ALDAR Sustainablity Report 2009

8/8/2019 ALDAR Sustainablity Report 2009

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ALDAR 2009 Sustainability Report

CreatingSustainableLifestyleCommunities


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In this rst ALDAR sustainability report, we aimto demonstrate our current understanding osustainability, showcase the journey we havetravelled thus ar, and outline our direction andintentions as we embed sustainability into the waywe do business. This report will serve to establish keyperormance indicators, determine baselines and set

ambitious targets.

The process o preparing this report has highlightedareas where we need to implement systemsto accurately capture and then manage ourperormance. Inormation on both the scope anddata quality o this report is provided in the ReportParameters section.

In preparing this report we haveollowed the Global ReportingInitiatives (GRI) G3 Guidelineswww.globalreporting.org, the

leading international guidelines or sustainabilityreporting. We sel-declare this report to meet GRIApplication Level B and the GRI has reviewed andconrmed this level. I you have any questions,comments or eedback on this report, please contact

ALDAR at [email protected]

ALDAR joined the Abu Dhabi

Sustainability Group (ADSG) in Juneo 2008. The ADSG is comprised o 20leading government, private, and NGO

organizations in the Emirate which are committedto the adoption o sustainability reporting andmanagement. ALDAR has been elected as a membero the General Secretariat o the ADSG and iscontributing to the overall direction o the group.For urther inormation on the ADSG, please reer towww.adsg.ae

About this Report

This Report has been prepared rom inormation held by ALDAR and is accurate as at 31 December 2010


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Contents

Message from the Chairman 4

Message from the CEO 5

Summary of 2010 Commitments 6

About ALDAR 10

Sustainability at ALDAR 16Creating Sustainable Lifestyle Communities 17

Providing Sustainability-Oriented Corporate Support

Functions and Ensuring Strong Corporate Performance 18

Our Sustainability Framework 19

Embedding Sustainability in Our Developments 20

Design Stage 21

Build Stage 31

Own and Operate Stage 45

Steward Stage 55

Embedding Sustainability in Our Corporate Functions 59

Governance 61

Economic Impact 63

Workforce 64

Environmental Impact 68

Relationships 70

Appendices 73

Appendix A: Summary of Performance 74

Appendix B: Subsidiaries and Joint Ventures 76

Appendix C: Report Parameters 77

Appendix D: GRI Index 78

Appendix E: Acronyms 79

Appendix F: Glossary 80


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Message from theChairman

The late Sheikh Zayed Bin Sultan Al Nahyan, ounder and

rst President o the UAE, and H. H. Sheikh Khalia Bin

Zayed Al Nahyan, President o the United Arab Emirates,

are regarded as pioneers o social and environmental

conservation, and we believe it is vital that ALDAR, Abu

Dhabis leading property development, management

and investment company, continues to work in unison

with its peers in the Abu Dhabi Sustainability Group tocontinue this great legacy.

It is our responsibility to uture generations o Abu

Dhabi citizens that we strive to adapt our projects

to the unique ecology and society o Abu Dhabi, by

creating and managing economically, socially and

environmentally sustainable communities that acilitate

the development o the Emirate.

Ours is not an exclusive challenge. Much o the world

is acing up to the issues o transitioning rom a 20th

Century, carbon ocussed economy into one t or the

low carbon world o the 21st Century whilst meeting the

social needs o a growing population.

Ahmed Ali Al SayeghChairman


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Message from the CEO

Welcome to the rst ALDAR Sustainability Report.

As the largest developer in Abu Dhabi, ALDARs mission

is the development o rst class sustainable communities

to support economic diversication and the planned

growth o the region. We are doing this by creating

quality products across the ull development spectrum

- residential, commercial, retail, leisure, education, and

health. We are also involved in the actual inrastructure

- ullling our role as a key partner to the government indeveloping major civic works to community acilities.

There is a unique scale and diversity to our operations

and this has a variety o impacts o which we must be

conscious. What this report demonstrates is ALDARs

ability to anticipate and lay the oundations to address

the uture, thereby seeking to minimise the efect on the

ecosystem and benet the society, culture and economy

underpinning Abu Dhabi.

As the Chairman says, this is not a challenge exclusive

to ALDAR but one aced by all organisations in the21st Century. It is not an exaggeration to state that

sustainability must be at the heart o everything we

do i we are to demonstrate a will to manage the

responsibilities we have to our stakeholders which

include the Government and the people o Abu Dhabi.

But what is Sustainability?

The preservation and protection o resources are

oten the rst things that come to mind. Abu Dhabi is

blessed with many resources that have acilitated the

transormation that is already well underway, as well as a

vibrant ecological environment symbolised by the native

mangroves and aquatic lie around us. However, we must

take a responsible approach to what we have and must

continue to work hard to preserve this.

But it is also about commercial sustainability. For ALDAR,

that means creating places that will provide owners and

investors with long term quality, growth and security. Our

ocus is on creating community living real places that

will evolve over time, where acilities, delivered to the

highest standards are available in one location and are

ully integrated within its society.

Taking sustainability seriously is thereore more than ashould do, it is a must do, not only or the preservation

and protection o natural resources and society, but also

or the true and lasting success o any business.

Our staf are the key tool in implementing sustainability

management across our organisation and I thank

them or their eforts. There has been some great work

completed so ar in raising our sustainability perormance

but we always strive to achieve more.

This rst report is a benchmark. It contains a number o

new targets or the uture to sustain our momentum inthis eld. ALDAR is committed to making a real diference.

We look orward to updating our stakeholders on our

progress.

John Bullough

Chie Executive Ocer


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Summary of 2010 CommitmentsDesign Stage Commitments

Design all

new buildings to

meet a minimum of 2

Pearls under the new

Estidama Guidelines

Design all

new communities

to meet a minimum of

2 Pearls under the new

Estidama Guidelines

Formalize,track and improve

best cases for mixed-use ratio, residential andnon-residential unit type

ratios, and "community feel"best practices in orderto design and assessALDAR communities

accordingly

Track andreport on the

results of stakeholderengagement at the

Design stage, and willconduct a stakeholder

satisfaction survey

All developmentprojects will be

required to submitSustainability

Management Plans aspart of the DesignControl Process.


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Build Stage Commitments

100% of new ALDAR

development projects

will implement CEMPs.

100% of new

contracts will require

CEMPs to be used on

ALDAR development

projects.

Aim to have zero

incidence of non-

compliance with CEMP

Develop a waste

management plan and

criteria for improved

performance

Report on all

environmental

protection

expenditures

Develop and

undertake a

mangrove survey

programme across our

developments

Aim for zero breaches

of regulations,

notifications or fines

Collectdata and

report on dieselconsumption foron-site electricity

generation across allproject sites, andfor construction

vehicle use

Require 100% of

ALDAR development

projects to report

on their resource

consumption

Aim for a zero fatality

rate

Achieve a LTIFR of less

than 0.25

Aim for no

more than 500

hospital referrals on-

site, more than a 60%

reduction from 2009

performance

Aim to reduce the

number of first aid

cases by 30%

Develop and

track quality of

life indicators for all

operatives in our

Operative Villages

Increase sustainable

procurement spending

by 20%


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Own and Operate Stage Commitments

Steward Stage Commitments

Set up a systematic

reporting mechanism

for electricity and water

consumption for all

ALDAR assets

ALDAR

will implement

environmental

initiatives in managed

operations with reduction

goals to be set in 2010

for energy, water and

waste

Each operationsmanagement team

will finalize a group ofindicators to monitor over

the course of the yearwhich cover priority areasof value to the customer

as well as ALDAR

Begin forming

stakeholder councils in

our communities

Launch a website with

an interactive forum for

ALDAR residents

Develop quality of

life indicators for the

targeted lifestyle of each

community

Develop a reporting

mechanism to track and

monitor key performance

indicators


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Establish

a sustainability

committee for the

systematic implementation

of sustainability

throughout our

operations

Establish a

career development

team to address

employee concerns and

gaps in professional

development

Issue a focus

statement, with clearly

defined organisational and

departmental objectives,

that will address the All

Staff Survey findings

Begin tracking

the waste, electricity

and water consumption

patterns of our

operational assets

Implement segregated

materials recycling for

office activities

Accomplish a 50%

reduction in water

bottles at ALDAR's

headquarters by end of

2010

ALDAR Corporate Functions and PerformanceCommitments


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ALDAR Properties PJSC (Public Joint Stock

Company) is a premier real estate development,

management and investment company

headquartered in Abu Dhabi, one o the astest-

growing cities in the world. As one o the

largest developers in the emirate, ALDAR has

assumed a leadership role in the emirates land

and inrastructure development through the

creation o high-quality, attractive and sustainable

communities-communities equipped withresidential, commercial, retail, leisure, hospitality,

healthcare and educational acilities. ALDAR aims

to build communities that capture the attention o

the world while preserving the cultural and natural

heritage o the emirate.

