abu dhabi national exhibitions company...

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ABU DHABI NATIONAL EXHIBITIONS COMPANY

SUSTAINABILITYREPORT - 2016

From "good to have"

To "strategic imperative"Sustainability at ADNEC

Contents

ABOUT THIS REPORT .................................................................................................................4

WELCOME ................................................................................................................................................6

CORPORATE PROFILE ........................................................................................................... 11

OUR APPROACH TO SUSTAINABILITY ............................................................ 16

MANAGEMENT .............................................................................................................................. 21

CUSTOMERS ...................................................................................................................................... 26

EMPLOYEES ........................................................................................................................................ 31

SERVICE PARTNERS & SUPPLIERS ......................................................................... 40

COMMUNITY .................................................................................................................................... 44

ENVIRONMENT .............................................................................................................................. 47

LOOKING AHEAD........................................................................................................................ 51

GLOSSARY OF TERMS ........................................................................................................... 52

GLOBAL REPORTING INITIATIVE CONTENT TABLE ........................ 53

This report reflects ADNEC’s commitment towards sustainability and summarized the company's results during the years 2014-2016. The report is consistent with the Global Reporting Initiative’s G4 Sustainability Guidelines at “Core” level.

1.1 ScopeThis report primarily focuses on the material sustainabilityissues concerning Abu Dhabi National Exhibition Centre’s core business in Abu Dhabi.

• For the purposes of this report, we consider material information to be of great interest to, and has the potential to affect our stakeholders.

• Unless otherwise mentioned, the scope of this report covers Abu Dhabi National Exhibition Centre’s operation in Abu Dhabi (providing venue space for exhibitions, conferences, weddings, live events and other specialist events).

• This report does not address other exhibition, conference or hotel activities through other companies within ADNEC Group (Al Ain Convention Centre, ExCeL London, Hyatt Capital Gate Hotel, Aloft Abu Dhabi Hotel or Aloft London ExCeL Hotel and IDEX L.L.C.). There may however be some ad hoc examples used where relevant.

1.2 Materiality AssessmentThe topics within this report have been prioritised according to the results of a materiality assessment conducted as part of the process for defining the 2014 report content. This version (2016) is a continuation to the same analysis and prioritization.

The identified issues were ranked and prioritised based upon their significance to ADNEC and its stakeholders.

Initially, over 50 potential issues were identified, and these issues were then quantitatively analysed by a cross functional team of 12 members. In total, 26 ADNEC employees were consulted including Chiefs, Directors, Managers and Supervisors. The issues were reviewed in terms of three criteria:

• Importance to Abu Dhabi• Importance to ADNEC• Importance to Stakeholders

The 22 material issues that were identified are addressed in terms of priority and referenced in the GRI Index Table at the end of the report. Details of the materiality assessment are set out in Section 4: ADNEC’s Approach to Sustainability.

1. ABOUT THIS REPORT PAGE 4 SUSTAINABILITY REPORT 2016

Chapter: 1. About This Report

Your FeedbackWe welcome your feedback on our sustainability approach and performance.

For further details about any of the information you find within this report, please contact ADNEC’s sustainability team:

Abu Dhabi National Exhibitions CompanyKhaleej Al Arabi StreetP.O. Box 5546, Abu Dhabi, United Arab EmiratesTel: +971 (0) 2 444 6900 Email: [email protected]

PAGE 5 SUSTAINABILITY REPORT 2016

Chapter: 1. About This Report

Welcome to Abu Dhabi National Exhibitions Company’s (ADNEC) third annual sustainability report. This report builds on the success we have achieved since issuing our reports in 2014 and 2015, and aims to further energise ADNEC’s sustainability efforts.

2.1 MESSAGE FROM THE CHAIRWOMAN

2. WELCOME PAGE 6 SUSTAINABILITY REPORT 2016

Chapter: 2. Welcome

Abu Dhabi National Exhibitions Company is committed to the Emirate’s ambition of developing a sustainable knowledge based economy as outlined in Abu Dhabi’s vision. Through a series of world class exhibitions, conferences, and events, ADNEC assists in generating a non-oil economic impact and contributes to Abu Dhabi’s economic growth and diversification. In line with Abu Dhabi’s vision, ADNEC also strives to operate and act as a responsible organization which considers its economic, social and environmental sustainability.

I proudly present to you the ADNEC Sustainability Report 2016. This is our third sustainability report since we started to report according to the Global Reporting Initiative’s “Sustainability Reporting Guidelines” at “Core” level to ensure the highest quality and transparency of information.

2014 witnessed the real start for ADNEC’s sustainability reporting by issuing its first sustainability report in alignment with the GRI reporting principles and concepts. Initially we focused on improving sustainability standards within our venues and facilities and implementing practices of recycling, energy saving and health and safety. During 2015 and 2016 we expanded our sustainability focus towards society and economy by adopting new GRI principles such as legal compliance, fraud scenarios, audit, equality and fairness, financial sustainability, responsible buying, society engagement, image, reputation, employment, emiratization, culture and many others which shifted sustainability at ADNEC from “good to have” to “strategic imperative”.

Sustainability is a journey that reflects our commitment towards future generations. We have the responsibility to ensure we provide them with a better world than the one we are living today.

I personally support ADNEC’s sustainability efforts and I look forward to your continued support.

NOURA MOHAMMED HELAL AL KAABIChairwoman


Chapter: 2. Welcome

2.3 Message from the Group CEO

2.2 MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER


Chapter: 2. Welcome

Greetings from the Abu Dhabi National Exhibitions Company.

Thank you for your interest in the latest edition of the ADNEC Sustainability Report.

This report covers the period from 2014 to 2016 and highlights ADNEC’s positive trends in key areas related to the Global Reporting Initiative (GRI) framework. The report reinforces ADNEC’s commitment towards sustainability principles and practices. To ensure the quality and transparency of information, the report was prepared in compliance with the Global Reporting Initiative’s “Sustainability Reporting Guidelines” at “Core” level.

ADNEC took a decision three years ago to instill sustainability at the core of our corporate strategy. The company has been working relentlessly since then to increase awareness among its stakeholders, to educate its staff and to integrate the most relevant sustainability techniques and best practices into our daily operations. The year 2016 witnessed further improvements in this direction with a wider participation from staff, greater engagement from stakeholders, enhanced documentation and the launching of ADNEC’s new sustainability and CSR strategies and approaches.

Our efforts have been recognised both regionally and internationally. ADNEC received the award for Most Sustainable Exhibition and Conference Venue at the AEO Awards in 2014 and 2015, as well as the Middle East Events Sustainability Award in early 2017. Today, ADNEC has raised the bar and emerged as a regional success model for the implementation of sustainability standards.

I take this opportunity to reaffirm ADNEC’s commitment to operating world-class venues and facilities that support the economic impact of Abu Dhabi in a sustainable manner for years to come.

ADNEC looks forward to your continued support in all our future endeavours, achievements and sustainability initiatives.

HUMAID MATAR AL DHAHERIGroup Chief Executive Officer


Chapter: 2. Welcome

2.3 2016 Highlights

7. Employees

5. Management

8. Service Partners & Suppliers

6. Customers

9. Community

10. Environment

3.4 Economic Impact

Emiratisation rate

60%Employees

199Gender ratio

Females 32%Male 68%

Employee turnover rate

4%

Participation in Employee

Satisfaction Survey

87%

Employee Satisfaction Survey level

75%

Employees received communication on the Code of

Conduct

100%

Whistleblowing incidents

0

Internal Audits conducted

14

Prosecutions for non-compliance

with law and regulations

0

Employees formally

committed to the Code of Conduct

100%

Incident Rate per 100,000 visitors

0.19

Overall Satisfaction

93%

Mystery shopper perception

94%

Customer Complaints Dealt

100%

Cases of fines from respective authorities on

health and safety non-compliances

0

Reduction in incidents related to

contractors

14%

Increase in complex structure checked

during build up

3.6%

Vendors responded to the executive council

requirements

89.7%


0.19

Schools educated about better waste management and

recycling

3

Society perception

90%

Number of society interviews

512

Weight of materials recycled through our

Abu Dhabi School Programme

1,360 kg

Weight of 'Stop & Donate' recycling

materials including the E-Waste

375.7 kg

Weight of materials recycled

676.3 tons

Weight of bio-diesel produced0 gallons

CO2 emission savings from

recycling274.4 tons

Weight of food composting

produced69.2 tons

Electricity consumption19,2 MWh

Chilled water

179,697m3

Number of events organised

480

Total Number of visitors

1.516 million

Number of jobs supported in

U.A.E

18,630

Economic impact (GVA)

AED 3.0 billion

AED


Chapter: 2. Welcome

3.1 ADNEC Group

Abu Dhabi National Exhibitions Company was established in August 2005 with the objective of enhancing the exhibition and conference business within Abu Dhabi. The company plays a vital role in the Emirate’s ambition to become the leading destination for international exhibitions and conferences in the region.

ADNEC Group has evolved continuously to meet the needs and demands of the business tourism opportunities. It consists of several venues and hotels in United Arab Emirates and United Kingdom including Abu Dhabi National Exhibition Centre, Al Ain Convention Centre, Capital Gate, Hyatt Capital Gate Hotel, Aloft Abu Dhabi Hotel, ExCeL London, Aloft London ExCeL Hotel and IDEX LLC.

Abu Dhabi National Exhibition Centre

Al Ain Convention Centre

ExCeL London

3. CORPORATE PROFILE PAGE 11 SUSTAINABILITY REPORT 2016

Chapter: 3. Corporate Profile

3.2 Management Structure

The below chart depicts ADNEC’s management structure, which describes the way ADNEC operates and utilises the necessary resources to achieve organisational goals and business objectives.

BOARD OF DIRECTORSChairwoman H.E. NOURA MOHAMMED AL KAABI

ExCeL Board of DirectorsGroup CEOHumaid Al Dhaheri

Chief Operations OfficerChief Commercial Officer Chief Financial Officer

ExCeL CEO

Group Chief Strategy & Financial Officer

Audit Committee

Head of Internal Audit

Chief Operations Officer

Chief Financial OfficerChief Commercial

OfficerDirector – IDEX

Director - Venue Operations

Director of Venue Services

Director - Human Resources

Director – Sales (Exhibitions)

Human Resources Strategic Advisor

General Counsel

Manager – Business Development

Director - Sales(Conf & Event)

Head of Venue Development

Director - Finance

Director of Strategy Management& Excellence

Director - Marketing

Head of Procurement

Director - Protocol& Government

Senior ManagerCommercial

Director - Event Planning

Director - IT

Head of Sales

Head of Operations

Head of Communications

Manager - Conferences

Manager - Marketing

Board of Directors ExCeL Board of Directors

Group Chief Strategy and Finance Officer

Audit Committee

Group Chief Executive Officer ExCeL CEOHead of Internal Audit

Director - FM

Director - Ancillary Services

Director - AACC

Director of Capital Hospitality

Manager - Health & Safety



3.3 Our Vision, Mission and Values

ADNEC’s strength comes from championing and implementing its vision and goals across the whole company.

VisionTo become the leading events destination for renowned international exhibitions and conferences in the MENA region.

MissionTo increase business tourism for Abu Dhabi through creating a platform that enables event organizers to realize their goals of connecting people via world-class events and venues and delivering best-in-class services to exceed stakeholder expectations

Values Our four values shape the culture of our company and guide us in everything we do. They steer our behaviours, inspire work accountability and guide how we behave and how we make decisions.

