Mabanee Sustainability Report
2023
SUSTAINABILITY REPORT 2023
TABLE OF CONTENTS
1. COMPANY PROFILE- AT A GLANCE | 6 |
1.1 Chairman's message | 10 |
1.2 CEO's Message | 12 |
1.3 Key Performance Highlights | 14 |
2. MABANEE'S PURPOSE AND STRATEGY | 16 | ||
2.1 Our Projects and Services- Responsible Investments and Key Features | 20 | ||
2.2 High level ESG integration across project lifecycle -Development of a real estate | 24 | ||
property | |||
3. SUSTAINABILITY COMMITMENT | 26 | ||
3.1 Sustainability Focus -Future roadmap | 28 | ||
3.2 Stakeholder Engagement | 28 | ||
3.3 Materiality Assessment | 30 | ||
4. OUR ENVIRONMENTAL STEWARDSHIP | 32 | ||
4.1 GHG Emissions | 34 | ||
4.2 Energy Management | 36 | ||
4.2.1 Energy Consumption & Management | 36 | ||
4.2.2 Key measures facilitating the energy reduction | 37 | ||
4.3 Water Management | 38 | ||
4.3.1 Water performance Total | 38 | ||
4.3.2 Water Efficiency Measures | 38 | ||
4.4 Waste Management | 39 | ||
4.4.1 Waste Performance | 39 | ||
4.4.2 Waste reduction measures | 40 | ||
4.5 Indoor Air Quality | 40 | ||
4.6 Green Building | 41 | ||
4.6.1 Implementing ESG consideration in the Project Phase | 42 | ||
4.7. Approach towards Climate Change | 44 | ||
4.8. Biodiversity | 44 | ||
4.9. Engaging with our Tenants | 44 | ||
5. OUR SOCIAL VALUES | 46 | ||
5.1 Employees | 49 | ||
5.1.1 Diversity and Equal Opportunity (Workplace Diversity) | 49 | ||
5.1.2 Gender Diversity | 49 | ||
5.1.3 Gender Pay Ratio | 49 | ||
5.1.4 Diversity by Age Group | 50 | ||
5.1.5 Non-discrimination | 50 | ||
5.1.6 Employees with Special Needs | 51 | ||
5.2 Talent Attraction | 51 | ||
5.2.1 Hiring mechanism | 51 | ||
5.2.2 Employee Career Path | 51 | ||
5.2.3 Fresh Graduate program | 51 | ||
5.2.4 Internship Program | 52 | ||
5.3 Talent Retention | 52 | ||
5.3.1 Employee Turnover | 52 | ||
5.4 Employee Engagement | 53 |
SUSTAINABILITY REPORT 2023
5.4.1 Employee Events and Feedback Response | 53 |
5.4.2 Grievance Mechanism | 53 |
5.5 Human Capital Development | 54 |
5.5.1 Employee Rights, Benefits, and Incentives | 54 |
5.5.2 Employee Trainings and Capacity Building | 54 |
5.5.3 Performance Evaluation and Appraisal | 58 |
5.5.4 Recognition of high performance | 58 |
5.5.5 Employee Succession Planning | 58 |
5.6 Kuwaitization | 59 |
5.7 Labour Law | 59 |
5.8 Occupational Health and Safety (OHS) | 59 |
5.8.1 OHS Management System | 60 |
5.8.2 OHS Policy | 60 |
5.8.3 Health and Safety Committee | 60 |
5.8.4. Hazard Identification | 61 |
5.8.5 Disclosure on Work hours, LTI (Loss Time Incidents), and Fatalities | 61 |
5.9. Health and Safety Trainings | 62 |
5.10. Tenants | 62 |
5.11. Customers | 63 |
5.12 Suppliers & Green Procurement | 64 |
5.12.1 Supplier Code of Conduct | 64 |
5.12.2 Mabanee's Procurement Manual | 65 |
5.12.3 Supplier Due Diligence | 65 |
5.13. Local Community & Citizenship | 67 |
5.14 Governmental Bodies | 69 |
6. OUR GOVERNANCE APPROACH | 70 |
6.1 How Our Leaders Shape ESG Governance | 73 |
6.2. Ensuring Board Effectiveness | 75 |
6.3. Driving Company's Sustainable Direction | 76 |
6.3.1 Governance Principles | 77 |
6.4. Roles Behind our Sustainable Outcomes | 80 |
6.4.1 Executive Management | 80 |
6.4.2 The Role of Our ESG Committee | 81 |
6.4.3 Maintaining Compliance and Ethical Standards in Business | 82 |
6.5 . A Closer Look at Our Policies | 83 |
6.5.1 Effective Risk Assessment Strategies | 83 |
6.5.2 Effective management of ESG Risks | 84 |
6.6. Strengthening Digital Assets | 85 |
6.6.1 Security Management | 85 |
6.7. Building a Better Stakeholder Experience | 87 |
6.8. Powering Efficiency through Digital Solutions | 89 |
7. ANNEXURES | 90 | |
7.1 | GRI Standard Index | 92 |
7.2 | Boursa Kuwait Sustainability Disclosures | 97 |
7.3 | List of Material Topics: Alignment with SDGs and Kuwait National Vision 2035 | 100 |
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SUSTAINABILITY REPORT 2023 | SUSTAINABILITY REPORT 2023 |
ABOUT THE REPORT
We are delighted to present our 7th sustainability report that encapsulates Mabanee's achievements and performance in relation to Environment, Social, and Governance (ESG) aspects, integral to our business operations. Upholding sustainability as a strategic guidepost, we align our initiatives with the United Nations Sustainable Development Goals and the New Kuwait Vision 2035. This report underscores our commitment to creating positive societal and environmental impacts while accentuating issues important to our stakeholders and business. We welcome you to join us in this ongoing journey towards resilience and sustainability.
