corporate sustainability report 2014 creating value … sustainability report 2014 creating value...

Corporate Sustainability Report 2014

Creating Value for our Stakeholders

Table of Contents 1.0 Opening RemaRks 2 About this Report 2 Message from the Chairman 3 Message from the Group Chief Executive 4 Message from the Head - Citizenship and Corporate Sustainability 5

2.0 CReaTing VaLUe FOR OUR sTakeHOLDeRs 62.1 Key Highlights in 2014 62.2 Main Awards and Recognition 72.3 Performance against our 2014 Commitments 8

3.0 aBOUT Us 123.1 Who We Are 133.2 Our Role 143.3 Our Mission, Vision and Values 173.4 Transparency and Accountability 183.5 Corporate Governance and Compliance 193.6 Financial Stability and Economic Growth 23

4.0 OUR sUsTainaBiLiTY sTRaTegY 254.1 Our Commitment to Corporate Sustainability 254.2 Managing Sustainability 264.3 Our Sustainability Strategy 274.4 An Informed Sustainability Strategy 28

5.0 RespOnsiBLe BUsiness pRaCTiCes 345.1 Customer Experience 345.2 Fair Treatment 365.3 Responsible Financing 375.4 Access to Financial Services 415.5 Responsible Procurement 425.6 Our Future Commitments 43

6.0 inVesTing in OUR peOpLe 446.1 Our Employees 456.2 Driving Cultural Change 506.3 Labour Practices 526.4 Our Future Commitments 57

7.0 OUR impaCT On sOCieTY 587.1 Our Corporate Citizenship Strategy 587.2 Generating Value for our Community 627.3 Collaborations and Partnerships 637.4 Our Future Commitments 64

8.0 enViROnmenTaL sTeWaRDsHip 658.1 Reducing our Environmental Footprint 658.2 Our Future Commitments 77

appendices 78

NBAD SuStAiNABility RepoRt 2014 NBAD SuStAiNABility RepoRt 2014 32

1.0 Opening RemarksAbout this Report*

The Year in ReviewMessage from the Chairman

This report covers the financial and operational year beginning 1 January 2014, and ending 31 December 2014. It includes the annual commitments, strategic objectives, activities and updates that took place during this period within NBAD in the UAE (also referred to as NBAD, UAE). In some cases, our international units and NBAD Group wide operations (within UAE and international) are also referred to. Any restatements and their explanations have been recorded in Appendix E.

We use sustainability reporting to track our performance with the aim to improve sustainable business practices. We also hope the report will be used as an internal and external awareness tool and resource for stakeholders to benchmark our performance against

other sustainable organisations.

Our 2014 Sustainability Report has been written for the benefit of investors, customers, employees, management, suppliers, communities and those interested in understanding NBAD’s sustainable business practices.

This report follows the Global Reporting Initiative’s (GRI) G4 Guidelines in accordance with the “Core” option. This report will not be assured by a third party.

The Bank once again delivered strong revenue and earnings growth, despite challenging global conditions. We maintained a solid balance sheet and strong capital position. Some key financial highlights are as follows:

• Net Profits grew 18% to AED 5.579 billion;

• Revenues grew 11% to AED 10.415 billion;

• Total assets grew to AED 376.1 billion, up 16%;

• Loans grew to AED 194.3 billion, up 6%;

• Customer deposits were up 15% to AED 243.2 billion; and

• Capital ratios remained strong with Capital Adequacy Ratio of 16.4% and Tier-1 Ratio of 15.0%.

During this year we were ranked 25th, up from 35th, among the “World’s 50 Safest Banks”, as ranked by Global Finance Magazine. Furthermore, the Bank continued to be ranked very highly by all three major credit rating agencies, with long-term debt ratings of AA- by Standard and Poor’s (S&P), Aa3 by Moody’s and AA-by Fitch.

We continued to demonstrate our firm commitment to Abu Dhabi and the UAE through the introduction of many initiatives, including a significant rebranding effort, on-going efforts to bring customer service to exceptional levels, and our Corporate Citizenship strategy. Overall, the strategic progress and record financial results in 2014 were impressive, and I believe that NBAD is well positioned for even more success in 2015 and beyond.

H.e. nasser ahmed alsowaidiChairman

For more information about our Sustainability approaches, please visit www.nbad.com

For further details on any of the information within this report, or if you have any comments, feedback or enquiries, please contact the NBAD Sustainability Team at:

Email: [email protected] Phone: +971 2 611 11 11Post: Corporate Sustainability TeamGroup Marketing and Corporate Communication (Group Marcom) One NBAD TowerSheikh Khalifa StreetPO Box 4Abu Dhabi United Arab Emirates

Following on from the National Bank of Abu Dhabi’s (NBAD) 2013 Sustainability Report titled “Reshaping the Future”, this issue is our sixth Sustainability Report, which details our regional and international trends in 2014.

“We performed well in 2014, despite many global economic challenges. We delivered record net profits and continued to execute our ambitious five-year growth strategy. We are proud of our disciplined approach in maintaining strong revenue and earnings growth, with a solid balance sheet and capital position.”

*G4-22, G4-23


Message from the Group Chief Executive Officer

Message from the Head - Citizenship and Corporate Sustainability

At NBAD, we take this role very seriously and we are continually looking to create value for our stakeholders – nationally, regionally, and increasingly on the international stage as well.

We are evolving from a mainly domestic, product-driven organisation into a service-driven bank that can compete internationally and deliver core support to our customers. Our roots in Abu Dhabi give us a deep understanding of the dynamics of the Arab region and its connection to the world’s market.

We have defined a robust, five-year growth strategy which will enable NBAD to cement its presence in the UAE whilst expanding internationally. We are entering the second year of a 5-year transformation. During the year, we generated solid, underlying profitable growth across our businesses, and we are confident that this momentum will continue as we look forward to 2015. At the same time, we continued to invest substantially in building a world-class team, enhancing the operational ‘spine’ of our business, and building the NBAD brand.

In today’s world – one that is still feeling the aftershocks of the global financial crisis, it is essential to ensure that we conduct our business in a responsible and sustainable manner. NBAD is one of the 25 safest banks in the world and all three of the major credit rating agencies give us very high ratings. Our credit ratings are the highest among the Middle East banks. This financial strength gives NBAD a secure foundation on which to construct ambitious growth plans for the future. At NBAD, we have built on these foundations, focusing above all on exceptional customer service. We have streamlined our operations and established resilient systems to deliver increased efficiency and greater productivity. This clear direction and sense of purpose is already showing results, both for the Bank and our customers.

By developing NBAD as a globally recognised Bank, we are playing an important role in the future of Abu Dhabi. Our strategy is aligned with the Government’s economic vision – helping to generate growth and

diversify the economic base. Through our Corporate Citizenship strategy, we have made a strategic commitment to support the growth of the country’s SME sector and to investigate how the financial sector can contribute towards the development of sustainable energy solutions to meet future energy demands. We are really proud to be making such a contribution to the future of the country.

As we enter 2015, I am confident that we will continue to execute our strategy to build deeper and more meaningful relationships with our customers. We will also invest to modernise the Bank to a world-class level, driving sustainable underlying revenue growth and generating higher returns for shareholders over time.

Alex ThursbyGroup Chief Executive Officer

An Informed Sustainability StrategyOur Sustainability Report this year describes our achievements and progress over the last twelve months, and outlines our short-term and long-term sustainability priorities. This year has been significant in terms of our sustainability journey as we have become more streamlined and focused in relation to our sustainability objectives. In accordance with our 2014 commitments, we carried out four external stakeholder workshops to obtain our stakeholders’ feedback on how a bank should operate in a responsible way. Their feedback has resulted in a more informed sustainability strategy, helping us to streamline our future short-term and long-term sustainability objectives, and define the content of this sustainability report.

In this report, we have focused on the material issues of high and medium importance to our stakeholders and/or the Bank, which were identified through our materiality analysis this year. We have also reported on other issues which we feel are important in terms of creating value for our stakeholders. We have described our short-term and long-term sustainability objectives that are aligned with the Abu Dhabi Economic Vision and reflect our Vision, Mission and Values. Our aim is to create value through greater engagement with our stakeholders, increased customer and employee satisfaction, greater innovation in products and services, increased involvement in protecting the environment, and greater shareholder returns.

Planning for a Sustainable Future Through our stakeholder engagement and materiality analysis process, we defined a set of ‘core‘ sustainability initiatives to support our short-term objectives. In the short-term, we want to continue our support and collaborate with external stakeholders, utilise partnerships, engage directly with our stakeholders, and continue to measure our progress in terms of our sustainability maturity.

“As a Bank, we are an integral part of the UAE’s economy and society, and play a strategic role in the lives of individuals and the country. It is, therefore, important that we conduct our business and create value for our stakeholders in a responsible and sustainable way”

We also developed and launched our Corporate Citizenship strategy this year, to support our long-term ambition to be a leading bank on a number of issues that have global significance and local relevance.

As part of our Corporate Citizenship strategy, we have made a strategic commitment to two areas where we believe we can make a significant contribution over the coming years. Through our Future of Energy project, we want to highlight the role of the region’s financial sector in the future of energy as we believe there are real opportunities for the banking sector to provide financial solutions to meet the challenges of future energy demands. We want to develop innovative financial structures and products that will support the development of the energy sector. We also want to back the growth of the region’s SME sector, as entrepreneurial growth is important to people’s livelihoods and the fabric of the economy. These are two key priorities for us moving forward in our sustainability journey.

Creating Value for our Stakeholders We have achieved many successes over the last twelve months. For the fifth consecutive year, we enhanced our performance to become the top ranked bank in the S&P Hawkamah ESG Pan Arab Index. We were also awarded the CSR Label by the Dubai Chamber Centre for Responsible Business this year, in recognition of our progress and achievements in the sustainability field. We developed our Group-wide policy for project financing this year, which will help us take into consideration environmental and social requirements of the Equator Principles. As part of our Future of Energy scheme, we engaged the University of Cambridge and the global consultancy PricewaterhouseCoopers (PwC) to produce a report on ‘Financing the Future of Energy’, to find out more about the role the financial sector can play in financing renewable and alternative energy solutions. The report will be launched at the Global Financial Markets Forum in Abu Dhabi, in March 2015.

We modified and simplified information on easy payment instalments, balance transfers and cash products to make them simpler and easier for customers to understand and avoid miss-selling of products and services. Our participation in the Carbon Disclosure Project (CDP) pilot study and launch of our mandatory sustainability awareness e-learning programme for our employees are all great examples of our sustainability initiatives in 2014. We have continued to collaborate with the Abu Dhabi Sustainability Group (ADSG) and participated in training and capacity building programmes to further develop our skills and capacity in the sustainability field.

We undertook a further assessment of our sustainability maturity using the Abu Dhabi Sustainability Group Maturity assessment tool to determine the level of maturity we had reached. We used the tool to identify our development progress across seven priority focus areas – management, shareholders, customers, employees, suppliers, communities and the environment. We achieved an overall maturity of 30.8%, a relative improvement of 20.3% over the last year. We have achieved our target of 50% increase in maturity for 2014, against our 2012 baseline. This directly supports our positioning on the S&P Hawkamah Pan Arab ESG Index.

Moving forward, we will continue to focus on our ‘core’ sustainability objectives and our Corporate Citizenship strategy to demonstrate that we are a valuable corporate citizen. We will continue to engage with our stakeholders and conduct a materiality analysis in order to identify the material issues that are highest in terms of importance for our stakeholders and to the business. This will enable us to remain focused and deliver a more effective sustainability strategy that will continue to create value for our stakeholders.

Belinda ScottHead - Citizenship and Corporate Sustainability

“I believe that banking has a central role to play in the development of a dynamic and prosperous society. It’s an extraordinary mechanism for transforming the countless creative efforts of individuals and businesses into a wealth of products, goods and services. And in doing so, it helps create jobs, build infrastructure and sustain livelihood.”

NBAD SuStAiNABility RepoRt 20146

2.0 Creating Value for our Stakeholders

2.1 Key Highlights in 2014

NBAD SuStAiNABility RepoRt 2014 7

2.2 Main Awards and Recognition

Award and Awarding Body

Safest Bank in emerging Markets Global Finance

Safest Bank in the Middle eastGlobal Finance

25th Safest Bank in the WorldGlobal Finance

Best investment Bank 2014Global Finance

top ranked bank on the S&p Hawkamah eSG pan Arab indexHawkamah - the institute for Corporate Governance

Dubai Chamber CSR labelDubai Chamber of Commerce

private Bank of the year uAethe Banker and professional WM Magazine

Best Customer experience overall Branch, uAeCustomer experience Benchmarking index Award

innovation in it optimi in Data Centre technology for europe and Middle east RegionDatacenter Dynamics Awards

Business Continuity team of the year 2014Business Continuity institute Middle east

uAe Best Fund Manager Wealthbriefing GCC Region Awards

Best Corporate Governance – Financial Servicesethical Boardroom Corporate Governance Awards

Best Bank in the uAeeuromoney

Best Structured trade Finance Solutionthe Asset triple A treasury, trade and Risk Management Award

Best energy Finance Deal of the yeartXF perfect 10: top Deal of 2014 Award

Shareholders Customers

Total AED paid in shareholder dividends

AeD 1.9 bn Net Profits

AeD 5.6 bn

UAE branches and cash offices

125ATMs/CDMs

596

Total equity

AeD 38 bn

Ranking 25th Safest Bank in the World, Safest Bank in Middle East and Safest Bank in Emerging Markets*

Increase in number of branches with Service Ambassadors from 14 to 22

Reviewed and simplified our products’ terms and conditions to avoid miss-selling

Total Assets

AeD 376 bnCustomer deposits

AeD 243.2 bn

Percentage increase in number of Ratibi cards issued

32%

Number of ATMS and branches in low populated and hard to reach areas of UAE

46 ATMS and

16 branches

employees Community

Salary, benefits and rewards paid to employees

AeD 2.5 bnEmployee satisfaction

74%Launch of our Corporate Citizenship strategy - Support of SMEs in the UAE

Community contributions

AeD 51 mn

Total training days delivered **

30,759

Representation of women in the UAE workforce

37%

Payment to our local suppliers

AeD 1,16 bn

Net increase in UAE Nationals hired***

169

environment

Participated in Carbon Disclosure Project (CDP) pilot study

Launch of our Corporate Citizenship strategy - Financing the Future of Energy project

Recycled e-waste (kg)

5,558

Total paper recycled (kg)

153,727

* Global Finance ** 1 training day is equivalent to 7 training hours

*** Increase in number of UAE Nationals who are permanent staff (excluding trainees). Net Increase = (New UAEN recruits + conversions from trainees to permanent staff) - UAE Nationals staff turnover

Increased since 2013

2.3 Performance against our 2014 Commitments

Management Customers

CustomersEmployees

Customers Employees

CustomersEmployees

Customers Employees

Customers

Suppliers

CommitmentUndertake direct engagement with our stakeholders for the perception and materiality analysis aspect of our sustainability reporting.

performanceWe organised four external stakeholder engagement sessions and obtained valuable feedback from our stakeholders.

CommitmentIncrease the number of branches with Service Ambassadors from 14 to 22.

performance We increased the number of branches with Service Ambassadors from 14 to 22 branches, in line with our 2014 commtment.

CommitmentImplement our customer Complaints Management System (CMS) to record complaints, ensure that we fix things for our customers and avoid repeating the same mistakes.

performance We have launched and are rolling out this system within the Bank to capture, record and resolve all complaints received from our customers.

CommitmentContribute to the Abu Dhabi 2030 Vision for Emiratisation (ongoing commitment).

performance We exceeded our Emiratisation target of hiring 100 net Emiratis annually. We achieved a net increase of 169 UAE Nationals this year.

CommitmentEngage with our customers through our customer satisfaction survey and collaborate to identify and meet our customers’ needs.

performanceWe conducted a Group customer satisfaction survey and we are addressing our customers’ needs.

CommitmentSeek feedback from employees on NBAD as an employer through our employee satisfaction survey.

performance We carried out our annual Global People Survey this year to obtain feedback from our employees. We received an overall positive response.

CommitmentIntegrate sustainability evaluation into the annual Bank-wide policy review process and develop a formal Group-wide policy for project financing.

performance We have developed the Group-wide policy for project financing this year, which will help us take into consideration environmental and social requirements of the Equator Principles.

CommitmentProvide training and career development opportunities for our employees.

performance We continued to provide career development opportunities for our employees through our NBAD Academy programmes and external institutions. We launched our Professional Banker programme this year to broaden the technical skills and experience of our banking professionals.

CommitmentFocus on securing long term sustainable competitive advantage through engaged staff collaborating to identify and meet more of our customers’ needs. Achieve significant progress on customer focus initiatives such as our ‘Bring Your Heart to Work’ (BYHTW) programme.

performance We launched our ‘BYHTW’ programme this year in the UAE, Egypt and Oman.

CommitmentLaunch the Sustainability Awareness e-learning module.

performance Our Sustainability Awareness e-learning programme was launched this year. This is a mandatory training module for all employees.

CommitmentIncrease financial accessibility for customers by offering a wider range of investment choices.

performance We have further enhanced our range of investments during this year and centralised our Asset Management functions to provide our clients with improved product choice and sourcing. We are diversifying out of the MENA region as part of our West-East Corridor expansion strategy. This will offer our customers wider exposure to investment opportunities.

CommitmentExtend our management system controls to enable a fully controlled and automated “procure to pay” system.

performance This has been completed. We have full control of payment of vendors through our automated procurement system. Our procurement processes are now online and fully automated.

Sustainability Focus Areas and Commitments


Completed In Progress

NBAD SuStAiNABility RepoRt 2014 11NBAD SuStAiNABility RepoRt 201410

Suppliers Communities

Communities

Environment

Suppliers Environment

Communities

Suppliers Environment

Communities

CommitmentUpdate our vendor database to determine our local suppliers.

performance We started to review and update our vendor database during this year. This process is currently ongoing.

CommitmentInvest in local economy, i.e., Abu Dhabi’s 2030 Vision (ongoing commitment).

performance We continued to finance transportation, infrastructure and power projects in the region, which support the Abu Dhabi Economic Vision 2030.

CommitmentEnter into a joint venture (Mubadarat) with the Khalifa Fund to provide equity financing to early stage businesses. In addition, partner with the Khalifa Fund to be the banking partner for the SME Toolkit.

performance Appropriate Government approval for the Mubadarat initiative has not yet been received. We have partnered with the Khalifa Fund as the banking partner for the SME toolkit which we promote on our website (www.nbad.com).

CommitmentFinalise a policy with regard to e-waste disposal, and formally engage a contractor to collect our e-waste in 2014.

performance We issued a formal e-waste disposal policy and engaged a contractor to collect our e-waste. We recorded the amount of e-waste produced and recycled in 2014.

CommitmentUndertake annual reviews and due diligence of vendors using sustainability criteria.

performance We started to identify supplier selection criteria based on the sustainability criteria outlined in our procurement policy. We are in the process of incorporating relevant requirements from our business units in relation to due diligence of our suppliers and associated risk management.

CommitmentContinue to work on improving our operational performance and energy efficiency to reduce GHG emissions. Record and document environmental consumption data.

performance We continued to record and document our environmental data. We carried out internal environmental awareness sessions and launched our Sustainability Awareness e-learning programme during this year. We continue to undertake regular maintenance work in our buildings to ensure the efficient use of electricity and water consumption.

CommitmentContinue to participate in the Dubai Chamber Sustainability Network (DSCN) working groups.

performance We continued to participate in the Dubai Chamber’s Sustainability Awareness Task Group during this year.

CommitmentReport on our expenditure on local suppliers by end 2014.

performance We started to record our total spend on local suppliers this year. Our payment to local suppliers represents 90% of the total spend.

CommitmentCommission an Environmental Audit of Head Office building to identify opportunities for environmental improvement.

performance We prepared and issued a request for proposal (RFP) for the audit, which will be carried out in 2015.

CommitmentComplete Carbon Disclosure Project (CDP) report as part of pilot programme facilitated by Masdar and ADSG.

performance We participated in the CDP climate change pilot programme and submitted data on our direct and indirect carbon emissions to CDP.

Completed In Progress


NBAD is the leading bank in the Middle East and one of the safest banks in the world. Our roots in Abu Dhabi give us a deep understanding of the dynamics of the Arab region and its connection to the world’s markets. We aim to become the number one bank for anyone who wants to do business across the West-East corridor.

3.0 About Us

Established in 1968, NBAD is the Abu Dhabi Emirate’s first national bank. NBAD is 69.77%1 owned by the Government of Abu Dhabi through Abu Dhabi Investment Council (ADIC). We are a Public Joint Stock Company listed on the Abu Dhabi Securities Exchange (ADX). Our headquarters are based in Abu Dhabi, uAE.

18%Strong profit

growth

5,8782 Employees worldwide

AED 243.2 bn

Customer deposits

Total equity

AED

38 bn

outsourced

Staff

1,253

Sponsored students &

trainees

162

125 uAe branches

and cash offices

AED

51 mnCommunity

contributions

AED 376 bnTotal assets

596 ATMs/CDMs

Over 80 Nationalities

work in NBAD

3.1 Who We are*

NBAD has played a formative role in building the country’s financial system, from facilitating the introduction of the dirham as the uAE’s currency, to helping launch Abu Dhabi’s stock exchange. We are over 40 years old, with a strong domestic base and a growing international presence.

Across the uAE, we have 125 branches and cash offices, 596 ATMs/CDMs, private banking units, online banking channels and a 24/7 contact centre support. We operate in 18 countries from the Far East across the Asian

subcontinent to Africa, Europe, North and South America. Further information on our international locations can be found on our website (www.nbad.com).

Our banking activities comprise core business units across the uAE, the Gulf and international geographical segments. Our business lines include global wholesale banking, global wealth and global retail and commercial business units, which are supported by our Head Office support units.

Further detail on our business segments and products and services can be found on our website (www.nbad.com). Details of our entities included in our financial statements can also be located on our website (www.nbad.com, ‘About NBAD’, ‘Investors Relations’, Annual Review Report-2014, Consolidated Financial Statements, page 10*).

2This number excludes students, trainees and outsourced staff *G4-171Based on ownership of issued shared capital


Lagos

Chengdu

Beijing

TianjinSeoul

ChongqingCairo

IstanbulTokyo

Osaka

Manila

Guangzhou

Shenzhen / Hong Kong

Kinshasa

Ahmedabad

DelhiLahore

Tehran

Hangzhou

Wuhan

Jakarta

Bangalore

Hyderabad

Kolkata DhakaAbu Dhabi

Mumbai

Shanghai

Banks play a crucial role in the economy, providing financial services to individuals, businesses and other organisations, through managing deposits and providing a safe place for people’s money providing credit and loans, processing payments and channelling deposits into lending, directly and through capital markets. By supporting economic development and international trade, banks can contribute to financial security for the economy, and society as a whole. Aside from providing financial services and driving economic activity, banks are also a significant source of employment, providing millions of jobs worldwide (CR Sector Overview: Banking, Corporate Register, 2013).

At NBAD, our primary role is to create value for our clients, shareholders and stakeholders. We are an integral part of the UAE’s economy and society, helping people to manage their money and facilitating trade and investment.

3.2 Our Role

We serve a wide range of customers across different business sectors and backgrounds. We provide financial advice from major corporate deals to smaller personal transactions. As our roots are in Abu Dhabi, we have a unique understanding of the dynamics of the Arab region and its connections to the world’s markets. Our experience and expertise have developed over many decades in the region.

As we specialise in key industrial and commercial sectors, we offer our clients expert advice in each sector. For example, if advice is required in relation to energy we have energy experts, and for real estate businesses, we have real estate experts. The same is true for the financial sector, transport and aviation and retail.

We put safety and soundness at the heart of our business model so that

we can support our customers for the long-term. We strive to understand our customer’s business needs and provide advice and tailor products that support these needs.

We support small and large businesses by offering long term, competitive and committed finance and advice. We also support individual customers by offering open, transparent, safe and reliable banking and by establishing solid relationships with our customers. Our aim is to “put our customers at the forefront and ‘do things the right way’”. We design our products and services based on the needs of our customers.

As the UAE develops, we expand and grow simultaneously. We are also in the process of expanding our operations in the West-East corridor. Our global network spans 18 countries and 54 offices outside the UAE.

NBAD ranks among the 25 safest banks in the world, as ranked by Global Finance magazine

We have increased our total workforce globally from 5,616 in 2013 to 5,878 (excluding students, trainees and outsourced staff) in 2014. Since 2010, we have increased the number of our branches in the UAE from 112 to 125. In 2014, we opened 4 new branches to serve our customers.

Through our business model, we help entrepreneurs, businesses and households to make well-informed financial decisions, creating value for society and the economy as a whole.

The Future - Our West-east Corridor growth

At NBAD, our strategy is to expand and thrive within our domestic markets and internationally, particularly within the West-East Corridor that stretches from West Africa to East Asia. Situated at the crossroads of three continents, Abu Dhabi is at the heart of this fast-growing super-region and NBAD is well-placed to strengthen our position in this region and promote the interests of the UAE.

The West-East Corridor is characterised by an expansion of private enterprise and increased capital flows which are accelerating the economies of Africa, the Middle East and Asia. At NBAD, we are expanding our footprint in key commercial hubs across the West-East Corridor, supporting our customers as they expand, facilitating trade and investment, and contributing to the sustainable growth of economies. Over the coming years, we aim to be the number one bank for anyone wanting to do business in the region.

“Clients are choosing us as their gateway to the West-East Corridor because they want a credible partner who’s financially very secure and offers total coverage and commitment.”

Mahmood Al Aradi Senior Managing Director and Co-Head of Global Wholesale Banking

We are an integral part of the UAE’s past and are playing a crucial role in its future. We are proud of our role in the society: from helping people manage their money to facilitating trade and investment.

In doing so, we support the Abu Dhabi Economic Vision to diversify and grow the economy in a sustainable manner.

We believe in long-term trust and building relationships. This means that we can build our franchises in a sustainable manner, both in UAE and across the West-East corridor, developing a more solid and diverse customer base that allows us to channel funding to the economy and generate value for our stakeholders.

We take a long-term view and we want our customers to be with us for a long time, advising them in the biggest corporate deals and the smallest personal transactions, side by side in good times and bad.

Megacities in 2007

Megacities by 2025

Our purpose

We take capital from today and deploy it effectively for tomorrow.


Customers

UAE Central Bank

Shareholders

Investors

NBAD

Suppliers

Partners

Input

Influencers

Output

Regulatory agencies

Board of Directors and CommitteesManagement

Internal Financial expertise and support services

Governance

Employees

Banking & Financial Services

- Wealth management

- Private banking

- Business sme

- Corporate and institutions banking

- Personal banking

- Global wealth (asset management, property management, custody and brokerage services)

- Islamic banking

Community contributions

Return on capital for investors and shareholders

- Employment

- Financial accessibility

- Financial inclusion

- Support of local suppliers

- Charitable donations

1 Home market –build the largest, safest and best performing bank first in the UAE, and over time in GCC and other countries throughout the West-East Corridor.

2 Wholesale network markets – Deepen our wholesale network across the new West-East Corridor and further integrate our existing European and North American platforms into this network.

3 New franchise markets - Build five international bank franchises in the largest and fastest growing economies in the West-East Corridor.

4 Building the spine - Supported by a world class spine (Operations and Technology, Risk, Finance, Legal, Compliance) combining exceptional customer service with leading cost efficiency.