WE partner with stakeholders, we value their opinions and work with them as one team

WE act with integrity and value all our employees and stakeholders

WE share information to enable knowledgeable business decisions

WE enable our employees and equip them with a motivating working environment, opportunities, a rewarding professional experience and respect

WE aim for perfection

WE are committed to growing our business and exceeding stakeholders expectations

WE believe in continuous improvement

WE aim to lead the region and be the “choice”

WE encourage and adopt creative thinking

WE support innovative and creative ideas

WE reward creativity

WE find solutions and welcome suggestions

WE are agile and flexible

WE take informed risks and champion new ideas

WE put our heart into it

WE are committed and dedicated

WE enjoy and have fun at what we do

WE make people happy

WE exceed expectations and delight stakeholders

WE are self-motivated

WE believe in sustainable growth and Emiratisation

WORK TOGETHER

STRIVE FOR EXCELLENCE

CREATIVE & INNOVATIVE

PASSIONATE ABOUT WHAT WE DO



3.4 Economic Impact

As a public joint stock company owned by the Government of Abu Dhabi, ADNEC plays an essential role in helping the Emirate to achieve its long term goals of economic growth and diversification. Through a series of world class exhibitions, conventions and events, ADNEC assists in growing the business tourism (MICE sector) and generating non-oil related economic impact.

The key metric used for measuring ADNEC’s economic impact is the gross value added (GVA), which is equivalent to GDP adjusted for taxes and subsidies.

The economic impact calculation depends on key variables and parameters like number of visitors, type (domestic and international), length of stay, average spend, services and goods involved, hotels and airline etc. The model considers various types of affected sectors like wholesale, retail trade, repairing services, restaurants and hotels, transport, storage and communication.

Other parameters that we also measure as part of our economic impact formula is the number of jobs supported in UAE, hotel room nights generated through our hosted international exhibitions and conferences and finally the economic output generated.

Internally, ADNEC has built a robust strategic and financial management mechanism that supports the decision making process and generates regular reports, both internally and externally:

• Monthly financial reports. These reports circulate internally, cover the growth and costs and are audited by the internal audit department according to the methodologies of Abu Dhabi Accountability Authority (ADAA) and externally, through consulting firms appointed officially by ADAA.

• Quarterly corporate performance reports (strategy execution). They include information on financials, internal processes, customers and internal learning and growth perspectives. These are developed in house by the strategy department and are issued to ADNEC Leadership and the Board of Directors.

Gross Value Added AED Billion (even years)

2012 2014 2016

3.002.76

2.34

Gross Value Added AED Billion (odd Years)

2011 2013 2015

3478

2518

2473

Hotel room nights generated

2014 2015 2016

528,639522,334

430,102

Jobs supported in UAE (2016)

DirectIndirect TotalIncluded

1674

6041

9129

16,844

Jobs supported by ADNEC activities

18,630

14,502

2015 20162014

16,844

2015 number is due to IDEX which is conducted bi-annually .



ADNEC believes in continuous improvement and excellence, and aims to continually provide the highest standards for services and products

3.5 Awards and Achievements

ADNEC believes in continuous improvement and excellence. The company started its excellence journey 6 years ago and aims to continually provide the highest standards of services and products. ADNEC’s efforts have been recognized externally and the company has won several awards for its achievements and results.

2016 AWARDS • Europe's Leading Meetings & Conference Center –

World Travel Awards

• Event Caterer of the Year – Cateys Food Services Awards 2016

• Best UK Conference Center – C&IT Awards

• Best Conference Venue - London Venue Awards

This is in addition to other awards achieved in previous years:

Sustainability Awards• AEO Awards 2014 and 2015

• Middle East Event Awards 2011: Outstanding Contribution to Sustainability

• UAE Ministry of Economy 2011: Recognition for Supporting and Enhancing the National Economy

• Middle East Event Awards 2010: Green Award

UAE Excellence awardsSheikh Khalifa Excellence Award 2012: Gold Award



4.1 Integrating Sustainability

4.2 Sustainability Champions

In order to institutionalise sustainability within ADNEC and to gradually adopt this cultural shift, ADNEC leadership represented by its executive committee created an internal sustainability committee chaired by the GCEO to lead the efforts and ensure proper execution of internal initiatives.

Additionally, ADNEC has developed a sustainability team supported by CSR and ADNEC Green Team.

4.3 Materiality Assessment

To ensure that content of this sustainability report reflects ADNEC’s most material issues, the core sustainability team conducted a materiality assessment.

The assessment process involved individual assessment, quantitative assessment and group discussions.

We identified a list of potential issues based on the following sources:• Specific discussion with ADNEC’s senior management• Stakeholder views and feedback based on stakeholder

workshops and organiser survey feedback• Communication from Executive Council regarding specific

trends or areas of focus Potential issues were then prioritised and rated according to:• Importance for Abu Dhabi• Importance for ADNEC• Importance for our Stakeholders

Importance for Abu Dhabi means: Abu Dhabi’s Leadership, represented by Executive Council, focuses on this topic and has issued clear directions to governmental institutions towards increasing the interest of this topic. This can be done through the Executive Council circulars or verbal directions during meetings and workshops, or through public interviews.

Importance for ADNEC means: • This topic is part of ADNEC’s Strategy plan either as an

objective or an initiative • If we don’t focus on this topic, we won’t be able to achieve

our long-term goals and objectives • There has been financial allocation within ADNEC’s annual

budget to execute activities related to this topic • ADNEC’s senior management continuously focuses on this

topic

Importance for Stakeholders (Organisers, PCOs, suppliers, employees) means:• This topic is important for our organisers (in case of

exhibitions) and for Professional Congresses Associations (PCOs - in case of conferences)

• The more we focus on this, the more able we are to attract exhibitions or conferences

• This topic is important to suppliers, employees, subcontractors etc.

• This topic is significant for business growthTo ensure comparability and build trends, our materiality assessment has remained the same since 2014. Based on the assessment, we applied a scoring methodology to rate each issue and position each issue in a materiality matrix, using a scale of 1-5, with any issue scoring a total score of 10 or more being included in this report.

To sustain growth and to act in a more responsible way; ADNEC is intensifying its efforts to institutionalize sustainability at the heart of its strategy. The company is shifting its way of managing sustainability from “good to have” to “strategic imperative”. To achieve this, it has:

• Developed a sustainability policy.

• Enhanced its reporting framework

• Identified clearer team responsibilities

• Developed a strategic theme for sustainability as part of the company's strategy map

• Developed a detailed CSR Strategy which will be expanded to be a sustainability strategy in 2017

• Developed and documented a detailed CSR approach (methodology) which will be further expanded

• To develop a more comprehensive sustainability approach in 2017

Case StudySustainability at ADNEC:from “good to have” to “strategy”

4. OUR APPROACH TO SUSTAINABILITY PAGE 16 SUSTAINABILITY REPORT 2016

Chapter: 4. Our Approach To Sustainability

This matrix has been presented to and approved by ADNEC’s senior leadership team.Materiality Matrix

Importance for Abu Dhabi*

Importance for ADNEC*

Importance for Stakeholders* Total

MANAGEMENT 1 Governance 4 4 3 11

2 Methods 3 3 3 9

3 Legal Compliance 5 5 5 15

4 Investments 1 2 1 4

5 Financial Impact 4 4 4 12

6 Business Continuity 4 4 4 12

7 Indirect Economic Impact 4 4 4 12

8 Grievance Mechanisms 1 1 1 3

9 Anti-Corruption 4 4 4 12

EMPLOYEES10 Job Positions 2 4 1 7

11 Training & Development 3 4 3 10

12 Diversity & Equal Opportunity 3 4 3 10

13 Occupational Health & Safety 5 5 5 15

14 Human Rights 4 4 4 12

15 Work Arrangements 2 2 2 6

16 Emiritisation 5 5 1 11

17 Child and Forced Labour 1 1 1 3

SERVICE PARTNERS & SUPPLIERS18 Responsible Buying 4 3 2 9

19 Operational Support 2 2 1 5

20 Sustainability Awareness 3 5 2 10

21 Supplier Environmental Assessment 3 5 2 10

CUSTOMERS22 Responsible Communication 4 4 2 10


24 Health, Safety & Security 5 5 5 15

25 Product/Service Quality 3 4 5 12

26 Service Labelling 1 1 1 3

COMMUNITY27 Positive Support 4 5 3 12

28 Negative Impact 4 5 3 12


30 Minority Support 1 1 1 3

ENVIRONMENT31 Materials 4 5 4 13

32 Energy 5 5 4 14

33 Atmospheric Emissions 3 1 1 5

34 Water 5 5 4 14

35 Biodiversity 3 1 1 5

36 Transportation 2 1 1 4

37 Compliance 2 1 1 4

* Scale used is 1-5



4.4 Stakeholder Engagement

We contribute to the Emirate’s economic diversity by hosting and developing international and local events and we aim to increase the number of international and regional visitors attending these events. To do so, we partner and collaborate with different stakeholders and partners both locally and internationally. Stakeholders are defined as all those who are, directly or indirectly, associated, or are affected by our activities. For example, at local level ADNEC works closely with Abu Dhabi Tourism and Culture Authority, while internationally we partner with renowned organizers to develop international exhibitions and congresses.

Since 2015, ADNEC is classifying its stakeholders as per the classification of the European Foundation for Quality Management (EFQM) as it is described below in ADNEC’s stakeholders’ wheel.

ADNEC's Stakeholders’ Wheel

l Local Community Associations & NGOs

l Local Community

l Office Tenant

l Events Patrons

l Hotels Operators Aloft and Hyatt

l Agility

l Department of Finance

l Crown Prince Court

l Executive Offce

l Central Intelligence Department

l General Headquarter

l Abu Dhabi Police l Executive Council

l Abu Dhabi Tourism & Culture Authority

l Organisers

l Conference Associations

l Professional Conference Organisers PCOs

l Exhibitors l Vendors

l Service Providers

l Contractors

l Subcontractors

l Consultants

l Department of Transport

l Employees

l Delegates

l Visitors

STRATEGIC PARTNERS

OPERATIONAL PARTNERS

CUSTOMERS

SOCIETY

EMPL

OYE

ES

SUPPLIERS



ADNEC Value Chain and Business Model Diagram

Events Patrons

Support

Enablers

Supplier Buyer

Customer 1 Customer 2

Customer 3

Logistics Department of Transport,

Abu Dhabi International Airport, Transport Providers

(Etihad Airways)

Abu Dhabi GovernmentTourism & Culture Authority, Executive Council, Department

of Finance, Crown Prince Court, Abu Dhabi Municipality, AI Ain Municipality, Abu Dhabi Police, Abu Dhabi Media

Company (ADM), General Headquarter, Central Intelligence Department

Event at ADNEC

Organiser

Association/ PCO

Exhibitor

Association/ PCO

Visitor

Delegate

Local Community

Supplier

Event Cycle

Organiser

Board of Directors

Hotel Operators Service Partners Employees

Stakeholders engagement workshops



4.5 Sustainability Memberships

The Abu Dhabi Sustainability Group (ADSG) promotes sustainability management within Abu Dhabi through learning and knowledge sharing opportunities. Its scope covers government, private and not for profit organization. ADSG's approach is collaborative and dialogue driven.

ADNEC officially joined ADSG in 2012, and since then we have actively participated in a number of development workshops, knowledge sharing session, training and best practices workshops. Additionally, since early 2015, ADNEC has been represented in the Facilitation and Coordination Committee which reports directly to the ADSG Management.

Abu Dhabi Sustainability Group (ADSG)

ADNEC is a member of the UFI Sustainability Development Committee which was formally established in 2008 to support UFI as it focuses on the issue of Sustainable Development in the Exhibition Industry.

ADNEC was one of six members who actively helped the UFI Sustainability Development Committee create the Sustainability Reporting Framework for the exhibition industry.

UFI Sustainability Development Committee

An Abu Dhabi Government initiative, ADSW is the ground-breaking global forum that unites thought leaders, policy makers and investors to address the challenges of renewable energy and sustainable development.

ADNEC as a venue and services provider is proud to work closely with Masdar (the key owner of this event) to make ADSW and its World Future Energy Summit as the largest gathering on sustainability in the Middle East.

