its and ensures the availability of policy
data reliability and stakeholder confidence. documents internally.
Activities and workers 2-25 Processes to remediate Reporting Mechanism
2-6 Activities, value chain, and other Our Business negative impacts
business relationships 2-26 Mechanisms for seeking advice Reporting Mechanism
2-7 Employees ESG Performance Data S5. Temporary Worker Ratio and raising concerns
2-8 Workers who are not employees ESG Performance Data 2-27 Compliance with laws Compliance Investigations Policy
Governance and regulations
2-9 Governance structure About the Board of Directors, Committees, 2-28 Membership associations American Petroleum Institute (API),
and composition Governance on ESG International Air Transport Association
(IATA), Joint Inspection Group (JIG),
2-10 Nomination and selection of the About the Board of Directors
International Association for Stability,
highest governance body
Handling and Use of Liquid Fuels (IASH)
2-11 Chair of the highest About the Board of Directors
Human Rights Human Rights S10. Human Rights
governance body
Stakeholder engagement
2-12 Role of the highest About the Board of Directors, Stakeholder E8. Environmental Oversight
governance body Engagement 2-29 Approach to Stakeholder Engagement
G2. Board Independence stakeholder engagement
2-13 Delegation of responsibility for Governance on ESG E9. Environmental Oversight 2-30 Collective bargaining NA
managing impacts agreements
2-14 Role of the highest governance Governance on ESG E8. Environmental Oversight GRI 3: Material Topics 2021
body in sustainability reporting 3-1 Process to determine Materiality Assessment Methodology
2-15 Conflicts of interest Conflict of Interest Policy material topics
2-16 Communication of Reporting Mechanism
critical concerns
2-17 Collective knowledge of the Our Corporate Governance
highest governance body
122 123
DISCLOSURE PAGE NUMBER(S), LINK, OR ALIGNMENT WITH ADX ESG DISCLOSURE PAGE NUMBER(S), LINK, OR ALIGNMENT WITH ADX ESG
DIRECT ANSWER DISCLOSURE GUIDANCE DIRECT ANSWER DISCLOSURE GUIDANCE
3-2 List of material topics Materiality Assessment Methodology 206-1: Legal actions for anti- Anti-Competitive Behavior
competitive behavior, anti-trust, and
For 2022, ADNOC Distribution
monopoly practices
leveraged the materiality outcomes for
ENERGY
the materiality assessment exercise
conducted in 2021. GRI 3 Material Topics 2021
ECONOMIC PERFORMANCE 3-3 Management of material topics Energy E7. Environmental Operations
GRI 3 Material Topics 2021 GRI 302: ENERGY 2016
3-3 Management of material topics Economic Performance 302-1 Energy consumption within Our Energy Achievements E3. Energy Usage
the organization
GRI 201: ECONOMIC PERFORMANCE 2016 E5. Energy Mix
201-1 Direct economic value Financial Performance 302-3 Energy Intensity Our Energy Achievements E4. Energy Intensity
generated and distributed
WATER and EFFLUENTS
201-2 Financial implications and Sustainable Growth
GRI 3 Material Topics 2021
other risks and opportunities due to
climate change 3-3 Management of material topics Water
PROCUREMENT PRACTICES GRI 302: WATER and EFFLUENTS 2018
GRI 3 Material Topics 2021 303-1 Interactions with water as a Water

shared resource
3-3 Management of material topics Procurement Practices G4. Supplier Code of Conduct
303-2 Management of water Water E6. Water Usage
GRI 204: PROCUREMENT PRACTICES 2016
discharge-related impacts
204-1: Proportion of spending on In-Country Value (ICV), E7. Environmental Operations
local suppliers Procurement Practices 303-3 Water Withdrawal Water, ESG Performance Data
ANTI-CORRUPTION 303-4 Water Discharge Water
GRI 3 Material Topics 2021 303-5 Water Consumption Water E6. Water Usage
3-3 Management of material topics Anti-Corruption G4. Supplier Code of Conduct BIODIVERSITY
G5. Ethics and Prevention GRI 3 Material Topics 2021

of Corruption 3-3 Management of material topics Biodiversity
GRI 205: ANTI-CORRUPTION 2016 GRI 304: BIODIVERSITY 2016
205-1: Operations assessed for risks Countering Fraud and Corruption 304-1: Operational sites owned, Biodiversity
related to corruption leased, managed in, or adjacent
205-2: Communication and training Personnel Training and Communication to, protected areas and areas of
about anti-corruption policies and high biodiversity value outside
procedures Supplier and Partner Code of Ethics protected areas
205-3: Confirmed incidents of Reporting Mechanism EMISSIONS