Our Mission, Vision and Values are the critical ingredients of our “One NBAD” Customer and Brand Value Proposition. Our mission to be core to our chosen customers is built around four Pillars and will be achieved primarily through organic growth.

Our mission is to be core to our chosen customers, helping them grow by providing exceptional products and services across our West-East Corridor.

3.3 Our Mission, Vision and Values

Be core to our chosen customers, helping them grow by providing exceptional products and services across our West-East Corridor and provide an environment to attract and develop exceptional

and diverse talent

Mission

Customer and Brand Value Proposition

Values

Put our customers at the forefront and “do the right things the

right way”

Value our people and foster great

teamwork

Empower our people and hold each other

accountable for performance and

behaviour

Respect our heritage and be loyal to our

stakeholders

Connected Relationship Insight Safety Service

Vision

To be recognised as the World’s Best Arab Bank

Our Value Chain


Transparency

Our annual Reports

NBAD is 69.77% owned by the Abu Dhabi Investment Council (ADIC) on behalf of the Abu Dhabi Government. NBAD shares are listed on the Abu Dhabi Securities Exchange, which is regulated by the UAE Securities and Commodities Authority.

Consistent with our approach to employ high standards of transparency and disclosure for the benefit of shareholders and other stakeholders, we publish a wide range of reports containing financial and non-financial data.

We meet all regulatory disclosure requirements, primarily through our continuous disclosures to the ADX, and publication of our Annual Reports. These include our Risk Management Disclosure Report, Basel II-Pillar III Disclosure Report, Corporate Governance Report, and Sustainability Report.

Our Website and social media

Other information which is beneficial to our stakeholders is generally made available or updated on our website (www.nbad.com).

As well as our thriving LinkedIn community, we will also shortly be launching an NBAD presence across social media. Once this is in place, our profiles on Twitter, Google+, YouTube, Facebook and Instagram will be used to communicate with our customers and stakeholders. We will be able to reach a wider audience with insight and news of our corporate activity.

Our Corporate governance Framework

Our corporate governance culture is driven by the following:

• The responsibility of the Board to direct the Group’s affairs and set its objectives;• The selection of productive strategies and management of risk;• The appropriate delegation and monitoring of power and accountability to management;• Satisfying the interests of stakeholders through relevant and material disclosures;• Ensuring compliance with all regulatory obligations; and • Engaging with the community.

For the fifth consecutive year, we are one of the top 10 organisations in the S&P Hawkamah ESG Pan Arab Index. We retained our position at second place for the second year running, and are still the highest ranked financial institution. This demonstrates our strong and progressive environmental, social and corporate governance practices, as indicated by the index criteria.

The index provides a measure of total organisational performance by linking stock market success to environmental, social and governance indicators. We value this measure highly as we

believe that the index provides an effective measure of our sustainability as a company.

Performance evaluation of the Board and its committees takes place on an annual basis, forming a key component of our Corporate Governance Framework.

We have been recognised for our corporate governance strategy by the Abu Dhabi Sustainability Group (ADSG) in their 2014 report issued to all ADSG members - ‘Sustainability in Practice – From Vision to Action’ (www.adsg.ae).

s&p Hawkamah esg pan arab index

The National Bank of Abu Dhabi (NBAD) continues to gain recognition for its outstanding corporate governance and transparency.

ADSG, 2014

3.4 Transparency and Accountability 3.5 Corporate Governance and Compliance

The s&p Hawkamah esg pan arab index

The S&P Hawkamah Index measures the top 150 Arab listed companies based on their performance on nearly 200 environmental, social and governance (ESG) metrics.

As one of the key tools identified to drive our sustainability strategy, the Index ensures we aim for greater public disclosure of information, which is material to our business and, therefore, our stakeholders.

As ‘bad’ behaviour is also measured, the process drives best in class controls and measures to ensure our employees are well trained on proper banking procedures and understand ‘responsibility’ in its widest sense.

CorporateGovernance

Board of Directors and Committees

Strong Corporate

Governance Standards

Leadership

TransparencyAccountability

Risk and Control

Regulatory Compliance

Guiding Principles of Corporate Governance

NBAD’s LinkedIn followers are now over

85,000 in number, and growing.

accountability

Values and ethics

It is critically important for the members of the Group, Board of Directors, senior management and all employees to conduct themselves in accordance with the Bank’s values and ethical standards in all that they do for and on behalf of NBAD.

The Board has responsibility for overseeing the culture within NBAD and sets the ‘tone from the top’, which is reinforced by senior management throughout the organisation. We have a number of relevant policies, which are proactively reinforced with all employees:

• Code of Conducts and Ethics;

• Whistleblowing;

• Anti-money laundering;

• Anti-fraud;

• Information security and confidentiality;

• Conflicts of interest;

• Remuneration;

• Gifts and hospitality; and

• Personal account dealing.

Codes of Conduct and ethics

Codes of Conduct have been developed by the Board of Directors (the ‘Board’), which apply to the Board, all employees and agents of NBAD. These Codes of Conduct set out the ethical and behavioural requirements of all NBAD representatives, and employees are required to read and sign the Code of Conduct and Ethics before joining the Bank. In accordance with our Corporate Governance Policy, all employees are accountable with regard to their actions in terms of risk and ethical behaviour.

Extract from Our Corporate Governance Policy, 2013

All employees should be accountable for their actions or inactions and every employee should have clarity on their respective responsibilities and delegated authority.


management structure*

Board of Directors

The Group Board of Directors (the Board) is NBAD’s highest governing body. It comprises the Chairman, Deputy Chairman and nine Board Members, all of whom are male, non-executive, and two are independent. The Chairman and Group Chief Executive Officer are separate individuals. The Directors are elected for a three year term, after which they may be re-elected. The shareholder nominations are determined by overall shareholding of the Group. In addition to our own procedures and approval of members by our Corporate Governance and Nominations Committee, all Board Members must be approved by the relevant regulatory authorities of the UAE.

Compliance

Regulatory Compliance

The Central Bank of the UAE is NBAD’s lead regulator, and, as such, we are required to comply with all Central Bank regulations, circulars and notices. In addition, we are required to comply with all applicable laws and regulations of the UAE, including, without limitation, the UAE Commercial Companies Law, rules and standards established by the Securities and Commodities Authority (SCA) of the UAE, and the NBAD Articles of Association, and those of the other jurisdictions in which the Bank operates.

We are committed to practicing good corporate governance. We comply with the provisions of UAE Ministerial Resolution 518 of 2009 Concerning Governance Rules and Corporate Discipline Standards (“MR518”), although this is not a mandatory requirement for banks in the UAE.

In accordance with best practices and regulatory requirements, we continue to regularly review and implement a comprehensive set of policies for the prevention and detection of fraud, corruption, bribery, money laundering, terrorist financing, breaching of international sanctions and other criminal and civil offences. In 2014, we began to benchmark our existing policies against international standards such as the Organisation for Economic Co-operation and Development (OECD) and Basel guidelines on Corporate Governance. Regulatory and compliance matters are regularly reported to the Executive Management team, and are reported on a quarterly basis to our Audit Committee.

This year we had no incidents of corruption or fines for non-compliance with laws and regulations or voluntary codes concerning marketing communications, product and service information and labelling or health and safety impacts of our products and services. We had no legal actions concerning anti-trust and monopoly practices.

Board Committees

The Board has established five committees, each of which remains an integral part of the Board, and whose members are Directors of the Board. The Board is ultimately responsible for the risk management of the Group and has a Risk Management Committee to ensure the widest risks are identified and proper due diligence is achieved.

The remit of the Board committees is to consider topics in more detail, to manage conflicts of interest, to satisfy regulatory rules, and other relevant activities as necessary to ensure the proper governance of the Group. Each committee has a Charter, which is approved by the Board and outlines its authority, responsibilities, meeting frequency and practices, reporting and self-evaluation.

Committees

Audit Human Resources Risk Management Corporate Governance and Nominations

Strategy and Transformations

A total of

4,284 employees Group-wide completed the AML e-learning module

Approximately

91% of UAE-based employees completed the AML e-learning course

3 whistleblowing cases were reported. These cases were investigated and resolved

adherence to it. We continuously seek to provide reassurance and protection to those employees who share their concerns on any suspicious financial transactions or unacceptable behaviour.

Suspicious or unacceptable activities for which we encourage employees to use the whistleblowing facilities, include (but are not limited to) financial fraud, criminal activities, health and safety risks, environmental damage, breach of policies, reputational damage and breach of privacy codes. Facilities to report such activities include a hotline number, online forms, an e-mail address, and direct interaction with members of the Legal and Compliance Division – whichever the employee feels most comfortable with.

3Excluding non-clerical staff

Responsibilities of the Board

The Board is responsible for directing the Group’s affairs, creating value through NBAD’s operations, and protecting the interests of shareholders and other stakeholders. The roles and responsibilities of the Board are documented in a Board Charter and associated policies.

The Board monitors the delegations of power through NBAD via management reporting frameworks, independent reviews and verifications by audit, compliance and external advisors.

The Board retains responsibility for approving significant Group-wide policies, which are available for all employees. The Board is also responsible for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives. It ensures that NBAD maintains a sound risk management framework and internal control systems.

The day to day operations and implementation of Board decisions are managed by the Executive Management and its committees. The Deputy Group Chief Executive Officer has executive-level responsibility for sustainability issues. In terms of performance with respect to governance, the Board carries out self-assessments but does not currently assess itself against any specific sustainability criteria.

The Board of Directors’ Code of Conduct and Corporate Governance Policy and Principles stipulate the Directors’ responsibility to report conflicts of interest. The Corporate Governance and Nominations Committee is responsible for assessing any conflicts of interest related to Directors and Senior Management, and these are recorded within the Committee/Board meeting minutes. We do not currently have a mechanism for disclosure of conflicts of interest to stakeholders. Although no formal process is in place for stakeholders to approach the Board of Directors, the Chairman holds a permanent office and support team at Head Office, which receives all communications addressed to the Chairman and Board of Directors.

The significant functions which form the control system include internal audit, risk, legal and compliance and company secretariat. The control functions report to the Board or designated committees, and administratively report to the Group Chief Executive Officer.

Further information on our Board of Directors (academic qualifications, skills and experience, other significant positions and commitments) can be found on our website at www.nbad.com, ‘About NBAD’, ‘Board of Directors’.

The committees are required to meet as frequently as is deemed necessary to fulfil their objectives and to allow sufficient time for discussions, presentations, deliberations, and decisions or recommendations to be clearly formulated. Further information

on the roles and responsibilities of the committees can be found on our website (www.nbad.com, ‘About NBAD’, ‘Corporate Governance’, ‘Committees’).

*G4-18

anti-money Laundering (amL)

Financial crime is a key focus for NBAD and we conduct on-going training and communication to embed the message that ‘compliance is everyone’s responsibility’ across the Group. Since 2010, training on anti-money laundering, combating the financing of terrorism and sanctions has been mandated for all employees, not just for front line staff.

Our Anti-Money Laundering (AML) e-learning programme was launched at the start of 2014. This is a mandatory training course for staff, which requires a minimum pass rate of 80%. 4,284 employees Group-wide completed the AML course in 2014. A total of 3,397 employees in the UAE (approximately 91% of UAE-based staff)3 completed the e-learning course. Approximately 264 UAE-based employees attended the AML classroom course.

The training material is in line with the Anti-Money Laundering laws, AML best practice, and NBAD AML Policy. A sanctions e-learning module is currently under development, which will be introduced in 2015. All courses are supported by business-specific training with our Compliance Officers.

Whistleblowing

Whilst we have instituted a sophisticated set of systems and controls to segregate duties, establish limits and approval processes, and monitor and audit employee and stakeholder interactions, we are aware that systems are not fool-proof. We have, therefore, developed an over-arching Whistleblowing Policy which incorporates independent reporting channels, confidentiality and sensitivity, investigation powers, escalations, reporting, re-integration of findings into the operational and control framework, and regulatory co-operation.

As a leading financial service provider, we ensure that employees have an effective understanding of the Whistleblowing Policy, and regularly communicate the importance of


ensuring Business Continuity

Our Group Business Continuity Management (GBCM) system proactively identifies and handles risks by providing strategies and solutions for an effective response to ensure business continuity, and safeguard the interests of our key stakeholders, our customers and our reputation.

The system enables the critical activities of NBAD to continue in the aftermath of an incident. In the long-term it helps the Bank to recover and revert to business-as-usual as soon as possible.

Our Group Risk Committee is responsible for providing oversight and strategy for Business Continuity Management and Disaster Recovery Management at the Group.

Business continuity plans are developed at departmental levels throughout the Group and all our business units identify their critical business process and recovery time objectives. These plans are tested annually.

The BCM LifecycleImproving organisational resilience

nBaD was awarded the Business Continuity institute (BCi) middle east award under the category “BCm Team of the Year 2014.”

About the BCI: Founded in 1994, the BCI Middle East Awards recognise the outstanding contribution of business continuity professionals and organisations living in or operating in the Middle East (the BCI has defined the Middle East as: Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, Sudan, Turkey, United Arab Emirates and Yemen). The awards are across industry sectors with regional competition in North America, Europe, Africa, and Asia.

global economic performance

In 2014, global economic growth was modest and grew around 2.3%. The most significant factor impacting economic growth was the significant drop in oil prices in the fourth quarter of 2014.

The global economy in 2014, as in 2013, displayed divergent growth and inflation patterns. Advanced economies, particularly the Eurozone and Japan, exhibited weak growth and struggled with low inflation. In 2014, the developed world grew by approximately 1.5%, driven mainly by strength in the United States. During the same time period, emerging markets on average grew around 3.8%.

Financial performance of the nBaD group

Our growth strategy has proven resilient and the Bank has consistently produced solid results year on year. Our net profits grew by 18% to AED 5.6 billion for the full year 2014. Our long-term ratings are now amongst the strongest combined ratings of any global financial institution.

Credit Ratings

Fitch Moody’s S&P

Long-Term Rating

AA- Aa3 AA-

Short-Term Rating

F1+ P-1 A-1+

Outlook Stable Stable Stable

Our Direct economic impacts*

We are founding members and executive committee members of the Abu Dhabi Sustainability Group (ADSG), a multi-stakeholder membership organisation whose aim is to promote sustainability management in Abu Dhabi, by providing knowledge sharing and capacity building opportunities for government, private and non-profit organisations. As a member of the ADSG General Secretariat, and

(FY’14)Revenues

aeD 10,415 mn

10% 7%60%11%

22%

10%

Global Wholesale Global Wealth

Global Retail and Commercial Head office

32%

48%

(FY’14) Net Profits

aeD 5,579 mn

Further information on our financial results can be found on our website (www.nbad.com).

3.6 Financial Stability and Economic Growth

Where we made our Profit in 2014

having aligned our strategy with the Abu Dhabi 2030 Vision, we are progressively trying to quantify our impacts as an organisation.

Our financial payments to key stakeholder groups, including our shareholders, employees, the community and local suppliers are illustrated below. Our total contributions in 2014 amount to AED 5,636,132 (‘000).

policy and programme management

Validation

embedding Business

Continuity

Implementation Design

Analysis

*G4-24


Stakeholder Type of contribution AED

Employees Salary, benefits and rewards 2,532,726 (‘000)

Shareholders Total dividends provided 1,889,971 (‘000)

Community Direct charitable donations and sponsorships 50,973 (‘000)

Local suppliers Payment to local suppliers 1,162, 462 (‘000)

Total 5,636,132 (‘000).

In 2014, ADSG published ‘Sustainability in Practice’, a report which estimated that the collective impact in 2012 of ADSG members, at a minimum, accounted for approximately 9% of Abu Dhabi’s GDP that year. In addition, collectively, ADSG organisations employed approximately 82,000 individuals, of which 23,000 or 28% comprised Emiratis, and approximately 10,800 or 13% included women(ADSG, Sustainability in Practice – From Vision to Action, April 2014 (www.adsg.ae).

The table below illustrates our achievements in 2014, which support the Abu Dhabi Vision 2030.

We have become more streamlined and focused in terms of our sustainability objectives, which are aligned with the Abu Dhabi Economic Vision and reflect our Vision, Mission and Values. We have developed a set of ‘core‘ sustainability initiatives in support of our short-term objectives. We want to collaborate and partner with our external stakeholders,

Our sustainability policy is applicable Group-wide and sets out broad principles for taking a precautionary and responsible approach to operations and business. Our risk management processes and policies are robust and support this principle (www.nbad.com, ‘About NBAD’, ‘Investors Relations’, ‘Annual Review Report-2014’ page 34).

Abu Dhabi Vision 2030 Priority 2030 Objective What we did in 2014 Report Section

Supporting Economic Development of Abu Dhabi

Enhance competitiveness

Supporting SME development through our Corporate Citizenship strategy and our support of the Khalifa Fund for Enterprise Development.

Chapter 7, Section 7.1 ‘Our Corporate Citizenship strategy’, ‘Supporting SMEs’.

Supporting Social and Human Resource Development in the Emirate

Expanded skilled workforce

Providing learning and development opportunities.

Chapter 6, Section 6.3 ‘Labour Practices’, Training and Development.

Supporting Infrastructure Development and Environmental Sustainability

Efficient and safe transport and infrastructure

Project financing of infrastructure and transport systems.

Chapter 5, Section 5.3 ‘Responsible Financing, ‘Project Financing’.

Global Wholesale

Shareholders

Community

Local suppliers

1,162,462,000

50,973,000

1,889,971,000

2,532,726,000

Contribution to our stakeholders

“We’re helping to generate growth and diversify the economic base of the UAE, which aligns our strategy with the Abu Dhabi 2030 Vision”

Rola Abu Manneh, Senior Managing Director and Head of Client Relationships

alignment to the abu Dhabi Vision 2030

We are still focused and committed to the success of Abu Dhabi and the UAE as a whole. We have continued to align our goals and objectives with the government’s objectives and the Abu Dhabi Economic Vision, through various aspects of our business.

4.0 Our Sustainability StrategyWe believe that People, Planet and Profit are the pillars at the heart of our sustainability programme, and are integral to our ambition of delivering long-term profitable growth and ensuring the continued success of the Bank. We understand that our commitment to sustainability management will help us tackle the full scope of risks and opportunities which we face.

Our sustainability policy

We take a long term view of our business decisions at all times, ensuring that short-term actions do not damage our ability to operate successfully in the future. We seek out new opportunities, particularly in the Energy and Small and Medium Enterprise sectors, through the active management of current and future risks, balancing the needs of people and society, the environment and our profitability, and thereby ensuring the continued success of the Group.

4.1 Our Commitment to Corporate Sustainability

Further details of our sustainability policy can be found in Appendix B.

We are currently not signatories to any international sustainability initiatives but we have an approval from our Executive Committee, which specifies that any new premises conform to the Abu Dhabi Pearl Rating System for

sustainable buildings. This requires us to build any new premises to a far higher environmental standard than is required by law.

conduct regular stakeholder engagement sessions, and continue to measure our progress in sustainability maturity.

Our long-term objective is to position NBAD as an expert in sustainability and a regional leader in best practice. In support of this, we have developed

our Corporate Citizenship strategy, through which we will focus on two strategic programmes where we believe we can make a significant social and environmental contribution in the near future.


Corporate sustainability (Cs) Team

The Corporate Sustainability (CS) team is positioned within the Group Marketing and Communications (Group Marcom) department of the Bank. The team has a continuing responsibility to develop the Group’s Sustainability Strategy and objectives, and reports on progress through collaboration with the Group Businesses. This is carried out with the support and guidance of the Sustainability Stakeholder Group (SSG).

The Corporate Sustainability team acts as a strategic sustainability adviser and is responsible for assisting the Group Businesses towards achieving NBAD’s sustainability objectives and commitments. The CS Team reports to the Head of Group Marcom and advises

Our ‘Core’ sustainability initiatives

We have developed a set of ‘core’ initiatives which we focus on in order to implement our short-term sustainability objectives. These include the following:

• Raising sustainability awareness internally within the Bank;

• Maintaining external partnerships and collaborations;

• Conducting stakeholder engagement;

• Data collection;

• Preparing the annual Sustainability Report;

• Assessing the sustainability maturity of the Bank; and

• Identifying where improvements need to be made across the business units.

Through our ‘core sustainability initiatives’, we aim to ensure continual improvement in terms of creating value for our stakeholders. We continue to measure our progress and ensure sustainable success through our annual sustainability maturity assessments.

4.2 Managing Sustainability

Managing Sustainability at NBAD

4.3 Our Sustainability Strategy

the Deputy Group Chief Executive Officer, and where appropriate, the Executive Committee (EXCO), of recommended actions and initiatives in line with the CS Charter.

sustainability stakeholders group (ssg )

In line with its Terms of Reference, the Group Heads of Divisions and Business are invited to join the Sustainability Stakeholders Group (SSG), or nominate a senior member of their team to represent them. The SSG is responsible for overseeing and implementing NBAD’s Sustainability Strategy. This is achieved in collaboration with the

Corporate Sustainability (CS) Team and through the support of Sustainability Champions within different business units.

The SSG is required to make judgments, conduct enquiries and gain business assurance that decisions and action, regarding the sustainability strategy are relevant and deliverable. Members carry the responsibility to ensure that the performance of the Group businesses is directed towards achieving NBAD’s sustainability objectives.

To meet Internal Audit requirements, all members of the SSG are required to undertake sustainability training. We launched our Sustainability Awareness e-learning programme during this year, which is mandatory for our employees, and requires completion by mid-2015. The audit procedures also require SSG members to formally verify the information and data included in the annual Sustainability Report that falls within their area of business. We did not undertake an audit to assess implementation of environmental and social policies and risk assessment procedures in 2014.

sustainability Champions

We had a number of sustainability champions within the Bank, who assisted in developing the understanding and knowledge of sustainable business practices across the Bank. Their key role was to act as communicators of information and act as advisors and role models within their departments. Due to the restructuring within the organisation over the last year, however, the role of the sustainability champions has been deactivated. Going forward, we will reassess the need for sustainability champions within the organisation and will review their roles and responsibilities accordingly.

Launch of our Corporate Citizenship strategy

The aim of our new Corporate Citizenship strategy is to focus on two strategic programmes that will create significant positive social and environmental impacts, and which will demonstrate our commitment towards responsible business practices.

As a good corporate citizen, we want to become a leading advocate for SMEs in the UAE and highlight the role of the financial sector in the future of energy, which is a pressing global issue. These are two areas that have global significance and local relevance, where we believe we can make a significant contribution over the next few years. Further details of our ‘Future of Energy’ and ‘Supporting SMEs’ programmes can be found in Chapter 7 ‘Our Impact on Society’.

In 2014, we launched our Corporate Citizenship strategy to be recognised as a leading bank on a number of issues that have global significance and local relevance.

“We want to back the growth of the country’s SME sector because entrepreneurial talent is so important to people’s livelihoods and the fabric of the economy. We want to be a leading voice in sustainable energy solutions – one of the most critical challenges facing the world today and an area where Abu Dhabi has the potential to become a global centre of excellence.”

Abdulla M. S. AbdulRaheem, Deputy Group Chief Executive Officer

Corporate Sustainability Team

Sustainability Stakeholder Group

Sustainability Champions


Listening to our stakeholders

This report is aimed at our stakeholders who are interested in our performance and approach to corporate responsibility. We have a number of stakeholders that can impact and are impacted by the Bank’s operations. These include our customers, shareholders (owners) and investors, Government and regulators, employees, suppliers, the local community, competitors, partners, peers and the environment.

Following on from our 2014 commitment to undertake direct engagement with our external stakeholders, we conducted four external stakeholder engagement workshops to obtain our stakeholders’ views on the most important issues a bank should focus on in its operation and activities. We also engaged with our stakeholders through other means which are outlined in the table below.

stakeholder engagement process in 2014

4.4 An Informed Sustainability Strategy*

Stakeholder Groups

Engagement Means and Frequency Stakeholder Feedback

Management representatives, Government and regulators

ü NBAD EXCO Meetings (weekly/ monthly)

ü NBAD BoD Meetings (quarterly)

ü Meetings and e-mails (as required)

Our management representatives are informed of our sustainability approach and initiatives in weekly/monthly meetings.

We have an internal Sustainability Stakeholder Group (SSG) represented by different areas of the business. Based on feedback obtained from our management representatives, we review our existing sustainability approach to ascertain if it meets future needs.

Shareholders and investors ü Annual General Meetings

(AGM), (annual)

Copies of our sustainability reports are available at the AGM for shareholders to raise any concerns. Our Chairman has instructed us on occasions to support various charities or philanthropic causes.

Stakeholder Groups

Engagement Means and Frequency Stakeholder Feedback

Customers

ü Branches, E-channels, Toll-free number, Relationship Management Meetings (as required)

ü Customer Satisfaction Survey (annual)

A Group Customer Satisfaction Survey was conducted across the customers of the NBAD Group businesses. The majority of our businesses achieved the global average benchmark for customer satisfaction with regard to their respective line of business. We have launched, and are rolling out our Customer Complaints Management System (CMS) within the Bank, to capture, record and resolve all complaints received from our customers. We have developed this system to ensure we provide exceptional products and services to our customers.

Employees

ü Global People Survey (annual)

ü HRG Internal Business Partners, E-mails, Meetings (as required)

ü Town Halls (as required)

The results of our annual Global People Survey in 2014 demonstrated an overall positive trend with regard to management practices.

Suppliers

ü E-mails and meetings and telephone-calls (as required)

ü Supplier Satisfaction Survey (annual)

We carry out an annual supplier satisfaction survey and in 2014, we launched our supplier complaints management system within the Bank, to capture, record and resolve all complaints received from our suppliers. The results of our Supplier Satisfaction survey were overall positive, with 55% of vendors grading our business relationship as excellent and 80% of vendors confirming they would continue doing business with NBAD in the future.

Local Community and partners

ü Events (as required),

ü Online channels, media channels (as required)

ü Dialogue through local authorities and regulators (as required)

Four external stakeholder engagement workshops were conducted to obtain feedback from our stakeholders. The results of these are illustrated in our materiality matrix in the next section.

Environment ü Events (as required)

Ongoing informal discussions with Emirates Wildlife Society-World Wildlife Fund (EWS-WWF), the Environment Agency, Abu Dhabi (EAD), ADSG and the Dubai Sustainability Network with regard to environmental issues.