Abu Dhabi Sustainability Week (ADSW)



The areas which have particular relevance to sustainability include:

Board of DirectorsThe Board of Directors has overall responsibility for the leadership and performance of ADNEC and consists of the following members:

ADNEC Board of Directors

Name Role Executive Member Independent Member

Her Excellency Noura Mohammed Helal Al Kaabi Chairwoman Χ √

Saif Saeed Ahmed Ghobash Board Member Χ √

Mohammed Najm Al Qubaisi Board Member Χ √

DR. Omniyat Mohammed Al Hajeri Board Member Χ √

DR. Yousif Al Sheryani Board Member Χ √

Ali Murshed Al Marar Board Member Χ √

Hareb Mubarak Abdullah Al Muhairi Board Member Χ √

* Data as of 31/12/2016

Formal Policies and ProceduresA clear and comprehensive Delegation of Authorities manual in addition to formal Policies and Procedures manual.

Internal ControlA system of internal controls ensures we comply with laws and regulations, properly account for all transactions and safeguard our assets against improper or unauthorised use.

Risk AssessmentA documented risk profile is maintained and regularly updated with management resources allocated for the identification, assessment, and appropriate treatment of business risks.

ADNEC has realized that it is imperative to follow a management approach based on the principles of transparency and business ethics. ADNEC ensures that its approach is vital not only to enhance its corporate reputation and develop its business, but to also build trustworthy relationships with different stakeholders and considers consistent value creation for all of them.

5.1 GovernanceADNEC is committed to high standards of corporate governance. ADNEC enhanced its Corporate Governance Manual which documents the corporate governance policies and procedure of the company. It also serves as a means of defining and clarifying the responsibilities associated with all personnel responsible for originating and processing documents and records pertaining to the Board and its committees. It also provides management with a clear and comprehensive governance framework.

Board Committees

Management Committees

Executive Committee

Strategy Management & Excellence Committee

Health & Safety Committee

Sustainability Committee

Exhibitions Committee

Audit CommitteeBoard of Directors

Group CEO

COO

CCO

CFO Recruitment Committee

5. MANAGEMENT

Prosecutions for non-compliance with law and

regulations

0

Employees formally committed to the Code

of Conduct

100%

Employees received communication on the

Code of Conduct

100%

Whistleblowing incidents

0

Internal Audits conducted

14


Chapter: 5. Management

5.2 Legal Compliance

5.2.1 Internal AuditADNEC has an Internal Audit function that helps to improve performance and promote accountability and transparency across the business by providing independent and objective assurance and advisory services. The Internal Audit function has the following roles:

• Reports directly to the Chairman of the Audit Committee with full time internal audit employees at both ADNEC and ExCeL London.

• It is subject to the periodic review by the Abu Dhabi

Accountability Authority (ADAA), which is an independent body established under Law No. (1) for the year 1985 mandated to perform financial oversight on funds disbursed by public entities and ensure the accuracy and legitimacy of these funds.

• Reviews its internal controls, including financial, operational, compliance controls and risk management to ensure practices are in line with best practice, laws, rules and regulations that follow international standards.

Internal Audits

Year 2012 2013 2014 2015 2016

Number of Internal Audits conducted 11 9 12 9 14

In addition, ADNEC has established an independent whistle-blowing mechanism, through which all stakeholders and employees can raise concerns. This was launched in December 2014 with no reports recorded to date. The current mechanisms include communication through email and telephone, which are directed to an external independent third party.

Concerns are anonymous, confidential and are forwarded by the independent third party to both the Head of Internal Audit and the HR Director who process it as per the documented compliance charter. A committee is formed consisting of IA, HR and Legal affairs where necessary to steer the investigation.ADNEC is also subject to external audit of its consolidated financial reports which ensures the accuracy of the financial reports and compliance with relevant laws, regulations and governance guidelines.

5.2.2 Fraud Scenario ADNEC initiated a Fraud Scenario Assessment (FSA) project as part of management’s objective to strengthen the organisation’s fraud risk management framework. The FSA’s objective is to identify, evaluate and manage fraud, corruption and misconduct. It also provides a common understanding of fraud and raises awareness across the organisation on the definitions of fraud, as well as the controls for prevention, detection and response.

ADNEC’s management responded to the FSA report with an action plan of activities to enhance existing controls andintroduce additional controls that are needed to mitigate fraud risks to an acceptable level.

Additionally, ADNEC staff is asked to sign an annual declaration of compliance to our fraud control policy, the form is circulated by the HR department and signed by every employee.

A sample of ADNEC declaration of compliance to fraud control policy form



5.2.3 Code of Conduct and Business EthicsADNEC has implemented a Code of Conduct and Business Ethics, in order to safeguard business and professional ethics. This code forms part of our Standard Operating Procedures. This framework ensures that ADNEC continues to uphold the highest standards of ethical behaviour in all business activities inside and outside UAE.

The code applies to all ADNEC’s employees at all levels, including employees on a temporary or outsourced basis. It is also applicable to employees who are seconded to other entities.

The document's scope covers: compliance with laws, rules and regulations, protection of environment, employment, harassment and the disciplinary policy.

The government regulations chapter covers: General Compliance, Occupational Health and Safety, Fraudulent Activities, Supplier and Consultant Screening, Intentional Misconduct, Media and Public Relations, Conflict of Interest, Conflict of Commitment, Business Gifts & Hospitality, Protection of Organisation’s Assets, Usage of Communication Methods.

Compliance

Describtion 2014 2015 2016Percentage of employees the code of conduct has been communicated to 100% 100% 100%

Percentage of employees formally committed to the code of conduct by signing it 100% 100% 100%

Number of prosecutions against ADNEC for non-compliance with law and regulations 0 0 0

Amount of fines for non-compliance with laws and regulations 0 0 0

Number of non-monetary sanctions for non-compliance with laws and regulations 0 0 0

As a result of our practices, there were no recorded incidents of corruption within 2014, 2015 or 2016 or pending lawsuits related to corruption, while no relevant fines or sanctions were imposed by the respective authorities.

5.3 Business Continuity

ADNEC has built an internal business continuity approach based on the key requirements of the National Emergency Crisis and Disasters Management Authority (NCEMA). The key objective of this approach is to establish procedures that will ensure that ADNEC maintains its critical business activities and services in case of emergency, crisis, disaster or any other interruptions.

5.3.1 ApproachADNEC documented a set of procedures that meet those requirements, including business continuity methodologies with clear roles and responsibilities, as well as a risk management heat map that is integrated with ADNEC’s risk register. ADNEC conducted a business impact analysis for all sectors within the business continuity scope. Based on the results of the business impact analysis, an action plan was developed to ensure proper management of risks impacting ADNEC’s business continuity.



5.3.2 Risk AssessmentThe Business Continuity Risk Management framework ensures that a common risk management approach has been implemented to identify and manage ADNEC’s operational risks.

ADNEC’s risk management strategy has been developed in accordance with ISO 22301 and AE/HSC/NCEMA 7000 requirements. The scope of ADNEC’s risk management activities includes the following:

• Identifying and analysing the business continuity risks• Analysing the technology risks that can affect the continuity of business• Assessing risks to people• Assessing risks to critical processes• Assessing risks to the premises as mentioned in the business continuity management scope document

5.3.3 Business Impact Analysis The business impact analysis is a formal, documented, evaluation process for determining continuity and recovery priorities, objectives and targets. This includes assessing the impacts of disruption to activities that support ADNEC’s business services. All our relevant documentation (approaches, procedures, strategies, and others) have been enhanced during 2016 based on the recommendations of our EFQM assessment exercise.

From the information gathered, a comprehensive assessment and analysis of business activities was undertaken, as well as an analysis of the supporting resources that are required to perform these activities (including people, skills, systems, communications, equipment and facilities).

These factors have driven the overall Business Continuity Strategy for ADNEC and, in the same respect, have influenced ADNEC’s approach to business continuity planning.

In consideration of the above, the business activities determined during the impact analysis interviews have been analysed and structured, not just according to their stated criticality, but also whether they are linked to the hosting of events and the availability of the venue itself.



BCMS The Business Continuity reporting dashboard

S.No. BCMS Objective

BCMS requirement

Expectations and objective of measurement

Metrics

FrequencyKey Performance Indicator Unit of

Measurement Criteria ( C )

BCMS Performance Review

1

Obj 1, Obj 2Management review of the BCMS

The BCM Committee must review the BCMS at least once in a year.

Number of Management Review meetings conducted in a year Number

C=0 Not acceptableC ≥ 1 Acceptable

C ≥ 2 GoodYearly

Obj 1, Obj 2

BCM Committee members are highly committed to implement and maintain the BCMS

Number of BCM Committee members attending management review meeting*100/Total number of BCM Committee members

%

0% ≤ C ≤ 50% Not acceptable

50% < C ≤ 80 % Acceptable C > 80 % Good

Yearly

2

Obj 2Internal/External Audit

BCMS internal audit should be conducted at least once a year

Number of BCMS internal audits in six months Number


C ≥ 2 GoodYearly

Obj 2, Obj 4Ensure that Non-Conformities are closed before the next Audit

Number of open findings*100 /total number of findings %

0% ≤ C ≤ 10 % Good1% ≤ C ≤ 30 % Acceptable C > 30 % Not Acceptable

Monthly

4 Obj 2

BIA Update Ensure that the BIAs of all business functions are updated at least once a year

Number of updated BIAs*100/Total Number of BIAs

%

0% ≤ C ≤ 80% Not acceptable

80% < C ≤ 99 % Acceptable C > 99 % Good

Yearly

5 Obj 2BC Risk Assessment Update

Ensure that the BC Risk Assessment has been reviewed at least once a year

Number of Risk Assessment Review Number


C ≥ 2 GoodYearly

6 Obj 2BCP Update Ensure that the BCP document

is updated at least once a yearNumber of BCP Updates per year

NumberC=0 Not acceptableC ≥ 1 Acceptable

C ≥ 2 GoodYearly

7

Obj 2BCP Testing Ensure that a BC table top test

is conducted at least once a year

Number of BC table top tests done per year Number


C ≥ 2 GoodYearly

Obj 2Ensure that a live BC testing is conducted at least once a year

Number of live BC tests done per year Number


C ≥ 2 GoodYearly

8 Obj 2, Obj 3

BCMS Awareness Ensure that all BC Teams are trained on their BC roles and responsibilities

Number of people who attended BC awareness Sessions*100/Number of employees who should attend a BC awareness session

%0% ≤ C ≤70 % Not acceptable70% < C < 80 % Acceptable

C ≥ 80 % GoodYearly

9 Obj 3, Obj 2

BCMS Awareness Ensure that all BC Teams and staff are aware of their BC roles and responsibilities

Number of Failures in properly and timely responding to an incident due to lack of staff awareness*100/Total Number of incidents

%C >20% Not acceptable10%≤ C

≤ 20% Acceptable0%≤ C ≤ 10% Good

Yearly

10 Obj 2

BC Risk Treatment Keep BC Risks at acceptable level

Total Number of current risks above the acceptable level * 100 /Total Number of risks above the acceptable level of last year

%C < 70% Not acceptable70% ≤ C

< 80% Acceptable80% ≤ C ≤ 1000% Good

Yearly

11 Obj 2

BC Testing Ensure that all parties involved in the BC plan participate in the BC testing

Number of Business Functions who participated in the Test *100/Number of Business Functions who should participate in the BC testing

%0% ≤ C ≤ 80% Not acceptable80% < C ≤ 99 % Acceptable

C > 99 % GoodYearly

12 Obj 2

Business Continuity Plan Effectiveness

Reduce the time of business disruption following an incident.