The emirate anticipates a 346% increase in

population by 2030 and has accordingly outlined a

vision o sustainable economic and social growth

in its Abu Dhabi Vision 2030 strategy.

ALDAR is owned by leading Abu Dhabi institutions,

ounder shareholders and over 18,000 individual

investors. The top ve shareholders as at 31

December 2009 are Mubadala Development

Company (19.0%), Abu Dhabi InvestmentCompany (7.2%), National Bank o Abu Dhabi

(5.2%), HSBC Bank PLC (4.5%), and Tasameem Real

Estate Company LLC (3.5%).

About ALDAR

Our VisionTo become Abu Dhabis leading developer and owner o sustainable liestyle communities.

Our Mission Put our customers, current and uture, at the heart o everything we do

Oer them quality products at aordable prices across the complete spectrum

Support Plan Abu Dhabi 2030 by creating the very best in community living

Reward our shareholders or their support with long-term stable returns

Provide all our employees with the opportunity to work in a rewarding and ullling environment


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ALDAR Achievements

Bringing Formula One to the United Arab Emirates: ALDAR properties brought the inauguralFormula One Etihad Airways Abu Dhabi Grand Prix to lie on the Yas Marina Circuit. A notable motorsport development,

the track has been described by the Formula One President as one o the most exciting tracks he has ever seen.

Over 100 Million Hours Worked Without Lost Time Injury : ALDAR achieved the signicanthealth and saety milestone in early 2009; a grand eat considering ALDAR supervised over 70,000 people working

on a diverse portolio o projects.

ALDAR partners with Cambridge University: ALDAR partners with Cambridge Universitys JudgeBusiness School or ALDARs LEAD programme.

Launches UAE National Housing Project: ALDAR launches Al Falah Development, comprised o 5,000units or UAE Nationals.

ALDAR Academies opens third School: ALDAR Academies opens its third school, Al Muna Primary inSeptember 2009.

End o 2009 Corporate Snapshot

Revenues: 1,979.3m AED

Earnings per Share: 0.39 AED

Assignments since 2005 launch worth: US$75B

Land Bank: 52 km2

Developments in Design stage: 10

Developments in Construction Stage: 14

Developments in Operations stage: 12ALDAR Corporate Employees: 598

Total Average Construction Workorce (approx): 70,000

ALDAR project awarded Worlds Leading Tourism Development Project:Yas Island, ALDARs premier leisure and entertainment destination, was selected as the Worlds Leading Tourism

Development Project at the World Travel Awards, a red-carpet event held in London, in November 2009.

ALDAR granted the Estidama Excellence Award by the Abu Dhabi UrbanPlanning Council: ALDARs sustainable master plan or Mina Zayed, a world-class waterront city quarter o AbuDhabi, was awarded the Estidama Excellence Award at the World Future Energy Summit by the Abu Dhabi government.

The design o the city quarter aims to reduce reliance on cars and improve quality o lie or the 182,000 residents, and isadopting a sustainable energy, water and resource strategy, while creating 310,000 new jobs.

Best Oce Development: HQ, Al Raha Beach (Arabian Property Awards)

Best Mixed Use Development or Yas Island (Arabian Property Awards)

ALDAR wins Environmental Awareness Award: ALDARs environmental advertising campaign winsthree awards at Dubai Lynx Awards. The campaign covered energy, water and paper saving initiatives

Best Islamic Real Estate Finance Award: Awarded at the Cityscape Middle East Award ceremony (2008)

Best Development Award: Al Bandar, Al Raha Beach (Arabian Property Awards)

Best Health and Saety Achievement in Construction Award: Awarded by the Saety and HealthPractice and Institute in Occupation Saety and Health (2008)

Signicant Achievements in 2009

Awards and Recognition


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Estates Management

We are committed to delivering high-quality

residential, retail and commercial projects to the

nation, while generating recurring returns or

our stakeholders. As part o our strategy, we have

kept a proportion o our development projects as

investment properties yielding long-term income or

ALDAR.

Marinas (ALDAR Marinas LLC)

ALDAR Marinas LLC aims to provide world class

marina acilities and services as an integral

component o selected waterront developments

being built by ALDAR. ALDAR Marinas LLC will

supervise the design and construction o marinas

and will operate them upon their completion.

Theme Parks (Farah Leisure Parks Management LLC)

Farah Leisure Park Management LLC (Farah) will be

operating the regions rst Ferrari theme park on Yas

Island which will also be the largest indoor park in the

world.

Aiming to explore urther opportunities to expand

its current prole, Farah expects to enter into

partnership with other renowned brands.

Hotels (ALDAR Hotels and Hospitality LLC)

ALDAR Hotels and Hospitality LLC is at the oreront

o hospitality related developments in the Emirate

o Abu Dhabi to complement ALDARs overall

objective o supporting Abu Dhabi becoming

a world renowned prime business and leisure

destination.

Gol Courses (Yas Links LLC)

With the prime objective o developing and

operating the Links Gol Course, the Yas Links

LLC has plans to identiy opportunities or new

ventures. It aims to provide specialised services

in design, development and operations o gol

acilities through a team o highly skilled andqualied experts.

Schools (ALDAR Academies LLC)

Established in 2007, ALDAR Academies LLC is

currently operating three schools with a mission

to expand its portolio by building several new

schools or the growing student population o Abu

Dhabi.

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ALDAR has been evolving rom primarily a developer, to a combined role o developer and owner/manager.

Our business units reect this evolution, covering the development, ownership and management o six

types o developments, as outlined below. In many cases, this has included the creation o subsidiaries and

joint ventures. Some o these subsidiaries are noted below, while a more complete list o subsidiaries and

joint ventures can be ound in Appendix A. These operational divisions and subsidiaries are supported by

other ALDAR departments such as nance, human resources, environment health and saety, and others.

Projects

Projects undertaken by ALDAR include commercial and residential properties, retail developments, hotel

and leisure acilities, tourist attractions, luxury resorts and schools. Although a number o ALDARs projects

that are still under development are or sale, as part o its long-term business strategy, ALDAR will hold and

manage selected ones as individual operational businesses, enabling it to secure long-term revenue streams.

Apart rom property development, ALDAR currently has the ollowing operational business divisions:

Our Structure


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Our Stakeholders

Our Stakeholders How we EngageOur Understanding o Their

Priority IssuesOur Response

InvestorsOver 18,000shareholders

- Annual general meetings(AGMs)

- Committee meetings- Financial reports- Annual Report- Website- Investor Relation Dept- Investor presentations

- Sound governance andreputation

- Protection o assets and wealth- Good return on investments- Shareholder Value- Transparent nancial inormation- Good credit rating- Sustainable long-term growth

- Disclosure o nancial statements

- Diversiying portolio

- Protable growth

- Award-winning perormance

- Prudent nancial management

- Continuously meeting requirements

o Abu Dhabi Securities Exchange

Government

Our Abu Dhabi

Government, Federal

Government, and

Regulators

- Meetings

- Regulatory inspections and

audits

- Report submissions

- Planning approvals process

- Meeting Abu Dhabi Vision 2030

objectives

- Beneting the development o

Abu Dhabi and catering to the

population

- Compliance with laws

- Contribution to quality o lie

- Support in policy development (e.g.