Suppliers

Customers Employees Peers

Shareholders and Investors

Environment Competitors

Government and regulators

Local Community and Partners

Our Stakeholders

*G4-18, G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27 *G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27


Our reporting process has been developed around the issues that we believe are highest in importance for our stakeholders, and on our ability to deliver our strategy. The material issues of importance to NBAD and our stakeholders are aligned with six key focus areas:

• Respecting our Customers;• Caring for our Employees;• Preserving our Environment;• Supporting our Suppliers;• Helping our Communities; and• Benefitting our Shareholders.

internal perspective

In order to identify the issues most material to our business, we conducted an internal materiality assessment in 2014. As part of this analysis, we created a pool of potential material issues with a sustainability context (including the GRI

identifying our material issues

1.1

1.2

1.3

1.4

1.5

1.6

2.1

2.2, 5.2

2.3

2.4 2.5

2.6

2.7

2.8

2.9

2.1 3.1

3.2

3.3 3.4

3.5

3.6

4.1

4.2

4.3

5.1

5.3

5.4

6.1

6.2 6.3

6.4

6.5

6.6

6.7

0

0.5

1

1.5

2

2.5

3

3.5

0 2 4 6 8 10 12

Impo

rtan

ce to

Sta

keho

lder

s

Impact on NBAD

Medium High

Low Medium

Materiality Matrix

Material Issues

Focus AreasImportance to

NBAD and Stakeholders

Material Issues Chapter/SectionReference

High

1.0 Respecting our Customers

2.0 Caring for our employees

3.0 preserving our environment

4.0 supporting our suppliers

5.0 Helping our Communities

6.0 Benefitting our Shareholders

1.1 Customer data privacy Chapter 5.0, Section 5.2

1.5 Access to financial services Chapter 5.0, Section 5.4

2.1 Job creation and securityChapter 3.0, Section 3.2

Chapter 6.0, Section 6.1

2.2 Human rights Chapter 6.0, Section 6.3

2.3 Hiring staff from local community (market presence)


2.7 Employee engagement Chapter 6.0, Section 6.3

2.8 Employee Diversity and equal opportunity Chapter 6.0, Section 6.1

2.9 Emiratisation Chapter 6.0, Section 6.1

2.10 Employee Grievance mechanisms Chapter 6.0, Section 6.3

3.1 Materials consumption Chapter 8.0, Section 8.1

3.2 Energy consumption Chapter 8.0, Section 8.1

3.3 Water consumption Chapter 8.0, Section 8.1

3.4 Waste management Chapter 8.0, Section 8.1

4.2 Responsible procurement Chapter 5.0, Section 5.5

4.3 Procurement choice Chapter 7.0, Section 7.3

5.2 Collaborations and partnerships Chapter 7.0, Section 7.2

5.4 Financial contribution (eg. charitable donations in monetary terms)


6.2 Alignment to Abu Dhabi Vision 2030 Chapter 5.0, Section 5.3

6.3 Transparency and accountability Chapter 3.0, Section 3.4

6.4 Business continuity Chapter 3.0, Section 3.5

6.5 Anti-corruption Chapter 3.0, Section 3.5

6.7 Regulatory compliance (shareholders) Chapter 3.0, Section 3.5

6.1 NBAD’s financial performance (eg. turnover, profits) Chapter 3.0, Sections 3.1 and 3.6

1.2 Customer satisfaction Chapter 5.0, Section 5.1

1.3. Responsible communication Chapter 5.0, Section 5.1

1.6 Regulatory compliance Chapter 3.0, Section 3.5

5.1 Operational contribution (eg Citizenship) Chapter 7.0, Section 7.1

5.3 Economic value generation (eg. distributing profits to stimulate the economy)


6.6 Responsible financing Chapter 5.0, Section 5.3

medium

Low

2.6 Learning and development Chapter 6.0, Section 6.3

3.6 Regulatory compliance (environment)Chapter 3.0, Section 3.5


4.1 Supporting suppliers Chapter 5.0, Section 5.5

2.4 Employee benefits and remuneration Chapter 6.0, Section 6.3

2.5 Health, safety and well-being Chapter 6.0, Section 6.3

3.5 Impacts on biodiversity Chapter 8.0, Section 8.1

*G4-18, G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27 *G4-18, G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27

aspects). We also added other material topics which we felt would be of interest to our external stakeholders.

As part of our internal materiality assessment, we evaluated the importance of each material issue identified in relation to our operations and activities. We participated in the Abu Dhabi Sustainability Group (ADSG) support workshops and presented our internal materiality analysis for our peers to review, as part of a report support programme conducted for organisations in Abu Dhabi. The boundaries of each material aspect are indicated in Appendix A (GRI Tables 1, 2 and 3).

external perspective

We conducted four external stakeholder workshops to obtain our stakeholders’ feedback on how a bank should

operate in a responsible way. We invited representatives from six of our external stakeholder groups to these workshops.

We prepared a set of questionnaires in which we asked our stakeholders for their views on the most important issues a bank should focus on and report on. We provided an overview of the sustainable approach and initiatives we are currently involved with. We received valuable feedback from our stakeholders, the results of which are included in our materiality matrix.

materiality matrix

The materiality matrix provides a snapshot of the material issues of high, medium and low importance in relation to sustainability issues identified from an internal and an external perspective.


material issues

Our list of material issues included in the questionnaires prepared for our stakeholder engagement workshop were categorised according to the six key focus areas mentioned earlier. We included material issues of importance for our stakeholders and/or the Bank. The results from the materiality matrix have helped to define the content of this Sustainability Report.

As evident from the materiality matrix, the six material issues of high importance include customer satisfaction, responsible communication, compliance with regulations and codes, operational contribution (providing services which facilitate economic growth), economic value generation (distributing profits to stimulate the economy and benefit the community) and responsible financing.

In this report, we have provided details on how we manage the material issues of high and medium importance to our stakeholders and/or the Bank, which

assessment of our sustainability maturity

“NBAD’s journey with the Dubai Chamber CSR Label started in 2012 when the Bank’s management made a commitment to measure its overall performance in CSR. Since then, and supported by the vision of its management the Bank has progressed a passion for CSR and sustainability which took hold with its people and all relevant stakeholders. This commitment to continuous improvement in CSR and sustainability has led the Bank to participate annually in the Dubai Chamber CSR Label, an audit and assessment tool that has been designed to assess companies and help them define and improve their Corporate Social Responsibility strategy, policies, and management practices. The Dubai Chamber CSR Label is tailored to the Middle East, specifically to the UAE and is based on international standards and best practices4.

The Dubai Chamber’s Centre for Responsible Business and CsR Label

We have established a long-term partnership with the Dubai Chamber’s Centre for Responsible Business and Sustainability Network, through which we contribute to the development of sustainability principles in the UAE by participating in organised task groups. In 2014, we supported knowledge sharing sessions in a Sustainability Communication Task Group.

Through our membership of the Dubai Chamber’s Centre for Responsible Business, we have been awarded the CSR Label for the past two years in recognition of our progress and achievements for 2013 and 2014.

nBaD’s Commitment to Continuous improvement

The Dubai Chamber CSR Label was created to provide a simple tool to communicate an organisation’s commitment to operating responsibly and to celebrate its success in doing so. It has been developed specifically for the UAE and Dubai and is based on international standards and best practice. It is a learning and development tool that helps companies to define and improve their CSR strategy, policies and management practices.

The Bank’s progress throughout these years did not go unnoticed. NBAD’s score in 2014 for the Dubai Chamber CSR Label has increased by 17% from its score in 2012. The progress in terms of long-term value was visible in each area of CSR and sustainability (environment, workplace, marketplace and community).

We at the Dubai Chamber Centre for Responsible Business are confident that NBAD will continue its accomplishments and successes and we look forward to contributing to its journey towards excellence in CSR and sustainability.”

Dima a. maaytahSenior Executive-CSR Consultancy, Dubai Chamber Centre for Responsible Business

In 2014, we undertook a further assessment of our sustainability maturity to determine the level of maturity we had reached. We discovered that we had received an overall maturity of 30.8% a relative improvement of 20% since 2013. We have, achieved 51.9% improvement in our overall sustainability maturity in comparison to our 2012 baseline. We have, therefore, met our targeted increase in maturity for this year.

In 2012, we used the Abu Dhabi Sustainability Group (ADSG) sustainability assessment tool to model our progression over three years in order to develop a set of goals to achieve increased maturity development versus our 2012 baseline.

• 2013 - Achieve 20% improvement in our overall sustainability maturity• 2014 - Achieve 50% improvement in our overall sustainability maturity • 2015 - Achieve 80% improvement in our overall sustainability maturity

The increase in maturity directly supports our positioning on the S&P Hawkamah Pan Arab ESG Index.

The chart above shows how we plan to increase our sustainability maturity in relation to seven key stakeholder groups by 2015. These groups include management, owners (shareholders), employees, suppliers, customers, community and the environment.

Our most challenging areas are currently customers, suppliers, community and some specific employee areas.

Our strengths are related to our Corporate Citizenship strategy, stakeholder engagement process and materiality analysis, corporate governance strategy and policies and measurement of performance. There are still many opportunities for improvement.

4www.dubaichamber.com*G4-18, G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27

were identified through our materiality analysis this year. We have also provided information on other issues, including employee benefits, learning and development opportunities and management of health and safety at our premises. We have reported on these issues following feedback from our employee engagement survey and requests from external stakeholders. We have also reported on other issues (in less detail), such as our support of local suppliers, which we feel are important for creating value for our stakeholders.

measuring and improving our sustainability maturity

The sustainability maturity assessment Tool

The ‘Sustainability Maturity Assessment Tool’ is an on-line tool developed for Abu Dhabi Sustainability Group (ADSG), which provides a means for member organisations to assess their current

sustainability maturity in a quantitative way. This tool is the framework by which we assess ourselves annually, and which keeps us focused on the material issues of high importance. We have used the tool to identify our development progress across seven priority focus areas - Management, Shareholders, Customers, Employees, Suppliers, Communities and the Environment.

We have met our targeted maturity score in 2014, and have achieved a relative improvement of 20.3%. We have also achieved our target maturity of 50% for 2014, in comparison to our 2012 baseline. Increases have been across the seven subjects of the maturity assessment tool.


The results of our external stakeholder engagement process and materiality analysis clearly show that customer satisfaction, responsible marketing and communication, and responsible financing are amongst the material issues of highest importance both

for our stakeholders and to us as a Bank. Customer data privacy, access to financial services, responsible procurement and procurement choice are also issues identified as material to our operations and activities. We have declared our commitment to doing

business in a responsible way formally through our Sustainability Policy (refer to Appendix B). We have discussed how we have addressed these material issues in further detail within this chapter.

Customer satisfaction

Customer satisfaction surveys

Providing excellent customer service continues to be our top priority. We undertook benchmarking exercises and customer satisfaction surveys in 2014 to improve and upgrade our performance and address our customers’ needs.

A Group Customer Satisfaction Survey was conducted across the customers of the NBAD Group businesses. Our business segments use the feedback

5.0 Responsible Business Practices

5.1 Customer Experience*

Because of the important position we have in the lives of individuals and in the country, it really matters that we conduct our business in a responsible and sustainable way. That means being honest, fair and transparent, and using good judgement and common sense to manage risk.

OUR CUsTOmeRs saiD We HaVe

Improve Turn Around Time for the delivery of products

We undertook a review of our key processes and made a number of changes. New inter-departmental service level agreements (SLAs) with improved turnaround times have been implemented and are being monitored to deliver our customers’ requirements

Responsiveness of staff in relation to customer service delivery

We developed and launched our ‘Bring your Heart to Work’ training programme for our employees. This is a mandatory programme for our staff and is designed to ensure all staff have the skills and resources to deliver excellence to our customers

Improvements in complaint handling and resolution

Our new Customer Complaints Management System (CMS) was developed and implemented to record and resolve complaints within set timeframes

Improve Clarity of product information (terms and conditions)

We have undertaken a review of our products’ terms and conditions and simplified these to avoid miss-selling and to make it easier for our customers to understand

“I am delighted to congratulate you on

your customer service... We are always too quick to complain about poor

service whilst good service goes unnoticed. So I would like to take

this opportunity to thank NBAD.”

mr. m. Z. QuraishiNBAD Customer

“The overall experience we have dealing with NBAD is excellent due to their good customer relations and customer service quality.”

mr. azmi HouraniSME client, Global building General contracting LLC.

Complaints management system (Cms)

Our complaints management system (CMS) was launched in March 2014. The system is currently being rolled out in our branches and offices, both in the UAE and internationally. Through this system, our branches and departments are able to capture, record and address all complaints relating to their particular business units. We ensure that each complaint is addressed and resolved appropriately through a formal customer complaint handling process.

It is important that we report and record the complaint to ensure that we fix things so that it does not happen to another customer and we stop repeating the same mistakes.

Alex ThursbyGCEO, NBAD

NBAD’s Financial solutions and service has led to our success in the Middle East

mr. Takuya Hamasaki,General Manager,Shinryo CorporationMiddle East

Our customers are at the heart of everything we do.

We recognise that, at its very core, banking has and continues to be a people-to-people business.

*G4-24, G4-26, G4-27 *G4-24, G4-26, G4-27

from this survey to drive improvements across processes and products to deliver customer service excellence.

As an outcome of the survey, the majority of our businesses achieved the global average benchmark for customer satisfaction with regard to their respective line of business. We also identified key areas for improvement. We want to enhance ease of doing

business, improve turnaround times for delivery of products and services, improve the look and feel of our online internet banking, and use a single platform for recording and resolving customer complaints (i.e., our Complaints Management System). These areas will form part of our 2015 Balanced Scorecard (BSC) for customer experience.


Transparency Regarding products and services

We provide product information in a way that is clear and fair, and in a manner which seeks to keep the customer informed and to improve their financial awareness. We have developed a “Treating Customers Fairly” policy, which sets out our commitment to deal with customers fairly at all times in the conduct of our business, and to only sell products that fit their profile and needs.

We take reasonable care to ensure that borrowers are aware of the obligations

5.2 Fair Treatment

Responsible Communication, marketing and sales

serving our Customers

internal shopper programme

In 2014, we conducted an Internal Shopper programme with the support of a research company. The objective of this programme is to ensure that we comply with our internal procedures and standards in relation to customer service. It enables us to identify where improvements need to be made and to recognise and reward staff in locations where prompt and effective customer service is delivered.

service ambassadors

In line with our 2014 commitments, we increased the number of branches with Service Ambassadors from 14 to 22. It is the role of our Service Ambassadors to ensure that our customers receive a high quality and efficient level of service, and to promote and assist in the use of alternative banking channels, including online banking, telephone banking, ATMs and CDMs, to speed up transaction

Refurbishment of our Branches

In 2014, a number of our branches were closed fully or partially as part of our Branch Conversion Project. The goal of this project is to refurbish our branches to create a consistent look and feel across our network, and provide a customer-friendly atmosphere that is both vibrant and welcoming. 13 branches were fully closed and 4 branches were partially closed in 2014. The branches are scheduled to re-open in early 2015.

We informed our customers of the closure and reopening of these branches via text messaging service (SMS) in Arabic and English. We also placed notices outside our branches and on our website to inform customers of the refurbishment plans.

We will hold Service Clinics in 2015 for our staff prior to the opening of our renovated branches. These clinics will involve training staff on our new customer service standards, and familiarising staff with the branch and its new facilities. The training will include team motivation and staff engagement to deliver exceptional customer service.

We are committed to safeguarding the confidentiality and privacy of all our customers’ information, including personal, business and other information.

We have a comprehensive Information Security Policy in effect, which is rigorously implemented and is subject to frequent internal audits. Our information security policies and requirements broadly align to internationally accepted information security management standards such as ISO27001 and Payment Card Industry – Data Security Standard (PCI-DSS).

Our security infrastructure is among the best in the financial industry and ensures that our systems are secure from internal and external threats. The Bank also has a comprehensive and robust system in place for disaster recovery that meets industry standards.

Our Code of Conduct and Ethics includes specific reference to protecting data, particularly with regard to our customers, and we record and monitor all complaints related to breaches of customer privacy or confidentiality.

It is the policy of the Bank that both the financial records of our customers and the relationships between the Bank and its customers are kept confidential.

Customer Data privacy

Compliance screening

anti-money Laundering, Counter Financing of Terrorism and sanctions Compliance

We are committed to achieving the highest level of compliance with the UAE’s laws, regulations and guidelines on Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT). In the jurisdictions in which the Bank operates, we meet and always seek to exceed the relevant local laws and regulations.

Our Financial Crime team includes Sanctions Compliance specialists, who monitor international sanctions issued and the programmes imposed by the UAE, UN, EU, UK and US to ensure they are not breached. We are committed to complying with all relevant sanctions requirements for every transaction we perform or relationship we maintain.

During 2014, when the Group AML policy was reviewed, we adopted best international practices and benchmarked our policy against all the jurisdictions in which we operate. The revised Group policy incorporates the requirements of both the jurisdictions and international best practice, and is applicable to all of our operations and activities.

5.3 Responsible Financing

Out of an estimated number of over 350,000 customers, there were

0.003% cases of fraud and

0.004% complaints were recorded through our Complaint Management System (CMS) in relation to customer data privacy. Each case was recorded and investigated and appropriate corrective action was taken to resolve each case.

15,197 new accounts subject to due diligence

480 accounts declined

6,000,350 payments subject to filtering

1,053 payments rejected

times. The introduction of Service Ambassadors at our branches has added significant value to our banking services, including the following:

• Reduction in customer complaints in relation to waiting times and increase in customer compliments;

NBAD Service Ambassadors

• Internal surveys conducted have reported increased customer satisfaction scores in branches having Service Ambassadors; and

• Service Ambassadors actively promote role model behaviour within the branches.

Customer Due Diligence

We aim to ensure that our policies and procedures comply with relevant laws and regulations with respect to our Know Your Customer (KYC) policies and other client identification requirements. These policies form a fundamental part of our internal control regime and AML procedures as they reduce the risk of credit losses and suspicious transactions being made on accounts. They protect the Bank against fraud and other reputational risks.

We take all reasonable efforts to ascertain the true identity of our customers and we have relevant procedures and approval processes in place for all staff involved in onboarding customers. In accordance with international best practice, we apply a risk-based approach (RBA) with regard to our customer onboarding process.

Customers and counterparties are regularly screened against lists of terrorists and sanctioned names issued by the UN, US, EU, UK and UAE by our Sanctions Compliance team.

We have specific procedures in place to report and act on any suspicious transactions. We aim to ensure full

transparency on every financial transaction to screen outgoing and incoming transactions for sanctioned entities or countries, and to review the status of customers from time to time. In compliance with the above mentioned principles, the Bank declined a number of business relationships and rejected a number of transactions in 2014.

they are undertaking. We also ensure that we are transparent about service charges, interest rates and the basis of calculations.

We modified and simplified information on our easy payment instalments, balance transfer and easy cash products to make it easier for our customers to understand, and to prevent the miss-selling of products and services to our customers. We ensured that the scripts given to our call centre staff reflected

these changes to enable the call centre agents to clearly explain the terms and conditions, fees, charges, turnaround times and documents required from our customers.

We continued to invest in other distribution channels to enhance our customer service capabilities. These include our internet services (NBAD Online) and the provision of additional ATM machines.


selling the Right products to the Right Customers

Risk Profiling

We are committed to acquiring a thorough understanding of our customers’ general attitude towards investing and their willingness to accept risk in pursuit of what potentially could result in higher returns.

Our methodology is based on the development of a comprehensive product suitability assessment that is matched to our defined client risk profiles. This is then matched with respective product risks, to ensure our clients receive the right products with minimal risks.

In relation to any investments made by the Bank, we have a risk framework by which we operate. We do not record the number of companies held in our portfolio with whom we have interacted with on environmental or social issues.

Broader investment Choice and Wider asset Class Coverage

In 2014, we centralised all of our Asset Management functions under Global Asset Management, a move to provide our clients (locally and globally) with the best options and improved product choice and sourcing. Our objective is to offer clients a full range of asset classes, no matter what their investment time horizon or view on the market. We cater for retail, high and ultra-high net worth individuals (HNWI), institutions, Government and semi-Government entities.

We are diversifying out of the MENA region as part of our West-East corridor expansion strategy. This offers our customers a wider exposure to investment commodities and lower risk. We advise and inform our customers about investment opportunities both within and outside the MENA region.

We further enhanced our range of investments, by launching the MENA Dividend Leader Fund, the MENA Bond Fund and the Emerging Markets Fund. Our product suite offers our customers

We offer Shari’a compliant products and services through our subsidiary Abu Dhabi National Islamic Finance (ADNIF), a wholly owned subsidiary of NBAD. In addition, we develop Shari’a compliant products and services through our Global Asset Management business and our Treasury and Investment Division.

Shari’a-compliant investment solutions and Islamic products are governed by the principles of minimising risk exposure while optimising yields in terms of investment. They are developed in accordance with relevant UAE Central Bank regulations as well as the guidelines and resolutions of our Sharia Fatwa and Supervisory Board.

ADNIF, guided by Shari’a rules and principles, offers a wide range of products and services (including current, savings and investment accounts, credit cards and financing products), which address our customers’ needs through Islamic financing and investment modes such as Murabaha6, Ijarah7 and Istisnaa8.

Our Treasury and Investment Division offers our corporate, HNWI, individual and financial institutional customers Shari’a-compliant funding, liability management and asset management solutions. All Shari’a-compliant financial solutions offered to customers are reviewed and approved by our Shari’a Fatwa and Supervisory Board of independent Sharia scholars to ensure that our services meet Islamic guidelines.

Our Global Asset Management business has also developed a number of Shari’a-compliant products and services to meet the needs of our customers. These include our Islamic MENA Growth Fund, Sukuk Income Fund and the Sharia MENA Dividend Fund. These products offer a higher level of risk mitigation, a wider range of instruments to invest in, greater liquidity and are more cost-effective for our customers.

Our islamic products and services

The Smart Investment Plan (SIP) is a plan to help people save in “bite-size chunks”. It was developed as a regular investment product to give clients an opportunity to invest smaller funds systematically over a desired period of time. This could,

for example, enable our clients to invest for a child’s higher education or for retirement purposes.

This product enables our clients to invest in funds and portfolios that are flexible, well diversified and

specially designed to help them achieve their long term financial goals. It encourages a savings mindset. The earlier they start, the more they can realise their future financial objectives.

Case Study: Our Regular Savings Plan - ‘Smart Investment Plan’ (‘SIP’)

NBAD’s Asset Classes

solutions

Fixed Income

StructuredProducts

MoneyMarkets

Enhanced Case

Equities

At its heart, Islamic finance is a moral system of finance. It emphasizes the balance between for-profit activities, or the market, and not-for-profit activities, including social and philanthropic activities.

Dr. Sami Al-SuwailemHead, Financial Products Development Centre, Islamic Development Bank5

We offer ethical investing by way of adherence to Shari’a principles for some of our investment funds and segregated mandates. We provide our customers with access to a professional and well-prepared investment team so that they can make informed and reliable investment choices in relation to these funds and segregated mandates. These investments are endorsed by our Shari’a Fatwa and Supervisory Board of independent Shari’a scholars. We apply a qualitative and quantitative screening filter for these investments. In accordance with Shari’a principles, we do not invest in businesses with links to gambling, pork, alcohol, tobacco, certain forms of entertainment and weaponry. In 2014, 10% of the assets managed by Global Asset Management were subject to Shari’a-compliant screening.

Responsible Lending

In accordance with our ‘Know Your Customer’ policies, we ensure that we offer the right products and loans to suit our customers’ needs and requirements. We adhere strictly to the Central Bank UAE regulations, ensuring that customers do not pay over 50% of their monthly salary. We apply an aggregate of 50% debt services ratio (DSR) for customers and 30% DSR for pensioners.

Case Study: Debt Relief Plan for UAE Nationals

In line with the UAE Government requirements, we assist in the restructuring of historic loans for UAE Nationals who cannot meet their repayment of loans with other banks. We developed products and schemes to consolidate and restructure their loans. We extend the tenure of repayment, reducing the DSR to 50%.

We assisted 308 customers in 2013, and 357 customers in 2014 with debt consolidation and restructuring.

5‘Essence of Islamic Finance’, · 4th February 2015 (www.islamicfinance.com/2015/02/essence-islamic-finance)6Murabaha works by the bank supplying goods for resale to the customer at a price that includes a margin above the costs, and allows them to repay in installments. This might be used to provide a mortgage on a property. The property is registered to the buyer from the start (Islamic Finance, The Low Down on Shari’a-Compliant Money, The Guardian, 29 October 2013)7Ijara works as a leasing arrangement: the bank buys something for a customer and then leases it back to them. Different forms of leasing are permissible, including those where part of the instalment payment goes toward the final purchase. This might be used to help you buy a car or other item, or to help a business buy equipment. (Islamic Finance, The Low Down on Shari’a-Compliant Money, The Guardian, 29 October 2013)8Istisnaa is a contract of exchange with deferred delivery, applied to specified made-to-order items (www.islamicfinance.com)

The assessment of eligibility for loans is based on verifiable income, and does not include variable components such as bonuses and commission or overtime pay. For mortgage loans, stress testing is also conducted to ensure that customers are able to manage their repayments.

the opportunity to invest in a wide array of markets ranging from lower risk bonds delivering stable income, right up to broader emerging market equity funds which are designed to focus on capital growth over the medium to long term.

We will introduce further asset classes in 2015, including the single bond platform, structure notes, Trade Finance fund and an exposure to a wider market range through our Africa-Asia fund.


project Financing

supporting the abu Dhabi economic Vision 2030

Our Project Finance (PF) team originate, structure, lead, arrange and underwrite project finance transactions delivering complex financing solution for clients, both within UAE and internationally. Our Project Finance team provides funding with a focus on the following strategic sectors in the UAE that are aligned with the Abu Dhabi Vision 2030:

• Energy and Natural Resources.• Transportation.• Real Estate and Family Conglomerates. • Trades, Retailers and Diversified.

We are a firm supporter of the Abu Dhabi 2030 Vision, focusing mainly on infrastructure, power, transport and multi-use developments. We were involved in a number of large projects in 2014, including:

• Mirfa IWPP – capacity of 1,600 MW (power) and 52.5 MIGD (water).

• Emirates Steel – an Abu Dhabi based steel plant with capacity of 2.8 MTPA.

• Saadiyat Beach Resort– a 5 Star luxury beach resort in Saadiyat Island, Abu Dhabi.

• Real estate financing (including malls, hotels, commercial developments) and direct financing for TDIC and Al Dar Properties.

• Funding new aircraft and supporting Etihad Airways with multiple financial products to assist growth of the airline, in line with the 2030 strategic vision for Abu Dhabi.

accessibility As mentioned in Chapter 3, we service our customers in the UAE through our 125 branches and cash offices, 596 ATMs/CDMs, private banking units, online banking channels and 24-hour contact centre support.

We provide ATMs and branches in rural and harder to reach areas. We have 46 ATMS and 16 branches in low populated and economically disadvantaged areas of the UAE.

Besides the conventional banking practices undertaken in our branches, we have developed a number of easy to use and convenient channels to ensure financial accessibility to our customers. These channels include our internet services (NBAD online), our e-banking service (NBAD Direct), ATM machines, a 24-hour customer contact centre and our automated phone banking facilities.

Our focus going into 2015 will revolve around delivering high-end, customised services through our website, mobile wallet and mobile banking, providing optimised services for portable devices and upgrading our ATMS.

5.4 Access to Financial Services

application of equator principles

When considering large scale projects, various factors are considered in the risk assessment process prior to lending. The most pertinent factors regarding sustainability involve due diligence of the project parties, (in particular their track record), as well as consideration of the social and environmental impacts of the project. We have developed a Group-wide policy in 2014 for project financing to help us follow the requirements of the Equator Principles. 3.07%

Our ratio of non-performing loans to total loans, at 3.07%, is half the UAE average.

The introduction of ‘Ratibi’ payroll cards demonstrates our commitment to providing secure financial services to the low income and unbanked population of the UAE. ‘Ratibi’ has evolved as a social product, creating financial independence and providing an easy, secure and convenient access to funds for employees and low income consumers.

“The Mirfa project reflects the wise vision of the Government of Abu Dhabi and its continued support for the power and water sector, and it is an important addition to the sector, and once completed, will play a key role in delivering power and water competitively to meet Abu Dhabi’s growing electricity and water demand.”9

Located 120 km from Abu Dhabi, the Mirfa Independent Water and Power Project (IWPP) is Abu Dhabi’s tenth such facility to be built under the public-private-partnership (PPP) model. The project involves the acquisition of certain existing water and power facilities, the development, design, engineering and construction of new power and water facilities, as well as the operation of the plant. Once completed in 2017, Mirfa IWPP will have a total power capacity of 1,600 MW and a seawater desalination

Case Study:Mirfa IWPP

NPL ratio10 stood at 3.07% of the loan book (half the UAE average11) and has continued to remain relatively low, in lieu of better credit risk management, after peaking at 3.55% in 2013. Total provisions represented 108% of non-performing loans.