Number of incidents where the time to resume the business took longer than the target time (as per BIA results)*100/Number of disruptive events that happened in the last year (source: Incident logs)

%

C >20% Not acceptable0%≤ C ≤ 20% Acceptable

C=0 GoodYearly

13 Obj 2

Suppliers BC capabilities

Ensure that critical suppliers services are available when required through identifying back up supplier for each critical supplier

Number of crtitical Suppliers deemed Single or Sole Source*100/Total Number of “Critical” Suppliers



Ensure that all critical suppliers are assessed for the BC capabilities

Number of Supplier Business Continuity Assessments Completed*100/Total Number of “Critical” Suppliers





A key category of our stakeholders are our various direct customers including organisers, exhibitors, and visitors, as all interact heavily with our venues and premises and experience our services on a daily basis.

In continuation to its continuous improvements efforts and believing in the importance of this segment of customers, ADNEC dedicated specific mechanisms and tools for measuring their customer satisfaction and analysing their feedback (customer voice).

6.1 Responsible Communication

In order to capture our customers opinion about ADNEC, which is indirectly related to our reliability in relation to our promises and communications, ADNEC conducts surveys through specialized external market research company. These surveys are based on face to face interviews, allowing for more details and opportunity for more useful dialog. Surveys are designed to cover ADNEC's delivered services and summarizes the customer's experience with ADNEC's teams, chain and relevant services.

As the chart shows, these are face to face interviews and range from 20 to 30 minutes. This allows us to ensure we have a representative sample to develop a reliable analysis reports. Since 2015 our aim is to reach the 2000 level as it ensures sufficient sample size.

The charts below describe ADNEC's results since 2012. The drop that we have faced in some case in 2016 is due to two key changes we have introduced to services (shifting from outsourced to in-house service delivery) which has its effect during the transition period. Fortunately the numbers has been improving since the first quarter of 2017 and it will be reflected in the 2017 ADNEC sustainability report.

Overall customer satisfaction

83%91% 92% 93%

94%

2012 2013 2014 2015 2016

Organisers Satisfaction

76%84% 87% 86%

2012 2013 2014 2015 2016

83%

Visitor Satisfaction

84% 84%92% 94% 95%

2012 2013 2014 2015 2016Exhibitors Satisfaction

83% 87% 92% 97% 97%

2012 2013 2014 2015 2016

Mystery shopper - perception

94% 94%96% 98%

2012 2013 2014 2015 2016

96%

6. CUSTOMERS

Cases of fines from respective authorities on health and safety

non-compliances

0


0.19

Customer Complaints Dealt

100%

Mystery shopper perception

94%

Overall Satisfaction

93%


Chapter: 6. Customers

The feedback is valuable for ADNEC’s future improvements and changes. The drop we experienced for organizer's results during 2015 and 2016 was due to launching new events and dealing with new organizers for the first time which had an effect on their perception and expectations. Additionally, ADNEC radically changed the business model for key services during these two years and apparently the transition period has impacted the results. Despite this, we are witnessing a positive trend during the first quarter of 2017.

It must be noted that during 2016, there were no cases of non-compliance with laws and regulations or voluntary codes concerning marketing communications and no withdrawals of communication messages (after every launch) occurred, while no fines from respective authorities were imposed.

6.2 Product/Service Quality

ADNEC has established, documented, implemented and maintained a Quality Management System (QMS), in accordance with the requirements of ISO 9001:2008.

ADNEC’s QMS is maintained and continually improved through the analysis of quality policy, quality objectives, audit results, analysis of data, corrective and preventive action and management review.

Our quality policy and objectives are documented and communicated to all ADNEC staff, which shows our commitment to meeting and exceeding the stakeholder’s needs and requirements. Through the implementation of this QMS, our quality strategy is implemented and our commitments are realised.

% of customer complaints dealt with(Complaint resolution)

100% 100%

20162014 2015

100%

Performance score of venue services suppliers

97% 97%

20162014 2015

95%

Adherence to quality audit plan

100% 100%

20162014 2015

90%

Number of Quality Audits Conducted

14 15

20162014 2015

11

Customer Voice Workshops

444

20162014 2015



6.3 Innovation

To cope with fast changes and global trends; ADNEC responded to the Emirate's strategic direction of adopting innovation and future foresight by investing in knowledge and training related to innovation in addition to building ADNEC innovation lab in the middle of its premises. The innovation lab is the physical space that aims to encourage ideas and stimulate creative thinking. The lab has been designed internally and it is managed by the ADNEC innovation team.

To institutionalize innovation, ADNEC supported this lab by issuing its first innovation strategy and launched its scheme for capturing, analysis, prioritizing and implementing creative ideas "MYidea" Scheme.

H.H. Sheikh Abdullah Bin Zayed during his visit to ADNEC innovation lab.

In the picture H.E. Noura Al Kaabi and GCEO Humaid Al Dhaheri.

ADNEC Innovation MissionOur Mission is to create a culture of innovation and creativity with the philosophy of happy minds within ADNEC. We promote awareness among ADNEC employees and equip them with tools and best practices that enable ADNEC to become an innovative group of world class venues and services.



Innovation towards societyADNEC aims to extend its innovation practices to engage and benefit the local community of Abu Dhabi. This can be done through several ways, including ADNEC’s society focused innovative initiatives listed below:

Initiatives Examples Time frame

Develop and implement

ADNEC's CSR initiatives with

a focus on innovation

• Inviting school’s students to use ADNEC’s innovation lab

• Encourage innovative university students to visit ADNEC’s innovation lab and share their experience

• Support and adopt these innovative students

• Innovation month / week

• Winner of the month (an award targeting students and local community)

2017-2018

LETS COMMUNICATE INNOVATION AT

[email protected] لنتواصل بلغة االبتكار

ADNEC Innovation Promise



6.4 Health and Safety

ADNEC has adopted best practices to ensure the safety of its visitors, organisers and exhibitors through:

• Codes of Practices as part of ADNEC’s Organiser Handbook, as well as Health and Safety rules and regulations for all our stakeholders, which are all available online and are also communicated to the organisers at contract stage.

• ADNEC conducts training and site inductions as well as holding regular contractor meetings and site inspections. Indicatively, a ADNEC Safety Day was organized and conducted by ADNEC H&S team in coordination with Abu Dhabi Occupational Safety and Health Center (OSHAD) and Prefabricated Access Suppliers and Manufacturers Association (PASMA) for ADNEC contractors and event Organisers on 31 August, 2016. Around 500 participants from visitors, contractors and organizers attended the Safety Day.

• ADNEC’s operations team is trained to recognise any hazards or issues and manage these before an incident occurs. This is achieved through proactively monitoring all areas and hazards and documenting the risk assessment and control plan.

• ADNEC carried out several health and safety campaigns to promote the health and safety culture in ADNEC and create awareness amongst serviced partners and contractors. The campaigns included the following:

• Heat Stress Campaigns• Ramadan Safety Campaign• Diabetes Awareness• Hygiene

• Cardiology Campaign, • Breast Cancer awareness• ADNEC Safety Day

In order to promote health awareness amongst employees, ADNEC partners with a local gym and offers reduced and discounted service memberships to ADNEC employees, contractors and partners. More than 180 employees participated in this initiative.

Health & Safety Incidents (Customers)

Description 2011 2012 2013 2014 2015 2016

Minor injuries 88 73 13 3 4 2

Medium injuries (returned to work next day) 14 14 4 4 2 0

Medium injuries (3 days off ) 0 0 0 0 0 0

Major injuries (more than 3 days off ) 0 0 0 0 0 0

Fatalities 0 0 0 0 0 0

Incident Rate per 100,000 visitors 10.4 7.4 1.4 0.6 0.2 0.19

Trainings Conducted

Trainings Participants IOSH Working Safely 10Advanced First Aid Training 60OHSAS 18001 and ISO 14001 Internal Auditor Course 9ADNEC Emergency Procedures and briefings 120ADNEC Safety Day (including stakeholders & ADNEC Employees) 470 Incident Rate per 100,000 visitors

7.4

1.40.6 0.25 0.19

2012 2013 2014 2015 2016



We know that talent will determine our ability to achieve our vision and strategic goals. It is only by developing all our people to be the best they can be that we can reach our own objectives. As we believe in sustainable growth and Emiritisation, we are dedicated to attract and nurture the best talent, as well as maintain a collaborative, engaging and creative environment in which our people can thrive and grow.

7.1 Employment

In 2016, the total number of ADNEC staff reached 199 employees and they were categorized as per the tables below:

• 184 employees have permanent contracts working full time.

• 15 employees have temporary contracts (usually from 6 months - 1 year) working full-time. There are no variations in annual employment numbers due to seasonal variations.

• There are no employees covered by collective bargaining agreements, according to the U.A.E. Federal Law No. 8 of 1980, on Labour and Employees.

Staff categorisation

Hierarchy/ CategoryLeadership Supervisory Specialized Executive

SupportTechnical & Handcraft Total

Female Male Female Male Female Male Female Male Female Male

ADNEC Permanent Employees (number)

0 5 18 57 17 22 24 36 0 5 184

ADNEC Temporary Employees (number)

0 0 2 3 1 1 6 1 0 1 15

New Hires (Age/ Gender)Age <30 Age 30-50 Age >50 Total

Female Male Female Male Female Male

ADNEC Permanent Employees (number)

0 3 0 4 0 1 8

ADNEC Temporary Employees (number)

0 0 2 0 0 0 2

7. EMPLOYEES

Employees

199Employee

Satisfaction Survey level

75%

Participation in Employee

Satisfaction Survey

80%

Employee turnover rate

4%

Gender ratioFemales 32%

Male 68%

Emiratisation rate

60%


Chapter: 7. Employees

7.2 Training and Development

7.2.1 Training ProgrammeTraining and development programs for the employees are designed to be effective, efficient, timely, using sourced methods andstrategies consistent with the following goals:

• Ensure the availability of human resources to meet present and future organizational needs.

• Ensure alignment with corporate objectives and business strategies.

• Provide employees with career development that is consistent with operational requirements, occupational categories, and skill requirements.

• Use the most cost-effective training methods

2016 Training calendar

All ADNEC employees have access to the training calendar and can easily book to attend a course. The training programmes include a wide range of topics from management, creativity and innovation, business skills and health & safety. In 2016, the average training hours per employee was 31 hours, exceeding our target by 24%.

Employee Training

2013 2014 2015 2016

Average training hours per employee 18 25 40 31

Average training hours per genderFemale 18 25 63 33Male 18 24 31 30

Average training hours by grade

1a/b 24 50 26 32a/b 21 26 46 233a/b 22 29 53 284a/b 18 28 22 405a/b 14 16 12 14

7.2.2 Career DevelopmentAll ADNEC employees receive regular performance and career development reviews. All employees participate in an annual performance appraisal as well as a mid-year performance review. This is a continuous process where employees review their key goals and objectives, assess the core competencies, and identify any gaps in their development plan. All development plans are reviewed and approved by line managers. In 2016, 97% of employees have completed their performance review.

Performance Appraisals

2013 2014 2015 2016

Percentage completed Female 100% 100% 100% 100%

Male 100% 100% 100% 95%

Percentage completed by employee grade

1a/b 100% 100% 100% 100%

2a/b 100% 100% 100% 86%

3a/b 100% 100% 100% 100%

4a/b 100% 100% 100% 99%

5a/b 100% 100% 100% 88%



7.3 Employment Benefits and Allowances

All jobs are classified according to a criteria based job evaluation system comprising five main grades; 1 to 5. Each grade has two levels of complexity; a and b. An employee’s grade is specified in their offer letter and contract of employment.