UPCs aordable housing policy)

- Following procedures and

specications

- Delivering inrastructure

- Maintaining open and transparent

communication

Employees

598 corporate

employees, and

more than 70,000

operatives associated

with ALDAR projects

- Darna sta magazine

- DARnet - intranet

- All Sta Survey

- Employee appraisals

- All Sta events and

conerences

- Accessibility o sta to

Human Resources

- Job security, air pay, good

working-conditions, and equal

opportunities

- Continuous career development

- Clear roles and responsibilities

- Communication with

management and between

departments

- Competitive salary

- Equal opportunity

- All Sta Survey and transparency

- LEAD and other training and

development programs

- Transparent recruitment process

- Health and saety incentives

- Sta recognition (year end gala)

Supply Chain

Our contractors,

operatives, suppliers,

and business partners

- Contracts

- Prequalication meetings

- Day-to-day liaison

- Fair engagement and contracts

- Timely payment

- Favourable working conditions

- Opportunities or growth

- Fair bidding processes or projects

- H&S Trainings or our operatives

- Community-building initiatives in

the ALDAR Operative Villages

Customers

Our customers

are made up o

development owners,

end-users, students,

visitors

- Events and tradeshows

- Promotional material

- Customer service centre

- Facilities management

- Website

- Ongoing developments

and end product

- Sae and clean environments

- Fair costs and charges

- Good inrastructure and

amenities

- Community spirit

- Quality product

- Connection with Abu Dhabi

- Clear vision and controlled

master plan

- Annual General Meetings or

community residents

- Residential Satisaction Survey

- Customer service centre

- Deliver customer-driven stock

- Show home events

Community

Residents o Abu

Dhabi and areas

where we build

and manage

developments

- Media communication

- Cityscape

- Website

- Inrastructure and

community development

- ALDAR Academies

- Same as ALDARs customers, as

well as:

- Social inclusion

- Employment opportunities

- Investing in the community/CSR

- Comprehensive master-planning

- Providing good education acilities

- CSR contributions

NGOs

WWF, EEG, UN, WHO,

ILO, Red Crescent

- Inormal meetings

- Polices

- Website

- To be heard

- Support

- Adoption o principles

- Discussion orum

- Supporting causes through nancial

support and initiative involvement

Voiceless

Environment,

Resources, and our

uture generations

- Monitoring

- Protection

- Protection o the environment

- Responsible resource

consumption

- Ensuring uture generations have

the same opportunities we havetoday

- Environmental Management Plans

- Hiring environmental consultants

- Mangrove planting initiatives

- Embedding sustainability in our

strategy and operations- Compliance with regulations


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Design Stage Build Stage Own & Operate/Stewardship Stage

Yas Island Yas Island Etihad Plaza

Nareel Island Shasalamah mosque Al Jimi Mall

Khalia University Shiebhat Al Watah National Housing Al Muna School

Motor World Nareel Island Al Mamoura A&B

Al Raha Beach Mussaah Operative Village Al Raha Gardens

Al Falah Town Centre The Wing Al Yasmina School

Al Bateen Park Abu Dhabi Cleveland Clinic Hospital Royal House (Hala Arjan)

ARG-Retail Central Market The Pearl School

Mina Zayed Baniyas Towers Yas Island

Al Raha Beach

Al Gurm

Al Falah Community

Al Ain Operative Village

Our Portfolio


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ALDARs portolio highlights includes:

Yas Island, Abu Dhabis multi-billion-dollaragship liestyle and entertainment hub including

the worlds largest indoor theme park (Ferrari

World). Upon completion, Yas Island will eature

ve-star and boutique hotels, a water park, a

250,000 m2-retail-outlet shopping mall, gol

courses, marinas, restaurants, and residential and

commercial properties.

Central Market in downtown Abu Dhabi, a rebirth

o one o the emirates popular landmarks: the

ormer centre o trade and tourist attraction or 40

years.

Al Raha Beach development, is the Ultimate

Waterront City, which is being built along 10.5

kilometres o beachront oering residential,

commercial, cultural and entertainment acilities

and will soon be home to the new World Trade

Centre building.

Our property development portolio is diverse in scope and style, attracting worldwide interest and inward

investment. Spanning over 52 million square metres o land in strategic locations throughout Abu Dhabi,

our portolio includes major developments and redevelopments in residential, commercial, retail, hospitality,education and healthcare sectors, among others. ALDAR currently manages 28 projects which we have

categorised, or the purposes o this report, according to their stage o development: the Design stage; the

Build stage; the Own and Operate stage, at which time they are unctional; and nally the Steward stage,

during which community members and leadership networks are engaged in reinorcing the sustainable

liestyle qualities o the community


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Sustainability at ALDAR

Our Sustainability ApproachOur goal is to create sustainable liestyle communities, taking into account the ull range o considerations o

all our stakeholders. Our approach to sustainability concentrates on three main elements:

Understanding and dening the key elements o sustainable liestyle communities

Executing a our-stage process or creating sustainable liestyle communities

Providing high-quality corporate support unctions and ensuring strong corporate perormance

Dening Sustainable Liestyle CommunitiesSustainable communities are places where people want to work and live, now and in the uture: they

meet the diverse needs o existing and uture residents, respect and unction within long-term ecological

constraints, and contribute to a high quality o lie. Simply put, sustainable communities integrate and

optimise the social, economic and environmental components o the community, while respecting the

needs o other communities regionally and globally. There are at least ve key elements o sustainable

communities that ALDAR aims to integrate into all our projects, and which are ully aligned to Abu Dhabis

Vision 2030. These elements are summarised in the ollowing table.

The important thing is to servethe community... our strong beliefis in building todays project fortomorrows marketSami Asad Chie Operating Ocer o ALDAR Properties PJSC

Understanding and Dening Sustainable Lifestyle Communies

Key Elements Alignment with Abu Dhabi Vision 2030

The right mix Creang Communies that include all the key ingredients-in the right balance-to make them

aracve and vibrant communies

Socially vibrant Oering aracve social, recreaonal, health and educaon services, and outstanding performance

on quality of life indicators

Economically sound Combining aordability with asset appreciaon, job creaon and local micro-economy development

Environmentally sustainable Using innovave design and technologies for reducing environmental impact and living within long-

term environmental constraints

Acvely engaged Using civic engagement and collaborave governance as the catalyst for ongoing innovaon and

improvement in community health and aracveness


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Creating SustainableLifestyle Communities

Achieving sustainable liestyle communities requires key interventions at all stages o community

development. To ensure we understand and respond to the critical sustainability issues at each step, we

have divided, and aim to systematically manage, our sustainability perormance across our main stages o

community development.

Four Stages of Creang Sustainable Lifestyle CommuniesStage Material Issues Our Aim

Design

Alignment with Abu Dhabi Vision 2030

Maximizing the economic and social prospects of a

community

Design that supports a sense of community

Resource consumpon

Protecon and enhancement of local ecology

Integraon with surrounding communies

Designing within nancial parameters

By incorporang sustainability at

the Design stage, we intend to

signicantly enhance the economic

prospects and quality of life

prospects of a community, while

dramacally improving its designed

environmental performance.

Build

Health and safety

Labour management/operave welfare

Reducing emissions

Waste management

Sustainable procurement process

Impact on surrounding communies

(ecological and human)

Resource consumpon

Our communies will be built usinginnovave designs and technologies

for reducing environmental impact,

while priorising health and safety of

our operaves and residents.

Own and

Operate

Customer Sasfacon

Energy and water consumpon

Waste management

Health, safety and security

Connuous protability

Preventave maintenance and upkeep of the facilies

Our communies will be socially

vibrant, with aracve recreaon,

health and educaon services, and

outstanding performance on quality

of life indicators; generang health

and contentment benets alongside

nancial savings. Our buildings will be

operated eciently whilst meeng

the needs of the occupiers.

Stewardship

Engaging customers, tenants, and the community to

raise awareness and acvely parcipate in preserving the

natural and built environment

Building and collaboraon with leadership networks

to promote stewardship in ALDAR communies and

properes as well as in Abu Dhabi

Encouraging parcipaon in community building

social acvies

Thriving communies require

acve civil engagement and mul-

stakeholder collaboraon. ALDAR

will be the catalyst for this ongoing

collaboraon, engagement, and

tracking of indicators of community

health.


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Our corporate unctions support our eorts to create sustainable liestyle communities. These unctions

play a key role in setting the policies, management systems and corporate culture required to achieve our

corporate objectives, and will be essential to embedding sustainability across the organisation, including

within their own unctions. There are ve main corporate unctions essential to our business perormance.

Providing Sustainability-OrientedCorporate Support Functionsand Ensuring Strong CorporatePerformance

Embedding Sustainability in Our Corporate Funcons and Impacts

Corporate

FunconMaterial Issues Our Aim

Governance

Ensuring integrity, accountability and trust

Ensuring good return on investments for our

shareholders

Complying with government laws and regulaons

Ensuring alignment of corporate vision with Abu

Dhabi Vision 2030

We believe ethical business pracce is

absolutely fundamental to long-term

business success. We also recognise the

importance of being accountable towards

all our key stakeholders. We will workunceasingly to maintain the trust of all our

key stakeholders.