corruption and actions taken GRI 3 Material Topics 2021
ANTI-COMPETITIVE BEHAVIOR 3-3 Management of material topics Managing Emissions
GRI 3 Material Topics 2021 GRI 305: EMISSIONS 2016
3-3 Management of material topics Anti-Competitive Behavior 305-1 Direct (Scope 1) Managing Emissions E1. GHG Emissions
GRI 206: ANTI-COMPETITIVE BEHAVIOR 2016 GHG emissions
305-2 Energy indirect (Scope 2) Managing Emissions E1. GHG Emissions
GHG emissions
305-4 GHG emissions intensity Managing Emissions E2. Emission Intensity
124 125
305-5 Reduction of GHG emissions Managing Emissions, ADNOC GRI 401: EMPLOYMENT 2016
Distribution’s Sustainability Journey
401-1: New employee hires and Employee Turnover, S3. Employee Turnover
to Net zero, GHG Emission Intensity
employee turnover ESG Performance Data
Reduction Roadmap
401-2 Benefits provided to full- Employee Benefits
305-6: Emissions of Managing Emissions
time employees that are not
ozone-depleting substances
offered to either temporary or
305-7 Nitrogen oxides (NOX), sulfur Managing Emissions part-time employees
oxides (SOX), and other significant
401-3: Parental Leave ESG Performance Data
air emissions
LABOR/MANAGEMENT RELATIONS
WASTE
3-3 Management of material topics Labor Management Relations
3-3 Management of material topics Waste
GRI 402: LABOR/MANAGEMENT
GRI 306: WASTE 2020 RELATIONS 2016
306-1: Waste generation and Waste 402-1 Minimum notice periods Employee Turnover
significant waste-related impacts regarding operational changes
306-2: Management of significant Waste OCCUPATIONAL HEALTH and SAFETY
waste-related impacts
306-3: Waste generated Solid Waste Generated
3-3 Management of material topics Occupational Health and Safety S8. Global Health and Safety
ENVIRONMENTAL COMPLIANCE
GRI 403: OCCUPATIONAL HEALTH and SAFETY 2018
403-1 Occupational health and Occupational Health and Safety
3-3 Management of material topics Environmental Policy, Management E7. Environmental Operations safety management system
Systems, and Compliance
403-2 Hazard identification, Hazard Identification and Risk Assessment
GRI 307: ENVIRONMENTAL COMPLIANCE 2016 risk assessment, and
307-1: Non-compliance 0 incident investigation
with environmental laws 403-3 Occupational health services Employee Assistance Program
and regulations
403-4 Worker participation, Training and Awareness of Health, Safety,
RENEWABLES/CLEAN TECH consultation, and communication on and Environment
Material Topics 2021 occupational health and safety
3-3 Management of material topics Commitment to Clean Energy, ADNOC 403-5 Worker training on Emergency Preparedness and Response
Distribution’s Sustainability Journey occupational health and safety
to Net zero, GHG Emission Intensity Training and Awareness of Health, Safety,
Reduction Roadmap and Environment
SPILLS 403-6 Promotion of worker health Training and Awareness of Health, Safety,
and Environment
Material Topics 2021
403-7 Prevention and mitigation Hazard Identification and Risk Assessment
3-3 Management of material topics Oil Spill Response
of occupational health and
CLIMATE RISK MITIGATION safety impacts directly linked by
Material Topics 2021 business relationships
3-3 Management of material topics Climate and Mitigating Climate Risks E10. Climate Risk Mitigation
EMPLOYMENT
3-3 Management of material topics Employment
126 127
403-8 Workers covered by an Hazard Identification and Risk Assessment CUSTOMER HEALTH AND SAFETY
occupational health and safety GRI 3 Material Topics 2021
management system
3-3 Management of material topics Customer Health and Safety
403-9 Type of injury, disease, Hazard Identification and Risk Assessment S7. Injury Rate
GRI 416: CUSTOMER HEALTH AND SAFETY 2016
lost days, absenteeism,
work-related fatalities 416-1: Assessment of the health Customer Health and Safety
and safety impacts of product and
403-10 Work-related ill health Hazard Identification and Risk Assessment
service categories
TRAINING and EDUCATION
416-2: Incidents of non-compliance Customer Health and Safety
GRI 3 Material Topics 2021 concerning the health and safety
3-3 Management of material topics Training and Education impacts of products and services
GRI 404: TRAINING and EDUCATION 2016 NATIONALIZATION
404-1 Average hours of training per Training and Education Material Topics 2021
year per employee 3-3 Management of material topics Nationalization S11. Nationalization
404-2 Programs for upgrading Training and Education EMPLOYEE ENGAGEMENT
employee skills and transition
assistance programs
3-3 Management of material topics Employee Engagement
404-3 Percentage of employees ESG Performance Data
receiving regular performance and RISK AND CRISIS MANAGEMENT
career development reviews Material Topics 2021
DIVERSITY and EQUAL OPPORTUNITIES 3-3 Management of Material topics Enterprise Risk and Crisis Management
GRI 3 Material Topics 2021 BUSINESS ETHICS AND INTEGRITY
3-3 Management of material topics Diversity and Equal S1. CEO Pay Ratio Material Topics 2021
Opportunity, Nationalization 3-3 Management of Material topics Corporate Governance and
S2. Gender Pay Ratio
Business Ethics
GRI 405: DIVERSITY and EQUAL OPPORTUNITIES 2016
BOARD OVERVIEW
405-1 Diversity of governance Diversity and Equal S4. Gender Diversity
bodies and employees Opportunity, Nationalization
G1. Board Diversity 3-3 Management of Material topics About the Board of Directors,
NON-DISCRIMINATION Our Corporate Governance
GRI 3 Material Topics 2021 DIGITIZATION
3-3 Management of material topics Non-Discrimination S6. Non-discrimination Material Topics 2021
GRI 406: NON-DISCRIMINATION 2016 3-3 Management of Material topics Digitization and Innovation
406-1 Incidents of discrimination Non-Discrimination