Benefits and Allowances

Grade Grade Definition Indicative RolesGCEO Highest level of leadership Group CEO

1a Large Functions reporting to GCEO Group CSFO

1b Heads of Business reporting to Group CEO COO, CCO, CFO

2a Heads of Group Functions reporting to Chiefs Directors

2b Heads of Major Departments Functional Leadership Directors, Heads of Departments

3a Heads of Departments reporting to Business Unit Heads of Departments, Senior Managers

3b Heads of Disciplines / Large Teams Managers, Senior Specialists

4a Team Leaders of small teams Senior Executives, Specialists

4b Individual Contributors with expert knowledge Executive Assistants, Graduates

5a Individual Contributors that perform specific activities Document Controller, Operators, Assistants

5b Individual contributors that operate under supervision Support Staff, Technicians

In addition to salary, ADNEC provides a comprehensive benefits package including housing, schooling, annual flight tickets, non-contractual bonus, national service allowance, transport allowance and cost of living allowance.

7.3.1 Salary CompositionADNEC strives to administer a fair and consistent salary administration policy for all employees. A salary management and administration policy ensures objective, market-based salary decisions are taken that meet the changing needs of ADNEC.

7.3.2 Housing AllowanceAll full time ADNEC employees are entitled to a housing allowance in case they are residents of Emirate of Abu Dhabi. The amount of this allowance is linked to the employee grade and is specified in the employment offer and contract. Employees are entitled to apply for a ‘rent advance’ extended for up to six months which will be deducted from the employee’s salary in equal monthly instalments over six months. All permanent employees receive a Cost of Living Allowance (COLA) and transport allowance. These allowances are paid monthly along with an employee’s monthly salary. The level of the allowance is defined by the employee’s job grade, while temporary employees receive a total salary (fixed amount) for their services and as per the agreement or the signed contract.

7.3.3 National Service AllowanceAll UAE National Employees are entitled to receive this allowance. The National Service Allowance amount is fixed and depends on the employee above grade 4b grade and is specified in their contract of employment. It is paid on satisfactorily completing the probationary period.

7.3.4 Child Education AllowanceADNEC pays eligible employees an allowance to support the education of sponsored children. The allowance is paid to support children who are studying in the UAE and are no older than 18 years of age at the start of the academic year. Every permanent employee is eligible to this allowance (national or expatriate).



7.3.5 Annual Airline Ticket AllowanceIt is important that all employees maintain the appropriate work-life balance and therefore we encourage all employees to take time away from the business. The Annual Airline Ticket Allowance is a cash allowance that assists employees to cover the cost of purchasing tickets to travel for holidays or to visit their families in case of expatriates.

All UAE National employees are entitled to one month’s basic salary every year. The entitlement for Expatriate employees and their sponsored dependants is specified according to their grade and is defined in their contract of employment. The cash allowance is based on pre-defined airfare agency rates which are revised on an annual basis and communicated accordingly.

The allowance is only paid once the employee has satisfactorily completed their probationary period. For employees joining ADNEC during the year, it is paid on a pro-rata basis according to the number of complete months employed.

7.3.6 UAE National AllowancesAll UAE National employees are entitled to receive the following allowances each month:

• Social Allowance • Child Allowance

These allowances are fixed amounts for all UAE National employees and are paid along with an employee’s monthly salary.

7.3.7 Medical InsuranceProviding a good standard of healthcare is important to ensure the on-going wellbeing of employees and their eligible dependents. ADNEC provides all expatriate employees and their sponsored dependents with a medical insurance plan.

7.3.8 Long Service AwardsADNEC recognizes the value of retaining long serving employees. We celebrate the occasion of an employee reaching long service milestones and for their dedication to the organization. All employees who have served the organization for over five years are eligible to receive a long service award, provided, there has been no disciplinary action against the employee during this time.

Employees are recognized on the completion of five years of service and every five years post the completion of the initial five year period.

Long Service Awards

2013 2014 2015 2016Years of Service 5-9 years 58 96 103 96

10+ years 11 15 18 28

7.4 Employee Engagement

7.4.1 Employee Satisfaction SurveyOur staff satisfaction survey is conducted annually and is an important source of data to inform our human resource policies, communication and employee engagement strategies. The score is a measure of how satisfied our employees are in their jobs. The 2016 survey results recorded overall employee satisfaction at 75%, which was 4% lower than in 2015. Despite that, the satisfaction level is still higher than the region's average (70%). This 4% drop is due to survey re-design.



Employee Satisfaction Survey

2013 2014 2015 2016Employees Satisfaction Results 72% 76% 79% 75%

Survey Participation 64% 85% 80% 87%

Successful international companies understand the importance of a diverse workforce, particularly in the hospitality and customer service industry, where customers are global. The table below summarizes the numbers for 2016.

Gender Age Group

Male Female Under 30 30-50 Over 50

Grade 1 4 0 0 2 2

Grade 2 21 1 0 17 5

Grade 3 29 15 0 40 4

Grade 4 51 37 18 64 6

Grade 5 19 5 4 20 0

7.4.2 Employee TurnoverOur results for employee turnover is showing a favorable trend between 2014 and 2016, reflecting work stability at ADNEC. The table below summarizes the results:

Employee Turnover

2013 2014 2015 2016

Employee turnover % by genderFemale 1.5% 4.1% 2.3% 3.0%

Male 3.0% 3.8% 3.3% 5.6%

Employee turnover % by age group

<30 1.2% 2.8% 2.3% 1.0%

30-50 2.7% 5.0% 3.0% 5.6%

>50 0.6% 0 0.3% 2.0%

7.4.3 Supporting Working ParentsAll married female employees who have successfully completed their probation period qualify for maternity leave. In 2014, ADNEC revised its maternity policy and increased the length of time off from 45 days to 60 days. Female employees with one year’s service or more are entitled to 45 calendar day’s maternity leave with full pay followed by 15 days child custody leave with full pay at any time up until the child is 1 year old. Post-delivery, female employees are entitled to two half hour nursing breaks each day for 18 months.

All married male employees who have successfully completed their probation period qualify for paternity leave. The paternity leave period is three working days. This is to be taken within the first four weeks from the date of birth of the child. Salary and benefit accruals continue during the approved paternity leave period.

Employee Turnover

2014 2015 2016

Number of female employees who took maternity leave 5 3 10

Number of male employees who took paternity leave 12 5 15

Number of female employees who returned to work after maternity leave 2 3 10

Number of female employees who are still in work 12 months or more after returning from maternity leave

3 3 2



7.5 Emiratization

As an Abu Dhabi government entity and in support of Abu Dhabi Economic Vision 2030, ADNEC has developed an Emiratisation target and strategy. Developing our UAE Nationals to take on more responsibility and become ADNEC’s future leaders.

In 2016 ADNEC marked a significant progress in the Emiratisation strategy. We improved on our existing initiatives and implemented a number of new specialized development programmes and activities designed to maximise potential, support and retain our UAE National talent.

At the end of 2016, ADNEC achieved an Emiratisation rate of 60% compared to 55% in 2015, with the percentage of Emiratis in the senior leadership team reaching 80%.

ExCeL London: Our Space to Perform programme is one of ADNEC’s most important training opportunities. Our UAE National employees spend time at our London venue to gain additional hospitality and MICE industry experience.

The programme provides the opportunity for UAE Nationals to experience first-hand an established venue. The Space to Perform has been successful since its launch in 2009, with 37 delegates graduating from the programme, out of which 28 remain with the company today. In 2016, 2 ADNEC employees completed the 12-week programme, and one employee completed the 8-week programme.

A SPACE TO PERFORMExCeL London

The semi-annual ADNEC UAE National Forum provides the opportunity for all UAE Nationals to attend a meeting with the Managing Director and other senior executives.

This open forum provides an opportunity to exchange views on a wide range of topics, concerns and issues from our UAE National employees. It also provides a platform for exchanging and promoting ideas about how ADNEC can continue to improve and develop as a business.

ADNEC UAE NATIONAL FORUM

Our “buddy up” mentoring programme was launched in 2012 to specifically develop and support ADNEC’s UAE National talent. ADNEC’s mentors are all fully trained and encourage all our UAE Nationals to actively participate in this programme. Mentoring is an important facilitator in reinforcing personal development and ensuring people can be accountable for their own career paths.

MENTORING AND COACHING PROGRAMME

Our IGNITE induction and development programme was launched in 2016 to ensure the rapid orientation of new UAE National joiners to ADNEC. It covers all the relevant departments in order to gain practical experience and continuous development in their chosen career field. In 2016, three (3) employees have successfully completed this programme.

IGNITE PROGRAMME

All UAE National employees have the opportunity to participate in a career path and coaching programme.

This innovative programme measures ability, aspiration, motivation, engagement and potential. Individuals are provided with independent feedback and follow up mentoring support to ensure that bespoke learning solutions are provided to realise the employee’s full potential as a future leader.

LEADERSHIP DEVELOPMENT PROGRAMME

UAE National Development Programmes



7.6 Occupational Health and Safety7.6.1 Our Health and Safety ApproachADNEC has a dedicated Health and Safety team responsible for developing, implementing and maintaining ADNEC’s safety management system with the objective of improving the company’s health and safety performance and raising EHS awareness and compliance in all our operations.

It is the duty of ADNEC, our business partners, contractors and service providers to comply with the safety measures required by UAE and international law and those established by ADNEC.

ADNEC’s corporate compliance includes:

• EHS Management System that is compliant with all elements and mechanisms of the Abu Dhabi EHSMS Regulatory framework• EHS Site and facilities inspections• EHS Trainings for employees• EHS Internal audits and facilitating external 3rd party audits.• EHS Health awareness campaigns and drives

ADNEC has established a safety management system which includes EHS committees, policies and procedures. For the events and exhibitions section, which makes up the core business function, ADNEC has developed H&S rules and regulations which include the following for the guidance and support of all our stakeholders.

• ADNEC Health and Safety Rules and Regulations / Organisers Handbook• Regulatory codes of practices to guide and assist the Organisers on key health and safety aspects of the business.

It must be noted that 17% of ADNEC employees are members and representatives of these EHS committees.

Environment, Health and Safety Management System (EHSMS)ADNEC’s EHSMS has been approved and accredited by the OSHAD (Occupational Safety and Health Abu Dhabi) Centre since 2013. This initiative was developed to regulate and maintain an occupational health and safety culture in the exhibition and event sector both at Abu Dhabi National Exhibition Centre and across the Emirate of Abu Dhabi.

In addition to complying with legal UAE requirements, a positive health and safety culture within the exhibition and event sector in Abu Dhabi enables ADNEC to manage and control risks sensibly, minimise accidents and ill health and reduce related costs to our businesses.

7.6.2 Employee Safety ADNEC is committed to maintaining high standards of safety and welfare for all its employees. All members of staff are provided with:• A safe place to work• Clear and consistent health and safety policies and standards• A management team that is accountable for implementing agreed safe systems of work• Safe work equipment• Training to equip all staff with the necessary knowledge to allow them to work safely

ADNEC achieved a record ZERO work related injuries in 2015 and 2016.



Health & Safety Results (Employees)

2011 2012 2013 2014 2015 2016





Fatalities 0 0 0 0 0 0

Capital Hospitality

Furthermore the injuries reported in the Capital Hospitality section of the ADNEC business are as follows

2016

Minor injuries 2

Medium injuries (returned to work next day) 1

Medium injuries (3 days off ) 0

Major injuries (more than 3 days off ) 0

Fatalities 0

Safety Exercises and TrainingADNEC ensures that all its employees have relevant training to ensure they can deliver operational excellence.Some of our employees from specific labour intensive departments, such as logistics, may be exposed to higher risk of musculoskeletal injuries or illness such as back pain. ADNEC carried out specific trainings for these employees to ensure they are appropriately trained on safe work practices.