Economic

Impact

Being protable

Generang economic opportunies for suppliers

and community members

Reinvesng in society

We recognise that our presence in an

area generates signicant economic

opportunies for employment and

suppliers. We will work to ensure that

economic gains contribute to the socio-

economic development of communies.

Workforce

Maintaining labour management relaons

Ensuring quality of life in our Operave Villages

Supporng Emirasaon drive

Providing training and development

Promong sta sasfacon Encouraging employee diversity

Health and safety

Our people are our crically important

resource. We aim to empower them to

connuously improve and deliver results,

and integrate more sustainable pracces

into all aspects of our operaons and our

value proposion.

Environmental

Impact

Monitoring and managing our energy, water and

material consumpon

Raising awareness of sustainability and

environmental issues in the workplace

We believe in leading by example.

Therefore we recognise that we must

pracce minimizing our negave

environmental impacts in smart and

innovave ways, in our acons and

through our purchasing choices and

consumpon paerns.

Relaonships

Supporng and collaborang with our government

partners

Forming strategic alliances with our private sector

and NGO partners Supporng our local communies through CSR

We are commied to building relaons

within and outside of our sector to boost

our contribuon to society.


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Our Sustainability Framework

Our sustainability ramework captures these three essential elements:

Understanding and dening the key elements o sustainable liestyle communities

Executing a our-stage process or creating sustainable liestyle communities

Providing high-quality, sustainability-oriented corporate support unctions, and ensuring strong

corporate perormance

Governance

Design

The Right Mix Socially Vibrant Economically SoundEnvironmentally

Sustainable

Active Civil

Engagement and

Collaborative

Management

Build Own & Operate Steward

Corporate Function and Performance

Four stage ProcessEmbedding Sustainability in our Developments

Key ElementsAligned with Abu Dhabi Vision 2030

Creating Sustainable

Liestyle Communities

Economic Impact Our Workforce RelationshipsManaging our

Environment


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Embedding Sustainability in OurDevelopments

Design Build Own & Operate Steward

Four stage ProcessEmbedding Sustainability in our Developments

ALDARs Development ControlProcessThe our main stages o ALDAR developments are Design, Build, Own and Operate, and Steward. In 2009,

ALDAR established a comprehensive Development Control Process (DCP) as a means o capturing and

continuously improving project delivery processes across each o these core project stages. The DCP denes

in detail ALDARs project methodology, including gateways or quality and perormance checks, and clear

denitions o roles, responsibilities and decision-making processes.

The DCP aims to ensure that our rigorous standards are applied consistently across our portolio, with each

project meeting the ollowing six targets:

Guidance on sustainable practices is embedded within each stage o the DCP, with urther renement

planned or 2010. Although the DCP involves seven stages, or the purposes o simplicity we have condensed

these stages into Design, Build, Own Operate, and Steward. The ollowing chapters outline the key

interventions we are aiming to make at each stage in order to most successully create sustainable liestyle

communities.

Planning or success Clearly articulated project objectives and project brie

Time, cost and quality targets

Feasibility

Clarity on accountability Clarity on roles and responsibilities

Clarity on stakeholder engagementwho to engage and when

Transparency and control Engaging the Executive Management Team to assist with decision making and sign-os

Empowerment or project teams between decisions and sign-os

Product and brand integrity Clarity rom project inception

Integrity maintained throughout the process through to asset ownership and management

Consistency

How projects are delivered

Ways o working and communicating

Standardization o product and process

Commerciality Robust nancial appraisals

Focus on commercial implications o projects


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Design

Design Stage

By incorporang sustainability at the Design stage, weintend to signicantly enhance the economic and quality oflife prospects of a community, while dramacally improvingits designed environmental performance. Design is the mostimportant stage of intervenon.

Key Issues Key Interventions and Rationale

Aligning with Abu Dhabi Vision

2030

Maximizing the economic

and social prospects o a

community

Promoting design that supports

a sense o community

Resource consumption

Protection and enhancement o

the local ecology

Integrating with surrounding

communities

Designing within nancial

parameters

Sustainable Building Design

A single building can be designed to be resource-ecient, in terms o

energy, water and material use, without compromising perormance;as well as incorporating more environmentally riendly and healthy

building materials. Furthermore, buildings can be designed to benet

the well-being o occupants and surrounding communities and

environment.

Sustainable Community DesignLeveraging Sustainable Buildings: When sustainable design is

applied to an entire community, and when design and unction omultiple buildings are integrated, these eects are compounded,

reducing inrastructure needs, time to build, costs and waste through

lower collective demand.

Choosing the Right Mix: Economically and socially, the right housing,

non-residential, and overall real estate mix is critical. The right mix not

only contributes to unctionality, but supports the creation o a sense

o belonging.

Inrastructure Appropriateness: Well-designed inrastructure

improves accessibility and connectivity or all, while enabling a low

environmental impact

Connection with Nature: Consideration o open spaces andsurrounding environment can lead to improved well-being alongside

signicant benets to the local ecology.

Estidama Community Design Guidelines: A key element o the new

Estidama guidelines is their ocus on integrated community design,

which systematically recognises the multiplier eect o adopting

sustainability at the community system level.

Embedding Sustainability and Aligning to Abu Dhabi Vision 2030:

ALDARs Development Control Process (DCP) places emphasis onincorporating the preceding sustainability elements throughout the

Design stage. Our overarching goal is to develop sustainable liestyle

communities aligned to Abu Dhabis Vision 2030.


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Design


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Design

Projects with Green Building

TargetsTarget

HQ Building LEED Silver

Trust Tower - Central Market

DevelopmentLEED Gold

Cleveland Clinic LEED Gold

Al Zeina (ARB)Used LEED to

inform designsAl Muneera (ARB)

Yas Mall

Design Stage Prole 2009

Land area of developments in the Design stage 3987 Ha

% of ALDAR developments in the Design stage 30%

Perspective

From an opportunity perspective, the Designstage is the most critical stage o intervention

or achieving higher levels o sustainability. By

incorporating sustainability at this stage, we

intend to signicantly enhance the economic

and quality o lie prospects o a community,

while dramatically improving its designed

environmental perormance. There are two main

levels o intervention: at a building-specic level

and at a community design level.

Sustainable BuildingDesign

A single building designed to be resourceecient, without compromising perormance,

can reduce energy use by 2450%, carbon dioxide

emissions by 3339%, and water use by 40%.

Furthermore, sustainable design can incorporate

more environmentally riendly and healthier

building materials. ALDAR has committed to

designing all uture buildings with these targets

rmly in mind.

As champions o sustainable buildings and

communities, ALDAR has supported the

development o the Estidama Pearl Rating

System, an Abu Dhabi-ocused sustainable

building standard developed in collaboration

with the Urban Planning Council (UPC) and the

Environment Agency Abu Dhabi (EAD). The rst

program o its kind in the Middle East region, the

Pearl system encompasses specic guidelines

or green buildings that are tailored or local

conditions. The Estidama system was ormally

launched in early 2010, and ALDAR is committed

to all ALDAR buildings being designed to meet a

minimum o 2 Pearls.

Prior to the release o Estidama, ALDAR had been

reerencing international systems, such as LEED,

in order to provide a benchmark or assessment obuildings. ALDAR became a corporate member o

US Green Building Council in June 2009. Twenty-

two ALDAR sta (involved in projects and design)

attended the LEED Core Concepts and Strategies

Workshop on 8 October 2009, to raise awareness in

projects on LEED and Green Building Design.

ALDARs eorts to adopt sustainable building

design are increasingly evident. Case studies rom

our HQ building, Shams Towers, and Trust Tower

can be ound in the ollowing pages.

We will design all

new buildings to meet

a minimum of 2 Pearls

under the new Estidama

Guidelines


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Design

Delivering Award-Winning

Sustainable DesignsHQ, Al Raha Beach

ALDARs award winning Head Quarters (HQ)

building is the rst disk shaped oce building

in the world. Designed to meet the demands o

regional and international companies or high-end

oce accommodation, the 120-metre structure

is one o Abu Dhabis rst buildings seeking

certication under the US Green Building Council

(USGBC) LEED rating system, aiming or a Silver

rating* under the LEED Core and Shell Version 2.