and corrective actions taken
LOCAL COMMUNITIES
3-3 Management of material topics Local Community Impact and Investment
GRI 413: LOCAL COMMUNITIES 2016
413-1 Operations with local Local Community Impact and Investment S12. Community Investment
community engagement,
impact assessments, and
development program
128 129
ABBREVIATIONS
ADNOC Abu Dhabi National Oil Company GHG Greenhouse Gas

ADNOCDIST ADNOC Distribution GRI Global Reporting Initiative
ADX Abu Dhabi Securities Exchange HA Harsh Acceleration
AED United Arab Emirates Dirham HAZID Hazard Identification
AI Artificial Intelligence HAZOP Hazard and Operability Analysis
API American Petroleum Institute HB Harsh Braking
AWS Amazon Web Services HC Hydrocarbon
BCM Business Continuity Management HC Human Capital
BeAAT’s Central Environmental Protection Facility HSE Health, Safety and Environment
BIA Business Impact Analysis HSEIA Health, Safety and Environment Impact Assessment
bn Billion HSEMS Health, Safety, and Environment Management System
BP Business Plan ICAS International Competitions and Assessments for Schools
CAPEX Capital Expenditure ICV In-Country Value
CEO Chief Executive Officer IDD Integrity Due Diligence
CFC(s) chlorofluorocarbons IIRC International Integrated Reporting Council
CFO Chief Financial Officer ILO International Labor Organization
CNG Compressed Natural Gas IMS Integrated Management System
CO2 Carbon Dioxide IPO Initial Public Offering
CO2e Carbon Dioxide Equivalent IPTC International Petroleum Technology Conference
CSR Corporate Social Responsibility ISMS Information Security Management System
DSM Demand-Side Management ISO International Oragnization of Standards
A joint venture between ADNOC Distribution and TAQA
E2GO ISS Institutional Shareholder Services
to operate electric vehicle charging points in UAE
IT Information Technology
EAD Environment Agency Abu Dhabi
IVMS Information Vehicle Management System
EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization
JSA Job Safety Analysis
ECO Energy Conservation Opportunities
KPIs Key Performance Indicators
ELT Executive Leadership Team
KSA Kingdom of Saudi Arabia
EMS Environmental Management System
LCNG Liquified Compressed Natural Gas
ENVID Environmental Impact Identification
LEED Leadership in Energy and Environmental Design
EPA Environmental Protection Agency
LPG Liquified Petroleum Gas
EPS Earnings per share
LTIF Lost Time Injury Frequency
ERM Enterprise Risk Management
M&A Merger and Acquisition
ERP Enterprise Resource planning
m3 Cubic Meter
ESG Environmental, Social and Governance
MFA Multi-Factor Authentication
EV Electric Vehicle
MoIAT Ministry of Industry and Advanced Technology
FTE Full Time Equivalent
MSCI Morgan Stanley Capital International
FTSE Financial Times and the London Stock Exchange
MWh Megawatt Hour
GCC Gulf Cooperation Council
NGV Natural Gas for Vehicles
GDP Gross Domestic Product
130 131
NOX Nitrogen Oxides