9‘Mirfa IWPP: ADWEA, GDF Suez reach financial close’, 8th October, 2014 ‘http://www.constructionweekonline.com/article-30539-mirfa-iwpp-adwea-gdf-suez-reach-financial-close/10NPL ratio = non-performing loans net of interest in suspense divided by gross loans net of interest in suspense11World Bank data, http://data.worldbank.org/indicator/FB.AST.NPER.ZS/countries

Loan Quality

Overdue but not impaired loans (aeD mn)* 2013 2014 annual Change

Overdue (but not impaired) loans 156 329 +111%

Non-performing loans 6,914 7,285 + 5.37%

% Non-performing loan ratio10 3.16% 3.07% -0.09%

% Provision coverage 105% 108% + 3%

*between 31 and 90 days overdue

Composition of past Due not impaired 2013 2014

less than 30 days 483.78 153.43

31-60 days 79.63 151.31

61-90 days 76.43 177.44

more than 90 days 1,647.17 1,161.76

Total 2,287.01 1,643.96

Financial inclusion

We have always been at forefront in terms of serving the lower income or underbanked customer segment (employees who earn up to AED 5,000 per month). We have developed a salary debit card (whose brand name is ‘Ratibi’) in support of the UAE’s wage protection scheme. This salary debit card enables a previously unbanked segment of the population to have access to a regulated financial product as part of the wage protection scheme. It provides a service to employers who do not need to handle large amounts of cash as a result, and it provides security for the lower income customer segment.The payroll card includes free accidental insurance in the event of hospitalisation or death.

We are the first and only bank in the UAE to provide a free-of-charge life insurance coverage for low income consumers providing an insurance of up to five times their salary (a maximum of AED 25,000).

We have provided ATMs in a number of workers’ accommodation areas for easy access to their salaries. The logistic services, construction and hospitality sectors are the industries benefiting the most from the product.

capacity of 52.5 MIGD (million imperial gallons per day).

After a formal tendering process and evaluation of the bids, GDF Suez was selected as the preferred bidder and was subsequently awarded the project. Abu Dhabi Water and Electricity Authority (ADWEA) holds 80% stake in the project with the remaining 20% held by GDF Suez.

NBAD acted as one of the mandated lead arrangers (MLAs) for the project. The debt facilities with contractual tenor of 25 years were substantially over-subscribed with commitments from 13 banks which included leading local and international banks. NBAD also acted as the modelling bank for the transaction. The financing is backed by a 25-year Power Purchase Agreement (PPA) with ADWEA, according to which the latter agrees to buy the project output on a take-or-pay basis.

We are currently evaluating the Equator Principles in the context of their wider application to non-PF projects and in the context of regional working practices.

Loan Quality

The overdue loans and non-performing loans (NPLs) have increased slightly by around 5% in 2014 vis-à-vis 2013, to AED 7.3 billion from AED 6.9 billion. The


“We are fully satisfied with NBAD services, especially NBAD Ratibi since its inception”

Roba Sami Khalil, Payroll Supervisor, Target Engineering Construction. Co, LLC

“We are very happy and satisfied with Ratibi cards and this has helped a lot in managing the payroll of our staff...”

Adil Ahmed, Senior Finance Manager, West Coast Co. LLC

implementation of our automated procurement system

We recently developed our new Procurement and Commercial Management department to centralise our procurement activities. We also issued a formal Procurement Policy incorporating the principles of sustainability. In 2013, we focused more on the ‘procure’ element of our system including processes such as requisition, purchase order, standardisation of procedures and automated approval, leading to appropriate categorisation and control of our expenditure.

In 2014, we extended our system’s transparency and controls to the ‘pay’ element, enabling a fully controlled and automated ‘procure to pay’ cycle. We have full control of payment through purchase orders and invoices and we standardise our payment schedules. All our procurement processes, including preparation of requests for proposals (RFPs), requests for quotation (RFQs), supplier registration and invoice payment are now online and fully automated, paperless processes. We educate our suppliers about our online procurement system during our supplier onboarding process, highlighting the need to eliminate the submission of documents in hard copies.

During this year, we established our Supplier Relationship Manager (SRM) unit, which is responsible for developing beneficial relationships with

We want to be recognised as the customer of choice for our suppliers

5.5 Responsible Procurement*

The percentage increase in the number of Ratibi cards issued since 2013 is 32%

We will continue to try and expand our products and services to niche segments of the community, assisting women, low income earners and reaching remote areas within the region.

*G4-24, G4-26, G4-27

Our Future Commitments

short-term (2015)

ü Engage with our customers through our customer satisfaction survey to identify and meet our customers’ needs and expectations.

ü Continue our support of the Abu Dhabi 2030 Vision through financing of infrastructure, power, transport and multi-use developments (on-going commitment).

ü Finalise the sustainability selection criteria for suppliers and prepare code of conduct for supplier registration.

ü Increase the number of branches with Service Ambassadors to 28 branches to ensure our customers receive a high quality and efficient level of service.

medium (2016-2018)

ü Continue to integrate sustainability objectives within our five-year strategy and report on our progress annually.

ü undertake direct engagement with our stakeholders for the perception and materiality analysis aspect of our sustainability reporting (every two years).

ü Implement our Group-wide policy in relation to project financing.

ü Retain our ranking in the top 10 position on the S&P Hawkamah ESG Pan Arab Index, which is important to us as a regional validation of our transparency and responsibility and as a commercial measure of our potential value to investors.

ü Incorporate sustainability selection criteria within registration process and screen our new suppliers using sustainability criteria.

ü Fully integrate our supplier complaints management system within our automated procurement system.

Long-term (2018-beyond)

ü Continue to support Abu Dhabi and the uAE’s economic growth by aligning our goals and objectives with the Abu Dhabi Vision 2030.

5.6 Our Future CommitmentsA summary of all our future commitments is included in Appendix F.

suppliers. This unit is also responsible for implementing joint projects with suppliers that will provide added value and lowest Total Cost of Ownership (TCO) to both organisations.

To ensure that any complaints and grievances from our suppliers are captured and addressed appropriately, our SRM unit developed and launched our supplier complaint management process in 2014. We aim to fully integrate this process within our automated procurement system in 2016. We did not receive any grievances regarding impacts on society from our suppliers during this year.

supporting Local suppliers

We have standardised our purchase of IT, stationery and furniture through local suppliers (i.e., those suppliers who are registered in the UAE). We started to review and update our vendor database in 2014. This process is currently ongoing and the next review will be undertaken in 2015. We started to record our expenditure on local suppliers during this year through our automated procurement system.

We recorded a total spend of AED 1,162, 461,787 on local suppliers in 2014, representing approximately 90% of the total spend.

supplier selection and assessment

We have started to identify supplier selection criteria to include in our supplier registration process, in accordance with the sustainability criteria outlined in our procurement policy. We have not yet started to screen our new suppliers using sustainability criteria as we are currently finalising the supplier registration process.

We are reviewing our RFP documents and obtaining input from our business units (corporate sustainability, business continuity and legal and compliance) to incorporate relevant requirements in terms of due diligence and risk management. We are aware of the risk of possible child labour and forced or compulsory labour through our supply chain, particularly through third party suppliers, and our Procurement Policy specifies minimum expectations for suppliers on this subject. We also comply with the UAE labour law, which addresses labour practice criteria.

We did not identify any operations with child labour or forced labour risks and no human rights review or impact assessments were conducted during this year. We will finalise the selection criteria for our suppliers in 2015.


The material issues identified through our stakeholder engagement process and materiality analysis include employee engagement, diversity and equal opportunity, the creation of jobs and security, human rights, hiring from the local community (market presence, Emiratisation), and the provision of

employee grievance mechanisms. We have declared our commitment to invest in our employees formally through our Sustainability Policy (refer to Appendix B). We have discussed how we have addressed these material issues in further detail within this chapter. We have also

included information on the learning and development opportunities and employee benefits we provide to our employees as a result of feedback from our employee engagement survey and requests from external stakeholders.

6.1 Our Employees

Workforce in the Uae

During 2014, we increased the number of our full-time employees in the UAE by 6% from 4,284 employees in 2013 to 4,535 in 2014. In addition to our directly employed people, we sponsor full time students and trainees. In 2014, we sponsored 162 students.

The number of outsourced (third party contracted) staff has significantly

increased from 435 staff in 2013 to 1,253 in 2014. This increase in the proportion of outsourced staff has occurred mainly in relation to sales staff who were hired in order to meet our sales targets for the year. Approximately 60% of the outsourced staff members are based in our UAE offices.

employee Turnover

In 2014, in the UAE and internationally, a total of 974 employees were hired and a total of 670 employees left the Bank. In the UAE alone, 752 employees were hired and 524 left the Bank. The percentage workforce turnover in the UAE was 11.6% in 2014, which was slightly less compared to 12.7% in 2013. We anticipate continuing growth in employee numbers as the Bank expands in existing and new markets.

Number of Employees who were hired/left the bank in 2014

6.0 Investing in Our PeopleAt NBAD, we know that one of the most valuable assets in any organisation is its people. We are committed to developing the talent, motivation and commitment of our staff through investing in talent, setting objectives and recognising outstanding performance from our employees. This is critical for delivering exceptional service to our customers, and is fundamental to our success.

Workforce 2013 2014 % Change

International Employees 1,332 1,343 +0.8%

UAE Employees12 4,284 4,535 +5.9%

Total Group Workforce 5,616 5,878 +4.7%

Sponsored students and trainees 193 162 -16%

“We’re finding that people recognise the momentum at NBAD; we offer clarity of purpose and sense of direction that is very attractive to potential employees. People want to come and work here. And we want to be a magnet for world class talent in the sector”

Ehab Hassan, Senior Managing Director and Group Chief Human Resources Officer

752

974

524

670

UAE

UAE & International

Employees hired Employees who left the bank

3.3% of employees resigned to explore different career opportunities or for personal reasons

0.7% of employees retired

Less than

2% of employees were made redundant globally

12Excluding students and trainees

NBAD employees worldwide celebrating UAE National Day


The majority of employees who left resigned for personal reasons or to explore different career opportunities. In 2014, some restructuring occurred as part of the NBAD Group reorganisation to better align our resources to the business strategies. Less than 2% of total staff globally

was made redundant. During the reorganisation of our resources, we continued to communicate with our staff, and ensured that there was no adverse impact to our customers. Where positions no longer existed, we made every effort to reassign talented individuals to other roles within the

Bank. We provided the employees affected with outplacement services and assistance during their transition from NBAD. We also ensured that they were appropriately compensated with regard to their severance pay.

Diversity and inclusion

nationalities

There was a slight increase in the number of nationalities represented by our employees, from 77 to 82 in the UAE. Our diverse employee base of 82 nationalities in the UAE, and 36 internationally, helps us understand and meet the needs of our customers across the world.

Within the UAE, Emiratis are the most populous nationality, and there is a positive skew toward regional employment, with the top 10 nationalities heavily influenced by the Gulf, India, and more widely the MENA region. Representation of Emiratis has increased by 15.6% since 2013.

age group

The number of employees under 30 years and between the age group of 31-50 has increased in 2014, compared to 2013.

Women

Women represent 37% of the UAE workforce. The percentage of women in the UAE workforce has increased slightly since 2013.

There has also been a significant increase in the number of women in senior-level and middle-management positions in the UAE since 2013.

There has been a slight increase in the number of female branch managers located in the UAE.

Uae employee Data 2013 2014Total workforce (including trainees and students) 4,477 4,697Sponsored trainees and students 193 162Outsourced staff 435 1,253% of women in the workforce 34% 37%Number of nationalities 77 82Number of UAE nationals in the workforce 1,018 1,177Number of UAE nationals representing senior management (Bands 4 and 5) 32 51Number of UAE nationals in training 193 162Total number of UAE nationals in the bank 1,211 1,339% Workforce turnover 12.7% 11.6%% Turnover of female employees 4.5% 4%% Turnover of male employees 8.1% 7.5%Leaver/joiner ratio 0.9 0.7Men 0.76 0.75Women 0.9 0.6Total number of employees hired 512 752Under 30 years 212 29631-50 years 282 438Over 50 years 18 18Number of men hired 279 444Number of women hired 233 308Number of men who left the bank 367 340Number of women who left the bank 201 184Employee Satisfaction 73% 74%Competency DevelopmentTotal number of training days delivered 26,190 30,759Number of employees trained 3,603 6,216Average training per employee (hours) 50.93 35Average training per employee (days) 7.27 4.95Number of e-learning hours delivered to over 3,500 employees 11,952 11,566Number of employees who completed sustainability awareness e-learning programme (2014) 0 269Employee Benefits Total number of males who took parental leave 19 97Total number of females who took parental leave 12 69Total number of males who returned to work 19 95Total number of females who returned to work 12 68

Total number of male employees who were employed 12 months after returning to work from parental leave

2 0

Total number of female employees who were employed 12 months after returning to work from parental leave

2 0

Health and Safety Total number of sick leave days 10,297 18,011Average number of sick leave days/employee13 - 3.83Number of OHS incidents 19 23Number of injuries - 0

key employee Data

Detailed people numbers, including our international workforce, can be found in Appendices C-1 and C-2. The definitions of our performance indicators are included in Appendix C-3. A glossary of terms can be referred to in Appendix D.

Women 2012 2013 2014

% of total Group workforce 33% 34% 35%

% of total UAE workforce 35% 36% 37%

% of senior-level positions in UAE (Bands 5 and 4)

8% 6.5% 12%

% of middle-management positions in UAE (Bands 3 and 2)

24% 26% 34%

% of Branch Managers (UAE Only) 51% 51% 54%

emiratisation

Unlike other countries, the indigenous population in the UAE is the minority. The UAE Government is, therefore, keen to enhance employment opportunities for UAE Nationals. This remains an important focus of the Abu Dhabi 2030 Vision.

We are committed to the professional development of Emiratis as one of our key strategies aligned to the Abu Dhabi Vision 2030. We are also committed to building a highly skilled, highly productive and sustainable workforce for the UAE.

We had a net increase of 169 UAE Nationals in 2014, exceeding our Emiratisation target of a net increase of 100 new Emiratis.

A key strategic objective for Emiratisation is to become “the employer of choice for UAE Nationals”. We offer high potential UAE Nationals the opportunity for career progression through a talent management unit which looks after developing and retaining UAE National talent. In the UAE, 19% of senior management and 20% of middle management are Emirati.

13Total number of sick days /total number of uAE employees


nurturing emirati Talent

We launched the “Falkom Tayeb” initiative in partnership with Abu Dhabi Tawteen council, training UAE Nationals and placing them in our retail arm, in line with the Emiratisation programme and Vision 2030, and supporting UAE Nationals in the banking sector.

Through our Watani initiative, we provide multiple entry points for young Emirati talent to move into a career in banking. It is made up of three distinct programmes run by the NBAD Academy. Through Watani, we offer a range of internationally accredited programmes, which focus solely on the development of Emirati talent.

Total number of Uae nationals in the Uae Workforce

We have an integrated approach to our Emiratisation strategy, which is measured and monitored in our Group Balanced Scorecard.

UAE Nationals who were hired/left the bank in 2013 and 2014

We received the Human Resources Development Award for the third consecutive year in recognition of the human resources policies and development initiatives we have introduced for our UAE National employees. These include the following:

• Development of succession plans for roles within NBAD;

• Provision of support to students through local and international sponsorship;

• Increase Management Trainees (Watani program);

• Ensure career development plans for UAE Nationals;

• Collaboration with local and international universities to attract talent; and

• Attendance at major career fairs for UAE Nationals to attract the best available talent.

We will continue with our Emiratisation strategy in 2015, offering excellent training, rewards and development programmes to attract and develop the right talent.

nBaD awarded the Human Resources Development award in 2014

Award presented by H.H. Dr. Sheikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, to Ehab Hassan,

NBAD’s Group Chief Human Resources Officer


The values and behaviours are extremely important to us and form the threshold criteria for our 2015 Group Balanced Scorecard. Across the Bank, we must act in accordance with the principles and spirit of our values.

We are all accountable for our actions with our customers and our colleagues, because our behaviours directly impact the Bank’s performance. If each of us does what is right, and we all hold each other accountable for our actions, we will become One NBAD.

Alex ThursbyGroup CEO

Training in Cultural Values – Our “Bring Your Heart to Work “Campaign

Our Values and Behaviours

We have a set of core values and behaviours which form the basis of our employee strategy. The way we think, the way we act, and the way we treat people, including our customers and our colleagues, is how our values come to life.

To help create a more positive and productive workplace, we launched the ‘Living Our Values’ campaign. Our newest value – “Empower our people and hold each other accountable for performance and behaviour”was introduced in 2014. It emphasises that we are all responsible for our actions and our performance. By taking responsibility for what we do and how we do it, we can collectively transform the organisation as a place to work and more importantly in how our customers experience NBAD and the services we provide.

As a part of our ‘Living our Values’ campaign, we introduced a set of ‘NBAD Behaviours’ to help describe what we expect of people in terms of behaviour. The NBAD Behaviours are a set of related and specific descriptions of behaviours that underpin and enable competent performance. The NBAD Behaviours bring our values to life. They describe how staff should demonstrate our values to our customers and colleagues to create the Customer Brand Value to which we aspire. In other words, what we do and how we do it directly impacts our customers and our successes as a Bank.

We launched our “Bring Your Heart to Work” (BYHTW) programme in 2014, which supports customer excellence at all staff levels. This initiative has helped to change the attitudes and behaviours of our staff by promoting excellence and enhanced customer service in all that we do. To date, 3,964 employees have completed the training. The programme was also successfully launched in Oman and Egypt at the end of 2014.

Employees attending our “Bring Your Heart to Work” Campaign

We are making this investment to ensure that everyone can touch our customers positively, and execute with pride and passion. It will introduce a common language for us to use when we talk with our customers and will ensure that all staff have the skills and resources to deliver excellence to our customers every time we engage with them.


6.2 Driving Cultural Change

How our employees behave also creates the organisational environment and culture in which we work, which affects how engaged we are as individuals, how positive and satisfied we feel, and influences even our health and sense of wellbeing. Collectively focusing on both the ‘what’ and the ‘how’ will facilitate our progress towards being the World’s Best Arab Bank.

3,388 UAE based employees have attended BYHTW sessions in 2014.

576 overseas based employees have attended BYHTW sessions in 2014.

20 sessions were conducted for NBAD Group staff in 2014.

We plan to continue rolling out the programme to our international offices in 2015. The Influencers Programme (the next phase of BYHTW) will commence in early 2015. This will instruct leaders and managers on how to motivate and engage staff to improve performance. This will be followed by the Strikers Programme for non-people managers.

Connecting the Organisation

Bring your heart to work

Through shared values, principles and ways of talking and behaving

Put our customers at the forefront and do the right things

the right way

Value our peopleand foster

great teamwork

Respect our heritage and be

loyal to ourstakeholders

Empower our people and hold each other

accountable for performance and

behaviour

Our Values and Behaviours

The behaviours will be embedded in performance management in 2015, and all employees will be evaluated more holistically, taking into account not only what they do, but how they do it.


Raising awareness on sustainability issues

Our Corporate Sustainability Team conducted a Sustainability Awareness Week for NBAD employees to raise awareness on the importance of issues such as waste management and recycling, reducing energy and water consumption, using

Human Rights

As a leading bank, and as part of our strategy to become an employer of choice, we are committed to provide equal opportunities and fair practices when it comes to people management. We aim to recruit a professional, qualified, skilled and diverse workforce that meets our organisational needs, regardless of gender, nationality, religion, colour, cultural/ social background, age, languages, ethnicity, social affiliations, or other classifications. We reject discrimination of all types that affects fair and equal opportunities.

We abide by those principles of human rights included in the UAE Federal Labour Law and the Constitution of the UAE. We encourage employees to raise and share their concerns or feedback through employee engagement channels such as the Global People Survey, town halls, and internal business partners or through our whistleblowing facility for compliance-related issues. There have been zero (0) complaints of human rights related incidents recorded through our whistleblowing system.

Our employees are aware of their rights and processes ensuring their fair treatment through publication of our HR policies and processes on our internal website. There have been no reported incidents of discrimination or violations of human rights or indigenous rights. No human rights review or impact assessments or training of security personnel on human rights were conducted this year.

employee engagement*

One of the key strategic drivers of our vision is employee engagement. Employee engagement indicators are obtained from our annual Global People Survey (GPS). This is an important channel by which we engage with our employees to enable them to share their thoughts, raise their concerns and highlight the potential areas of improvements in people management practices. For UAE specifically, 73% of employees were engaged in the survey.

employee engagement strategy

Our goal for employee engagement is to strengthen our culture and create an atmosphere in which employees are more aware of the various initiatives developed by the Bank, and are fully engaged with those initiatives so that they can be more effective in their jobs.

Grievances

Our Human Resources (HR) team has developed a grievance policy and employees have direct access to grievance mechanisms by contacting the HR business partners and/or a direct communication with management through an open door policy. We have developed a formal recording system for grievances in 2014. We ensure that all grievances are resolved in a timely manner.

78 grievances were recorded and resolved in 2014. We did not receive any grievances regarding impacts on society this year. We will ensure that these grievances are addressed to ensure enhanced employee satisfaction in the future.

6.3 Labour Practices

Our task force vision is simple and clear: We work to strengthen our culture, amplify our One Voice, connect hearts and minds, and recognise the men and women of NBAD who do the right things, the right way.

Ehab HassanSenior Managing Director and Group Chief Human Resources Officer

As with everything that we do, our work in employee engagement will be viewed through our values. In 2015, we will focus our employee engagement efforts in line with two of our values:

• Empowering our people and holding each other accountable for performance and behaviour; and

• Valuing our people and fostering great teamwork.

Results of the 2014 employee engagement survey (Uae)

We continue to track our staff engagement level against the top quartile of engagement scores of the global banking and insurance industry. Our 2014 results reflect the fact that we still have some way to go towards being one of the top quartile organisations in engagement, although the pride level of employees is above the global norm. While the improvement over our 2013 results is encouraging, our executive management has reiterated the importance of employee engagement to all line managers by placing this measure as one of the key objectives for us to achieve in our Group balanced scorecard.

In 2014, we formed our Employee Engagement Task Force comprising representatives from several functions in NBAD. This is co-chaired by the Group Chief Human Resources Officer and the

76%

63%

77% 79%84%

72%

56%

75% 73%

87%

78%

66%

79% 81%85%

73%

58%

75% 74%

87%

Overall employee engagement

I rarely think about looking for a new job with another

company.

I would personally recommend NBAD as a

great place to work to my friends and family.

Overall, I am extremely satis ed with NBAD as a

place to work.

I am proud to work for NBAD.

2013 Global Norm

2013 Actual

2014 Global Norm

2014 Actual

85% 88%

0

80%85% 87%

77%82%

NBAD is genuinely committed to supporting the community in which we

work

NBAD is a sustainable organisation which operates in a responsible and

ethical manner

Discrimination and harassment (based on race, gender, age, religion, etc) are

not tolerated at NBAD14

I can report unethical and fraudulent practices without fear of reprisal.

2013

2014

76%

63%

77% 79%84%

72%

56%

75% 73%

87%

78%

66%

79% 81%85%

73%

58%

75% 74%

87%

Overall employee engagement

I rarely think about looking for a new job with another

company.

I would personally recommend NBAD as a

great place to work to my friends and family.

Overall, I am extremely satis ed with NBAD as a

place to work.

I am proud to work for NBAD.

2013 Global Norm

2013 Actual

2014 Global Norm

2014 Actual

85% 88%

0

80%85% 87%

77%82%

NBAD is genuinely committed to supporting the community in which we

work

NBAD is a sustainable organisation which operates in a responsible and

ethical manner

Discrimination and harassment (based on race, gender, age, religion, etc) are

not tolerated at NBAD14

I can report unethical and fraudulent practices without fear of reprisal.

2013

2014

14New question in employee engagement survey

employee engagement survey - employee satisfaction

employee engagement survey - sustainability awareness

Head of Corporate Communications. It aims to develop programmes and initiatives that will connect and empower our staff.

Results from our Employee Engagement survey in 2014 indicate an overall positive trend in relation to our employees’ perception of NBAD as a responsible organisation. We have included a new question in our survey in 2014, on discrimination and harassment issues. There is no external norm to compare the data with, as these statements were included specifically for NBAD employees. We will carry out more sustainability awareness sessions in the near future, to keep our employees informed of our progress in relation to our core sustainability initiatives and corporate citizenship strategy.

*G4-24, G4-26, G4-27 *G4-24, G4-26, G4-27

sustainable transport options, and the impacts of climate change. A key highlight of the 2014 Sustainability Awareness Week was the launch of our Sustainability Awareness e-learning training programme for our staff. This was developed in order to enhance our employees’ awareness

and understanding of the concept of sustainability within NBAD, and how to work in a more responsible and sustainable way.

Further details of our Sustainability Awareness Week are included in Chapter 8 ‘Environmental Stewardship’.


Training and Development

We provide training programmes through our NBAD Academy, as well as through external institutions, including world-renowned business schools and leading universities in the UAE.

Uae employee Training Figures 2013 2014Total training delivered (days)15 26,190 30,759

Total training delivered (hours) 183,328 215,312

Average training per employee (days)16 7.27 4.95

Number of employees trained (including all bands 1-5) 3,603 6,216

Average training per employee (hours) 51 35

Average training per female employee (days) 9 6.78

Average training per female employee (hours) 63 47.5

Average training per male employee (days) 6.2 3.7

Average training per male employee (hours) 43.4 26

Employees trained on anti-money laundering (AML) e-learning course 3,070 3,397

Employees trained on anti-money laundering (AML) classroom course 536 264

Number of employees who completed the sustainability awareness e-learning programme (2014) - 269

Number of e-learning training hours delivered 11,952 11,566

Number of attendees who completed the AML e-learning course 3,070 3,397

Number of attendees who completed the AML classroom course 536 264

Number of attendees who completed the Financial Crime (Know your Customer, KYC), sanctions compliance, fraud, terrorist financing) e-learning/classroom course

- 825

nBaD academy

Launched in October 2009 in Abu Dhabi, the NBAD Academy is a purpose-built facility delivering Learning and Development programmes for all NBAD colleagues.

With facilities now based in Abu Dhabi, Dubai and Egypt, the NBAD Academy supports our people in delivering learning and development courses and supporting their individual performance in a variety of innovative and leading edge ways. Training in other overseas regions is handled through local service providers and the NBAD e-learning facility.

The NBAD Academy continuously reviews the quality of its courses and the service providers, as well as the training needs of staff to ensure that it supports the growth and development of the Bank’s future leaders.

performance management

Broad Band structure

In 2013, we introduced a number of new people processes to address identified gaps in our Performance Management System and drive performance. We introduced a new Performance Management System, whereby the balanced scorecard for all levels of management could be shared to promote further alignment, even across geographical locations. The direct link provided between individual performance and the Bank’s strategy helps employees to understand their purpose and value for the success of the organisation.

New People Processes:

• Introduction of new pay benchmarks to enable greater pay equity in rewards;

• Elimination of grade-based reward mechanisms;

• Elimination of promotion and pay review cycles in the case of exceptional staff performance;

• Introduction of performance calibration to further differentiate performance levels, as well as incorporate a comparative assessment across teams; and

• Reward decision makers are required to look at the overall performance of the Bank as well as departmental performance, before making decisions on the divisional bonus pool.