HQ stands as a regional and international marvel

o modern architecture. Beore HQ was built, an

analysis was undertaken during initial project

conception allowing or due consideration o

design and unctionality as well as materials and

product selection to ensure that sustainability

was taken into consideration-reducing long-term

energy needs and uture proong designs or the

market. There have been a number o principles o

sustainable design implemented in the designing

and construction o the HQ building, including butnot limited to:

The recognition that HQ has received has helped to shine a spotlight on the possibilities in sustainabledesigns. This attention has presented an opportunity or ALDAR to promote green education, engaging with

our tenants and updating them on both ALDAR and our tenants environmental perormance.

* ALDAR is currently undertaking the LEED submission process to ga in ormal certication rom USGBC.

** ALDAR has requently been asked about the impact that building orientation would have on the energy consumption o this building. We thereore undertook additional energy modelling to determine this impact;

the results predicted an energy saving o just 1.5%.

Reduced energy consumpon,** reducing in turn CO2

emissions and associated impacts: The building design has

many energy eciency measures that have been projected to reduce overall energy use in the building by more

than 17%. Energy-ecient measures include intelligent lighng controls that automacally sense daylight and use

moon sensors to turn o lights in unoccupied areas, lighng systems on mers, state-of-the-art air condioners and

other energy-ecient systems. Also the walls of HQ were made energy-ecient through improved glazing and wall

construcon to retain cool air and keep out the outdoor heat.

Reduced water consumpon, thereby reducing associated CO2

emission associated with the producon of water

in Abu Dhabi, and helping to preserve this precious resource. Oce water consumpon was reduced by more

than 30% through the use of water-ecient xtures, and a 70% reducon in water use for irrigaon through the

irrigaon design and selecon of appropriate plant species

Minimisaon of light polluon

Use of HVAC&R and re suppression systems which eliminate emissions that contribute to ozone depleon and

global warming

Use of FSC Cered wood

Reduced waste generaon during construcon by prefabricang elements, such as toilet pods, stairs cases etc. o-site

Diversion of more than 50% of construcon waste from landll

An automated vacuum waste system to reduce nuisance associated with the handling, storage and transportaon of

waste and allow the recycling of tenant waste

Control of construcon acvies to reduce impact on the local environment

Adopon of green housekeeping pracces


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Design

Trust Tower, Central Market

Trust Tower is a 72,000-square-metre

grade-A premium oce building located

in the heart o Abu Dhabis city centre,

and part o ALDARs redevelopment o the

Central Market site. At the oreront o Trust

Towers design is sustainability, and careul

consideration has been taken to balance the

environmental impact o its development,

whilst creating high-quality oce space that

will meet the needs o its user and business

occupants.

The design is currently undergoing a LEED

Core & Shell Version 2 pre-certication

review by the US Green Building Council and

is anticipated to achieve a Gold rating.

The building is anticipated to achieve a

25% reduction in energy consumption byutilizing intelligent lighting systems, the

most state-o-the-art and ecient HVAC

and building management systems. A 30%

reduction in potable water consumption is

expected with the installation o ecient

water-xtures, and a 100% reduction in

potable water consumption or irrigation

will be demonstrated, by strictly recycling

condensate rom air conditioning systems

or low-hydration plants. By practicing

responsible procurement, 95% o the

wood used will have been sourced rom

Forest Stewardship Council (FSC) certied

wood, to ensure the mitigation o indirect

environmental damage. The tower is also

scheduled to be equipped with a tenant

recycling system which will collect and

correctly dispose o all recyclables.

The end-user will benet most rom our

sustainable designs, as the innovative

building envelope is estimated to save ve

million dirhams per annum in lowered airconditioning costs alone.


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Design

Incorporating Unique

Environmental Design AspectsShams Towers, Yas Island

Yas Island is home to what some have called the

jewel o the Formula 1 racing circuits, the Yas

Marina Circuit. In designing this track, ALDAR

wanted to make a highly visible statement o

environmental commitment by innovative use o

otherwise unused space and renewable natural

resources.

ALDAR installed a customised photovoltaic solar

panel system spreading over 2,500 square metres,

which serves the 60-metre-high Shams Tower. The

solar system will simultaneously provide shade

or the car park underneath and produce 450

megawatt-hours o clean solar electricity annually.

Power generated will not only oset electricity

needs during motorsports events, but will also

continue to power the Yas Marina Circuit acility

or decades, saving 400 tonnes o greenhouse

gases annually.

The panel installation was completed in unison

with other building works, maximising resources

and minimising time delays. The solar panels

yielded nearly 57,000 kilowatt-hours in just over

two months o operations in 2009. The panels

connection to the Abu Dhabi Municipal grid

ensures all produced solar power is utilised.


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Design

Sustainable Community

DesignLeveraging

SustainableBuildings

When

sustainable

building

design is

applied to all

the buildings

in a planned

community,

and when design

and unction

o these buildings

are integrated, the

benecial sustainability eects

are multiplied. Resulting benets include reduced

inrastructure needs, reduced time to build, and

lowered costs and waste produced. The benetsnot only lighten environmental impacts, but

generate signicant nancial benets, creating a

strong business incentive to maximise sustainable

design o communities. Beyond this aggregation

eect, there are other key elements o sustainable

community design, as ollows.

Choosing the Right MixEconomically and socially, the right housing,

non-residential, and overall real estate mix is

critical. For example, adding schools can boost

residential value by up to 30%, while inclusion o

non-residential properties supports job creation

and economic livelihood, reduced commute

times, and added convenience. The right mix not

only contributes to unctionality, but sets the

stage or the creation o a sense o belonging, a

undamental aspect to which our Steward stage is

devoted.

Designing AppropriateInrastructureWell-designed inrastructure improves accessibility

and connectivity or all, and plays a critical role in

acilitating vibrant communities. It also enables

low environmental impact, in the construction

phase and especially over the longer term.

Connecting with NatureConsideration o open spaces and surrounding

environment can lead to improved well-being.

Availability and proximity o open spaces is one o

the most commonly measured indicators amongst

leading sustainable communities in the world.

Mindul and respectul connection to nature canalso yield signicant benets to the local ecology,

protecting and enhancing it or current and uture

generations.

Following Estidama CommunityDesign GuidelinesA key element o the new Estidama guidelines

is their ocus on integrated community design,

which systematically recognises the multiplier

eect o adopting sustainability at the community

system level. To emphasise this, Estidama has

also established rankings at a community level,

We will design all new

communities to meet

a minimum of 2 Pearls

under the new Estidama

Guidelines

We will formalize,track and improve

best cases for mixed-use ratio, residential andnon-residential unit type

ratios, and "community feel"best practices in orderto design and assessALDAR communities

accordingly


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Design

separate rom building-level rankings. As a

developer o communities, ALDAR is in a privileged

position to be able to capitalise on the ull

opportunity presented by sustainable community

designand to work towards achieving truly

sustainable liestyle communities.

ALDAR has committed to

achieving a minimum o

2 Pearls across all o

our community-levelprojects.

EmbeddingSustainabilityand Aligning toAbu Dhabi Vision2030ALDARs Development

Control Process places

emphasis on incorporating the

preceding sustainability elements

throughout the Design stage. Four o the DCPs

more detailed stages (there are seven) are ocused

on the Design stage.

Our overarching goal is to develop sustainable

liestyle communities aligned to Abu Dhabis

Vision 2030. Given that the Estidama guidelines

were developed by the Urban Planning Council

(UPC) alongside Plan Abu Dhabi 2030, we believethat utilizing the Estidama Pearl Rating System is

one o the best means o ensuring alignment to

Vision 2030, both at an independent building and

overall community level. We have thereore set

our targets in this regard. Part o ALDARs Design

Control Process (DCP) involves submission o all

development plans to the UPC or approval; this

process is a direct step in ensuring alignment to

Abu Dhabi Vision 2030 and a chance to engage

key stakeholders with regard to how design

can be urther improved to meet this goal. Our

stakeholder engagement processes extend

well beyond these most direct stakeholders, to

incorporate at the planning stage a wide range o

stakeholders who are expected to benet rom,

or may be directly or indirectly impacted by,

developments under consideration. By committing

to systematically improve that engagement, we

will improve community designs.

As a nal stage o planning, in

2010 ALDAR will require a

Sustainability ManagementPlan to be submitted by

project managers as part o

the planning process in all

projects. While sustainability

is arguably incorporated

across a project plan, this

accompanying plan helps to

highlight key innovations and

interventions that will have the

highest sustainability impact. This

practice was successully piloted in Al

Dana Precinct.

