About the report

ACWA Power

ACWA Power Company (the ‘Company’ or ‘ACWA Power’) is a Saudi joint-stock public company. The Company’s head office is located at Exit 8, Eastern Ring Road, Qurtubah District, PO Box 22616, Riyadh 11416, Kingdom of Saudi Arabia. The Company’s main activities are the development, investment, operation and maintenance of power generation, water desalination and green hydrogen production plants and the bulk sale of electricity, desalinated water, green hydrogen and/or green ammonia.

This report contains consolidated financial data in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia.

Our ESG reporting journey

Our public listing in 2021 heightened our commitment to further disclosure on ESG related topics.

In 2022, we continued to work on improving the collection and reporting of our ESG KPIs, continuously aiming to provide the relevant information that key stakeholders need to make informed decisions about our ability to create value in the short, medium and longer term.

We included a Sustainability Review within our 2022 Integrated Annual Report, published on 30 May, 2023. This Sustainability Report is an expansion on the Sustainability Review and contains our fullest public ESG reporting for 2022. We aim to improve our reporting every year.

We plan to appoint a leading third-party ESG auditor in 2024 to inspect our operations and certify our performance. The audit will provide an independent point of view and identify areas for improvement, and represents another step on our ESG journey.

This Report relates to 2022

Please note that the information in this report relates to the position of the Company and its activities as of 31 December, 2022, unless otherwise indicated.

Developing our ESG performance metrics

Our ESG performance is measured and monitored continuously and assessed against our overarching sustainability ambitions and material KPIs.

KPIs are assigned to relevant departments, with sustainability performance measurement, monitoring and management responsibilities. Results are reported to the Management Committee and the Board of Directors (‘The Board’) and become a  reference against which to develop future strategies to achieve our targets and improve performance.

We plan to refine our primary ESG KPIs in 2024.

An innovative approach to ESG data management

We continue to strengthen internal reporting systems and processes and strive for the ongoing improvement of our ESG data management. With 68 projects across 12 countries, as of 31 December, 2022, it is essential that the monitoring of our ESG-related KPIs is not only centralised but also digitised for more efficient analysis and reporting.

ACWA Power’s digital team has been building a comprehensive ESG platform which will source all the required ESG data points, and help us better monitor and report our ESG-related KPIs.

We are now automating data collection from the Company’s departments to reduce the risks of human error and achieve a streamlined process which will provide immediacy and transparency. We plan to have the system fully operational in 2024.

Our ESG reporting process — listening to stakeholders

ACWA Power’s reporting process ensures that increasing disclosure and communication of our ESG performance is ongoing. Our stakeholder partnerships are central to the journey towards excellence and, as such, we value stakeholder feedback as a critical resource for improving our strategic goals and plans. Our aim is to understand any issues of concern and to respond openly and transparently to questions about our operations.

Regular stakeholder engagement is an essential part of our approach to ESG, since the process underpins our engagement and collaboration with governments, civil society, local communities and others to achieve ‘transformational change’, creating fundamental change to whole systems, rather than by incremental improvements.

Reporting standards

ACWA Power has reported the information for the period from 1 January, 2022, to 31 December, 2022, with reference to the GRI Standards (2021). Where applicable, relevant recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), SASB standards (electric utilities and power generators 2018, solar technology and project developers 2018) and the World Economic Forum. We have also used the ESG scoring methodology of the Future Investment Initiative (FII) Institute as guidance. Indexes of the standards and recommendations used can be found in the Appendix.

ACWA Power publishes its ESG reporting annually, within our Annual Report and this year, with this separate Sustainability Report, for the benefit of our stakeholders.