In 2013, NBAD Academy launched several initiatives, including commercial services for external participants to attend NBAD Academy programmes and leadership programmes delivered

We are committed to providing support for the learning, education and growth of our people. As such we continue to invest significant resources in our learning and development activities.

internationally (across five offices), and an e-learning strategy to deliver learning solutions internationally (including over 600 hours of technical e-learning programmes).

In 2014, we simplified our employee grading structure and introduced a new broad band structure to provide a flatter and less hierarchical framework to develop careers and reward performance. Within the broad band structure, employees are encouraged to acquire skills and experience and aim for roles which best utilise their skills, match their potential and ultimately help them to meet their ambitions. This will ensure that our customers are served and supported in the best possible ways, and in ways that reflect our core values. There are five bands in total, of which Band 5 represents the Executive Committee. These replace the previous 16 grade system. professional Banker programme

Employees undertaking the Professional Banker programme will undergo development across two main areas:

Technical Depth: Broadening knowledge through a combined learning approach comprising customised workshops and e-Learning modules.

Technical Breadth: Broadening staff experience through working across different business units in the organiszation. Candidates will be given opportunities to work in functional front/middle/back office roles, and will undertake cross functional/divisional placements and international secondments.

285 staff entered the inaugural class of Professional Bankers in 2014.

professional Banker Culture

Career progression is very important to us. We launched our Professional Banker programme in 2014, which is an integrated and comprehensive career development path that aims to develop a pool of talented individuals through a variety of training programmes and exposures that will broaden their knowledge and experience in banking and finance. The objective of the programme is to develop the next generation of highly capable banking professionals for the continued success of the Bank.

26 252427

7600

Business Unit Heads (Bands 4 & 5)

Manager of Managers (Band 3)

Team Leader / Manager/Specialist (Band 2)

Individual Contributor / Supervisor (Band 1)

Non-clerical staff (Grades 1-4)

Trainees

47.5

26

Average training per female employee

Average training per male employee

average Training per employee Category (Hours) average Training by gender (Hours)

26 252427

7600

Business Unit Heads (Bands 4 & 5)

Manager of Managers (Band 3)

Team Leader / Manager/Specialist (Band 2)

Individual Contributor / Supervisor (Band 1)

Non-clerical staff (Grades 1-4)

Trainees

47.5

26

Average training per female employee

Average training per male employee

151 training day is equivalent to 7 training hours16Average training hours/days is based on the number of people trained, not total employee numbers


In 2014, we increased the number of days for maternity leave from 45 to

60 days

Fair wages

We benchmark our total compensation packages against the upper quartile of the pay market. Our ‘Pay for Performance’ reward strategy does not consider gender, nationality or age when determining the basic salary of our employees.

Ratio of wages – men : Women

2012 0.984 : 1

2013 0.966 : 1

2014 0.910 : 1

Since 2011, we have carried out checks to determine whether our policy is being implemented by comparing the basic salary of men and women across two specific job roles, held by about 10% of our UAE employees.

In 2012, we identified 13 directly comparable job roles in grades 5 to 8, which are represented by approximately 30% (1,241) of our employees in the UAE. In 2013, we undertook a wage comparison for a total of 1,734 men and women in 18 job roles. We found that the ratio follows a similar trend for each year. We compared the salaries for 1,850 men and women in all Band 1 roles in 2014, and found that women are paid slightly higher than men on average.

employee Health and safety

At NBAD we see our people and customers as our key assets, and as such, their health and safety is of core importance. We have developed a Group Occupational Health and Safety (GOHS) policy in 2014 and have formed a Group Occupational Health and Safety Committee.

The committee comprises three members of staff who are based in the UAE. An action plan has been developed by the committee to track the implementation of the requirements of the policy. A new Group OHS email account has also been created to enhance the communication between GOHS team and all NBAD staff in relation to OHS issues. This has enabled our employees to report any incidents, accidents or hazards in the workplace, and make enquiries about health and safety issues. All OHS-related queries and complaints are tracked in accordance with the policy.

The committee members conduct fire safety training for staff and arrange fire warden training for the appointed fire wardens in each branch. The committee members also conduct regular health and safety inspections in all UAE branches and premises.

6.4 Our Future Commitments

A summary of all our future commitments is included in Appendix F.


short-term (2015)

ü Provide 100 net new jobs for Emiratis annually to support the Abu Dhabi 2030 Vision for Emiratisation (ongoing commitment).

medium-term (2016-2018)

ü Seek feedback from employees on NBAD as an employer through our employee satisfaction survey, to highlight potential areas of improvement in our people management practices.

ü Investigate how our sustainability objectives can be incorporated into employees’ annual performance targets to measure and reward our employees’ performance against these targets.


ü Provide certified training for associates under the Professional Bankers programme, to build a pipeline of professional individuals with the ability to meet our strategy. New recruits will also be part of this group, providing employment opportunities for talented individuals.

ü Undertake responsible marketing and communications training for relevant staff to provide an understanding of the relevance of sustainability within their area of business.

ü Investigate incorporation of sustainability-specific objectives in managers’ formal appraisal to integrate the principles of sustainability within our organisation.

The results of the inspections, including incident and investigation reports and action plans are documented. There were 23 incidents recorded during this year, which were investigated and resolved appropriately. There were no staff-related near misses, accidents, injuries or fatalities reported during this year.

Employee Benefits

All employees of the organisation are covered by policies relating to benefits. These policies are reviewed periodically and assessed for improvement against international best practice. Some of the benefits include:

• Provision of early retirement on health grounds;

• Six months critical illness paid leave;

• Parental leave;

• Medical insurance scheme; and

• Provision of long-term study leave with sponsorship.

We offer our employees special product-related incentives, including interest-free property rental loans and an interest-free car parking loan for our employees based in our ADNEC office. We also offer reduced rates on car loans, mortgages, personal loans and educational loans.

investing in our employees

Overtime policy

We ensure that our working hours and conditions comply with the local laws and regulations of labour practices. We also ensure that we provide incentives and rewards for employees with regard to additional working hours and overtime. Our overtime policy ensures that when working overtime is absolutely necessary, employees in specific job roles are financially compensated and rewarded for their time and efforts.

NBAD SuStAiNABility RepoRt 2014 59NBAD SuStAiNABility RepoRt 201458

The results of our external stakeholder engagement process and materiality analysis indicate that operational contribution (i.e., providing services which facilitate economic growth), economic value generation (the distribution of profits to stimulate the economy) and our collaborations and partnerships are amongst the material issues of highest importance to our

stakeholders and to us as a Bank. Our Sustainability Policy outlines our commitment to remain profitable and support our community through the provision of jobs and financial services (refer to Appendix B). We have discussed how we have addressed these material issues in further detail within this chapter.

Global Financial Market Series

In December of this year, we introduced the first Global Financial Market Series in Kuala Lumpur, Malaysia. This event was built around the GFMF and provided an opportunity for discussion on the future of energy and its impact on the financial industry in the West-East corridor. The theme of the first panel discussion was ‘The Future of Energy – West-East Corridor’, which focused on unlocking sustainable energy investment opportunities. This event has laid the foundation for the upcoming GFMF, which will take place in Abu Dhabi in March 2015.

Global Financial Markets Series in Kuala Lumpur, December 2014

As a good corporate citizen we want to become a leading advocate for SMEs in the UAE, and to highlight the role of the financial sector in the future of energy, which is a pressing global issue.

7.0 Our Impact on Society

7.1 Our Corporate Citizenship Strategy

Energy has been the cornerstone of the economies of this region. Even now, as we see an increasingly diverse range of economic activity, the future of the Middle East is inextricably bound up with the future of energy.


As part of our citizenship strategy, we want to highlight the role of the region’s financial sector in the renewable energy sector, which is set to play an increasingly important role in the future energy mix. We believe there are real opportunities for the banking sector to create solutions and innovative approaches to financing sustainable energy.

As mentioned earlier, the future of energy is a pressing global issue with local relevance, given the increasing demand for energy. The demand is expected to increase threefold in the next fifteen years and far outstrip today’s supply.

The Future of energy (Foe) project

Bridging the gap between demand and supply will require huge levels of investment in energy systems that will generate additional capacity and improve the efficiency of energy use.

In 2014, we initiated our Future of Energy project as part of our citizenship strategy. As part of this project, we needed to obtain a strategic overview of the potential role of the financial sector generally, and NBAD specifically, in moving the GCC region forward on investment in a low carbon, sustainable energy future.

We engaged the University of Cambridge and the global consultancy PricewaterhouseCoopers (PwC), to find out more about the role we can play in new energy solutions and how the financial sector can help shape a more sustainable future. The outcome will be published in a report on ‘Financing the Future of Energy’ in March 2015, which will be launched at the annual Global Financial Markets Forum (GFMF). We expect the report to open dialogue on the role of the financial sector in financing renewable and alternative energy sources.

The strategy we have set ourselves at NBAD is to expand our presence along the West-East Corridor and this report provides a platform for to us to engage the key decision makers in the region and develop new financial structures that will ultimately convert the trends into bankable solutions.

Nathan WeatherstoneHead, Project Finance Advisory

The intention of the report is to enable the finance sector to understand the opportunities that exist and to develop financial products and structures that will facilitate the energy sector to deliver these opportunities. The report will also provide insights into how the financial community can engage with public and private sector stakeholders to create a more integrated energy mix for the future.

We plan to establish a dedicated team, under senior leadership, to evaluate and

create new financing products that will support the development of renewable energy.

The team will embark on an engagement programme with key regulators, policy makers and industry players to capture up to date market trends and promote continued partnership and shared learning between the renewables and finance industries.


supporting small-medium enterprises (smes)

engaging with smes

Small and medium-sized businesses are a powerhouse of economic change and job creation, providing livelihoods for individuals and their families. We have, therefore, developed a focussed citizenship strategy to support the sector through various channels. We are committed to helping SMEs in the UAE to flourish. We aim, through our SME Citizenship initiative, to help equip SMEs with the essential skills and capabilities they require to run a successful business by identifying critical skills gaps and facilitating appropriate training modules in association with specialists in each area.

By supporting SMEs, it is our belief that we can also make a significant contribution towards Abu Dhabi’s 2030 Vision for a more diverse and resilient economy.

We believe that SMEs play a critical role in shaping the region’s economic growth and diversification. Medium-sized businesses form the heart of our Commercial customer base and we are committed to supporting them in innovative ways.

Abdulla Al OtaibaSenior Managing Director and Group Head of Global Retail and Commercial Banking

Supporting SMEsCase Study: ‘Right Bite’

“I approached NBAD two years ago for a business loan as I needed working capital to expand my business. I came to NBAD as my father has banked with NBAD for over 20 years. Thanks to the provision of finance by NBAD, I was able to open two new retail outlets in addition to the retail unit I already had. I found the overall experience dealing with NBAD extremely positive. The customer service provided was very professional and highly personalised. The NBAD staff and relationship managers are what make the bank a joy to work with. I am currently working closely with NBAD to grow my business further.”

Nathalie HaddadFounder, Right Bite

Our Engagement Process with SMEs

Recognition platform:

The Stars of Business Awards is one of the biggest SME recognition platforms in the region that has run successfully for a number of years and has over 20 key award categories in the offing. As a symbol of our support of SMEs in general, and to Manufacturing SMEs in the UAE in particular, we instituted the ‘NBAD Star of Manufacturing Award’ within the award categories in 2014. We view the manufacturing sector as an extremely important catalyst in the growth and diversification of regional economies. The event was an unprecedented success with over 3000+ nominations and over 700 attendees from the SME sector. We intend to take this recognition platform to other regional markets where we have a presence.

Events for SMEs:

We organised focused events that were aligned to the different SME life stages, from the initial startup stage to growth and beyond. Each of these events delivered topics relevant to a particular stage of an SME, from ‘How to Get Started’ (in association with Etisalat, for startup businesses), to ‘Getting Business Finance’ (early growth stage), to ‘Roadmap for Growth’ (expansion/growth stage). The events calendar culminated in ‘SME Beyond Borders’, an event designed to share knowledge and best practices regionally and internationally. This event was delivered by renowned international experts and was attended by over 1,000 representatives from the SME sector. We also organised a roundtable discussion on ‘SMEs in Manufacturing’, and a networking event towards the end of the year.

SME Advisor Middle East Magazine:

We began to engage with SME Advisor Middle East, a well-entrenched business publication (print and online), in 2014. The editorial content of the publication is developed around topics of interest for various stages of SMEs. The content is in line with our SME citizenship strategy as it comprises topics relating to startups, growth stage businesses, enterprise businesses, skills and capacity building, and the SME eco-system.

Our strategic alliance with SME Advisor Middle East (CPI Media Group) has evolved into a strong driver of our SME citizenship strategy in 2014. During this year, we effectively used this alliance to engage with the sector through various channels. Through the SME Advisor Middle East platform, we launched an award - the NBAD Star of Manufacturing Award - to honour the achievements of manufacturing SMEs that have made an exceptional contribution to the UAE economy.

Aly F. Rahimtoola, Managing Director of Harmony Cosmetics FZC receiving the ‘NBAD Star of Manufacturing Award’ from Alex Thursby, Group CEO

Supporting SMEsCase Study: Bedashing Beauty Lounge LLC

“My parents used to bank with NBAD so it is the first bank I knew as a child. I have always banked with NBAD, and I opened my first business account with the Bank in 1999. NBAD helped our company to expand from three outlets to four. I like NBAD because it is a conservative and safe bank. I have a long-term relationship with the Bank and I know most of the people working there. They have witnessed our company grow from the initial startup phase to the current phase. We are now in the fastest growth stage ever, and have recently launched a franchise business.”

Noor Al TamimiOwner, Bedashing Beauty Lounge LLC

supporting smes

Our Commercial Banking segment (part of Global, Retail and Commercial) deals with SMEs and actively engages with entities such as the Khalifa Fund for Enterprise Development to support the ongoing development of SMEs. Our objective is to promote the development and expansion of SME relationships by offering banking support for these businesses.


economic Contributions

By considering the sustainability triple-bottom line (People, Planet, Profit) in our banking operations, we ensure sustainable growth and

Charity and Donations

Our financial support for community involvement includes commercial sponsorships and community investments. Our community investments focus on supporting activities that can benefit our people and the wider society, and include initiatives such as supporting financial literacy programmes, protecting the environment, supporting our stakeholders, and promoting health and well-being.

Our financial support includes donations from channels such as ATM donations, NBAD Star redemption for EWS-WWF and sponsorships.

7.2 Generating Value for our Community

7.3 Collaborations and Partnerships*

% change 201317 2014

Valu

e g

ener

ated Revenues (total operating income) (AED ‘000s) 11% 9,397,988 10,414,717

Global Net Profits (AED ‘000s) 18% 4,733,125 5,578,869

Total (aeD ‘000s) 13% 14,131,113 15,993,586

Valu

e D

istr

ibu

ted

Employee compensation (Salary, benefits and rewards) (AED ‘000s) 16% 2,187,719 2,532,726

To Providers of Capital (dividends and payments on other capital instruments) (AED ‘000s)

6% 1,952,848 2,077,466

Donations and Community Investments (AED ‘000s) 18% 43,198 50,973

Payments to Government (taxes) (AED ‘000s) 23% 220,324 271,688

Suppliers (payments of purchases) (AED ‘000s) 25% 929,72618 1,162,46219

Total (aeD ‘000s) 14% 5,333,815 6,095,315

Our economic Contributions in 2013 and 2014

Our Zakat Fund and donations are managed by our Islamic Banking Division - Abu Dhabi National Islamic Finance (ADNIF). ‘Zakat’ or ‘alms-giving’ is the practice of charitable giving by Muslims based on accumulated wealth. Our Zakat donations are made annually based on our profits (usually 2.5% of our profit).

ADNIF, through NBAD, offers our customers (NBAD cardholders) the opportunity to make Zakat donations using NBAD ATMs.

It is hard to achieve significant impact alone, or within a single sector. We believe that by developing cross-sector partnerships, we will achieve greater impact and success. Multi-stakeholder partnerships harness competencies, experience, values and resources to enable co-working around a common vision to achieve a shared goal. We see the benefits of this approach through our relationships with a number of organisations, some of which have been included in this section.

We are founding members and Executive Committee members of the Abu Dhabi Sustainability Group (ADSG). Our Sustainability Report also follows the Global Reporting Initiative’s G4 Guidelines (in accordance with the “Core” option). We have identified, through external engagement with our sustainability peers and partner organisations, that the women’s market, SME development, access to finance and debt due to lack of financial literacy are key issues for the financial industry in the UAE and MENA region. Our citizenship strategy focuses on the development of SMEs in the region. We also aim to provide support to financial literacy (‘Esref Sah’) programmes developed by Emirates Foundation in the near future.

Our total community support in 2014 amounted to AED

50,973,000 equivalent to 0.9 % of our net profits.

Charitable donations through our ATM channel amounted to AED

2,054,284Our Zakat Fund payments in the UAE amounted to AED

7,500,000

Our Partnership with UAE Banks Federation

We are an active participant in the activities of the UAE Banks Federation (UBF), which seeks to promote the interests of the banking industry in the UAE. We are members of several specialised committees including HR, retail and corporate, legal and compliance. We contributed significantly to the development of UBF’s “Code of Conduct” for the banking industry in UAE. The objective of this project is to promote collaboration between banks, with the aim of delivering the highest quality of customer service standards. The “Code of Conduct” was approved and ratified in 2014.

17Figures for 2013 not re-classified to reflect changes in accounting policies in 2014. 18Total expenditure on suppliers 19 This figure includes our expenditure on local suppliers. We are now able to accurately report on expenditure on local vendors in 2014,

through our centralised procurement system.

Our partnership with the khalifa Fund for enterprise Development

The Khalifa Fund for Enterprise Development (or ‘Khalifa Fund’) aims to create a new generation of Emirati entrepreneurs by instilling and enriching the culture of self-employment amongst young people, as well as supporting and developing small to medium-sized investments in the Emirate.

In 2011, we formed a partnership with the Khalifa Fund and set up an equity fund to support promising young Emirati businesses. We want to build on that – identifying and boosting SMEs with high-growth potential and inspiring the next generation of UAE businesses. We disburse and manage such funds on behalf of the Khalifa Fund and offer additional banking services to these companies to improve their chance of success. Our support helps the Khalifa Fund to focus on identifying

and supporting entrepreneurs. We also offer daily administration of funding and assistance in improving the efficiency of the fund.

The Khalifa Fund initiatives allow us to contribute to the strategic vision of the UAE to build a robust, diversified economy by promoting entrepreneurship among citizens of the UAE.

Our future commitment is to continue our support of the SME sector and to focus on the development of ‘skills building’ initiatives for SMEs. We are working to identify a planned, comprehensive set of training programmes delivered by relevant specialists that will focus on key, practical skills which will drive these businesses to the next level of success.

The SME Toolkit -A Khalifa Fund Initiative

We have partnered with the Khalifa Fund as the banking partner for their SME Toolkit, which they have now developed. This will serve the wider SME sector in the UAE, serving citizens and resident entrepreneurs alike, in order to help position the UAE as the hub for business across the West-East Corridor.

We support the toolkit as it provides useful information for entrepreneurs and SMEs of the UAE. It includes information on starting a business in the UAE, obtaining finance, and provides advice on how SMEs can grow their business. The toolkit can be found on our website (www.nbad.com). Also refer to the Khalifa Fund website (www.khalifafund.ae) for further information.

*G4-24

positive economic contributions of our business. We are committed to utilising the positive value generated by our business to benefit different stakeholder

groups impacted by our operations. Our objective is to ensure diversification of the economic value we generate to benefit the community.





short-term (2015)

ü Publish and launch the ‘Financing the Future of Energy’ report at the Global Financial Markets Forum (GFMF) in March 2015.

ü Continue to participate in the Dubai Chamber Sustainability Network (DSCN) working groups to encourage and promote sustainability amongst the wider business community.

ü Support the Abu Dhabi’s 2030 vision by investing in the local economy (ongoing commitment).


ü Identify a planned, comprehensive set of training programmes delivered by relevant specialists that will focus on key, practical skills which will drive SMEs to the next level of success.

ü Provide support to Emirates Foundation’s financial literacy programmes.

The material issues identified through our stakeholder engagement process and materiality analysis include our consumption of resources (energy and water) and associated

greenhouse gas (GHG) emissions, materials (paper) consumption and waste (paper and electronic waste) management. We have declared our commitment to preserving the

Our direct environmental impacts are limited to paper, water and energy consumption, and the greenhouse (GHG) gases they produce. Still we take these responsibilities seriously, given the scarce nature of water in particular, and the need to use large amounts of energy to produce fresh water through desalination, adding further weight to the current challenges the uAE faces in producing energy in line with the rapid development and expansion of the country.

We currently have no premises located or planned in areas of high biodiversity value.

In this section, we have described the measures we have taken to monitor and manage these impacts in our buildings, and have also outlined how we manage our electronic (e-waste) produced in our branches and offices. These form part of the ‘core’ sustainability initiatives we are involved with internally.

As part of our citizenship strategy, we want to highlight the role of the region’s financial sector in the future of energy. As mentioned previously, the demand for renewables and energy efficient technology will continue to grow, and at NBAD we believe the finance sector has a vital part to play in financing innovative responses to the challenges of meeting the energy demands.

8.0 Environmental Stewardship

8.1 Reducing our Environmental Footprint

We will not compromise the environment in pursuit of profit, and we are committed to reducing our own impacts through responsible procurement, operations and facilities management.

environment formally, through our Sustainability Policy (refer to Appendix B). We have discussed how we address these material issues in further detail within this chapter.


environmental Challenges and Opportunities in the Uae

Water is more important than oil for the UAE. We have to come up with ways to meet future demand and preserve natural resources for the coming generations.

H.H General Sheikh Mohammed Bin Zayed Al NahyanCrown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces20

Uae Water Resources (million m3)

key environmental Data

environmental impact 2013 2014

Resource ConsumptionElectricity consumption (GigaJoules) 135,024 224,131Electricity consumption (kWh) 37,506,730 62,256,920Electricity consumption per capita (kWh) 8,378 11,417Electricity consumption per capita (GigaJoules) 30 41Water consumption (IG) 26,701,673 31,008,698materials (paper) consumptionPaper consumption (kg) 219,150 249,475Paper consumption per capita (kg) 49 46Paper recycled (kg) 110,958 153,726Paper recycling rate (%) 51 62emissionsGHG emissions (tonnes) 22,672 36,397GHG emissions per capita (tonnes) 5.06 6.67CO

2 emissions from fleet 1,089 1,001

CO2 emissions from electricity consumption (tonnes) 19,128 31,751

CO2 emissions from water consumption (tonnes) 1,670 1,940

CO2 emissions from air travel 784 1,705

electronic waste (e-waste)Total e-waste collected (kg) - 9,334E-waste recycled (kg) - 5,558Total e-waste refurbished for re-use (kg) - 3,776

Water

It is evident from national and international research reports on water consumption that the UAE indicators are highly above the average per capita global consumption. Some of the challenges faced relate to increasing population rates, climate change and irresponsible and unsustainable water consumption behaviours.

The UAE’s current maximum production capacity of desalinated and treated waste water comprises

36% of the total water required to maintain our current consumption rate

Average per capita water and electricity consumption in UAE21

550 litres/day

20-30 KwH/day

International average

170-300 litres/day

15 KwH/day

In the UAE, the three main sources of fresh water comprise groundwater (70%), desalinated water (24%) and treated wastewater (6%)22 .

Our current maximum production capacity of desalinated water and treated waste water in the UAE is only 1,504 Million cubic meters per year. This comprises merely 36% of the total water we would need to maintain our current

consumption rate of 4,180 Million cubic meters/year23.

As the UAE has very little or no fresh water, it relies heavily on costly, energy-intensive desalination plants. Both water and electricity rates in the UAE have been heavily subsidised by the UAE Government in the past, leading to concern over the presence of subsidies providing fewer incentives to reduce the rate of water consumption in the region.

The Abu Dhabi Emirate, however, introduced a new water and electricity tariff system in 2014 for Emiratis and expatriates with increased rates, depending on the level of consumption. This will be implemented in 2015 and aims to reduce consumption and increase efficiency.

As part of a five year strategy (2014-2018), the Environment Agency - Abu Dhabi has proposed a number of water management solutions, including resource management strategies (for desalinated, recycled and groundwater sources). We are committed to support the national efforts through the implementation of water-saving solutions and initiatives.

20Environment Agency Abu Dhabi (EAD), http://www.ead.ae/know-your-environment/groundwater/, 2014 21Federal Water and Electricity Authority (FEWA) in Gulf News, 20th March, 2014, ‘Abu Dhabi takes steps to reduce water consumption’ in http://gulfnews.com/news/uae/environment/abu-dhabi-takes-steps-to-reduce-water-consumption.22Gulf News ‘21st March 2015, ‘Saving a precious resource: water’ in http://gulfnews.com/news/uae/environment/saving-a-precious-resource-water.23‘Water and the UAE’, Heroes of the UAE, EWS-WWF (2015) in http://water.heroesoftheuae.ae/en/article/the-problem/overview-4.html


In 2014, we have seen an increase in our estimated total consumption of electricity and water in our offices and branches. Our energy consumption is linked to our electricity usage, business-related travel and fleet fuel (diesel and petrol) used for transportation. In the UAE, our energy consumption originates mainly from electricity usage at our NBAD branches.

Due to a number of issues, we are still unable to obtain utility bills for our offices and premises which we lease. During 2014, however, we met with Abu Dhabi Distribution Company (ADDC) to obtain more accurate data on the consumption of utilities in our 14 NBAD-owned buildings. The information from our utility bills was sometimes being reported inaccurately internally. We now have online access to these utility bills and are able to track our annual consumption more accurately.

As the world’s demand for energy increases, meeting the demand becomes more challenging. The global energy demand is expected to double or even triple by 205024.

The rapid development of the GCC countries has led to a greater demand for energy in this region, particularly in the form of power (electricity). This is driven by an increase in population and an increase in per capita GDP, leading to associated lifestyle benefits and challenges.

More electricity needs to be generated to meet energy-intensive industrial demands, increased use of air conditioning and desalination capacity to meet growing demands for water resources.

The region currently has the highest energy intensity and carbon intensity of any global region. In order to meet these challenges, substantial new

The methodology used in 2012 and 2013 to calculate our water and energy consumption for all employees across the UAE, was also utilised for our 2014 data.

We receive utility bills for our 14 NBAD-owned buildings, including our Head office and ADNEC office. These have the highest occupancy rate out of all our UAE premises. We, therefore, used the base consumption rate figures from the 14 buildings (comprising 2,337 employees) to extrapolate the total consumption rate for all our 5,453 employees (including outsourced staff) across the UAE.

electricity Consumption

The electricity consumption for our 14 NBAD-owned buildings has been included below for 2012, 2013 and 2014. The electricity consumption in

energy generation capacity is required, with wiser, more efficient use of these energy resources.

We are committed to making a real contribution to help this region to meet its own energy challenges. During this year, we initiated our Future of Energy project as part of our Corporate Citizenship strategy.

We want to learn more and collaborate more to better understand the opportunities and the role that the banking sector can play in financing renewable energy technologies to meet the growing energy demand.

Moving forward, we plan to develop innovative financial structures and products that will support the development of the energy industry. At the same time, we are planning internally to improve the energy efficiency of our own buildings, operations and activities.

energy

2014 is based on the consumption rate of 2,337 employees in the buildings. We have increased our electricity consumption rate slightly in these buildings in 2014.