The information presented in this report reflects Mabanee's activities for the 2023 calendar year (January 1 - December 31, 2023).
A GRI Index is attached at the end of this report.
For any queries, please contact us through:
Nora Zehery
Corporate Communications Manager
Mabanee Company K.P.S.C
P.O. Box 5132 Safat l 13052 Kuwait
-
22244441
zehery@mabanee.com
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SUSTAINABILITY REPORT 2023 | SUSTAINABILITY REPORT 2023 |
1. COMPANY PROFILE- A GLANCE
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SUSTAINABILITY REPORT 2023
1. COMPANY PROFILE - A GLANCE
Mabanee stands as a premier partner and real estate developer in the GCC region, guided by principles of sustainability, quality, and distinctive creativity. We dedicate ourselves to spearheading visionary projects which generate value for our shareholders and the communities we serve.
We are the proud owners and operators of The Avenues brand, an exclusive concept that couples shopping and entertainment, and offers a diverse array of retail, dining, leisure, and hospitality choices. In addition to this, Mabanee actively participates in a variety of projects spanning entertainment, tourism, and real estate ventures, featuring locations such as the Waldorf Astoria - Kuwait, Hilton Garden Inn - Kuwait, and Aventura - Kuwait.
With a commitment to uphold the highest standards of corporate governance, social responsibility, and environmental protection in all our business dealings and operations, Mabanee ensures excellence in its every endeavour. As a testament to our consistency and growth, Mabanee has been a publicly traded company on the Boursa Kuwait since 1999.
Our Key Sectors of Operation:
- Developing mixed-use destinations
- Operating and managing shopping malls
- Designing and managing projects
Mabanee's Subsidiaries:
Our operational reach exceeds beyond the boundaries of Kuwait, as we have expanded our activities to encompass Saudi Arabia and Bahrain as well. Together with our partners, we contribute to the development of some of the GCC region's most impressive and unique tourist spots, shopping locales, and hospitality destinations. Here, we shine a spotlight on our collaborations within these regions:
• Shomoul Holding Company (KSA)
We are proud to be part of Shomoul, a joint venture that reflects its vision of sustainability, innovation, and excellence. As a major shareholder of Shomoul Holding Company, a leading company in the Saudi market, we offer various projects in the fields of entertainment, tourism, and real estate. We own 80% of Shomoul, along with Saudi-based Al Fozan Group and Alshaya Group, two prominent groups with extensive experience in the Arab Gulf region and the Middle East.
• Sorouh Management Company W.L.L (Bahrain)
Mabanee is a strategic partner in Sorouh Management Company W.L.L, Bahrain, a company that owns and operates The Avenues - Bahrain, a leading shopping and entertainment destination in the Kingdom. We hold a 35% stake in Sorouh Management Company W.L.L, Bahrain, along with KFDC Finsher and United Retail Company, two reputable companies with extensive experience in the Bahraini market. Our partners are committed to delivering excellence and innovation in The Avenues - Bahrain, which offers a unique mix of retail, dining, leisure, and hospitality options.
Mabanee Footprint Across the Region:
Mabanee has been involved in a number of projects, including several large-scale developments, such as The Avenues in Kuwait, Bahrain, and Saudi Arabia. The company is also involved in the development of other residential and commercial projects.
SUSTAINABILITY REPORT 2023
Mabanee stands out as a unique company for successfully establishing and sustaining the brand of The Avenues, earning customer satisfaction and preference for over 16 years. The company's investments in time, capital, and human resources have allowed the brand to expand into other countries. Before diversifying, Mabanee solidified The Avenues brand and then carefully ventured into various sectors, accomplishing this task successfully. An added advantage is our strong relationships with major retail and hotel groups and international brands.
