Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
ADNOC Distribution has demonstrated significant strides in its Environmental, Social, and Governance (ESG) agenda throughout 2024, as outlined in its comprehensive annual ESG report submitted to the Abu Dhabi Securities Exchange (ADX).
This report not only highlights the company's progress but also underscores its commitment to sustainability as a fundamental aspect of its long-term strategy, signalling an ambition to lead the energy sector's transition towards a lower-carbon future.
The year 2024 was marked by a series of tangible achievements across its six sustainability pillars, reflecting a dedication to transparency and stakeholder engagement.
In the realm of Climate, Emissions, & Energy, ADNOC Distribution achieved notable success with 100% of its UAE fleet operating on biofuels, leading to a substantial annual emissions reduction. All energy supplied for electric vehicle (EV) chargers is now derived from clean and renewables-based sources, with significant solar photovoltaic energy (5,083 MWh PV) generated from service station rooftops in Abu Dhabi and Dubai.
The company also expanded its EV charging network to 220 fast and super-fast chargers and launched the second phase of its H₂GO pilot green hydrogen refuelling station.
For the Local Environment, initiatives included planting over 25,000 mangrove seeds and collecting more than 5.8 million bottles through Reverse Vending Machines, alongside recording zero negative impacts on biodiversity and consistently conducting HSE impact assessments.
The company's Economic and Social Contribution saw it achieve a 71.4% In-Country Value contribution, alongside reporting its highest EBITDA since IPO at Dh3.86 billion and revenues of Dh35.45 billion. Investment in CSR initiatives was substantial, and the expansion of retail fuel infrastructure continued.
Significant progress was made in Workforce Diversity and Development, with ADNOC Distribution employing a diverse workforce of 77 nationalities and increasing women's representation across various management and STEM roles. The Emiratisation rate surpassed 62%, and extensive training, wellbeing initiatives, and ESG awareness programmes were delivered to employees.
Under Health, Safety, & Security, the company maintained an impressive safety record with zero fatalities and high-consequence work-related injuries, implementing fatigue management systems and conducting numerous HSE audits.
Lastly, in Business Sustainability, an ESG Subcommittee was established at the Board level to embed sustainability into strategic decision-making. The company also secured ISO 22241 certification for ADNOC Blue, successfully met KPIs under its sustainability-linked loan, and enhanced its ESG ratings, leading to inclusion in prestigious ESG-linked indices.
The company’s leadership emphasised the strategic significance of these accomplishments. Eng. Bader Saeed Al Lamki, Chief Executive Officer, ADNOC Distribution, expressed his pride in the "remarkable strides ADNOC Distribution has made in our ongoing commitment to sustainability, innovation, and responsible growth." He specifically highlighted the expansion of the EV charging network, which quadrupled its reach, stating: "This expansion supports the UAE’s transition to cleaner energy and makes sustainable mobility more accessible than ever."
Paula Disberry, Chairwoman of the ESG Subcommittee, ADNOC Distribution, articulated her belief that "sustainability is not just a responsibility—it is an opportunity to drive long-term value for our stakeholders." She underscored that 2024 was "a pivotal year for ADNOC Distribution's ESG agenda,” marked by the establishment of the ESG Subcommittee to integrate risks, opportunities, and stakeholder expectations into business strategies.
Athmane Benzerroug, Chief Strategy, Transformation, and Sustainability Officer, ADNOC Distribution, confirmed the company's advanced sustainability efforts "with a heightened sense of responsibility and a clear path forward.”
He detailed the decarbonisation roadmap, aiming to reduce carbon intensity by 25% by 2030 and accelerate Net Zero by 2045, further adding, "Our focus on sustainable energy has reached new heights with the successful expansion of our hydrogen infrastructure."