Based on this consumption rate, the total estimated electricity consumption for all 5,453 employees (including outsourced staff) across our UAE premises, is 62,256,920 KwH.

Electricity consumption at 14 NBAD-owned buildings (KwH)

Global Energy demand expected to double or even triple by 2050

The MENA Energy Demand is expected to grow by

8.3% per year between 2013-2019: more than 3 times the global average

US$48 trillion of investment in energy infrastructure is needed in the next 20 years: the bulk of it in non-OECD countries

36,139,026

24,085,738 26,681,537

2012 2013 2014

19,353,554 17,147,043

13,289,442

2012 2013 2014

24Arup (2014), ‘Five Minute Guide: Energy in Cities’, www.arup.com

monitoring our Consumption of Resources


Water Consumption

Although our water consumption is minimal with regard to our activities, we are aware of the importance of responsible water consumption in the UAE. Our activities in terms of water use are related mainly to employee usage and use for cleaning purposes. The water we consume is municipal water and our waste water is diverted to the public sewage network. At present, we are not implementing any water recycling or reuse practices. We do not produce water discharge/effluent other than standard sewage, 100% of which is processed by the Municipality.

The water consumption for our 14 NBAD-owned buildings has been included below for 2012, 2013 and 2014. The consumption in 2014 is based on the consumption rate of 2,337 employees in the buildings.

improving our environmental performance

Within our own operations and facilities, we continue to monitor and measure our environmental footprint and are constantly seeking ways to minimise electricity and water wastage, fuel use and greenhouse gas emissions. It is not possible to currently measure our overall waste production by type, however we plan to identify our waste streams and develop a waste management plan for our Head Office and NBAD Academy building in 2015. We have started to record our drinking

How we manage our Resource Consumption

We have decreased our water consumption in our NBAD-owned buildings in 2014.

water consumption for Abu Dhabi premises (refer to Appendix C1).

We will investigate the possibility of including this information in our GHG emissions calculations.

During this year, our Group Information Technology (IT) team won the Datacenter Dynamics award for ‘Innovation in IT Optimisation’ in the category of Data Center Technology for the Europe and Middle East region.

36,139,026

24,085,738 26,681,537

2012 2013 2014

19,353,554 17,147,043

13,289,442

2012 2013 2014

Based on this consumption rate, the total estimated water consumption for all 5,453 employees (including outsourced staff) across our UAE premises, is 31,008,698 Imperial Gallons (IG).

The increase in our overall estimated electricity usage and water consumption in the UAE can be attributed to the increase in the number of our employees and the fact that we have included our outsourced staff in our calculations in 2014. We have significantly increased the number of outsourced staff during this year from 435 staff in 2013 to 1,253 in 2014, 766 of which are based in our offices and branches.

We had not included outsourced staff in our environmental performance calculations previously, as we did not hire as many staff before. Our workforce also increased from 4,477 in 2013 to 4,687 in 2014. The number of employees based in our offices and branches has, therefore, increased by 22% in 2014.

We continue to undertake regular maintenance work in our buildings to ensure the efficient use of electricity and to detect and repair any leaks which could lead to an unnecessary loss of water. Our building management system (BMS) software in our Head Office has been instrumental in minimising the amount of electricity we consume overall in these premises. The chillers, air handling units, and fan coil units are programmed to switch on only when required through the BMS software.

Carbon Disclosure project pilot study

In 2014 we participated in a climate change pilot programme with CDP (Carbon Disclosure Project), Masdar and the Abu Dhabi Sustainability Group, which required us to disclose and submit data on our direct and indirect carbon emissions to CDP. We were one of several leading UAE organisations participating in this pilot study.

Part of the information requested relates to the organisations’ climate change business strategies and risks and opportunities, including those which have the potential to generate a substantive change in business operations, revenue or expenditure.

As part of our Citizenship strategy, we are focussing on the role of finance in the future of energy. By working towards proactively responding to the risks and opportunities emerging from strong carbon management, energy efficiency and climate change strategies, we are in full support of the Government’s strategic vision and goals for the future of the UAE.

From 2015 onwards, we plan to begin annual climate and carbon reporting using the Carbon Disclosure Project as the next step in strengthening our sustainability performance.

aDsg’s energy management Flagship programme

As a founding member of ADSG, we were invited during this year to participate in the ADSG’s Energy Management Flagship Programme in 2015, which will provide accredited training to participants on achieving energy efficiency through good energy management. The aim of the programme is to raise energy management awareness and capacity and bring accreditation in energy management to ADSG members.

minimising our environmental impacts

We continued our sustainable retrofits and branch conversion project in 2014

Maintenance work was completed on the chillers and cooling towers within the Head Office building in 2014, ensuring a more efficient use of electricity by these units.

We plan to commission an environmental audit of our Head Office and Khalidiya office buildings in order to assess the current environmental performance of these buildings and make improvements where necessary.

The programme will enable the ADSG members participating to review and identify areas of energy consumption and opportunities for energy savings. The participants will be trained in setting up action plans, measuring consumption and proposing techniques/solutions for the reduction of water and electricity in order to reduce their carbon footprint.

This is an excellent initiative that fits well with our core sustainability plans in terms of energy efficiency in line with Abu Dhabi government requirements, and the forthcoming environmental audit of our NBAD head office and Khalidiya office premises. Additionally, it will support our business approach to become a leader in financing renewable energy, which is part of our Corporate Citizenship strategy.

Sustainable Retrofits of our Offices and Branches

Since early 2013, we have been carrying out retrofits of our offices and branches using sustainable materials in line with Estidama Pearl II/LEED Silver guidelines. Our office furniture (desks and chairs) and carpets are made from up to 90% recyclable materials.

We have continued the branch conversion project in 2014. We are in the process of renovating the branches and providing LED lighting (conforming to Estidama Pearl 2/LEED requirements) as part of the sustainable retrofits. The projected completion of the project is 2016.

This will assist us in obtaining accurate environmental baseline information for these buildings and will help us to set targets to reduce our consumption of electricity and water. We prepared and issued the request for proposals (RFPs) for the audit, which will be carried out in 2015.

Water consumption at 14 NBAD-owned buildings (Imperial Gallons)

nBaD received the Data Center Dynamics award for Improved Data Center Energy Efficiency

Our Group Information Technology (IT) team won the Datacenter Dynamics award for ‘Innovation in IT Optimisation’ in the category of Data Center Technology for the Europe and Middle East region. This was a result of efforts to reduce space and power consumption through various optimisation initiatives.

This was achieved through a combined effort by all the IT Teams with support from our Building Premises and Facilities Management (BP&FM) team.

This was a result of efforts to reduce space and power consumption through the implementation of energy-efficient cooling units, power monitoring technology, virtualisation technology, energy-star compliant systems and energy efficient storage systems. The team also worked to reduce cooling requirements and to decommission obsolete technology.


There is no stress of driving or hunting for parking both at work and home. It is time-saving too.

Asha SaldhanaExecutive AssistantGTB Products, NBAD

gHg emissions

measuring Our gHg emissions

We began to measure our own Greenhouse Gas (GHG) emissions from our UAE operations, using power and water factors developed for Abu Dhabi specifically. Our total estimated indirect CO

2 emissions in 2014 amounted

to 36,364.43 tonnes based on our business travel, electricity use and water consumption. It is not possible to measure the impact of our employees’ transportation to and from work as the majority use personal cars.

We use a minimal number of vehicles for business purposes and have decreased the number of our vehicles from 133 in 2013 to 118 in 2014. We consumed 225 gallons (24.6 GJ)25 of diesel and 114,619 gallons (15,102 GJ)25 of petrol in our fleet cars. We reduced the amount of petrol used in 2014, and decreased our direct CO

2 emissions from fuel (diesel and

gasoline) usage from 1,088.72 tonnes of CO

2 (2013) to 1,001 tonnes of CO

2 in

2014.

In 2014, we increased our business flights’ CO

2 emissions from 784 tonnes

to 1,705 tonnes. During this year, more flights were arranged to meet our business requirements to expand NBAD’s presence in the West-East corridor.

Our overall results indicate an increase in our estimated GHG emissions in 2014, compared with our 2013 emission calculations. 87% of our total GHG emissions occurred from electricity consumption.

How We manage our gHg emissions

As discussed previously, we have implemented a number of initiatives to minimise our water and electricity consumption. In addition to these initiatives, we are involved in piloting transport schemes on behalf of the Abu Dhabi Department of Transport (DoT) to reduce traffic congestion and associated impacts in Abu Dhabi.

As part of the Abu Dhabi Economic Vision 2030, the Department of Transport (DoT) is delivering a wide-ranging Transport Mobility Management Plan (TMM) to reduce congestion and improve transport options in Abu Dhabi.

We continue to support the DoT’s Transport Mobility Management Plan (TMMP) and provide our employees with a range of sustainable transport options.

In 2013, we piloted our employee car-sharing scheme by providing an internal online platform for “drivers” and “riders” to meet and agree to voluntarily “car-share”. By the end of 2014, 61

The Role of NBAD in the DOT TMM Programme

NBAD has launched a Park and Ride shuttle bus service from Zayed Sports City to the NBAD ADNEC office.

“The National Bank of Abu Dhabi has been one of the most active and supportive stakeholders involved in the Department of Transport’s TMM programme. NBAD has been engaging with the DOT from the very start of the TMM programme in early 2011. NBAD enthusiastically agreed to be one of the original pilot organisations. As such, staff surveys were undertaken and a TMM plan was developed. This input was of great value to the development of TMM as it enabled the DOT to refine the tools they use to help external stakeholders; it also provided early valuable insight into the transport and sustainability challenges large commercial organisations face in Abu Dhabi.

NBAD continued their involvement in the TMM programme through to stage 2 where they exhibited commitment and interest in TMM by beginning to develop their own organisation-specific measures. This included NBAD`s own bespoke car sharing tool. They included the DOT in discussions on how this would be taken forward, which helped inform the DOT’s own car-sharing work.

As the TMM programme moved forward into the full implementation stage at the beginning of 2013, NBAD continued to be one of the most pro-active and engaged stakeholders. With the help of DoT TMM, NBAD launched their own private park

The Park and Ride service has guaranteed parking spaces and it is a good chance to save money.

Muath Adel Salman,Group Procurement Officer, NBAD

employees registered for the car-sharing scheme on our website.

We provide a free bus shuttle service for our employees, between our Head Office, Khalidiya and ADNEC premises. All NBAD employees are encouraged to use this service instead of using their private vehicles.

This initiative helps to reduce the amount of fuel consumed by our employees commuting between these offices in Abu Dhabi.

In 2014, to demonstrate our support for the Department of Transport (DoT) Transport Mobility Management Programme (TMM), we launched our own private park and ride shuttle service from Zayed Sports City to our ADNEC offices, which is free for our employees.

How we manage our paper Consumption

Paper is used in large quantities through the Bank’s activities, including operations, issuing contracts and procurement, correspondence, services offered to clients and promotional materials. Our standard copier paper is made from agro residue (wheat pulp) and constitutes the majority of our paper consumption. We do not use any recycled materials.

We undertook a paper consumption awareness campaign in 2014 as part of our Sustainability Awareness Week. Our IT team, procurement department and corporate sustainability team also collaborated together to develop an RFP for a Managed Print Services system for our UAE offices and branches.

Our Consumption of materials

and ride shuttle service from Zayed Sports City to the new ADNEC offices. They are one of the first employers to develop such a service – and are a shining example of what organisations can do to not only help their own staff but also the whole of Abu Dhabi by investing in sustainable transport solutions.

NBAD also held a sustainability day to promote awareness of a range of activities that the Bank undertakes for the benefit of their employees. The DOT TMM team was very happy to take part in this and showcase some of the wider TMM initiatives. Indeed, this approach of engaging directly with the target audience has become a corner stone of the DOT TMM team work. This is in part, due to

NBAD’s Park and Ride shuttle bus service

NBAD’s free bus shuttle service providing transport between NBAD offices in Abu Dhabi

61 employees registered for the NBAD car-sharing scheme

the excellent example set by NBAD in their Sustainability week.

NBAD has been a very important partner in the DOT TMM programme since the early development of the strategy. They have continued to develop innovative ways of promoting sustainable transport. They are a shining beacon of TMM in Abu Dhabi and the DOT is hugely thankful to be able to work with them. We look forward to a long and continued TMM relationship.”

Transportation Mobility Management (TMM) Section, Department of Transport (DoT)

The new service will provide us with a standardised and multi-functional printing, copying and scanning device that will replace our current system which uses a variety of printers, copiers and scanners across the Bank. The project will be completed in 2015 and will provide us with the following benefits:

• Reduced printing and operational costs;

• Enhanced confidentiality as only document owners can print;

• Energy savings as the printers will automatically switch to ‘power-save’ mode when not in use;

• Reduction in the amount of unnecessary waste paper produced;

• Reduction in the volume of paper required for printing and storage;

• Reduction in the amount and cost of consumables (ink cartridges and paper) purchased;

• Ability to monitor the amount of paper used for printing per individual and department.

The total amount of paper stocks ordered in 2014 was 249,475 kg, as opposed to 219,150 kg ordered in 2013. We have increased the amount of paper consumed, however, the increase directly correlates with the increase in the number of employees and outsourced staff hired during this year.

25www.convertunits.com


item 2013 2014 % change (-/+)

Total paper consumption (kg) 219,150 249,475 +14%Total paper consumption per capita (kg)

49 46 -6%

How we manage our secure Document Destruction and paper Waste

We established our Secure Shredding Center (SSC) in 2011 to meet regulatory requirements for document destruction. Through the use of this system, we realised that we could reduce our paper waste and recycle our shredded paper. In this way we could divert volumes of paper away from landfill disposal. The waste paper is, therefore, collected, measured, recorded and destroyed by the Bank’s own internal team at our secure shredding facility, before being sent to an external recycling facility for re-manufacture.

In 2012, SSC operations were expanded to all UAE offices and branches. The SSC recycles not only confidential paper, but all printed documents at the end of their life, along with newspapers. In 2014, our SSC generated AED 152,313 of revenue from recycled proceeds.

electronic Waste management

How we manage our electronic Waste (e-waste)

Recycling Waste Electrical and Electronic Equipment (WEEE) is a relatively new environmental initiative under our responsible business practices. In 2013, we collected and stored all our electronic items (including computers, laptops, photocopiers, printers and calculators) for future recycling by an appointed e-waste contractor.

During 2014, we issued a formal policy with regard to e-waste disposal and formally engaged a contractor to collect our e-waste.

9,334 kg of e-waste was collected

5,558kg of e-waste was recycled

3,776 kg was refurbished for reuse

Raising sustainability awareness

Our sustainability e-learning Training programme

We launched our Sustainability Awareness e-learning training programme during this week for our employees. This is a compulsory programme for employees to complete.

It is an interactive programme, that has been developed in order to enhance our employees’ awareness and understanding of the concept of sustainability within NBAD, and how to work in a more responsible and sustainable way.

item 2013 2014 % change (-/+)

Total paper recycled (kg)26 110,958 153,727 +38%

Paper Shredded (tonnes)27 320 301 -6%

Revenue (recycling proceeds in AED) 140,672 152,313 +8%

example of good practice: Our ‘paper Tree’ initiative28

We believe that working in partnership with public and private authorities on sustainability awareness campaigns is integral to the success of the 2030 Economic and Environmental vision of Abu Dhabi.

We launched the ‘Paper Tree’ initiative in February this year in celebration of National Environment Day. The event was organised in collaboration with the Environment Agency, Abu Dhabi and the Abu Dhabi Education Council. A number of schools were invited to the event, and the students worked in groups to paint environmental messages and images to be installed in designated NBAD ATM areas. A compartment will be introduced near each of these ATMs, to encourage people to stop littering and collect any discarded ATM receipts.

The objective of ‘Paper Tree’ was to encourage individuals and the community to think about their impacts on the environment and how they can play a role in minimising these impacts.

Students participating in the ‘Paper Tree’ event

sustainability awareness Campaigns

We carried out environmental and health awareness campaigns throughout 2014 for our employees and outsourced staff, which included our Sustainability Week and Earth Hour 2014 campaigns. We plan to increase the number of awareness sessions in the near future.

We conducted a successful Sustainability Awareness Week at the Head Office for our staff, to raise awareness on the importance of issues such as waste management and recycling, reducing energy and water consumption, using sustainable transport options, and the impacts of climate change. A number of quizzes, environmental awareness sessions and employee wellness sessions were organised for NBAD employees across the Bank. Prizes were awarded throughout the week for the challenges and quizzes organised for our staff.

Over the five days, employees were invited to learn about saving power and water, keeping fit and healthy as well as sharing their ideas about how to make NBAD a more sustainable bank. We also arranged a kayaking tour in the

130+UAE and International staff completed the sustainability awareness e-learning module during Sustainability week

75 employees donated blood during Wellness Day

200blood sugar tests and body mass measurements were delivered

Abu Dhabi Eastern Mangroves for staff volunteers (and partners) who provided assistance during Sustainability Week.

As part of the outing, staff were given an educational briefing on the importance of the existence of the mangroves within the Abu Dhabi coastal system.

Extract from our Interactive Sustainability Awareness E-learning Training Programme

26“Recycling 1 tonne of printing and writing paper saves 24 trees” (http://www.theemiratesgroup.com/english/news-events/news-releases/news-details.aspx?article=388554.)27 www.convertunits.com28NBAD Face2Face Magazine, Issue 26, 1st Quarter, 2014.

By recycling 154 tonnes of paper, we saved

3,696 trees26

We are proud to support the National Bank of Abu Dhabi’s “Paper Tree” campaign, that demonstrates the bank has fully integrated a strong sustainability ethos into their corporate strategies and plans.

H.E Razan Khalifa Al MubarakSecretary General of Environment Agency, Abu Dhabi





Short-term (2015)

ü We plan to have our environmental data externally assured.

ü Commission an Environmental Audit of Head Office building to identify environmental improvement opportunities.

ü Conduct more environmental awareness campaigns for our employees and outsourced staff.

ü Identify our waste streams and develop a waste management plan for our Head Office and NBAD Academy building.

ü Continue to participate in the Carbon Disclosure Project (CDP), to measure and disclose our greenhouse gas (GHG) emissions.

Medium-term (2016-2018)

ü Develop innovative financial structures and products that will support the development of the energy industry.

ü Participate in ADSG’s Energy Pilot Programme and continue to work on improving our operational performance and energy efficiency.

ü Develop and implement environmental resource management plans.

ü Monitor, record and assess trends in relation to paper, water, waste and energy consumption and set targets for reduction.


ü Improve the environmental performance of our NBAD buildings and branches to minimise our resource consumption and mitigate associated impacts.

Snapshots of Sustainability Awareness Week

Sustainability Awareness Week Agenda

Opening Launch – Are You Sustainable?Sunday, 19th October

Don’t Throw It All Away!Monday, 20th October

Switch Off and Save!Tuesday, 21st October

Wellness WednesdayWednesday, 22nd October

Travel GreenThursday, 23rd October

Day 1

Day 2

Day 3

Day 4

Day 5

NBAD SuStAiNABility RepoRt 2014 A 2

gRi g4 Content index/isO 26000 index

• The Report follows the new GRI guidelines G4 at “Core” level.• Coverage of indicators is characterized as Full (F), Partial (P), Not Reported (NR) or Not Applicable (NA).• Material aspects and boundaries are indicated in the GRI Tables below.• ‘NBAD, UAE’ refers to our UAE operations.• ‘NBAD Group wide’ operations refer to our UAE and international operations.

Table 1 general standard Disclosures

general standard Disclosures

summary Report section Coverage/Omissions

external assurance1

material aspects (Boundary)

isO 26000

Strategy and Analysis Yes (NBAD, UAE)

G4-1 Most senior executive statement - Chapter 1.0 ‘Message from the Chairman’ and ‘Message from the Group Chief Executive Officer (CEO)’, pg 3-4. F No 6.2

G4-2 Description of key impacts, risks and opportunities

Chapter 1 Opening Remarks, pg 2-5.Chapter 3.0 Sections 3.1 to 3.6 , pg 13-15.Chapter 3.0 Section 3.3, pg 17.Chapter 4.0 Section 4.3 ‘Our Sustainability Strategy’, pg 27.Appendix B – Our Sustainability Policy.

F No 6.2

Organisational Profile Yes (NBAD, UAE)

G4-3 Name of organisation. National Bank of Abu Dhabi.Chapter 1.0 ‘Opening Remarks’, pg 2. F No 6.2

G4-4 Primary brands, products, and/or services.

Chapter 3.0, Section 3.1, pg 13. (refer to www.nbad.com for information on our business segments, products and services, Section 3.2 ‘Our Value Chain’ , pg 16.

F No 6.2

G4-5 Location of headquarters. Chapter 3.0 ‘About Us’, pg 12. F No

G4-6Number of countries organisation operates (major operations or relevant to TBL).

Chapter 3.0 Section 3.1 Who we are’, pg 13. F No

G4-7 Nature of ownership and legal form.

Chapter 3.0 ‘About Us’, pg 12. Section 3.1 Who we are’, pg 13.Chapter 3.0, Section 3.4 ‘Transparency and Accountability’, ‘Our Annual Reports’, pg 18.

F No

G4-8Markets served (geographic breakdown, sectors served, types of customers).

Chapter 3.0 Section 3.1, ‘Who we are’, pg 12-13, Section 3.2, ‘Our Role’, pg 14-15, ‘Our Value Chain’, pg 16. F No

G4-9 Scale of the reporting organisation.

Chapter 3.0 Section 3.1, ‘Who we are’, pg13, Section 3.6 Financial Stability & Economic Growth, pg 23.Chapter 6.0, Section 6.1 ‘Our People’, ‘Workforce in the UAE (2014), pg 45.

F No

G4-10 Total workforce by type, contract, region, broken down by gender.

Chapter 6.0 Section 6.1 ‘Our Employees’, ‘Diversity and Inclusion’, pg 47-48 F No

G4-11 Employees with collective agreements (by percentage). Collective bargaining is not relevant in the UAE. NA No

G4-12 Organisation’s supply chain.

Chapter 3.0, Section 3.2 ‘Our Value Chain’, pg 16Chapter 5.0, Section 5.5 – ‘Responsible Procurement’, pg 42.Chapter 7 ‘Impact on our Society’, Section 7.2 ‘Generating Value for our Community’, pg 62.

F No

G4-13Significant changes in report period (size, structure, ownership, supply chain).

Chapter 1 ‘Opening Remarks’, pg 2. Chapter 3.0, Section 3.1, ‘Who we Are’, pg 13.Chapter 6.0, Section 6.1, ‘Workforce in the UAE’, pg 45-46. F No

G4-14 Whether and how precautionary approach addressed.

Chapter 3.0, Section 3.4 ‘Transparency & Accountability’, pg 18. Section 3.5 ‘Corporate Governance & Compliance’, pg 19-23.Chapter 4.0, Sections 4.1 to 4.4, pg 25-33.

F No 6.2

appendix agRi section

1Only information regarding our financial statements has been externally assured.

NBAD SuStAiNABility RepoRt 2014 NBAD SuStAiNABility RepoRt 2014 A 4A 3



external assurance1


isO 26000

G4-15The economic, environmental and social principles and initiatives to which the organisation subscribes.

Chapter 3.0, Section 3.6 ‘Our Direct Economic Impacts’, pg 23.Chapter 4.0, Section 4.1 ‘Our Sustainability Policy’, pg 25.Chapter 7.0, Section 7.3 ‘Collaborations & Partnerships’, pg 63.

F No

G4-16

Membership in associations (industry, national/international, governance bodies, projects, committees, substantive funding beyond membership, strategic membership).

Chapter 3.0, Section 3.6 ‘Our Direct Economic Impacts’, pg 23.Chapter 4.0, Section 4.1 ‘Our Sustainability Policy’, pg 25.Chapter 7.0, Section 7.3 ‘Collaborations & Partnerships’, pg 63.

F No

Identified Material Aspects and Boundaries Yes (NBAD, UAE)

G4-17Entities included in consolidated financial statements or equivalent documents.

Chapter 3.0, Section 3.1, pg 13. Also refer to our website www.nbad.com (‘Investor Relations’, Annual Review Report -2014, Consolidated Financial Statements, page 10).

F No

G4-18 Process for defining report content and Aspect Boundaries.

Chapter 3.0 Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20.Chapter 4.0, Section 4.4, pg 28, pg 30-32. F No

G4-19Materials Aspects identified in the process for defining report content.

Chapter 4.0 Section 4.4 ‘An Informed Sustainability Strategy’, pg 28-32. F No

G4-20 Aspect Boundary for each material Aspect within the organisation.

Chapter 4.0 Section 4.4 ‘An Informed Sustainability Strategy’. The main focus of the report is on our UAE operations, pg 28-32.

F No

G4-21 Aspect Boundary for each material Aspect outside the organisation.

Chapter 4.0 Section 4.4 ‘An Informed Sustainability Strategy’, pg 28-32. The main focus of the report is on our UAE operations.

F No

G4-22Effect and reasons of information re-statements (mergers, acquisitions, base years, methods).

Any restatements and their explanations have been recorded in Appendix E. Also refer to Chapter 1.0 ‘Opening Remarks’, ‘About this Report’, pg 2.

F No

G4-23 Significant changes (scope, Aspect Boundaries). Chapter 1.0 ‘Opening remarks’, ‘About this Report’, pg 2. F No

Stakeholder Engagement Yes (NBAD, UAE)

G4-24 Stakeholder groups engaged by the organisation.

Chapter 3.0 Section 3.6 ‘Our Direct Economic Impacts’, pg 23.Chapter 4.0 Section 4.4 ‘An Informed Sustainability Strategy’, pg 28-32.Chapter 5.0, Section 5.1, ‘Customer Satisfaction’, pg 34-35. Section 5.5 ‘Responsible Procurement’ pg 42.Chapter 6.0, Section 6.3, ‘Employee Engagement’, pg 52-53.

F No

G4-25 Basis for identification and selection of stakeholders.

Chapter 4.0 Section 4.4 ‘An Informed Sustainability Strategy’, pg 28-32. F No 6.2

G4-26 Stakeholder engagement process (frequency, type, group).

Chapter 4.0 Section 4.4 ‘An Informed Sustainability Strategy’, pg 28-32.Chapter 5.0, Section 5.1, ‘Customer Satisfaction’, pg 34-35. Section 5.5 ‘Responsible Procurement’, pg 42.Chapter 6.0, Section 6.3, ‘Employee Engagement’, pg 52-53.

F No 6.2

G4-27 Concerns raised by stakeholders and response.

Chapter 4.0 Section 4.4 ‘An Informed Sustainability Strategy’, pg 28-32Chapter 5.0, Section 5.1, ‘Customer Satisfaction’ , pg 34-35, Section 5.5 ‘Responsible Procurement’ , pg 42.Chapter 6.0, Section 6.3, ‘Employee Engagement’ pg 52-53.

F No 6.2

Report Profile

G4-28 Reporting period (eg fiscal/calendar year). Chapter 1.0 ‘Opening remarks’, ‘About this Report’ pg 2. F No

G4-29 Date of previous report.

Chapter 1.0 ‘Opening remarks’, ‘About this Report’ pg 2.Our 2013 report ‘Reshaping the Future’ is available on our website - http://www.nbad.com/content/dam/NBAD/documents/AboutNBAD/Sustainabilit-Report2013.pdf.