ODS(s) Ozone Depleting Substance(s)
OEM Original Equipment Manufacturer
OHS Occupational Health and Safety
OPEX Operating Expenditure
PCI-DSS Payment Card Industry Data Security Standard
PDCA Plan-Do-Check Act
PDP Personal Development Program
PMO Project Management Office
ppm Parts per Million
PV Photo Voltaic
QRA Quantitative Risk Assessment
R&D Research and Development
RCF Revolving Credit Facility
S&P CSA Standards and Poor Corporate Sustainability Assessment
SCA Securities and Commodities Authority
SCR Selective Catalytic Reduction
SDG Sustainable Development Goal
SKUs Stock Keeping Units
SLL Sustainability Linked Loan
SOX Sulphur Oxides
SSEI The Sustainable Stock Exchanges initiative
SVP Senior Vice President
TAQA Abu Dhabi National Energy Company
TCFD Task Force on Climate-related Financial Disclosures
tCO2e Tons on Carbon Dioxide Equivalent
UAE United Arab Emirates
ULG Unleaded Gasoline
UN United Nations
UN SDGs United Nations Sustainable Development Goals
VOC(s) Volatile Organic Compound(s)
VP Vice President
WFE World Federation of Exchanges
132 133

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ENVIRONMENTAL,

adnocdistribution.ae ADNOC Distribution

ABOUT ADNOC DISTRIBUTION 12 WORKFORCE DIVERSITY & DEVELOPMENT 82

We are pleased to bring you the 4th annual Environmental,

Climate, Economic Workforce Health,

1. 2-2 Entities included in the organization’s sustainability reporting

f Opened 68 new stations across the UAE and KSA (42

f Optimized the use of reusable water bottles to eliminate

THROUGH A COHESIVE maximizing our ESG work effectively

WHILE ENSURING THE Future-proofing our business

DATA MONITORING SYSTEM

OUR BUSINESS JOURNEY

2. 2-1 Organizational details

ADNOC Distribution is a well- OUR PRODUCTS AND SERVICE OFFERINGS

2021 40 2 allied retail services like car wash,

We commit to widening our market

PROCUREMENT PRACTICES (LOCAL PROCUREMENT)

3. 2-6 Activities, value chain and other business relationships

f Launched marketing promotions

Execution and Monitoring

Additional sub-committees will be

The Board reviews the sustainability

The Board reviews sustainability

6. 2-22 Statement on sustainable development strategy

IMPACT SDGS ENVIRONMENT 1. CLIMATE, EMISSIONS, AND ENERGY

SOCIAL 3. ECONOMIC AND SOCIAL CONTRIBUTION

5. HEALTH, SECURITY, AND SAFETY

SDG-13 GOVERNANCE 6. BUSINESS SUSTAINABILITY

GOVERNANCE OF KEY OBJECTIVES OF THE COMMITTEE

COMPOSITION OF THE SUSTAINABILITY COMMITTEE EXECUTION AND MONITORING THE FRAMEWORK

MATERIALITY ASSESSMENT METHODOLOGY7

Influence of Stakeholder Assessments and Decisions

f ESG topics identified by global and

Global Reporting Initiatives (GRI), Task Low High

ENVIRONMENTAL PILLAR SOCIAL PILLAR

STAKEHOLDER ENGAGEMENT8 ADNOC DISTRIBUTION

Anti-Corruption Conduct business lawfully, ethically and with integrity,

Through IT modernization, such programs are implemented to

8. 2-29 Approach to stakeholder engagement

Key concerns raised/topics of interest Key concerns raised/topics of interest

Key concerns raised/topics of interest Key concerns raised/topics of interest

f Enhancement of tendering process through regular updates in

f Updating internal guidelines to respond to all supplier queries within

f On-time replies to suppliers during meetings and through

Key concerns raised/topics of interest

f Addition of new station formats utilizing the latest innovative technologies

f Investing in digital solutions to offer greater customer convenience, such as

ALIGNMENT WITH GLOBAL

ABU DHABI ECONOMIC VISION (2030) UN SUSTAINABLE DEVELOPMENT GOALS

DEMAND SIDE MANAGEMENT AND ENERGY

UAE ENERGY STRATEGY 2050 charging stations, low-carbon and

NATIONAL CLIMATE CHANGE PLAN OF THE UAE 2017-2050

ALIGNMENT WITH THE TASK

CORE ELEMENTS OF ADNOC DISTRIBUTION’S CLIMATE CHANGE EFFORTS

GOVERNANCE STRATEGY RISK MANAGEMENT METRICS & TARGETS

DELIVERING RESPONSIBLE GROWTH

231,359 m3 water recycled

OUR BUSINESS MODEL IS DESIGNED TO DELIVER

EMBRACING THE DIGITAL REVOLUTION TO MAXIMIZE

INDEPENDENT DIRECTORS BOARD MEETINGS CONDUCTED

95% 14.28% H.E. Dr. Sultan Ahmed Al Jaber

Khaled Salmeen Mariam Saeed Ghobash Abdulaziz Abdulla Alhajri

BOARD DIVERSITY11 ADNOC DISTRIBUTION’S INTEGRATED GOVERNANCE