All development

projects will be

required to submit

Sustainability

Management Plans as

part of the Design

Control Process.

ALDAR will track and report

on the results of stakeholder

engagement at the design stage,

and will conduct a stakeholder

satisfaction survey.


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Design

Design Stage:

Summary of Commitments

Indicator Commitment

Sustainable Building Design

% o buildings planned to meet Estidama/LEED

(buildings per level) Design all new buildings to meet a minimum o 2 Pearls under

the new Estidama Guidelines Estimated reduction in environmental impactsand associated reductions in inrastructure re-

quirements and costs

Sustainable Community Design

Community alignment to Estidama integrated

planning guidance (ranking) Design all new communities to meet a minimum o 2 Pearls

under the new Estidama Guidelines Estimated reduction in environmental impacts

and associated reductions in inrastructure re-quirements and costs

Mixed-use ratio within communities

Formalize, track and improve best cases or mixed-use ratio,

residential and non-residential unit type ratios, and commu-

nity eel best practices in order to design and assess ALDARcommunities accordingly

Number, quality and outcome o stakeholder

engagements

Track and report on the results o stakeholder engagement at

the Design stage, and assess whether or not a targeted satis-

action level can be a predictor o community success

% o projects implementing a Sustainability Man-agement Plan

All development projects will be required to submit Sus-tainability Management Plans as part o the Design Control

Process.


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Build

Build Stage

Our communies will be built usinginnovave approaches and technologiesfor reducing environmental impact, whilepriorising the health and safety of ouroperaves and residents. The Build stage iscrical in following through with sustainabledesigns incorporated in the Design stage.

Key Issues Key Interventions and Rationale

Minimizing environmental impacts

due to construcon

Being respecul to surrounding

communies

Building within nancial parameters

Promong the health and safety of

all workers

Ensuring the well-being of residentsin ALDAR Operave Villages

Procuring more environmentally

friendly and healthier building prod-

ucts and supporng technologies

Minimizing Our Ecological FootprintOur Management Approach: ALDAR will do its part to measure,monitor and actively reduce its environmental impacts. ALDAR

uses a Construction Environmental Management Plan (CEMP)

to integrate sustainability practices into existing construction

processes, enhancing overall environmental perormance while

maintaining or improving project nancial perormance. CEMPs willbe updated to improve our sustainability perormance in 2010. We

will also respect and engage any local stakeholders aected during

the construction process.

Reducing Energy Consumption and Greenhouse Gas Emissions:Building construction is responsible or over 25% o the worldsenergy consumption. ALDAR will proactively work with our project

teams to reduce our energy consumption during the energy-

intensive Build stage.

Conserving Water: Water is a scarce commodity in the region,

and ALDAR is actively reducing its consumption o this preciousresource.

Managing Waste: ALDAR has undertaken various innovative

methods o diverting waste rom landlls and is committed to

replicating the best practices across our portolio o projects.

Protecting the Emirates Biodiversity: ALDAR will do its part to

preserve biodiversity in Abu Dhabis mangroves and other natural

habitats.

Creating a Sae Work Environment and Promoting Well-beingHealth and Saety: ALDAR takes the health and saety o all who

work on our behal seriously, benchmarking global perormance

standards.

Operatives Well-being: With ALDARs Operative Villages, we have

aimed to set a new regional standard or worker care and well-being.

Sustainable Procurement

The sourcing o environmentally riendly building materials, ando technologies or sophisticated environmental management,

is essential or reducing the environmental impact o a buildingsconstruction and ongoing operation.

Wewill aim for

zero breaches

of regulations,

notifications or

fines


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Build

Build Stage Prole 2009

Land area of developments in the Build stage 2758 Ha

% of ALDAR developments in the Build stage 42%

Perspective

The Build stage o our developments has thegreatest impact on ALDARs ecological ootprint-

and thereore presents signicant opportunities

to reduce that ootprint. As the largest property

developer in the Emirate o Abu Dhabi and the

second largest in the UAE, we recognise that the

construction o our buildings and communities

places a heavy demand on natural resources.

It also directly impacts our stakeholders and

surrounding community, including ALDAR

operatives. In the Build stage, we seek to minimise

our ecological ootprint and provide the highest

standards in caring or the health and saety o our

operatives.

Minimizing OurEcological FootprintManaging Our Impact

ALDAR will do its part to measure, monitor and

actively reduce its environmental impacts. ALDAR

uses a Construction Environmental Management

Plan (CEMP) to urther integrate sustainability

practices into existing construction processes,

enhancing overall environmental perormance

while maintaining or improving project nancialperormance. The CEMP will continue to be a

requirement in 2010. We will also respect and

engage any local stakeholders aected during the

construction process.

The CEMP is in line with requirements o the

Environment Agency Abu Dhabi (EAD). ALDARs

Development Control Process requires the

application o CEMP to each uture developmentproject. We tested and enorced the use o CEMP

by our contractors and subcontractors and will

ensure that these will be integrated within our

building contracts.

To urther ensure the continuous implementation

o CEMP, we have employed environmental

consultants to manage, monitor and audit the

extent to which the CEMP is being implemented

on-site, taking action as necessary when violations

are identied. This has proven to be a best-case

practice that will be replicated in all ALDAR

projects in the uture. Our goal or 2010 is to have

zero incidence o non-compliance with CEMP and

zero breaches o regulations, notications or nes.

100% of

new ALDAR

developmentprojects will

implement

CEMPs.

100% of new

contracts will

require CEMPs to

be used on ALDARdevelopment

projects.


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Build

Revamping Practices as

We Renew DevelopmentsCentral Market, Abu Dhabi

ALDARs Central Market Redevelopment is a

project or both ALDAR Properties and Abu Dhabi,

spread over ve hectares o prime city space. It

will comprise luxury apartments, international

grade-A oce space, restaurants, world class hotels,

branded retail outlets and a traditional Arabian

souk.

For the Central Market project, ALDAR has used

only sub-contractors with environmental policies

already in place, or those willing to commit to

ollowing an environmental policy on-site. The

policy was visible, displayed both at the site oces

in public spaces, and on-site notice boards.

An external audit o our contractors revealed

exemplary environmental management, covering

an extensive range o impact areas, including

training on environmental issues, a publiccomplaints register, daily compliance monitoring,

noise and vibration reduction measures, and a

standard waste management procedure.

Reducing Energy Consumption and Greenhouse

Gas Emissions

Building construction is currrently the most energy

intensive aspect o our business.

ALDAR has thereore committed to proactively

working with our project teams to reduce ourenergy consumption during the energy-intensive

Build stage.

The rst step will be to

implement a tracking

process to better

understand the

magnitude o our

impact and where

we can reduce it.

The CEMP will also

serve as an essentialtool in monitoring

and managing our

emissions across all

projects.

We will aim to

have zero incidence

of non-compliance

with CEMP

Wewill require

100% of ALDARdevelopment

projects to report

on their resourceconsumption


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Build

Generating Electricity at Our Sites

Conserving Water

Water is a scarce commodity in the region,

and ALDAR is actively seeking to reduce itsconsumption o this precious resource. The

primary source o water or ALDARs construction

activities is the potable water rom the Abu Dhabi

potable water network produced in the emirates

thermal desalination plants. We use seawater or

dust suppression to urther minimise our impact.

We remain conscious o our overall water

consumption. However, our current billing system

consolidates consumption or all activities, so we

are unable to report on the rate o consumption

or construction activities only. We are developing

a project-by-project account o our water

consumption or uture reports.

Managing Waste

ALDAR has undertaken various innovative

methods o diverting waste rom landlls and

is committed to replicating the best practices

across our portolio o projects. Focusing on

waste management at the Build stage not only

reduces costs o waste disposal, but can also

save signicant input costs by avoiding the

unnecessary use o materials. For 2010, we will

develop waste management criteria as a part

o the CEMP or improved perormance and to

track waste generation. The criteria will address

both hazardous and non-hazardous waste, spillsor discharge, and resulting complaints rom the

community about waste.

100%

of ALDAR

development

projects will be

required to report

on their resourceconsumption.