F No



external assurance1


isO 26000

G4-30 Reporting cycle. Chapter 1.0 ‘Opening remarks’ pg 2. We report annually. F No

G4-31 Contact point. Chapter 1.0 ‘Opening remarks’ pg 2. F No

G4-32 Table for location of General Standard Disclosures. Refer to Appendix A for GRI tables. F No

G4-33 Policy and practice for external assurance. Chapter 1.0 ‘Opening Remarks’, ‘About this Report’, pg 2. F No

Governance Yes (NBAD, UAE)

G4-34 Governance structure (eg BoD committees strategy or oversight).

Chapter 3.0, Section 3.4 ‘Transparency & Accountability’, pg 18, Section 3.5 ‘Corporate Governance & Compliance’ pg 19. Also refer to our website http://www.nbad.com/en-ae/about-nbad/corporate-governance/Corporate-Governance-Framework.html.

F No 6.2

G4-35

Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’ pg 20. F No

G4-36

Report whether the organisation has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20. F No

G4-37

Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Section 4.4 ‘An Informed Sustainability Strategy’ pg 28-29.

F No 6.2

G4-38Report composition of the highest governance body and its committees.

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’ pg 20. P No 6.2

G4-39

Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organisation’s management and the reasons for this arrangement).

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’ pg 20. F No 6.2

G4-40

Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20. F No 6.2

G4-41

Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders.

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20. P No 6.2

G4-43

Report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics

Chapter 4.0, Section 4.2 ‘Managing Sustainability’, pg 26. Chapter 6.0, Section 6.2, ‘Raising Awareness on Sustainability Issues’, pg 52, Chapter 8.0, Section 8.1 ‘Raising Sustainability Awareness’, pg 75.

P No

G4-44

Processes of evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics.

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20 . F No 6.2




external assurance1


isO 26000

G4-45

Highest governance body’s role in the identification and management of economic, environmental and social impacts, risks and opportunities.

Chapter 3.0, Section 3.4 ‘Transparency & Accountability’, pg 18, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20. F No 6.2

G4-49Report the process for communicating critical concerns to the highest governance body

Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20 and ‘Compliance’ (Whistleblowing system), pg 21.

F No 6.2

Ethics and Integrity Yes (NBAD, UAE)

G4-56

Mission, values, codes of conduct, principles, standards and norms of behaviour such as codes of conduct and codes of ethics.

Chapter 3.0, Section 3.3 ‘Our Mission & Values’, pg 17, Section 3.4 ‘Transparency & Accountability’, pg 18, Section 3.5 ‘Corporate Governance & Compliance’, pg21. Chapter 6.0 Section 6.2 ‘Driving Cultural Change’, pg 50-52 .

F No 6.2

Dmas Yes (NBAD, UAE)

g4-Dma

Why impact is materialHow material Aspect or its impacts are managedEvaluation of the management approach

F No All aspects

Policies

Chapter 4.0 Section 4.1 ‘Our Commitment to Corporate Sustainability’, pg 25.Section 4.4 An Informed Sustainability Strategy, pg 28-33.Chapter 4.0, pg 25Chapter 5.0, pg 34Chapter 6.0, pg 44Chapter 7.0, pg 58Chapter 8.0, pg 65Appendix B.

F No

Commitments

Chapter 2.0 Section 2.3, pg 8-11.Chapter 5.0 Section 5.6, pg 43.Chapter 6.0 Section 6.4, pg 57.Chapter 7.0 Section 7.4, pg 64.Chapter 8.0 Section 8.2, pg 77.Appendix F.

F No

Goals and targets As above. F No

ResponsibilitiesChapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20.Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F No

Resources As above. F No

Specific actions See Commitments. F No ISO 26000

Table 2- Specific Standard Disclosures

Dma and indicators summary Report section Coverage/

Omissionsexternal assurance


isO 26000

eCOnOmiC

Dma

policy:Our approach to economic performance is described by our ‘Economy’ clause in our Group wide Sustainability Policy (refer to Appendix B) – “We must remain financially profitable in the long-term to benefit all of our stakeholders through the provision of jobs, creation of shareholder value and giving access to trusted financial services. Our operations should align with, and contribute to, the financial stability and economic development of the communities where we conduct our business.”Our Islamic Banking business manages our Zakat fund and our Corporate Communications Team all other 'charitable' activities and corporate sponsorships. A set of guidelines have been provided but we do not have a formalised community investment policy.Chapter 3.0 Section 3.6, Financial Stability & Economic Growth, pg 23, Appendix C1. Chapter 4.0, Section 4.2 to 4.4 , pg 26-33.Goals, Targets & Commitments, Specific Actions: Chapter 5.0 Section 5.6, pg 43, Appendix F.Resources & Responsibilities: Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F No Economic Performance 6.2, 6.8

Economic Performance Yes (NBAD, UAE)

G4-EC1 (including sector supplement)

Direct economic valueChapter 3.0 Section 3.6, ‘Financial Stability & Economic Growth’, pg 23-24, Appendix C1.

F No

6.8, 6.8.3, 6.8.7, 6.8.9

Market Presence Yes (NBAD, UAE)

G4-EC6 Proportion of senior management hired from the local community

Chapter 6.0, Section 6.1 ‘Key Employee Data’, pg 46, Appendix C2 ‘Group Workforce Figures’.

F No6.8, 6.8.5, 6.8.7

Indirect Economic Impacts Yes (NBAD, UAE)

G4-EC7 Development and impact of infrastructure investments and services supported.

Chapter 5.0, Section 5.3 ‘Responsible Financing’, ‘Project Financing’, pg 40.

F No

6.3.9, 6.8, 6.8.3, 6.8.4, 6.8.5, 6.8.6, 6.8.7, 6.8.9

Procurement Practices Yes (NBAD, UAE)

G4-EC9 Spending on locally based suppliers Chapter 5.0, Section 5.5 ‘Responsible Procurement’, pg 42 . F No

enViROnmenTaL

DMA

policy:Our approach to Environmental performance is described by the 'Environment' clause in our Group wide Sustainability Policy - “We employ best practices and recognised standards, both local and international, to ensure proper environmental management and impact reduction related to our operations and products. We do not compromise the long term environmental security of the communities where we operate, in favour of short term profit.” (refer to Appendix B).Materials - We have a centralised paper collection and recycling system which also supports data security.Energy - Our energy consumption is monitored consistently but we continue to find new challenges and issues with the reliability of some of this information. Water - Our water consumption is monitored consistently but we continue to find new challenges and issues with the reliability of this information. Compliance – see main policy statement above.Chapter 8.0, pg 65.Chapter 8.1-8.2, pg 65-77.It is not possible to currently measure our overall waste production.Supplier Environmental Assessment - see main policy statement above and Chapter 5.0, Section 5.5, pg 42.Goals, Targets & Commitments, Specific Actions: Chapter 8.0 Section 8.2, pg 77, Appendix F.Resources & Responsibilities: Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F (all aspects) No

MaterialsEnergyWaterComplianceSupplier Environmental Assessment

6.2, 6.5





isO 26000

Materials Yes (NBAD, UAE)

G4-EN1 Materials used by weight or volume

Chapter 8.0, Section 8.1, ‘Monitoring our Consumption of Resources, ‘How we Manage our Resource Consumption’, ‘Our Consumption of Materials’, pg 73.

F No 6.5, 6.5.4

G4-EN2 Percentage of materials used that are recycled input materials

Chapter 8.0, Section 8.1, ‘Our Consumption of Materials’, pg 73. F No 6.5,

6.5.4

Energy Yes (NBAD, UAE)

G4-EN3 Energy consumption within the organisation

Chapter 8.0, Section 8.1, ‘Monitoring our Consumption of Resources’ ‘GHG Emissions’ (fuel consumption), pg 72.

F No 6.5, 6.5.4

G4-EN4 Energy consumption outside of the organisation

Chapter 8.0, Section 8.1, ‘Monitoring our Consumption of Resources’, Electricity Consumption, pg 69, ‘GHG Emissions’, pg 72.

P No 6.5, 6.5.4

G4-EN6 Reduction of energy consumption

Chapter 8.0, Section 8.1, ‘Monitoring our Consumption of Resources, ‘How we Manage our Resource Consumption’ pg 70-73, ‘Raising Sustainability Awareness’, pg 75-76.

F No 6.5, 6.5.4

Water Yes (NBAD, UAE)

G4-EN8 Total water withdrawal by source.

Chapter 8.0, Section 8.1, ‘Monitoring our Consumption of Resources, pg 70‘, How we Manage our Resource Consumption’, pg 70-71.

F No 6.5, 6.5.4

G4-EN9 Water sources significantly affected by withdrawal of water.

‘Chapter 8.0, Section 8.1, ‘Monitoring our Consumption of Resources’, Water Consumption’, pg 70.

P No 6.5, 6.5.4

G4-EN10 Percentage and total volume of water recycled and reused.


F No 6.5, 6.5.4

Biodiversity

G4-EN11 Areas of high biodiversity value. Chapter 8.0, Section 8.1 ‘Reducing our Environmental Footprint’, pg 65. F No 6.5,

6.5.6

G4-EN12 Impact on biodiversity. Chapter 8.0, Section 8.1 ‘Reducing our Environmental Footprint’, pg 65. F No 6.5,

6.5.6

Emissions Yes (NBAD, UAE)

G4-EN15 Direct GHG emissions (by weight) Chapter 8.0, Section 8.1, ‘GHG Emissions’ pg 72, Appendix C1. F No 6.5,

6.5.5

G4-EN16 Indirect GHG emissions (by weight) Chapter 8.0, Section 8.1, ‘GHG Emissions’, pg 72, Appendix C1. F No 6.5,

6.5.5

G4-EN17 Other indirect GHG emissions We are not aware of any other indirect greenhouse gas emissions. NR No 6.5,

6.5.5

Effluents & Waste

Yes (NBAD, UAE) Paper, electronic waste

G4-EN22 Total water discharge by quality and destination.


F No




isO 26000

G4-EN23 Total weight of waste by type and disposal method.

Chapter 8.0 Section 8.1 ‘Reducing our Environmental Footprint’, ‘How we Manage our Resource Consumption’, ‘Improving our Environmental Performance’, pg 70‘How we manage our Paper Consumption’, pg 73, How we manage our Secure Document Destruction and Paper Waste’, pg 74, ‘Electronic Waste Management’, pg 75.

P No 6.5, 6.5.3

Products and Services

G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category.

Zero products are sold with reclaimed packaging materials. F No

Compliance

G4-EN29 Fines and sanctions of non-compliance Zero (0) fines and sanctions. F No 6.5

Transport

G4-EN30 Impact of people and product transportation. Chapter 8.0, Section 8.1, ‘GHG Emissions’, pg 72-73. P No

6.5, 6.5.4, 6.6.6

Overall

G4-EN31 Investment for environmental protection (by value, type)

Chapter 8.0, Section 8.1, ‘How we Manage our Resource Consumption’, ‘Improving our Environmental Performance’ and ‘Minimising our Environmental Impacts’, pg 70-71.

P No

Supplier Environmental AssessmentYes (NBAD, UAE) and supplier

G4-EN32 New suppliers that were screened using environmental criteria (percentage)

Chapter 5.0 Section 5.5 ‘Supplier Selection & Assessment’ pg 42. F No

Environmental Grievance Mechanisms

G4-EN34Grievances about environmental impacts filed, addressed and resolved through formal grievance mechanisms.

Zero (0) grievances reported. F No

sOCiaL

LaBOUR pRaCTiCes anD DeCenT WORk

DMA

policy:Our approach to labour and work performance is described in our ‘People’ clause in our Group-wide Sustainability Policy – “We treat employees equitably and with respect, and seek to provide a safe and healthy work environment. We provide opportunities to develop for all employees and ensure fair pay and compensation.” (refer to Appendix B).Chapter 6.0 Section 6.1 to 6.3, pg 44-56.Goals, Targets & Commitments, Specific Actions: Chapter 6.0, Section 6.4, pg 57, Appendix F.Resources & Responsibilities: Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F (all aspects) No

EmploymentOccupational Health & SafetyTraining and EducationDiversity & Equal OpportunityEqual Remuneration for Women and Men

6.2, 6.4, 6.3.10

Employment Yes (NBAD, UAE)

G4-LA1 Turnover of personnel (by age group, gender, region).

Chapter 6.0 Section 6.1 ‘Our Employees’, ‘Employee Turnover’, pg 45-46, pg 49.

P No 6.4, 6.4.3





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G4-LA3 Return to work and retention rates after parental leave, by gender.

Chapter 6.0 Section 6.1 ‘Our Employees’, ‘Key Employee Data’, pg 46.

F No

Labour/Management Relations

G4-LA4 Minimum notice period for operational changes. Not reported. NR No

Occupational Health & Safety

G4-LA5 Employees represented by H&S committees (percentage)

Chapter 6.0 Section 6.3 ‘Labour Practices, ‘Investing in our Employees’, pg 56.

F No 6.4, 6.4.6

G4-LA6 Injury, disease, lost days, absenteeism, fatalities (rates).


P No 6.4, 6.4.6

G4-LA8 Health and safety issues in collective agreements.

There are no trade unions in the UAE. NA No

Training and Education

G4-LA9 Training (by average hour, employee category)Chapter 6.0 Section 6.3 ‘Labour Practices’, ‘Training & Development’, pg 54-55.

F No 6.4, 6.4.7

Diversity & Equal Opportunity Yes (NBAD, UAE)

G4-LA12 Breakdown of employees (by category, gender, etc)

Chapter 6.0, Section 6.1 ‘Our Employees’, ‘Diversity & Inclusion’, pg 47-48.

F No

6.3.7, 6.3.10, 6.4, 6.4.3

Equal Remuneration for Women and Men Yes (NBAD, UAE)

G4-LA13Ratio of basic salary of women to men by employee category, by significant locations of operation.


F No

6.3.7, 6.3.10, 6.4.3, 6.4.4

Supplier Assessment for Labour Practices Yes (NBAD, UAE)

G4-LA14 Percentage of new suppliers that were screened using labour practices criteria.

Chapter 5.0, Section 5.5 ‘ Responsible Procurement’. ‘Supplier Selection & Assessment’, pg 42.

F No6.3.5, 6.4, 6.4.3

Labour Practices Grievance Mechanisms Yes (NBAD, UAE)

G4-LA16Grievances about labour practices filed, addressed and resolved through formal grievance mechanisms.

Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Employee Engagement’, pg 52. F No




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HUman RigHTs

DMA

policy:Our approach to Human Rights performance is described in our Group-wide Sustainability Policy – “We treat employees equitably and with respect, and seek to provide a safe and healthy work environment. We provide opportunities to develop for all employees and ensure fair pay and compensation.” (refer to Appendix B). New clauses on best practice in relation to our suppliers have been included in our Procurement policy and procedures. We have specific policies on Whistleblowing which allows all employees to report any form of incorrect behaviour without fear of reprisals. We currently do not have a process for screening for Human Rights, nor do we have specific human rights clauses in investment agreements or contracts.Chapter 3.0, Section 3.5, pg 19-22.Chapter 4.0 Section 4.1 to 4.3, pg 25-27.Chapter 5.0 Section 5.5, pg 42.Chapter 6.0 Section 6.3, pg 52-56. Appendix B.Goals, Targets & Commitments, Specific Actions: Chapter 2.0 Section 2.3, pg 8-11.Chapter 5.0 Section 5.6, pg 46.Chapter 6.0 Section 6.4, pg 57.Chapter 7.0 Section 7.4, pg 64.Appendix F.Resources & Responsibilities: Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F (all aspects) No

InvestmentNon-discriminationIndigenous RightsSupplier Human Rights Assessment

6.2, 6.3

Investment Yes (NBAD, UAE)

G4-HR1 (including sector supplement)

Investments with human rights screening (by percentage, number).

Zero (0) investments. Chapter 5.0, Section 5.3, ‘Project Financing’, ‘Application of Equator Principles’, pg 40.

F No

6.3, 6.3.3, 6.3.5, 6.6.6

Non-discrimination Yes (NBAD, UAE)

G4-HR3 Discrimination incidents (number). Zero (0) incidents. Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Human Rights’, pg 52.

F No

6.3, 6.3.6, 6.3.7, 6.3.10, 6.4.3

Freedom of Association and Collective Bargaining

G4-HR4 Operations identified with freedom in risk and actions.

Collective bargaining is not allowed by legislation in the UAE. F No

6.3, 6.3.3, 6.3.4, 6.3.5, 6.3.8, 6.3.10, 6.4.5

Child labour Yes (NBAD, UAE)

G4-HR5 Operations identified with child labour risk and actions.

Zero (0) suppliers or operations have been identified as having significant risk for incidents of child labour. Chapter 5.0, Section 5.5 ‘ Responsible Procurement’, pg 42. ‘Supplier Selection & Assessment’.Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Human Rights’, pg 52.

F No

6.3, 6.3.3, 6.3.4, 6.3.5, 6.3.7

Forced or Compulsory Labour Yes (NBAD, UAE)

G4-HR6 Operations identified with forced labour risk and actions.

Zero (0) suppliers or operations have been identified. Chapter 5.0, Section 5.5 ‘ Responsible Procurement’. ‘Supplier Selection & Assessment’, pg 42.Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Human Rights’, pg 52.

P No 6.3.10

Security Practices

G4-HR7 Security personnel training on human rights. Zero (0) training delivered. Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Human Rights’, pg 52.

F No





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Indigenous Rights Yes (NBAD, UAE)

G4-HR8 Violations of indigenous rights and actions (number)

Zero (0) violations. Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Human Rights’, pg 52.

F No

6.3, 6.3.4, 6.3.6, 6.3.7

Assessment

G4-HR9Operations that have been subject to human rights reviews or impact assessments (percentage, number).

Zero (0) operations. Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Human Rights’, pg 52. Chapter 5.0, Section 5.5 ‘ Responsible Procurement’. ‘Supplier Selection & Assessment’, pg 42.

F No 6.3.4, 6.3.5

Supplier Human Rights AssessmentYes (NBAD, UAE) and supplier

G4-HR10 Percentage of new suppliers that were screened using human rights criteria.

Zero (0) suppliers screened. Chapter 5.0, Section 5.5 ‘ Responsible Procurement’. ‘Supplier Selection & Assessment’, pg 42.

F No6.3.4, 6.3.5, 6.6.6

Human Rights Grievance Mechanisms Yes (NBAD, UAE)

G4-HR12Grievances about human rights impacts filed, addressed and resolved through formal grievance mechanisms (number).

Zero (0) grievances about human rights impacts. Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Employee Engagement’, pg 52.

F No

sOCieTY

Dma

policy:Our approach to society is described by our overall policy statement in our Group wide Sustainability Policy - (refer to Appendix B). We take a long term view of our business decisions at all times, ensuring that short term actions do not damage our ability to operate successfully into the future. We seek out new opportunities, particularly in the Energy and Small & Medium Enterprises Sectors, through the active management of current and future risks, balancing the needs of people and society, the environment and our profitability, and thereby ensuring the continued success of the Group. The clause on 'Economy’ provides further direction to our approach - “Our operations should align with, and contribute to, the financial stability and economic development of the communities where we conduct our business.”Chapter 3, Sections 3.5, 3.6, pg 19-24.Chapter 4.0 Sections 4.3, 4.4, pg 27-33.Chapter 5.0, Sections 5.1 to 5.5, pg 34-42.Chapter 6.0, Section 6.3 ‘Labour Practices’, pg 52,Chapter 7.0, Sections 7.1 to 7.3, pg 58-63. Chapter 8.0 Section 8.1, pg 65.Goals, Targets & Commitments, Specific Actions: Chapter 2.0 Section 2.3, pg 8-11. Chapter 5.0 Section 5.6, pg 46.Chapter 6.0 Section 6.4, pg 57.Chapter 7.0 Section 7.4, pg 64.Chapter 8.0 Section 8.2, pg 77.Appendix F.Resources & Responsibilities: Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F (all aspects) No

Local CommunitiesAnti-corruptionCompliance

6.2, 6.6, 6.8

Local Communities Yes (NBAD, UAE)

G4-SO1Percentage of operations with implemented local community engagement, impact assessment and development programmes.

Chapter 4.0, Section 4.4 ‘An Informed Sustainability Strategy’, pg 28-32.Chapter 7.0, Section 7.3 ‘Collaborations & Partnerships’, pg 63.

P No

6.3.9, 6.6.7, 6.8, 6.8.5, 6.8.7

FS13 Access points in low-populated or economically disadvantaged areas by type.

Chapter 5.0 Section 5.4 ‘Access to Financial Services’, pg 41-42. F No

FS14 Initiatives to improve access to financial services for disadvantaged people.

Chapter 5.0 Section 5.4 ‘Access to Financial Services’, pg 41-42. F No




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Anti-corruption Yes (NBAD, UAE)

G4-SO4 Communication and training on anti-corruption policies and procedures.

Chapter 3.0, Section 3.5 Corporate Governance & Compliance’, ‘Compliance’, pg 21.Chapter 6.0, Section 6.3 ‘Training & Development’, pg 54.

F No

G4-SO5 Confirmed incidents of corruption and actions taken.

Chapter 3.0, Section 3.5 Corporate Governance & Compliance’, ‘Compliance’, pg 21.

F No 6.6, 6.6.3

Public Policy

G4-SO6 Total value of political contributions by country and recipient/beneficiary.

There are no political parties in the UAE. NA No

Anti-competitive Behaviour

G4-SO7 Legal actions for anti-trust and monopoly practices (number and outcome).

Chapter 3.0, Section 3.5, ‘Compliance’, ‘Regulatory Compliance’, pg 21.

F No6.6, 6.6.5, 6.6.7

Compliance Yes (NBAD, UAE)

G4-SO8Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.


F No

Supplier Assessment for Impacts on Society Yes (NBAD, UAE)

G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society.

Chapter 5.0, Section 5.5, ‘Supplier Selection & Assessment’, pg 42. F No

Grievance Mechanisms for Impacts on Society Yes (NBAD, UAE)

G4-SO11Grievances regarding impacts on society filed, addressed and resolved through formal grievance mechanisms (number).

Chapter 5.0, Section 5.5, ‘Implementation of our Automated Procurement System’, pg 42.Chapter 6.0, Section 6.3 ‘Labour Practices’, ‘Employee Engagement’, pg 52.

F No

pRODUCT RespOnsiBiLiTY

DMA

policy:Our approach to Product Responsibility is described by the ‘Product’ Clause within our Group Wide Sustainability Policy - We market responsibly and sell the right product to the right customer in an appropriate manner – considering their best interests and risk appetites. We consider external risks and design innovative products and services which help mitigate those risks, support the financial stability of our customers and the sustainable success of our organisation.” (refer to Appendix B).Chapter 3, Section 3.5 ‘Corporate Governance & Compliance’, pg 19-22, Section 3.6 ‘Financial Stability & Economic Growth’, pg 23.Chapter 4.0, Section 4.3, pg 27.Chapter 5.0 Sections 5.2 to 5.5, pg 36-42.Goals, Targets & Commitments, Specific Actions: Chapter 2.0 Section 2.3, pg 8-11.Chapter 5.0 Section 5.6, pg 43.Appendix F.Resources & Responsibilities: Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F (all aspects) No

Marketing CommunicationsCustomer PrivacyCompliance

6.2, 6.6, 6.7

Customer Health & Safety

G4-PR2Number of incidents of non-compliance with regulations and codes regarding the health and safety impacts of products and services.


F No

6..3.9, 6.6.6, 6.7, 6.7.4, 6.7.5





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Product & Service labelling

G4-PR4

Number of incidents of non-compliance with regulations and codes regarding product and service information and labelling, by type of outcomes.


F No

6.7, 6.7.3, 6.7.4, 6.7.5, 6.7.6, 6.7.9

G4-PR5 Practices of customer satisfaction (results).Chapter 5.0, Section 5.4 ‘Customer Satisfaction’, ‘Customer Satisfaction Surveys’, pg 34-35.

F No

6.6.7, 6.7.4, 6.7.5, 6.6.6, 6.7.8, 6.7.9

Marketing Communications Yes (NBAD, UAE)

G4-PR7 Non-compliance incidents (by number, outcome).


F No

6.7, 6.7.3, 6.7.6, 6.7.9

Customer Privacy

Yes (NBAD, UAE)

G4-PR8 Substantial complaints for privacy, lost data (by number).

Chapter 5.0, Section 5.2 ‘Fair Treatment’, ‘Customer Data Privacy’, pg 37.

F No 6.7, 6.7.7

Compliance Yes (NBAD, UAE)

G4-PR9 Fines concerning use and provision (by value).Chapter 3.0, Section 3.5, ‘Compliance’, ‘Regulatory Compliance’, pg 21.

F No

Table 3 Financial sector additional Disclosures




is0 26000

speCiFiC sTanDaRD DisCLOsURes

g4-Dma

pRODUCT RespOnsiBiLiTYpolicyOur approach to Product Responsibility is described by the ‘Product’ Clause within our Group Wide Sustainability Policy - We market responsibly and sell the right product to the right customer in an appropriate manner – considering their best interests and risk appetites. We consider external risks and design innovative products and services which help mitigate those risks, support the financial stability of our customers and the sustainable success of our organisation.” (refer to Appendix B). Chapter 3, Section 3.5 ‘Corporate Governance & Compliance’, Section 3.6 ‘Financial Stability & Economic Growth’, pg 19-22.Chapter 4.0, Section 4.3, pg 27Chapter 5.0 Sections 5.2 to 5.5, pg 36-42.Goals, Targets & Commitments, Specific Actions: Chapter 2.0 Section 2.3, pg 8-11.Chapter 5.0 Section 5.6, pg 43.Appendix F.Resources & Responsibilities: Chapter 3.0, Section 3.5 ‘Corporate Governance & Compliance’, ‘Management Structure’, pg 20, Chapter 4.0, Section 4.2 Managing Sustainability, pg 26.

F (all aspects)

No Product Portfolio

6.2, 6.6, 6.7

Product Portfolio Yes (NBAD, UAE)

FS6 Percentage of the portfolio for business lines by specific region size (eg micro/sme/large) and by sector

Chapter 3.0 Section 3.6, pg 23. Also refer to our Annual Reports, (www.nbad.com) for further detail.

F No

FS7Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose.

Chapter 5.0, Section 5.4 ‘Financial Inclusion’, pg 41-42.

P No

FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose.

Not reported. NR No

Audit Yes (NBAD, UAE)

Former FS9Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.

Chapter 4.0, Section 4.2 ‘Managing Sustainability’, ‘Sustainability Stakeholders Group’, pg 26.

F No

Active Ownership Yes (NBAD, UAE)

FS10

Percentage and number of companies held in the institution’s portfolio with which the reporting organisation has interacted on environmental or social issues.

Chapter 5.0, Section 5.3, ‘Selling the Right Products to the Right Customers’, ‘Risk Profiling’, pg 38.

F No

FS11 Percentage of assets subject to positive and negative environmental or social screening.

Section 5.3 ‘Responsible Financing’, ‘Selling the Right Products to the Right Customers’, Islamic Financing’, pg 39.

P No

appendix B Our sustainability policy

NBAD SuStAiNABility RepoRt 2014 B 2

pOLiCY sTaTemenT

We take a long term view of our business decisions at all times, ensuring that short term actions do not damage our ability to operate successfully into the future.

We seek out new opportunities, particularly in the Energy and Small & Medium Enterprises Sectors, through the active management of current and future risks, balancing the needs of people and society, the environment and our profitability, and thereby ensuring the continued success of the Group. Beyond compliance with laws and regulations, we focus on the following 6 areas of strategic focus:

economy

We must remain financially profitable in the long term to benefit all of our stakeholders through the provision of jobs, creation of shareholder value and giving access to trusted financial services.