2014 2015 2016IOSH Directing Safely (1D) * 2 sessions 20 8 N/A

IOSH Leading Safely (1D) – Chief Level training N/A N/A 32

IOSH Managing Safely Events Exhibitions (4D) * 2 Sessions 9 5 N/A

IOSH Working Safely (1D) * 10 sessions 94 14 30

Safe Management at International Events (2 D) * 4 Sessions 33 19 N/A

Safe Operations at International Events (1 D) * 5 Sessions 45 37 N/A

PASMA Standard Mobile Tower 10 N/A N/A

NEBOSH HSW ARABIC N/A 13 N/A

BCMS (Business Continuity Management System) Awareness N/A 17 15

Fire Marshal Health and Safety Briefing for (ADNEC and Main contractors) N/A 100 141

Crisis Management and Business Continuity N/A 23 N/A

Health and Safety Training on Events / Exhibitions / Fire Safety (ADNEC SAFTEY DAY) 31st August 2016

N/A 28 450

IPAF Operator Training Mobile Scissor (3a) & Mobile Boom (3b) N/A 18 N/A

Advanced Fire Safety and Fire Warden Training (Jaheziya) N/A N/A 69

HACCP Implementation level 3 N/A N/A 8

In 2015, ADNEC continued its commitment to training every employee in IOSH and focused on the practical and bespoke ADNEC trainings such as H&S and fire safety during events and exhibitions and trainings for MEWP operators. Due to the development of the ADNEC BCMS (Business Continuity Management System) planned training were started in crisis management and business continuity sections.

In 2016, the training level was expanded and a professional Civil Defence licensed company ( Jaheziya) was invited to carry out professional advanced training and fire safety and fire warden. 69 staff attended and passed the training.

The Civil Defence Evacuation DrillEvery year, ADNEC conducts a company-wide mock fire drill in collaboration with The Abu Dhabi Civil Defence Directorate (ADCD) drawing on the participation of key stakeholders including 15 federal and local entities. The initiative aimed to assess the level of preparedness, procedures, response times and coordination among various entities in dealing with crisis and emergencies.

7.7 Human Rights

Our internal human rights policies and procedures comply with international laws and human rights regulations. Although contracts with ADNEC’s suppliers include relevant obligations to comply with all applicable laws and regulations, human rights clauses are not included separately in investment agreements or contracts. ADNEC has not undertaken screening regarding human rights, as it is not considered necessary to the types of agreements entered into by ADNEC within the highly regulated business environment of the U.A.E.



Service partners & suppliers are key enablers to our business model and contribute to the success of our hosted or organised events. As our business model diagram below clarifies (ADNEC Value Chain), we interact with key suppliers and service partners across the event life cycle (build up, conduct the event and breakdown).

ADNEC continues to enhance the adoption of sustainability practices in alignment to its responsibility towards our community and stakeholders. It also sets clear procurement policies and procedures to only work with suppliers and service partners who abide by these requirements. The company’s procurement department is responsible for all supplier relationship management and monitoring performance indicators.

ADNEC Value Chain and Business Model Diagram

8. SERVICE PARTNERS & SUPPLIERS

Reduction in incidents related to contractors

14%

Increase in complex structure checked during build up

3.6%

Vendors responded to the executive council requirements

89.7%


0.19

Events Patrons

Support

Enablers

Supplier Buyer

Customer 1 Customer 2

Customer 3

Logistics Department of Transport,

Abu Dhabi International Airport, Transport Providers

(Etihad Airways)

Abu Dhabi GovernmentTourism & Culture Authority, Executive Council, Department

of Finance, Crown Prince Court, Abu Dhabi Municipality, AIAin Municipality, Abu Dhabi Police, Abu Dhabi Media

Company (ADM), General Headquarter, Central Intelligence Department

Event at ADNEC

Organiser

Association/ PCO

Exhibitor

Association/ PCO

Visitor

Delegate

Local Community

Supplier

Event Cycle

Organiser

Board of Directors

Hotel Operators Service Partners Employees


Chapter: 8. Service Partners & Suppliers

8.1 Responsible Buying

Part of being a responsible organization is ensuring that our procurement processes adopts sustainability practices “responsible buying”. ADNEC’s supplier are key enablers to our service delivery and play a role in the success of the company and therefore it is important to ensure the highest performance and delivery from these suppliers.

Tender Opening Committee: ADNEC appointed a dedicated tender opening committee in order to improve the process. This includes assessing suppliers against specific bid evaluation criteria which includes:

• Technical and Commercial Specifications• Quality (quality standards/quality certifications/quality assurance procedures)• Delivery time.• General terms and conditions• Payment terms• Local presence and/or Emiratization initiative• Sustainability and environment-conscious methodologies• Other relevant factors in accordance with the Tender Documents

Executive Council regulations: we are following instructions issued by the Executive Council (like the circular issued in 2014) which insist that suppliers who supply manpower and labour services, have to provide the following:

• Proof of provision of medical insurance for their employees• Proof of provision of appropriate accommodation in Abu Dhabi for their staff • Valid residence permits to the workforce in accordance with the legislation applicable• Applying the salaries protection system of UAE Ministry of Labour• Complying with Federal Labour Law of UAE

Since the Executive Council Circular was issued back in 2014; a total of 456 suppliers were registered, 409 of them met the requirements of Executive Council which represents 89.7 % of the total.

Procurement dept. strategy for supporting Small and Medium size National Suppliers (SMEs): For the purpose of supporting national Small and Medium Enterprises (SME’s), ADNEC has established a strategy to support the suppliers which are wholly owned by UAE nationals (100%) and registered in Khalifa fund. The Privileges are provided through various stages to familiarize the national supplier with ADNEC purchase requisition in pre- tendering, tendering and awarding stages.

Suppliers Relationship Management Methodologies established:

ADNEC developed documented approaches to efficiently and effectively manage its suppliers including:

1. Supplier Performance Evaluation Approach2. Suppliers Satisfaction Assessment Approach3. Supplier Suggestions and Complaints Approach4. Supplier Communication Approach.

Acknowledgment Status of Suppliers registered from period Oct

2014 till Dec 2016

10.3%

89.7%Acknowledged Not Acknowledged



8.2 Environment, Health and Safety (EHS)

Health and Safety Plans A segment of our suppliers (service providers, contractors and subcontractors) are evaluated and selected by ADNEC on the basis of their capability to establish and implement a satisfactory safety system as well as their safety record.

During tendering, they have to submit a safety plan and to be fully responsible for the occupational health and safety of their works, including the subcontractors’ safety. They have to implement a safety plan, review it at least once a year, and keep appropriate records of their own safety inspections and audits.

The table below summarises the drop in incident rates among contractors during their work at ADNEC venues and premises (during build up and break down of events).

Incidents among contractors (ADNEC and event)

Description 2011 2012 2013 2014 2015 2016





Total 117 104 54 40 35 30

Trainings given to the Contractors included H&S and fire safety during events and exhibitions and IPAD trainings for MEWP operators.

ADNEC health and safety also reviews and check contractors working during events. This includes auditing and inspecting the stands for their structural stability and safety. The chart above shows the numbers of complex structures checked since 2013.

Environmental Plans Since 2012, ADNEC has focused on instilling environmental compliance in its relationship with Organisers and their service providers (subcontractors). An example is that ADNEC has agreed with all its organisers to encourage their exhibitors & contractors to reduce the wasted material and re-use items such as wood and metals.

To institutionalize the environmental efforts, an annual environmental plan was developed in coordination with our internal communication department to spread knowledge and awareness. During 2015 and 2016, we implemented several environmental initiatives such as: Stop & Donate, E-waste 'Stop & Donate', Earth Hour, World Environment Day, Paperless Day as well as continuous support for the school recycling program.

Incidents among contractors (ADNEC and event)

2011

117 104

54

40 35 30

2012 2013 2014 2015 2016

Complex structures checked

440532

551

2013 2014 2015 2016

428

+3.6%



Environment, Health & Safety PolicyAbu Dhabi National Exhibitions Company (ADNEC) acknowledges and respects our responsibility and obligation with regard to the preservation of the health and safety of our employees, partners, exhibitors, contractors, visitors and all other stakeholders throughout our operations and activities. We understand, and are committed to, the protection of the environment and our natural resources in the Emirate of Abu Dhabi for both current and future generations. We are dedicated to a proactive, preventative approach to the management of Environment, Health & Safety (EHS) and will implement and maintain the highest internationally recognised standards within all our operations and activities as we constantly and consistently strive to achieve our vision of establishing ADNEC as the leading exhibition company and facility in the world.

We will:

• Implement effective prevention control measures and proactively work with our management, employees, partners, exhibitors, contractors, and all other stakeholders to reduce and eliminate occupational health and safety hazards, injuries, illness, and prevent environmental damage and pollution.• Sustain a cycle of continual improvement in EHS practice throughout all our operations and activities.• Continuously improve the health and well-being of our employees and those working on our behalf. • Provide the necessary support, resources, training, tools, and mechanisms to improve our EHS performance.• Monitor, audit, and report EHS performance against all applicable regulatory requirements and industry best practices.• Develop and foster a culture of compliance with applicable EHS legislation, Abu Dhabi EHS Policies, and internationally recognised best practice.• Establish, monitor, report and continually review EHS targets and objectives specific to ADNEC operations and activities.• Empower, encourage and support all employees and stakeholders to achieve our vision.• Maintain and improve appropriate EHS professional competency.• Raise EHS awareness amongst our employees, partners, exhibitors, contractors, visitors and all other stakeholders.• Review this policy and all ADNEC EHS components as necessary, and at least annually.Our EHS goals:

• Attain and preserve a safe, injury and incident free, healthy workplace throughout each of our operations and activities. • Utilize the Hierarchy of Controls principles in all measures to eliminate, isolate, reduce and control unsafe acts and unsafe conditions throughout each of our operations and activities.• Implement and maintain effective prevention control measures to reduce, and eliminate, occupational health and safety incidents and injuries.• The senior management team will act as environmental ambassadors, meeting and exceeding best industry practices to reduce our ecological footprint, specifically:

◊ Reduce water and energy consumption and optimize efficiency◊ Reduce and manage waste by avoidance, re-use and recycling◊ Reduce our resource consumption and maximize resource efficiency

• Protect, maintain and/or improve the quality of the natural, built and cultural environment in line with relevant national values, policies and laws.• Continuously coordinate and improve our emergency management and response to safeguard our employees, partners, exhibitors, contractors, visitors, and all other stakeholders• Demonstrate progression and continued improvements in our EHS performance.

Humaid Matar Al DhaheriGroup Chief Executive Officer

Abu Dhabi National Exhibitions Company (ADNEC)

Rev 04 / 4th April 2017

EHS POLICY



9.1 Positive Support As part of its endeavours towards sustainability, ADNEC has intensified its effort during the period 2013-2016 aiming to adopt sustainability practices and execute relevant initiatives internally. ADNEC depends on several initiatives to increase its positive impact on society, such as school educational program, Stop and Donate donation program, charities, recycling, water and energy conservation, sustainability week, fund-raising in support of autism and diabetes, blood donation, cultural events, safe driving campaigns, earth hour, sport festival and summer sport activities. …etc.

9.1.1 Engagement Initiatives Abu Dhabi School Programme We have adopted three schools in Abu Dhabi to help build environmental practices among the students. As part of the adoption programme, we educate the pupils and schools about better waste management and recycling. We have donated carton bins and our recycling partner ensures regular collection of waste. In 2016, the collection of waste from schools increased by 43%.

School Recycling Collection

Item 2013 2014 2015 2016Paper Mix 665 (kg) 49 (kg) 721 Kg 1,263 Kg

Carton - OCC 25 (kg) 8 (kg) 0 0

Plastic Bottles 10 (kg) 17 (kg) 229 Kg 98 Kg

Total 700 (kg) 74 (kg) 950 Kg 1,361 Kg

'Stop & Donate' Recycling and Donation CampaignAnnually, we hold two 'Stop & Donate' recycling and reusable donation campaigns. This was an initiative developed by our internal green team; a committee made up of employees from across the company which is led by the Environmental Manager. The 'Stop & Donate' initiative is communicated to all ADNEC employees and the wider community through various external communication channels. All reusable items are submitted to Red Crescent.