During the Build stage, some o our sites are not connected to the emirates electricity grid; we thereoreuse diesel-powered generators as an alternative source o electricity on-site. Below is a list o sites with

diesel generators and, where available, statistics on diesel consumption or 2009:

Site 2009 Diesel Consumption GHG Emissions

(Tons o CO2

equivalent)

Al Zeina 6,866,792 litres 19,441

HQ 1,636,592 litres 4,634

Cleveland Clinic Abu Dhabi 309,811 litres 877

ALDAR ReadyMix* 450,000 litres 1,279

Yas Island Operators Village 12,261,450 litres 34,700

Not available: Al Raha Beach, Al Bandar, Al Muneera, Yas Island, Al Falah

*ALDAR ReadyMix works across various ALDAR development projects.

For 2010, we will systematically collect data and report on diesel consumption or on-site electricity

generation across all project sites, and or construction vehicle use.

We will

collect data andreport on diesel

consumption for on-site

electricity generation

across all project sites,

and for construction

vehicle use


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Build

Best Practices inWaste ManagementAl Raha Beach - Al Zeina, Abu Dhabi

ALDARs Al Zeina development is the strategic gateway to the new Al Raha Beach development, which will

represent the natural beauty o Abu Dhabi through ormal Arabic gardens, courts and plazas.

In creating this vision, ALDAR and its construction partners are working to eliminate waste at every step o

the building process through a ocused Site Waste Management Plan (SWMP). Surplus materials, including

timber, plastic, metals, crushed concrete and cardboard, are gathered at strategic recycling areas within the

construction site. Whenever possible, these materials are treated as resources, not as waste, and are reused

on-site. Those that cannot be reused are recycled.

We reused or recycled over 33,000 tonnes o materials in 2009, diverting 83% o waste generated on-

site rom landlls. Cost savings were estimated to be over AED 1.3 Million in 2009.

Solutions or Recycling and Reusing

22,600 tonnes o concrete was recycled and reused

Residual and surplus concrete was used in trac lane dividers, the hardstand base to the construction wastesegregation areas, haul roads, storage compounds and drainage trench backll. Crushed concrete has also

been stored or use on uture phases o the development.

9,130 tonnes o timber was recycled and reused

Through good segregation, stackable plywood was sold to downstream markets. Large pieces o plywood

ormwork were cleaned and reused multiple times and discarded plywood used to make boxes or sae

on-site storage. Surplus timber was stockpiled until we could nd a solution, and was eventually sold to a

landscaping company and a waste-to-energy plant. When transported, the timber was shredded in order to

double the tonnage that could be hauled or each journey.

1,260 tonnes o metal was recycled and reused

Scrap or surplus metal was reused on-site or segregated and stored or collection by downstream merchant

companies.

85 tonnes o plastic was recycled and reused

Sot plastics (such as bags and lm) were segregated rom hard plastic (PVC) materials and sold. Where

possible, clean and undamaged PVC conduit o-cuts were sold to downstream markets as a reusable

product. Plastic water bottles were recycled at the project oces. In an eort to drive down plastic bottle

usage, a drive to use bulk water stations and reusable jugs and glasses was implemented.

55 tonnes o paper was recycled

Cardboard was segregated, balled and consigned to merchants or pulping and or use in the production o

brown paper.

Other innovations were used to reduce waste

Innovative lightweight masonry walling panels, preabricated staircases and preabricated service ductsallow quicker and less wasteul construction. The use o bathroom pods constructed o-site saved

approximately 8m3 o waste per pod compared to conventional on-site methods o bathroom construction.

We will develop a

waste management

plan and criteria for

improved performance


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Build

Environmental Protecon 2009

Total environmental protecon

expenditures and investments8.5 million AED

The area along Airport Channel had been approved or use in reclamation and backll or the Al Raha Beach

Development. However, ALDARs Environmental Impact Assessments noted that the mudats and mangroves to

the west o Yas Island supported large populations o shorebirds and waders, including Eurasian Spoonbills, an

uncommon species in the UAE.

When the areas importance as a habitat became clear, ALDAR, working in concert with authorities and local experts,

changed its dredging plans. The importance o the area has also been recognised by HH Sheikh Sultan bin Zayed,

then deputy prime minister o the UAE, who decreed that the mangroves, mudats and shallow sea to the north o

Sammaliah Island should remain in perpetuity as a Marine Protected Area.

ALDAR also observed that the area surrounding Yas Island contains the greatest diversity o species o all our project

locations, and is also an area visited by the endangered Green Turtle and critically endangered Hawksbill Turtle.

Indo-Pacic humpback dolphins, nless porpoise, and Dugong are other vulnerable species that we look out or

in our proposed developments around Yas Island, avoiding activities that will have signicant negative impacts.

However, the important habitats such as the most established and diverse seagrass beds and mangrove areas are

not directly impacted by the island or the activities, as they are some distance rom the island and separated by

channels and in some cases a wide intertidal area. As such this limits the direct eects o the proposed development

on these habitats. To our knowledge our other projects do not directly threaten the surrounding natural habitats.

As part o the regular environmental monitoring programme, Nautica Environmental Associates LLC, a locally-based

environmental consultancy was retained to undertake quarterly ecological monitoring o the site and surroundings,

ollowing their completion o the environmental baseline survey in 2005.

Protecting Abu Dhabis Wildlife

We will report on all

environmental protectionexpenditures .

Protecting the Emirates Biodiversity

ALDAR will do its part to preserve biodiversity in

Abu Dhabis mangroves and other natural habitats.

From the Design stage o a project, ALDAR

undertakes Environmental Impact Assessments to

ensure that we avoid or minimise any disruption to

the existing ecosystem. We have identied about

30 species on the IUCN Red List o ThreatenedSpecies in areas close to our operations, o which

nine are classied as vulnerable, near threatened,

endangered, or critically endangered; we plan our

developments with a view to preserving these

species.

Environment Agency - Abu Dhabi (EAD) Environment Agency - Abu Dhabi (EAD)


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ALDAR and MangrovesProtecting Our Environment

About three-quarters o the mangrove orests in

the United Arab Emirates are in Abu Dhabi. The

mangroves provide natural habitats or spawning

sh and aquatic wildlie, create a nesting habitat

or birds, preserve coastal areas against erosion

caused by wave and wind action, act as one o theew naturally occurring carbon sinks in the region,

and provide beautiul vistas that are a part o the

local culture and history.

The measures ALDAR is taking to protect

mangroves are particularly relevant to two

ALDAR developments, Al Gurm Resort and Yas

Island, as mangroves are an integral part o

both areas natural environment and appeal.

Both developments have required the removal

o mangroves, but ALDAR is actively managing

site activities through its CEMP to limit negativeimpactsand in both cases has replanted more

mangroves than were lost during development.

At Al Gurm, approximately 0.4 hectares o

mangrove orest were lost owing to land

acquisition. In 2009, ALDAR planted a total o

roughly two hectares, or over 74,000 mangroves,in areas around the site. Daily water quality testing

conrms that there has been no deterioration,

and modelling predicts that conditions and tidal

movement will continue to support mangroves.

On Yas Island, during the construction o the

Links Gol Course, ewer than 500 mangroves

had to be removed. ALDAR, with the help o His

Highness Sheikh Hamdan Bin Zayed, planted

115,000 mangrove trees between December

2008 and February 2009 opposite the Links GolCourse on the other side o the western channel.

Following planting, the mangrove area was visited

on a monthly basis throughout 2009 to monitor

progress and or basic maintenance; the survival

rate has been estimated to be 8085%.

We frequently liaise with and areinspected by EAD to ensure theyare satisfied with our protectionmeasures.

Our Commitment

Going orward, ALDAR will continue to

actively protect mangroves surrounding our

developments, and in 2010 we will develop and

undertake a mangrove survey programme across

our developments, with a view to reporting on the

ollowing key perormance indicators:

Total number o mangroves lost owing to

our activities

Total number and area (in hectares) o

mangrove planted

For mangrove areas already under our control, we

will report on total number o mangroves, density,

area covered, age, heights and health o the

mangroves.

We will seek to collaborate and engage with

external agencies, such as EAD and Emirates

Wildlie Society (EWS), in our mangrove surveys

and identiy opportunities to help raise public

awareness on the importance o mangroves in Abu

Dhabi. Because mangroves unction as a carbonsink, we will also take them into account in uture

carbon emission calculations or our activities.

