Overview Economy Community People Environment Governance & Risk Disclosure GRI & ADX 27GRI 102-9, 102-10, 103-1, 103-2, 103-3, 203-2 Sustainable supply chains Aldar deals with thousands of suppliers, contractors, and subcontractors, in areas ranging from construction to operation, asset management, procurement and more, giving us a great opportunity to promote sustainability at all levels. We support our suppliers through upskilling, training and encouraging the adoption of sustainable practices, in addition to advising on sustainable guidelines and solutions, and monitoring environmental performance post-award. By enabling resilient supply chains, we not only achieve operational excellence and reduce our exposure to risk, but we also accelerate the sustainability agenda across the whole sector. In 2020, we launched our new Sustainable Procurement Strategy, which focuses on three key areas: sustainability performance, ICV (see page 25) and worker welfare (see page 59). The ultimate goal is to enable us to build responsibly, which means sourcing responsibly, using more sustainable materials, and following appropriate labour practices, as well as being able to trace everything Aldar buys, reducing the negative environmental impact and delivering projects with an improved selection and utilisation of products and services. To achieve this, our Sustainable Procurement team oversees the implementation of our sustainable procurement strategy at Corporate, Aldar Development and Aldar Investment levels. Supplier screening is a critical component of ensuring a competitive, sustainable supply chain, managing risk, aligning with best practice sustainability standards, integrating our own sustainability requirements at an early stage, and ensuring critical safety practices are in place. Our screening mechanism begins at the pre-qualification stage and continues through our review of proposals, tendering and vendor assessment stages. On the sustainability pillar, we score service providers’ sustainability reports, policies and procedures, and compliance with Aldar’s Sustainable Materials Guidance, provision of Eco-Label and Environmental Product Declarations, appointment of sustainability point of contact in projects, compliance with local sustainability guidelines and requirements as well as recommended project specific requirements set by the sustainability procurement team. Through active dialogue between Aldar and suppliers, we are able to clarify and address any issues and achieve continuous improvement during our supplier relationships. Aldar assesses each supplier at the social and environmental level, with the aim of managing risk, aligning with best practice sustainability standards, and integrating our sustainability requirements at an early stage. Embedding sustainable procurement across the business will deepen Aldar’s ESG approach and play a critical role in driving our commitments. At the same time, it will also strengthen our approach in supporting our suppliers to improve their own sustainability performance, which will in turn have a wider impact across our value chain. Mohamed Aljneibi Sustainability Council Member and Chief Procurement Officer, Aldar Projects