In 2016 we collected 115.86 Kg of paper which saved 152 Kg of CO2. We also recycled 29.83 Kg of plastic, saving 74.5 kg of CO2.'Stop & Donate' Recycling and Donation Results (S&D)

9. COMMUNITY

Recycled waste (tons)

431

1302

20162014 2015

126

Stop & Donate (Recycling, Donation) Kgs Energy consumption (mwh)

308

22.7

956

19.2434

16.818.3

2016 20162014 20142013 201320122015 2015

16

25.7

Number of school'seducational campaigns conducted

3 3

20162014 2015

3

Number of Society Surveys Conducted

111

20162014 2015

Weight of 'Stop & Donate' recycling materials including

the E-Waste

375.7 kg

Weight of materials recycled through our Abu Dhabi

School Programme

1,360 kg

Society perception

90%Number of society interviews

512Schools educated about

better waste management and recycling

3


Chapter: 9. Community

Item Type 2013 2014 2015 2015 - E-waste S&D 2016

Paper Recycling 5 (kg) - 28 kg 116 kg

Tins Recycling 1.2 (kg) -

Clothes Donation 8 (kg) - 125 kg

Plastic bottles Recycling 1.5 (kg) - 2 kg 30 kg

Carton Recycling - - 1.5 kg

Shoes Donation - 3 (kg) 15 pair 74 pair / 37 kg 17 kg

Household Items Donation - 25 (kg) 17 piece / 3 kg 4.5 kg

Glass Items Donation - 17 (kg)

Toys Donation - 31 (kg) 9 piece / 2 kg 32 piece / 9 kg 34 kg

Books Recycling - 40 (kg) 59 book / 10 kg 147 kg

Books Donation - 1 kg

Steel Recycling - 36 (kg)

Electronics Donation - 3 (kg) 592 kg 28 kg

Clothes** Donation - 152 (kg) 280 piece / 8 kg 426 piece / 90 kg

Accessories Donation - - 5 piece / 0.5 kg 26 picee / 27 kg 13 kg

Batteries Recycling - - 7 kg

Total 15.7 (kg) 307 (kg) 55 (kg) 902 (kg) 375.5 kgGrand total 956 (kg)

Our figures for 2015 are better than 2014 as this initiative was implemented twice during 2015; the first time we launched a campaign to donate to Red Crescent as part of the UAE Compassion Campaign, while the second time we recycled the electronic waste as per the last column in the table above. It is worth mentioning that this was the first time (in 2015) we add this element (electronic waste) to our 'Stop & Donate' campaign.

In 2015, we conducted two Stop and Donate campaigns. The second campaign was focused on E-waste where a significant amount of electronic waste was sent for recycling. In 2016, since employees were more aware about e-waste, the amount of e-waste decreased. As a result, in 2016 the Stop and Donate campaign included e-waste and we noticed a significant decrease in the amount of e-waste collected.

ADNEC purchased new clothes from Liwa Fashion Clearance Sale Event which took place during March 2016 at ADNEC.

The cloths were donated to orphans in collaboration with UAE Red Crescent.

Case StudyCSR Initiative



9.1.2 Society Perception Society engagement and perception is one of ADNEC’s areas of focus. The company dedicated a special theme in its strategy map for sustainability including clear goals, objectives and a set of strategic measures as shown below, supported by regular reporting and analysis.

The society satisfaction surveys is summarized in the below table that clearly shows the segmentation:

1. Reputation and image

2. Social impact

3. Environmental impact

4. Impact on surroundings

Goal Objective Measure

A supporter for sustainable

community

5.1) Sustainable venues & services

GRI indicators covered in ADNEC's report

Total number of jobs supported (000') (Employment Impact)

Society Perception

5.2) Support Emiritisation Total number of Emirati employees

Emiratisation penetration

ADNEC adopts several techniques to engage its society through society oriented events and initiatives but the most credible and objective method for measuring their perceptions is the annual society perception surveys that we conduct through a specialised outsourced market research company. The survey method is face to face, 10 mins and the targeted sample size is around 500 people. This structured method has been adopted since 2015. Before that we used to follow a simpler format and style of society surveys process. The results of the surveys for 2015 and 2016 are shown above, while the charts below are the segmentation of 2016.

ADNEC Society Perception - 2016 Statistics

The results below show that we have scored positive trend in the 4 key categories and we have exceeded target for each one of them.

Society perception results 2015 Target 2015 Actual 2016 Target 2016 ActualReputation and Image 85% 87% 90% 92%Social Impact 85% 85% 90% 90%Environmental Impact 85% 85% 90% 90%Impact of work and activities on surrounding 85% 86% 90% 90%

Society Perception(2015 and 2016 Actuals. 2017 is Target)

90% 91%

2015 2016 2017

86%

67% 33%

22% 18% 20%

55%

7%21%

37%

14% 5% 1%18-23

Secondary School or

less30-3924-29

Diploma

40-49 50-59 Above 60

AcademicQualification

Age

Gender

Al Ain

16%

Abu Dhabi84%

38%

29%

23%

10%

Expat Asian

Expat Arabs

Emirati Nationals

Expat Westerners

BachelorDegree

Master

Nationality

Coverage



10. ENVIRONMENT

Chilled water

179,697 m3Electricity

consumption19,2 MWh

Weight of food composting produced

69.2 tons

CO2 emission savings from recycling274.4 tons

Weight of materials recycled

676.3 tons

ADNEC started its environmental sustainability journey in 2011 when the company established its internal green team, a group of dedicated and self-motivated staff working together to increase awareness of environmental responsible behavior and champion the implementation of small scale initiatives. With time and following the continuous support of ADNEC leadership; these small attempts evolved to structured processes, procedures and more focused teams: Sustainability Management Team, CSR team and Green “Environmental” team.

10.1 Materials

10.1.1 Use

The company prioritizes the use of natural resources as efficiently as possible and aims to establish a material consumption reporting process, which for the time being is not available. It must be noted that at the moment we do not use any input materials that are recycled.

10.1.2 Recycling

Exhibitions

ADNEC is partnering with DULSCO, one of our key service providers specialised in international environmental solutions and waste management to launch eight recycling reverse vending machines (RVM) onsite at Abu Dhabi National Exhibition Centre. The table below summarizes our recycled material volumes measured in tons and provides a comparison between 2014 and 2016.

Recycled Waste

Item 2014 2015 2016 Cardboard 62.205 (tons) 91.020 (tons) 87.25 (tons)

Plastic Bottles 38.735 (tons) 5.529 (tons) 7.22 (tons)

Paper Mix 3.023 (tons) 51.500 (tons) 11.61 (tons)

Scrap Metal 2.937 (tons) 7.353 (tons) 36.94 (tons)

Aluminum Cans 0.203 (tons) 2.261 (tons) 2.72 (tons)

Glass Bottles 0 0 0

Wood 0 266.356 (tons) 412.44 (tons)

Used Batteries 2.095 (tons) 6.070 (tons) 0

Concrete 0 14.500 (tons) 0

Subtotal 109 (tons) 445 (tons) 607 (tons)Food Compost 17.446 (tons) 0.615 (tons) 69 ** (tons)

Gross total 126 (tons) 445 (tons) 676 (tons)


Chapter: 10. Environment

Recyclable Waste

As shown in the table and chart, we have enhanced our recyclable amounts due to the inclusion of a wood recycling process, and the numbers jumped by 52% in 2016 (676.382 tons) compared to 445.204 tons in 2015. Our results in 2015 and 2016 have been boosted due to the appointment of service provider with higher capabilities and capacities. Leveraging the enhanced technology and machines of the new service partner, ADNEC is now able to drastically increase the volume of recycled material, as a result 34% of our waste was recycled in 2016.

In addition to this, our internal awareness campaigns increased the level of awareness and consequently increased the recycled quantities of cardboard, paper mix and scrap metal.

The chart below is the distribution of Recyclable Waste over the 12 months. The numbers below are affected highly by the calendar of events and seasonality effect.

Non-Recyclable Waste percentage

The chart below is the distribution of the non-recyclable waste over the 12 months. The numbers below are affected highly by the calendar of events and seasonality effect.

100%

80%

60%

40%

20%

0%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2014

2015

2016

30%

25%

20%

15%

10%

5%

0%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2014

2015

2016

Recyclable Waste in tons

126

445

676

2014 2015 2016

The above quantities were affected by the calendar of events and seasonality effect (Q1 and Q4) are the highest.



Corporate

ADNEC pro-actively seeks ways to reduce and recycle waste. The company started recycling five different types of waste in 2010; cardboard, plastic cans and films, aluminium cans, paper and scrap metal. In 2011, ADNEC began offering glass, printer cartridge and battery recycling. Additionally, ADNEC recycles gypsum board which is widely used in exhibition stands which would otherwise bediscarded post-show.

In 2016, ADNEC recycled various types of materials which are widely used in the construction of exhibition pavilions. We recycled 143.45 tons of materials which is the equivalent of saving 229 tons of CO2. More specifically, in 2016 ADNEC recycled:

• 143.45 tons of paper and cardboard and aluminium, reducing about 229 tons of carbon dioxide emissions and saving 2438 trees• 11.382 tons of plastic, saving up to 28.5 kg of CO2• 69.22 tons of food wastes saving up to 274.4 tons of CO2

For the future ADNEC is looking into providing Electrical car charging stations around ADNEC’s car parks in order to increase the awareness of using Electrical cars to reduce the negative impact of CO2 emission resulting from the use of fossil fuels. ADNEC also seeks to replace the ADNEC fleet into EV cars.

10.2 EnergyADNEC has a dedicated department responsible for implementing and generating new techniques to ensure better energy efficiency.In 2012, this department undertook a study to identify ways to make. ADNEC’s energy use more efficient and in doing so reduce the company’s carbon footprint and environmental impact. The study reviewed the lighting use through Abu Dhabi National Exhibition Centre’s 11 exhibition halls. It specifically included reviewing the current light fittings, the weight implications on the ceiling for changing to LED lights, the life cycle of the old versus new LED lights and a study on potential consumption change and savings.

Due to the high volume of events held during 2016 compared to 2015, ADNEC had an increase in energy consumption of approximately 14%.

Electricity Consumption & Carbon Dioxide Emissions

2012 2013 2014 2015 2016Electricity (mwh) 25.7 22.7 19.2 16.8 19.2

CO2 emissions due to electricity (tons) 13.1 11.6 9.8 8.6 9.9

* Numbers are based on specific formula for converting from Kilowatts to CO2 emissions as per as per the EAD Inventory.

There is a significant change in our saved electrical energy number 2,351,887 Kwh when comparing 2014 and 2015, due to the step towards LED light replacement.

ADNEC was one of the first entities in Abu Dhabi to implement a system to turn recycled cooking oil into bio-diesel fuel. We implemented this initiative in 2012 and now power over 30% of our smaller on-site machinery using this fuel. In 2016, ADNEC improved the system of food composting and replaced it with the a new technology, the Liquid food Composting that turns wasted food into water that goes into the wastewater system and resulted in the reduction of food waste diverted to landfill.

Case StudyBio-diesel and Food Composting



Solar PV system (Photovoltaic System)

ADNEC’s solar panels, which cover 1,000 square meters on Car Park B, are used to power the elevators and the power generated can also be used to light three floors of the car park. The energy yield generated by the ADNEC Solar PV system was a total of 16,362 kilowatt-hour kWh in 2016 compared to a 146,851 kilowatt-hour kWh in 2015.

The system is regularly inspected and a report detailing energy output, downtimes, inspection results and maintenance is issued monthly. Our numbers dropped in 2016 as a result of a technical problem which lasted for 9 months. The system was not working due to failed invertor units which had to be repaired outside UAE before being reinstalled at the end of 2016.

These technical failures where assessed and rectified by the specialized engineering company and currently the system is working properly.