We will developand undertake amangrove survey

programme acrossour developments


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Health and SaetyALDAR takes the health and saety o its employees andall who work on our behal seriously, benchmarkingglobal perormance standards. With approximately80,000 people working on ALDAR developments, healthand saety risks are high across our business. As wellas being our legal and moral responsibility, ensuringthe saety o our operatives also reduces the costso injuries and time away rom work, and promotesthe overall well-being o our sustainable liestylecommunities.

ALDAR has developed a robust Health, Saety, Securityand Environmental Management System (HSSEMS)that addresses the inherent risks o our constructionactivities. HSSEMS is implemented strictly in line withinternational and UAE-recognised standards, such asOHSAS and ISO and other best practices, in all ongoingprojects and owned, rented and managed assets.

To ensure that ALDARs risk and perormancemanagement systems stay current, a working groupmade up o representatives rom all departments oALDAR operations carries out annual reviews o healthand saety policies and perormance.

Because the vast majority o our workorce is involvedin high-risk construction activities, we make it a toppriority to track labour-specic indicators critical totheir health and saety and address issues immediatelyas they arise.

Setting the Standard or Health andSaety

The EAD has recently legislated that allcompanies and organisations in the UAEmust institute Environmental, Health and

Saety Management Systems, in accordancewith OSHAS 18001 and ISO 14001 standards.ALDAR has been asked by the Departmento Municipal Aairs to be a pilot organisationor the evaluation o this regulation inpractice; ALDAR will be the rst to undergoinspection under these new criteria. ALDARis honoured to be a pacesetter in healthand saety and we intend to report on ourperormance iin uture reports.

Leadership in Health and SaetyIn February 2009, Andrew Broderick, ALDARs

Head o Health and Saety, became theAbu Dhabi spokesperson or Build SaeUAE, a not-or-prot organisation aimed atimproving the health, saety and welareconditions o all construction industrystakeholders. By creating a platorm thatencourages companies to pool and shareinormation, Build Sae UAE hopes toprevent accidents by raising awarenessand communicating potential dangers andlessons learnt throughout the industry. Weare proud to be the rst master developer toormally become a ull signatory member oBuild Sae UAE. Upon ALDARs commitments

to Build Sae UAE, 80% o ALDARscontractors also joined the NGOs eortsin catalysing a saer construction culturethroughout the UAE.

Providing a SafeWorking Environmentand Promoting Well-being

We will aim for

a zero fatality

rate in 2010

We aim to

reduce the numberof first aid cases by

30%


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Health & Saety o ALDAR Construction Workers 2007 2008 2009

Fatalities 2 2 2

Lost time injuries over 3 days 11 35 71

LTIFR (lost time injury requency rate) 0.28 0.22 0.28

Lost time days 216 393 636

Medical treatment (hospital reerred) 219 1,474 1,371

First aid cases 2,931 4,917 6,267

Work-related illnesses (occupational illness) 0 2 23

Near-miss incidents 658 367 546

Average monthly total manpower on-site 17,787 49,677 70,123

Maximum incident-ree hours reached N/A* 74,284,709 1,587,494,067

Saety inductions 25,014 55,265 40,982

ALDAR HSE Meetings 475 1,671 2,315

Saety toolbox meetings 4,717 25,552 47,664

*Started tracking in November 2008

Over the last three years we have experienced

six atalities on ALDAR Developments. All o the

atalities have been directly work-related and

involved accidents where appropriate saety

precautions were not taken by individuals around

vehicles or equipment. ALDAR makes every

eort to review such incidents and implement

recommendations to prevent reoccurrences where

applicable.

With the growth o our developments and an

increase in the number o people and hours spent

working on them, we naturally saw more health

and saety incidents over the past three years.

However, we are pleased to report that our lost

time injury requency rate (LTIFR), which reects

how oten serious health and saety incidents

occur relative to the number o hours worked,

is less than hal the international standard o

0.60 (0.60 is also the UK construction industry

standard), averaging only 0.26 over the last three

years.

We hope to continuously lower injury rates by increasing awareness o health and saety risks and improving

saety standards. ALDAR has set ambitious health and saety perormance targets or upcoming years;

however, we understand that achieving these targets will take time. For the next year, our goals are as

ollows:

Everyone who works for an ALDARbacked project needs to understandthat their safety remains a priorityof the highest order for us. Frankly,it is irrelevant whether the teams ofpeople working on site are membersof the ALDAR Executive ManagementTeam or work for a contractorscontractor.

John Bullough, CEO ALDAR Properties PJSC

Health & Safety Targets 2009 2010 Target

Fatalies 2 0

Lost me injuries over 3 days 71 0

LTIFR (lost me injury frequency rate) 0.28


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Operative Well-Being

With ALDARs Operative Villages (OV), we have aimed to set a

new regional standard or worker care and well-being. ALDAR

recognises that good health is just one indicator o the quality

o lie. We also want our operatives to enjoy a balanced and

sustainable community. ALDAR has thus developed severalaccommodation options to cater to the needs o our operatives,

creating communities they can be proud to call home. All

necessary amenities are provided, including healthcare,

educational, and entertainment acilities. We are committed to

developing and tracking quality o lie indicators or residents o

our Operative Villages.

ALDAR will develop

and track quality oflife indicators for our

operatives in our OVs.

Our Operative VillagesA Sustainable Community in the Making

Beore ALDAR began constructing its 28 mega-developments spanning 52 million square metres across

the Emirate o Abu Dhabi, we had to consider accommodation or the more than 70,000 men and

women who were needed to make the projects a reality. Two Operative Villages (OVs) were operating

by the end o 2009: Yas Island OV has been ully unctional or all o 2009, and Mussaah OV became

operational in June 2009.

Diverse CommunitiesThe OVs are a mix o cultures, with 34 nationalities represented and eight standard languages used.

Though only 5% o the residences in one o the six Yas Island OVs are currently occupied by women,

emale occupancy should rise to 30%, or 600 women, by the end o 2010. To cater specically to

women, the security task orce has emale sta at all times and the medical clinic has emale doctors

and nurses on sta 24 hours a day. The Yas Island OV also houses a mosque with a capacity o 2,500 and

prayer rooms throughout the community. Individuals o dierent aiths are bussed into the city to their

respective places o worship. A community centre serves as an accessible venue or monthly eedback

sessions with camp bosses, contractor companies and acility managers.

Energy Consumption, GHG Emissions and Water

2009 Yas Island Operaonal Villages

Total capacity 35,000

Average occupancy rate 80%

Peak occupancy rate 94%

GHG emissions (CO2

equivalent) 34.7 million tons

Total diesel consumpon 2,697,142 gallons

Potable water consumpon 486 million gallons

Total waste water discharge (100% recycled) 228 million gallons

Yas Island OV has successully monitored energy and water consumption and waste management. It

is one o the only ALDAR developments that currently tracks its diesel use. The community recycles

100% o its waste water or on-site irrigation; waste water that is not used is ed to Yas Links Gol Course

Nursery. In this way, 47% o all potable water used onsite is recycled.


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The acilities` management is looking into new ways to reduce operating

costs through sustainable and environmentally riendly initiatives. ALDAR

is currently assessing the use o solar panels and water-ecient xtures to

reduce consumption rates.

Resident Health and Saety

ALDAR makes every eort to ensure that the healthcare needs o our operatives

are met, above and beyond regional standards. In order to provide accessible and

aordable access to medical care, our OVs have clinics open 24 hours a day, seven days a week. These

clinics are equipped with emergency rooms, X-ray machines, and isolation rooms. Each clinic tracks the

ve top diseases and medical issues, as well as rates o inectious disease, with trends monitored by

ALDAR. Free medical awareness camps are held once a month by Serve and Inspire, a group o volunteer

doctors, nurses and helpers who provide consultations, blood pressure checks, blood sugar tests, eye

tests, and when required, ree eyeglasses. They also oer ree lectures on good hygiene, H1N1 and other

health-related issues.

Yas Island OV employs over 150 sta to provide security or the community. Every serious incident is

recorded and monitored. The crime rate is low or a community this size, and over the past three years,

the community has seen ve deaths, all being natural deaths. All OVs are equipped with 75 re hoses

and 35 double-headed re hydrants. Fire drills are practiced and updated regularly, and maintenance o

re equipment is carried out periodically by certied remen.

Resident Well-Being

OV residents have access to a laundry service, an Internet cae, a money transer acility, a postal oce

and a corner store or daily staples. Two restaurants within each village provide variety rom the mess

hall. Construction workers are required to consume at least 3,500 calo

Documents

ALDAR Sustainablity Report 2009