Our approach to sustainability

Our vision is to make electricity and desalinated water in a reliable and responsible manner to support social development and economic growth of nations. Our values – safety, people and performance – align well with the principles of sustainability. So ACWA Power is well positioned to develop comprehensive sustainability management and reporting.

This means that our sustainability is intrinsic to our Company. However, as a relatively young and dynamic business operation, which has grown fast and successfully, we are busy filling in the gaps in terms of both management and reporting, in our ESG reporting.

The IPO process in 2020 was helpful in accelerating our reporting but there is more work to do.

External assessments by ratings agencies have highlighted the topics we need to focus on. These include biodiversity and stakeholder engagement.

We have strengthened our management team and will be appointing independent third-party consultants to make our sustainability management comprehensive so that it covers every topic recommended by the leading international organisations, notably GRI.

As we expand our sustainability team and initiatives we will be improving our data capture and reporting. Our intention is to ultimately comply fully with the GRI framework.

We are acutely aware that our health and safety record includes, tragically, three fatalities in 2022 and regard the avoidance of accidents as our first and foremost priority in 2023.

Management of environmental impact and risk

ACWA Power is committed to operating with minimal environmental risk and impact, not only to safeguard the health and safety of our workforce and communities, but also to reduce our impact on the environment. We actively prioritise efficiency across our operations to ensure that any environmental impact and risk is managed responsibly.

Environmental and Social Impact Assessments (ESIA)

For all new assets, we commission independent consultants to conduct Environmental and Social Impact Assessments (ESIA) during the feasibility assessment, development and acquisition phases to ensure minimal environmental and social impact. ESIAs identify and assess potential environmental impacts resulting from the project’s construction and ongoing operational activities.

Actionable mitigation and management measures are implemented based on ESIAs to avoid or minimise environmental impact. Our ESIA scope includes air quality, marine water, sediment and ecology, waste management, soil and groundwater, terrestrial ecology, noise, traffic, cultural heritage, community health, safety and security, workers’ conditions, and occupational health and safety.

Since 2010, ACWA Power has had an Environmental Management System (EMS) that meets the requirements of the ISO 14001:2015 standard, which has been certified to the ISO 45001 standard, an occupational health and safety standard designed to enable organisations to control risks and improve operational health and safety performance.

Compliance with these standards is regularly monitored and supervised by independent environmental consultants.

Our commitment to human rights

ACWA Power emphasises treating individuals with dignity and respect inside our organisation and throughout our supply chain. Where we don't have managerial control, we actively seek to promote compliance with our Code of Conduct and Ethics policy. We regularly review and update our policies and procedures proactively to identify, address and respond to unfavourable human rights issues with which we are possibly involved.

Where national law and international human rights standards differ, we adopt the higher standard.

Among the broader human rights issues identified, we consider the following as crucial and non-negotiable:

• Providing access to grievance mechanisms.
• Supporting access to water and sanitation.
• Preventing child labour, modern slavery, forced labour and human trafficking.
• Ensuring a decent living wage and income.
• Ensuring safety and health.
• Empowering and supporting women

Our disclosure and transparency approach

ACWA Power’s commitment to transparency is long-standing and weaved into our fabric. Since our listing on the Saudi Exchange in 2021, we must also comply with Capital Market Authority laws and regulations.

We have implemented a disclosure and transparency mechanism to identify, assess and, if needed, disclose to the public, any material development originating as part of our business that might affect the Company’s financial position, its ESG rating or evaluation.

This is in compliance with the specific provisions set out in the Rules on the Offer of Securities and Continuing Obligation.