Our operations should align with, and contribute to, the financial stability and economic development of the communities where we conduct our business.

accountability

We build and conform to strong governance frameworks, actively disclose material information, and take responsibility for our actions and impacts.

We build trust in the financial industry and system by acting transparently and truthfully at all times.

partnerships

We engage with our stakeholders regularly to understand and act on their material concerns as they align to our core business.

We form partnerships with stakeholders who can help us achieve positive social and environmental impacts through our operations and business activities in line with our vision and strategy.

people

We treat employees equitably and with respect, and seek to provide a safe and healthy work environment.

We provide opportunities to develop for all employees and ensure fair pay and compensation.

products

We market responsibly and sell the right product to the right customer in an appropriate manner – considering their best interests and risk appetites.

We consider external risks and design innovative products and services which help mitigate those risks, support the financial stability of our customers and the sustainable success of our organisation.

environment

We employ best practices and recognised standards, both local and international, to ensure proper environmental management and impact reduction related to our operations and products.

We do not compromise the long term environmental security of the communities where we operate, in favour of short term profit.

appendix B – Our sustainability policy

appendix C performance indicators

NBAD SuStAiNABility RepoRt 2014 C 2

appendix C1 –performance indicators.

C1 – summary of performance indicators

Column 2014 20135 2012 2011 2010 2009

economic performance1

Direct economic value generated 10,414,717 9,397,988 8,668,389 7,880,862 7,178,534 6,399,053

Revenues (operating income) (AED '000s) 10,414,717 9,397,988 8,668,389 7,880,862 7,178,534 6,399,053

economic value distributed 5,840,240 5,205,180 4,416,794 3,618,496 3,124,961 -

Operating costs (AED '000s) 907,387 801,451 711,798 639,799 534,248 461,274

Employee compensation (AED '000s) 2,532,726 2,187,719 1,937,666 1,716,380 1,495,821 1,310,357

Payments to providers of capital (AED '000s)2 2,077,466 1,952,848 1,599,504 1,101,013 957,511 337,428

Payments to Government (AED '000s) 271,688 220,324 131,961 111,036 102,602 72,939

Donations & sponsorships (AED '000s)6 50,973 43,198 36,877 50,269 34,789 25,612

Donations & sponsorships as % of pre-tax profit (AED '000s)

0.87% 0.87% 0.83% 1.32% 0.92% 0.83%

economic value retained 4,574,477 4,192,808 4,253,991 4,262,366 4,053,573 -

Global net profits (AED ‘000s) 5,578,869 4,733,125 4,332,228 3,707,548 3,683,159 3,019,938

Total operating income (revenue AED '000s) 10,414,717 9,397,988 8,668,389 7,880,862 7,178,534 6,399,053

Shareholders’ Equity (AED ‘000s) 33,963,382 30,678,541 27,133,090 22,389,485 20,113,416 16,440,567

Return on (average) equity (%) (3) 15.4% 14.4% 15.1% 14.7% 16.5% 17.4%

Government of Abu Dhabi Tier-1 Capital notes (AED '000s)

4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Subordinated Debt (AED '000s) 1,516,641 1,512,323 5,662,361 7,990,054 8,312,286 2,852,334

Capital resources4 (AED '000s) 41,018,999 37,309,062 37,266,141 36,088,029 34,241,013 24,893,535

2014 2013 2012 2011 2010 2009 2008

people performance (summary)

Group Workforce (excluding sponsored students) 5,878 5,616 5,636 5,460 - - -

UAE Workforce (excluding sponsored students) 4,535 4,284 4,340 4,258 3,950 3,753 2,981

Women in the workforce (UAE) 1,697 36% 35% 35% 34% 34% 32%

Women in Senior Management – Bands 5 & 4 (previous grade 12+) (UAE) 33 6.5% 7.8% 7% 5% 5% 3%

Women in Middle Management – Bands 3 & 2 (previous grade 9-11) (UAE) 692 26% 24% 24% 17% 19% 19%

Sponsored Students & Trainees 162 193 284 336 - - -

Workforce turnover (UAE) 11.6% 12.69% 9% 9% - - -

Women turnover (UAE) 3.9% 4.5% 9% 18% - - -

Average Training per employee (hours) 35 50.93 71.75 62.02 84.84 28.56 19.04

1 Financial data is taken from our annual report available in the Investor Relations section of our website www.nbad.com; Figures for 2013 and prior years have not been reclassified to reflect changes in accounting policies in 20142 Declared basis – includes payment on Government of Abu Dhabi Tier-1 capital notes3 This is a medium term 5 year KPI, not a year on year - target 15%4 As per the Basel-II framework adopted by the UAE Central Bank5 Figures for 2013 and prior years have not been reclassified to reflect changes in accounting policies in 20146 Donations & sponsorship includes Zakat (accounted as an adjustment to retained earnings)

NBAD SuStAiNABility RepoRt 2014 NBAD SuStAiNABility RepoRt 2014 C 4C 3

2014 2013 2012 2011 2010 2009 2008

environment

gHg (Uae)

Indirect CO2

from Electricity (tonnes)

31,751.03 19,128.43 28,412.44 18,239.86 - - -

Indirect CO2

from Water (tonnes)

1,939.72 1,670.30 1,210.65 793.01 - - -

Indirect CO2

from Business flights (tonnes)

1,705.37 784.22 423.67 331.54 - - -

Direct CO2

from Gasoline (tonnes)

998.70 1,086.67 896.02 867.46 - - -

Direct CO2

from Diesel (tonnes) 2.25 2.05 2.93 5.52 - - -

Total CO2 Emissions (tonnes) 36,397.07 22,671.68 30,945.71 20,237.39 25,027 21,689 19,381

Tonnes of CO2 per UAE

employee 6.67 5.06 6.98 4.75 6.3 6.1 6.5

electricity (Uae)

Total electricity consumption (KwH)

62,256,919.67 37,506,730 55,710,665 35,764,423 32,848,098 28,471,910 25,438,202

Total electricity consumption (GJ)

224,131.19 135,024 200,559 128,752 118,253 102,499 91,577

Electricity consumption per capita (KwH)

11,417.00 8,377.60 12,570 8,399 8,316 7,586 8,533

Water (Uae)

Total water consumption (M3) 140,968.33 121,388 135,632 57,631 149,330 129,436 115,644

Total water consumption (IG) 31,008,698.32 26,701,673 29,834,766 12,677,130 20,362,128 26,388,889 18,333,333

Water consumption per capita (IG)

5,686.54 5,964.19 6,732 2,977 8,316 7,586 8,533

paper (Uae)

Total paper consumption (KG) 249,475.00 219,150 230,850 212,175 248,988 213,163 198,213

Total paper consumption per capita (KG)

46 49 52.09 49.83 63.03 56.8 66.49

Total paper recycled (KG) 153,726.50 110,958 93,365 49,507 38,842 36,917 62,692

Paper recycling rate 62% 51% 40.40% 23.30% 15.60% 17.30% 31.60%

Annual spending on standard photocopy paper (AED)

983,191.65 1,273,712 1,024,950 1,122,375 920,325 868,200 711,750

printer cartridges (Uae)

Total number of cartridges purchased

19,536.80 15,731 10,867 9,269 9,175 - -

Number of cartridges recycled (remanufactured)

1,539.00 1,102 1,001 1,472 554 - -

Cartridge recycling rate 8% 7% 9% 16% 6% - -

Drinking water consumption

Drinking water consumption in NBAD owned premises (Gallons)

51,473 50,194 - - - - -

electronic (e-waste) waste

Amount of e-waste collected (kg)

9,334 - - - - - -

Amount of e-waste recycled (kg)

5,558 - - - - - -

Amount of e-waste refurbished for reuse (kg)

3,776 - - - - - -

Total revenue from e-waste recycled (AED)

6,457 - - - - - -

2014 2013 2012 2011 2010 2009 2008

Reach and accessibility

Countries where we have a presence (excluding UAE) 17 16 14 12 12 12 10

Number of international units 54 58 57 51 49 46 40

Branches in our UAE network 125 126 121 119 112 100 84

Branches in low population and economically disadvantaged areas 16 17 18 19 19 40 -

ATMs in our UAE network 596 588 571 502 392 300 251

ATMs in low population and economically disadvantaged areas 46 46 49 46 26 30 -

Total registered online banking customers 160,000 158,146 136,428 120,837 107,575 94,081 60,589

7 We carried out an internal shopper programme instead of the mystery shopper approach (conducted by an external provider), to ensure we comply with internal customer service procedures and standards.8 We have revised the number of departments included in the customer satisfaction survey, and have excluded some departments (i.e.contact centre users and card merchants) 9 We have started to record all complaints received from customers due to the development of our customer complaints management system. All cases were investigated and resolved by our compliance team.

2014 2013 2012 2011 2010 2009 2008

product and customer performance

Average branch internal shopper score 83%7 - - - - - -

Customer satisfaction8

Global – Retail & Commercial Division 82% 81% - - - - -

Consumer Banking Group 81% 86% - - - - -

Credit cardholders 77% - - 81% 88% - -

Elite Banking clients 81% 73% 93% 92% 90% - -

Abu Dhabi National Islamic Finance 82% 82% - - - - -

ADNP Tenants leasing 44% 39% - 64% - - -

Global Wealth Division 94% 79% - - - - -

Private Banking, UAE 88% 79% - - - - -

NBAD Securities 77% 80% - - - - -

Total number of customer privacy breaches 149 6 0 0 0 1 3

Total number of SME Clients (cumulative) 30,687 25,399 25,206 19,981 14,883 - -

Percentage growth in number of Ratibi cards issued 32% 24.6% 23.5% 31% 104% - -

Net credit cards in use 274,781 218,583 136,311 111,387 84,204 75,194 72,146


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C3 - Definition of our performance indicators

Where possible we have followed definitions provided by the Global Reporting Initiative (see GRI Section for responses to specific GRI indicators). This table provides simple explanations of how we calculate some of our performance figures.

performance indicator Definition/Comments

Annual spending on photocopy paper Based on total cost of procurement not consumption.

Average Training Delivered Measured in days/hours per employee from a base of trained employees, not all staff. For training purposes one day = 7 hours. Training is assigned based on individual career level rather than job title or grade, but typically the bands and positions for each ‘Career Level’ are: Senior Level Bands 5 & 4 (pre-2014: Grade 12+) Middle Management Bands 3 & 2 (pre-2014: Grade 9 -11) Employees Band 1 (pre-2014: Grade 4 - 8) Employees Non-clerical Staff (pre-2014: Grade 1 - 3)

Community donations as a percentage of pre-tax profits

‘Donations & Charity' ÷ pre-tax profits x 100

Countries where we have a presence/Number of international units

Number includes all countries and premises, outside UAE, where NBAD has a branch, office or subsidiary presence.

Direct economic value generated and distributed

Based on GRI definition in Financial Services Sector Supplement Version G4, indicator G4-EC1

Economic value retained Based on GRI definition in Financial Services Sector Supplement Version G4, indicator G4-EC1

Emiratisation rate uAE only - Total uAE National employees or potential employees in development (1,177 employees + 162 Trainees and Sponsored Students) ÷ total 'qualified staff' (4,065 permanent employees. Does not include 'fixed term contract' employees and non-clerical staff)

Employees trained % of total workforce attending training either under the NBAD Academy or at an external recognised institution.

Employee grades Senior Level Bands 5 & 4 (pre-2014: Grade 12+) Middle Management Bands 3 & 2 (pre-2014: Grade 9 -11) Employees Band 1(pre-2014: Grade 4 - 8) Employees Non-clerical Staff (pre-2014: Grade 1 - 3)

Impaired loans Impaired loans and advances are financial assets for which the Group determines that it is probable that it will be unable to collect all principal and interest due according to the contractual terms of the agreements.

Low-population and economically disadvantaged areas

Ghayathi, Liwa, Ruwais, Silaa, yahar, Sweihan, Hayer, Wagan, Mirfaa, Madam, Dibba Hisn, Qidfaa.

Net increase in uAE Nationals hired Increase in number of UAE Nationals who are permanent staff (excluding trainees). Net increase = (New UAEN recruits + conversions from trainees to permanent staff) – UAE Nationals staff turnover.

Non-performing loans (NPLs) Same as impaired loans

Number of contract staff All Long & short term contract staff (including retirees) on contracts directly with NBAD. Does not include third party supplied contractors.

Online banking satisfaction results Based on customer service index developed through ongoing online customer survey/feedback.

Overdue loans (past due but not impaired) Past due but not impaired are accounts where either contractual principal or interest are past due and when the accounts show weakness in the borrower’s financial position and creditworthiness, and requires more than normal attention. Such weakness is specifically monitored to ensure that the quality of the asset does not further deteriorate. On this class of asset the Group believes that specific impairment is not appropriate at the current condition.

Paper Recycling Rate Recycled paper as a percentage of total paper consumption.

NBAD SuStAiNABility RepoRt 2014C 9

performance indicator Definition/Comments

Paper Shredded (tonnes) Data from the company who shreds the documents. Includes archived documents.

Payment to providers of capital Payment to providers of capital includes dividends paid to shareholders and payment made on Tier-I capital notes.

Payment to government Payment to government refers to taxes paid on earnings.

Per capita consumption Based on uAE total workforce (including trainees) unless otherwise stated.

Percentage of toners recycled (remanufactured) Empty print cartridges collected by partner for remanufacture or responsible destruction, versus total number of new/remanufactured cartridges procured.

Provision coverage Total provisions/Total NPLs

Ratio of basic salary As we have many unique positions where there is only one incumbent, a ratio of basic salary between men and women across the entire workforce would not be fair or representative. To check the proper implementation of our Pay for Performance Strategy, we compared the salaries for 1,850 men and women in all Band 1 roles in 2014.

Return on shareholders’ funds (Net profit less interest on Tier-1 capital notes)/Average Shareholders’ funds (2013 & 2014) X 100Shareholders’ funds = Total equity less Tier-1 capital notes

Sick leave Total number of reported sick days ÷ total uAE workforce

Capital resources As per the Basel-II framework adopted by the uAE Central Bank.

Total community donations and charity (AED’000)

Includes Zakat. Numbers as reported by Group Finance according to cost centre application.

Total electricity consumption Kilowatt Hours (KWH). utilities consumption is based on direct meter readings from our 14 NBAD owned buildings in Abu Dhabi. The total consumption and per capita consumption rate were extrapolated to the remaining employees working in premises where we were not able to accurately account our consumption. See Appendix E for a full discussion.

Total GHG emissions A fuller explanation of our GHG emissions calculations can be found in Appendix E.

Total number of customer privacy breaches Based on GRI definition in Financial Services Sector Supplement Version

Total paper consumption Kilograms (KG). Based on ream volume ordered from Administration Stock. Assumes 1 ream = 2.5KG.

Total paper recycled Kilograms (KG). Weight collected and shredded at NBAD secure destruction site.

Total registered online banking customers Cumulative total number of customers.

Total Transactions Value Cumulative AED value

Total workforce Workforce is split between uAE and International employees. The sum of the two gives Group Workforce. For the purposes of calculating per capita figures, we have included trainees, permanent staff (skilled UAE nationals and Expats), fixed term contract staff, trainees and unskilled staff employed by the Bank and in the UAE workforce. The calculations do not include staff contracted on our behalf by third party suppliers (ie outsourced staff).

Total workforce turnover Turnover is calculated on the basis of the total number of leavers since 1 January until 31 December (regardless of the length of service) relative to the total workforce (whether uAE or International).

appendix D glossary of Terms

NBAD SuStAiNABility RepoRt 2014 NBAD SuStAiNABility RepoRt 2014 D 3D 2

appendix D – glossary of terms

Term explanation

abu Dhabi economic Vision 2030

Based on the principles laid out in the Government’s Policy Agenda published in August 2007, the Abu Dhabi Economic Vision 2030 is a roadmap for the emirate’s socio-economic progress.

aDia Abu Dhabi Investment Authority

aDsg The Abu Dhabi Sustainability Group consists of representatives of key sectors in the Emirate of Abu Dhabi, including oil and gas, real estate, construction and banks. Members are committed to supporting the Abu Dhabi Environment Agency's efforts in the development and implementation of standards, exchanging experiences and identifying targets and training needs in key areas for the implementation of sustainability.

Commercial Banking Traditional consumer and corporate banking e.g. personal accounts, loans, mortgages

CsR Corporate Social Responsibility

Dsn Dubai Chamber Sustainability Network serves as the focal point for the business community of Dubai to share and exchange best practices in implementing Corporate Social Responsibility (CSR).

elite Banking Consumer banking for high net worth individuals

emiratisation An initiative by the government of the UAE to employ its citizens in a meaningful and efficient manner in the public and private sector.

equator principles A voluntary standard which reviews the potential social and environmental impacts of projects the bank is looking to finance.

estidama pearl Rating system

Estidama, which is the Arabic word for sustainability, is an initiative developed and promoted by the Abu Dhabi Urban Planning Council. Pearl is a rating system for new buildings where Pearl 1 is the minimum required level for a building to be granted permission, and 5 the highest sustainability rating.

e-waste A term used to describe electronic waste – discarded, surplus, obsolete or broken electrical or electronic devices.

eWs-WWF Emirates Wildlife Society – World Wide Fund for Nature - addresses such issues as protection of the rich regional biodiversity, combating climate change and reduction of the UAE’s heavy ecological footprint. The group’s actions include conservation measures, education and awareness outreach activities, and policy recommendations.

greenhouse gas emissions

Gases in an atmosphere that absorb and emit radiation within the thermal infrared range. The main greenhouse gases in the Earth's atmosphere are water vapour, carbon dioxide, methane, nitrous oxide, and ozone.

gCC GCC is the acronym for Gulf Cooperation Council (or Gulf Co-operation Council). The full name is Cooperation Council for the Arab States of the Gulf (CCASG). Also referred to as the Arab Gulf Cooperation Council (AGCC). The six GCC (or AGCC) countries, citizen nationalities, nations, or member states include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.

gDp Gross Domestic Product.

Term explanation

gRiThe Global Reporting Initiative is the steward of the most widely used reporting framework for performance on human rights, labour, environmental, anti-corruption and other corporate citizenship issues. The GRI framework is the most widely used standardized sustainability reporting framework in the world.

independent Director

The NBAD Board of Directors considers that a Director is independent if neither himself nor any of his first-degree relatives have been a member of the Senior Management of NBAD during the last two years or has a relationship that creates any financial transactions or deals with NBAD or any of its subsidiaries if the total amount of these transactions exceeds 5% of the paid-up capital of NBAD, or exceeds AED 5 million or an equivalent amount in a foreign currency, whichever is less.

isO 26000 An international standard established by the International Organisation for Standardisation, which provides guidelines for social responsibility. In contrast to the ISO 9001, the ISO 26000 is not a management system standard and does not offer certification.

khalifa Fund for enterprise Development

The Khalifa Fund aims to create a new generation of Emirati entrepreneurs by instilling and enriching the culture of investment amongst young people, as well as supporting and developing small to medium-sized investments in the Emirate. www.khalifafund.ae.

LeD Light emitting diodes.

LeeD Leadership in Energy and Environmental Design (LEED) is a third-party certification programme. It is a nationally accepted organization for design, operation and construction of high performance green buildings. This ensures the buildings are environmentally compatible, provide a healthy work environment and are profitable.

nBaD group Refers to NBAD operations within the UAE and worldwide.

nBaD Uae Refers to NBAD operations within the UAE.

private Banking Bespoke investment banking e.g. equities, fixed income products.

project Finance Long term financing of major development or infrastructure projects.

sCa Licence Securities & Commodities Licence.

Total Cost of Ownership (TCO)

Total Cost of Ownership, usually abbreviated as TCO, is a calculation designed to help a make more informed financial decision. Rather than just looking at the purchase price of an object, TCO looks at the complete cost from purchase to disposal. It adds to the initial purchase price other costs expected to be incurred during the life of the product, such as service, repair, and insurance.

Wholesale Banking Financial services conducted between financial services companies and institutions such as banks, insurers, fund managers, and stockbrokers.

NBAD SuStAiNABility RepoRt 2014 e 2

appendix e – information & Restatements on Disclosures*

power and water consumption

Over the last few years we have tried to identify a consistent and reliable approach to measuring and monitoring our power and water consumption so that we can better understand how to manage it more efficiently.

Due to a number of issues, we are still unable to obtain utility bills for our offices and premises which we lease. During 2014, however, we met with Abu Dhabi Distribution Company (ADDC) to obtain more accurate data on the consumption of utilities in our 14 NBAD owned buildings. The information from our utility bills was sometimes being reported inaccurately internally, and we continued to have difficulties accessing water meters. We now have online access to these utility bills and are able to track our annual consumption more accurately.

The methodology used in 2012 and 2013 to calculate our water and energy consumption for all employees across the UAE, was also utilised for our 2014 data.

We receive utility bills for our 14 NBAD owned buildings, including our Head office and ADNEC office. These have the highest occupancy rate out of all our UAE premises. We, therefore, used the base consumption rate figures from the 14 buildings (comprising 2,337 employees) to extrapolate the total consumption rate for all our 5,453 employees (including outsourced staff) across the UAE.

The electricity consumption in 2014 is based on the consumption rate of 2,337 employees in 14 NBAD owned buildings. Based on this consumption rate, the total estimated electricity consumption for all 5,453 employees (including outsourced staff) across our UAE premises, is 62,256,920 KwH.Based on the consumption rate in our 14 NBAD buildings, the total estimated water consumption for all 5,453 employees (including outsourced staff) across our UAE premises, is 31,008,698 Imperial Gallons (IG).

We plan to commission an environmental audit of our Head office and Khalidiya office buildings in order to assess the current environmental performance of these buildings and make improvements where necessary. This will assist us in obtaining accurate environmental baseline information for these buildings and will help us to set targets to reduce our consumption of electricity and water. We prepared and issued the request for proposals (RFPs) for the audit, which will be carried out in 2015.

We will also participate in the ADSG’s Energy Management Flagship Programme in 2015, through which selected staff will receive formal training on measuring electricity and water consumption and proposing techniques/solutions for the reduction in consumption of these resources in our buildings.

green House gas emissions

In 2014, we calculated our GHG emissions (Table 1) using the sources of emission factors listed in Table 2 below.

Table 1 Total CO2 emissions

2014 2013 2012 2011 2011

Using 2012 emission Factors

Using 2012 emission Factors

Using 2012 emission Factors external provider

Indirect CO2 Electricity Consumption (tonnes) 31,751.03 19,128.43 28,412.44 18,239.86 27,205.80

Indirect CO2 Water Consumption (tonnes) 1,939.72 1,670.30 1,210.65 793.01 n/a

Indirect CO2 Business flights (tonnes) 1,705.37 784.22 423.67 331.54 321.60

Direct CO2 Gasoline (tonnes) 998.70 1,086.67 896.02 867.46 901.33

Direct CO2 Diesel (tonnes) 2.25 2.05 2.93 5.52 5.59

Total CO2 Emissions 36,397.07 22,671.68 30,945.71 20,237.39 28,434.32

CO2 tonnes per UAE employee 6.67 5.06 6.98 4.75 6.68

appendix e information & Restatements on Disclosures

Table 2 source of emission Factors

source of emission Factor measure

Based on the results of Abu Dhabi GHG inventory for 2010. Electricity

Based on the results of Abu Dhabi GHG inventory for 2010. Water

GHG Protocol GHG emissions from transport or mobile sources Calculation Tool V 2.3 Oct 2010 Petrol

GHG Protocol GHG emissions from transport or mobile sources Calculation Tool V 2.3 Oct 2011 Diesel

GHG Calculation Tools V 4.01 Oct 2010, IPCC 2006 Guidelines Flights

*G4-22

NBAD SuStAiNABility RepoRt 2014 F 2

appendix F Our Future sustainability Commitments

appendix F - Our Future sustainability Commitments

Report section sustainability Commitments

Chapter 5.0 Responsible Business practices

short-term (2015)

ü Engage with our customers through our customer satisfaction survey to identify and meet our customers’ needs and expectations.ü Continue our support of the Abu Dhabi 2030 vision through financing of infrastructure, power, transport and multi-use developments

(on-going commitment).ü Finalise the sustainability selection criteria for suppliers and prepare code of conduct for supplier registration.ü Increase the number of service ambassadors to 28 branches to ensure our customers receive a high quality and efficient level of

service.

medium (2016-2018)

ü Continue to integrate sustainability objectives within our 5 year strategy and report on our progress annually.ü Undertake direct engagement with our stakeholders for the perception and materiality analysis aspect of our sustainability reporting

(every two years).ü Implement our Group-wide policy in relation to project financing.ü Retain our ranking in the top 10 position on the S&P Hawkamah ESG Pan Arab Index, which is important to us as a regional validation

of our transparency and responsibility and as a commercial measure of our potential value to investors. ü Incorporate sustainability selection criteria within registration process and screen our new suppliers using sustainability criteria.ü Fully integrate our supplier complaints management system within our automated procurement system.


ü Continue to support Abu Dhabi and the UAE’s economic growth by aligning our goals and objectives with the Abu Dhabi Vision 2030.

Chapter 6 investing in our people

short-term

ü Provide 100 net new jobs for Emiratis annually to support the Abu Dhabi 2030 Vision for Emiratisation (ongoing commitment).


ü Seek feedback from employees on NBAD as an employer through our employee satisfaction survey, to highlight potential areas of improvement in our people management practices.

ü Investigate how our sustainability objectives can be incorporated into employees’ annual performance targets to measure and reward our employees’ performance against these targets.


ü Provide certified training for associates under the Professional Bankers Project, to build a pipeline of professional individuals with the ability to meet our strategy. New recruits will also be part of this group, providing employment opportunities for talented individuals.

ü Undertake responsible marketing and communications training for relevant staff to provide an understanding of the relevance of sustainability within their area of business.

ü Investigate incorporation of sustainability-specific objectives in managers’ formal appraisal to integrate the principles of sustainability within our organisation.

Chapter 7 Our impact on society

short-term (2015)

ü Publish and launch the ‘Financing the Future of Energy’ report at the Global Financial Markets Forum (GFMF) in March 2015.ü Continue to participate in the Dubai Chamber Sustainability Network (DSCN) working groups to encourage and promote sustainability

amongst the wider business community. ü Support the Abu Dhabi’s 2030 vision by investing in the local economy (ongoing commitment).

medium (2016-2018)

ü Identify a planned, comprehensive set of training programmes delivered by relevant specialists that will focus on key, practical skills which will drive SMEs to the next level of success.

ü Provide support to Emirates Foundation’s financial literacy programmes.

Chapter 8.0 environmental stewardship

short-term (2015)

ü We plan to have our environmental data externally assured.ü Commission an Environmental Audit of Head Office building to identify environmental improvement opportunities.ü Conduct more environmental awareness campaigns for our employees and outsourced staff.ü Identify our waste streams and develop a waste management plan for our Head Office and NBAD Academy building.ü Continue to participate in the Carbon Disclosure Project (CDP), to measure and disclose our greenhouse gas (GHG) emissions.

medium (2016-2018)

ü Develop new and innovative financial structures and products that will support the development of the energy industry. ü Participate in ADSG’s Energy Pilot Programe and continue to work on improving our operational performance and energy efficiency.ü Develop and implement environmental resource management plans.ü Monitor, record and assess trends in relation to paper, water, waste and energy consumption and set targets for reduction.


ü Improve the environmental performance of our NBAD buildings and branches to minimize our resource consumption and mitigate associated impacts.

corporate sustainability report 2014 creating value … sustainability report 2014 creating value...

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