10.3 Water

Water Consumption

The below table shows an increase of 8% in 2016 and that is due to higher volume of events compared to the same period in 2015.

Water Consumption

2012 2013 2014 2015 2016Normal Water Consumption (taps, toilets, garden, showers, etc) (m3) 142,497 132,837 113,340 166,091 179,647

Chilled Water (tons of refrigeration per Hours) (m3) 22,115,404 21,226,126 24,686,084 35,391,082 27,251,070

Chilled Water

Chilled water is where water is pumped through an air handler, which captures the heat from the air, then disperses the air throughout the area to be cooled.

Chilled water saving in 2016 was significant with a total saving of 33% compared to 2015 that is due to:

1. Chilled water automation

2. Proper event monitoring

3. Cooling control took place as an internal initiative



Issuing the first version of Abu Dhabi National Exhibitions Company’s sustainability report in late 2014 was a remarkable achievement for ADNEC’s internal sustainability team. Capitalizing on this, the company has continued its efforts in adopting GRI principles and committing to sustainability practices. Issuing the 2015 and 2016 sustainability reports demonstrates this commitment.

ADNEC is passionate about operating responsibly and contributing to the Emirate’s economic growth, as well as to its sustainable development, as outlined in the Abu Dhabi Vision 2030.

We have accomplished a lot during the past seven years, taking significant steps to integrate sustainability within our operations. However, we do not rest here, as our most recent award for the most Sustainable Exhibition and Conference Venue awarded at the AEO Awards 2014 and 2015, motivates us to go further, beyond what is established.

Our aspirations for the years to come are described below:

We have developed a structured process for planning sustainability and created teams for sustainability, CSR and environment. We will work more on enhancing our execution, monitoring and evaluation mechanisms to ensure achieving our long term sustainability goals and objectives.

11. LOOKING AHEAD

Management

Operate in a responsible way for our stakeholders, deliver operational excellence across the entire spectrum of our activities and, at the same time improve our competitiveness and ensure our growth.

Society

Combine our business success, with prosperity and quality of life for citizens in the communities we operate while . exceeding our customer needs and expectations and further engaging community.

Employees

Create a sustainable, safe and fair work environment for our people, continuously improve their..., offer development.... and respect the human rights and the diversity of our people.

Environment

Work further on conserving energy and water and minimize the potential negative impact, which inevitably originates from our operations. Increase awareness of society on acting more responsibly regarding environmental protection issues.

Suppliers (venue services)

Deploy sustainability principles to our entire supply chain, in order for our suppliers to operate according to our policies and procedures and fully comply with the respective legislation and regulations.

Customers

Further enhancements to our customer’s engagement, spread sustainability to our clients and help them adopt its principle.


Chapter: 11. LOOKING AHEAD

ADNEC Abu Dhabi National Exhibitions Company

ADSG Abu Dhabi Sustainability Group

BCMS Business Continuity Management System

BIA Business Impact Analysis

COLA Cost of Living Allowance

COO Chief Operations Officer

EHS Environment, Health and Safety

EHSMS Environment, Health and Safety Management System

FSA Fraud Scenario Assessment

GCEO Group Chief Executive Officer

GRI Global Reporting Initiative

MD Managing Director

MICE Meetings, Incentives, Conferences, and Exhibitions

NCEMA National Emergency Crisis and Disasters Management Authority

PCO Professional Congress Organiser

UFI Global Association of the Exhibition Industry

ADWEA Abu Dhabi Water & Electricity Authority

QMS Quality Management System

EHS Environment, Health and Safety

IPAF International Powered Access Federation

MEWP Mobile Elevating Work Platform

12. GLOSSARY OF TERMS PAGE 52 SUSTAINABILITY REPORT 2016

Chapter: 12. Glossary Of Terms

The correspondence between the content of this report and the Global Reporting Initiative’s (GRI G4 version 2013) General and Specific Standard Disclosures, is presented in the following table.

• Coverage of Indicators is characterized as Full (F) or Partial (P).

• General Standard Disclosures of GRI required for “Core”application level are indicated in the below table.

• Material Aspects of GRI for the organisation (based on the Materiality Analysis conducted), as well as Boundaries are indicated in the below table.

• No external assurance has been conducted for information and data in this report.

General Standard Disclosures Table

General Standard Disclosures Report Section Coverage/ Omission Required for “Core” Boundary of Material Aspects

G4-1 2.0 F Yes (company)

G4-2 2.0, 3.4, 5.3, 11.0 P


G4-4 1.1, 3.1, 3.4 F Yes (company)


G4-6 1.1, 3.1, 3.4 F Yes (company)

G4-7 3.1, 3.4 F Yes (company)

G4-8 1.1, 3.1, 3.4 F Yes (company)

G4-9 3.4, 7.1, 7.5.1 F Yes (company)



G4-12 4.4, 8.0 F Yes (company)


G4-14 2.0, 10.0 F Yes (company)

G4-15 1.0, 2.0, 4.5, 7.5.2 F Yes (company)

G4-16 4.5, 7.5.2 F Yes (company)


G4-18 1.2, 4.3, 13.0 F Yes (company)

G4-19 1.2, 4.3, 13.0 F Yes (company)

G4-20 1.2, 4.3, 13.0 F Yes (company)

G4-21 1.2, 4.3, 13.0 F Yes (company)








13. GRI CONTENT TABLE PAGE 53 SUSTAINABILITY REPORT 2016

Chapter: 13. GRI Content Table

General Standard Disclosures Report Section Coverage/ Omission Required for “Core” Boundary of Material Aspects





G4-33 1.1, 13.0 F Yes (company)

G4-34 3.2, 4.2, 5.1, 5.2, 7.6.1 F Yes (company)

G4-35 5.1 P

G4-36 4.2, 5.1 P

G4-38 5.1, 7.6.1 F

G4-39 5.1 F

G4-41 5.2.3 P

G4-42 4.3 P

G4-43 4.2, 4.3, 5.2.1 P

G4-46 5.3 P

G4-47 5.3 P

G4-48 4.3 P

G4-56 3.3, 4.1, 5.2.3 F Yes (company, suppliers)

G4-58 5.2.1 F

Specific Standard Disclosures Table

DMA and Indicators Report Section Coverage/ Omission Material Issue Boundary of Material Aspects

Equal Remuneration for Women & Men Yes CompanyG4-DMA 7.5 F

G4-LA13 7.5.3 F

HUMAN RIGHTS Company

Investment Yes Company

G4-DMA 7.7 F

G4-HR1 7.7 F

Non-discrimination Yes Company

G4-DMA 7.5 F

G4-HR3 7.5.3 F

SOCIETY Company

Local Communities Yes Company

G4-DMA 6.3, 9.0 F

G4-SO1 4.4, 6.3, 9.1 F

G4-SO2 9.2 F

Anti-corruption Yes Company

G4-DMA 5.2 F

G4-SO4 5.2.3 F

G4-SO5 5.2.3 F



Compliance Yes Company

G4-DMA 5.2 F

G4-SO8 5.2.1, 5.2.3 F

PRODUCT RESPONSIBILITY Company

Customer Health and Safety Yes Company, Customers

G4-DMA 6.3 F

G4-PR2 6.3 F

Product and Service Labelling

G4-DMA 6.2 ,6.1 F

G4-PR5 6.1, 6.2 F

Marketing Communications Yes Company

G4-DMA 6.1 F

G4-PR7 6.1 F

G4-EN31 10.1.2, 10.2, F

Supplier Environmental Assessment 10.3 Yes Company, Suppliers

G4-DMA F

G4-EN32 8.1 F

SOCIAL

Labor Practices And Decent Work Company

Employment

G4-DMA 7.1, 7.3-5 F

G4-LA1 7.1, 7.4.2 F

G4-LA2 7.3 F

G4-LA3 7.5.3 F

Occupational Health and Safety Yes Company

G4-DMA 7.6 F

G4-LA5 7.6.1 F

G4-LA6 7.6.2 P

G4-LA7 7.6.2 F

Training and Education

G4-DMA 7.2 F

G4-LA9 7.2.1 F

G4-LA11 7.2.2 F

Diversity and Equal Opportunity Yes Company

G4-DMA 7.5 F

G4-LA12 7.5.1 F

DMA and Indicators Report Section Coverage/ Omission Material Issue Boundary of Material Aspects



Equal Remuneration for Women & Men Yes Company

G4-DMA 7.5 F

G4-LA13 7.5.3 F

HUMAN RIGHTS Company

Investment Yes Company

G4-DMA 7.7 F

G4-HR1 7.7 F

Non-discrimination Yes Company

G4-DMA 7.5 F

G4-HR3 7.5.3 F

SOCIETY Company

Local Communities Yes Company

G4-DMA 6.3, 9.0 F

G4-SO1 4.4, 6.3, 9.1 F

G4-SO2 9.2 F

Anti-corruption Yes Company

G4-DMA 5.2 F

G4-SO4 5.2.3 P

G4-SO5 5.2.3 F

Compliance Yes Company

G4-DMA 5.2 F

G4-SO8 5.2.1, 5.2.3 F

PRODUCT RESPONSIBILITY Company

Customer Health and Safety Yes Company, Customers

G4-DMA 6.3 F

G4-PR2 6.3 F

Product and Service Labelling

G4-DMA 6.1, 6.2 F

G4-PR5 6.1, 6.2 F

Marketing Communications Yes Company

G4-DMA 6.1 F

G4-PR7 6.1 F



FEEDBACK FORM 1. To which Stakeholder category do you belong?

¨ Government ¨ Organiser/PCO ¨ Exhibitor ̈ Visitor ¨ Delegate ¨ Service Partner ¨ Suppliers ¨ Employees ̈ Events Patrons ¨ Office Tenants ̈ Logistics ¨ Local Community ¨ Other: ............................................................................................................................................................................................................................................................................................................................................................................

2. What is your impression, about the following areas of this report?

Area Excellent Good Neutral Mediocre Bad3.0 Corporate Profile ¨ ¨ ¨ ¨ ¨4.0 Our Approach to Sustainability ¨ ¨ ¨ ¨ ¨5.0 Management ¨ ¨ ¨ ¨ ¨6.0 Customers ¨ ¨ ¨ ¨ ¨7.0 Employees ¨ ¨ ¨ ¨ ¨8.0 Service Partners & Suppliers ¨ ¨ ¨ ¨ ¨9.0 Community ¨ ¨ ¨ ¨ ¨10.0 Environment ¨ ¨ ¨ ¨ ¨

3. What is your impression, about the following elements of this report?

Subject Excellent Good Neutral Mediocre BadSections have the right balance ¨ ¨ ¨ ¨ ¨Important topics are covered ¨ ¨ ¨ ¨ ¨Texts are comprehensive ¨ ¨ ¨ ¨ ¨Graphs included are comprehensive ¨ ¨ ¨ ¨ ¨Layout is attractive/pleasant ¨ ¨ ¨ ¨ ¨

4. Are there any topics, which are not answered (or not adequately covered) in this report or do you have questions you would like to be answered in our next report?

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5. Do you have any other comments/proposals you would like to make?

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Personal Data (optional):

Name: ........................................................................................................................................................................

Organisation:......................................................................................................................................................

Address: ....................................................................................................................................................................

Phone/Fax: ............................................................................................................................................................

E-mail: .........................................................................................................................................................................

Please fill out the form electronically to the company’s website or send the form to:

Abu Dhabi National Exhibition Company,Khaleej Al Arabi StreetP.O. Box 5546, Abu Dhabi, United Arab EmiratesEmail: [email protected]

All information on this form will be used only for evaluating this report, through statistical analysis.

Personal data are protected, as defined by the respective law regarding private information

This report is printed on recycled paper

Abu Dhabi National Exhibitions CompanyKhaleej Al Arabi StreetP.O. Box 5546, Abu Dhabi, United Arab EmiratesTel: +971 (0) 2 444 6900 Email: [email protected]