Awards/ Green Building Awards & Certification
Name of the Award | Description |
LEED Certificate | The first mall in Kuwait to obtain LEED silver certification for Operations and |
Maintenance by the U.S Green Building Council. | |
MEP Awards | The Avenues - Khobar won the Mechanical Project of the year title through the main |
project designer "Ramboll Company". | |
Luxury Lifestyle Awards | The Avenues - Bahrain won the award for "Best Luxury Sustainable Development" in |
Bahrain for 2023. | |
The Avenues - Kuwait: | |
1. Quality Management System - ISO 9001:2015 | |
2. Environmental Management System - ISO 14001:2015 | |
3. Occupational Health & Safety Management Systems - ISO 45001:2018 | |
4. Risk Management System - ISO 31000:2018 | |
ISO certifications 2023 | 5. Mabanee Company K.P.S.C- Procurement Department- ISO 37001:2016 |
6. Energy Management- ISO 50001:2018 | |
7. Asset Management system 55001:2014 | |
The Avenues - Bahrain: | |
1. Quality Management System ISO 9001:2015 | |
2. Occupational Health and Safety Management System ISO 45001:2018 | |
3. Facilities Management ISO 41001:2018 | |
Mabanee Highlights
Owns 32% of | Largest | KD 1.36 BN | 1,109,440,821 |
Real Estate | (USD 4.41 BN) | KD | |
Kuwait's market | Company | Total Assets | Market Cap |
share | |||
across Kuwait | |||
of the real estate | #1 in Kuwait #16 in MENA | ||
sector |
Company Snapshot
Kuwait, Bahrain, | KD 1,109,440,821 | 294 employees |
Kingdom of Saudi Arabia | ||
Market Presence | Market Capitalization | No. of employees |
KD 811,900 | KD 64,989,952 | KD 129,331,400 |
CSR expenditure | Net Profit | Total revenue |
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SUSTAINABILITY REPORT 2023
1.1 CHAIRMAN'S
MESSAGE
I am delighted to present to you Mabanee's 7th Sustainability Report as we stride forward in our journey of making real estate developments more sustainable and environmentally friendly in Kuwait and across the region. This report outlines our commitments, strategies, and achievements in aligning our business processes with the global sustainability benchmarks. It underscores our dedication towards building a future where our business growth is in harmony with the well-being of the society and environment.
Over the past years, we have witnessed unprecedented challenges associated with the global pandemic, causing disruptions across the world, and it has made us all realize the absolute necessity for sustainable and resilient systems. As a leading real estate company, we understand our profound responsibility to foster an eco-friendly construction culture and emphasize the need to adhere to responsible building practices.
Through our sustainability practices, we aim to reduce the environmental footprints, conserve resources, enhance energy efficiency, promote healthy living, and contribute towards the social cause, taking us a step closer to reinforcing our commitment towards sustainable development.
Part of our strategy for the year has been the implementation of green building practices across our projects. We have endeavoured to obtain recognized green certifications and aim to increase the number of green buildings in our portfolio. This not only reduces the environmental impact of our operations but also brings long-term value to our stakeholders.
We are constantly working to incorporate sustainability into our value-driven culture and business principles. To achieve this, we have stepped up our training and awareness campaigns among our employees, tenants and other stakeholders, and have incorporated sustainability criteria in our supplier evaluation process. In the realm of social sustainability, we have undertaken community awareness programs in the areas of health, education, skill development, and other developmental landscapes which have impacted the welfare and the standards of living of numerous families within our communities.
Our future growth will be measured not just in terms of financial profits, but also by the social and environmental return we can deliver. Achieving sustainability goals isn't an overnight task. It requires patience, consistency, and a united effort. As 'Custodian of the Built Environment, in Kuwait' we commit to embrace our immense sense of responsibility and seize the opportunities that the sustainable development agenda presents to us.
SUSTAINABILITY REPORT 2023
I thank each one of our stakeholders for being a part of our sustainability journey which empowers us to make our planet safer, inclusive, and sustainable for future generations. I am confident that with your continued support, guidance, and dedication we will be able to achieve our goal of a sustainable and prosperous future.
MOHAMMAD ABDULAZIZ ALSHAYA
Chairman, Board of Directors
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SUSTAINABILITY REPORT 2023
1.2 CEO'S
MESSAGE
Dear Stakeholders,
We take great pride in sharing our 2023 report and our ongoing commitment towards Environmental, Social, and Governance (ESG) initiatives, highlighting the effort we are making to transform Mabanee into an accomplished organisation prepared for the present and the future. Our leadership's commitment and operational efficiency have allowed us to create value in environmental and social domains. This strategy emphasizes on our firm belief in the advancement of our stakeholders and broader society.
The considerable strides made by the Kuwait government in diversifying the nation's economy, coupled with progressive legislation, facilitated an encouraging business climate. These conducive conditions enable us at Mabanee to continually innovate and expand our reach while fostering an inviting atmosphere for business ventures. As one of Kuwait's leading real estate companies, we fully comprehend and embrace our responsibility to contribute to the nation's growth and development. We are committed to green and inclusive development. Recognizing this, we see tremendous potential and opportunities to reduce the environmental footprint of our buildings by getting involved with different stakeholders and implementing effective changes in our value chain.
As part of our steadfast alignment with Kuwait Government's determination to achieve national goals by 2035, we endeavour to duly integrate Energy and Environmental Design (LEED) and ESG standards across our various projects. Our trajectory towards realizing LEED-certified investments is already in motion.
We strive to forge positive relationships with the communities that surround our assets, improving their quality of life through various CSR initiatives, job opportunities, and facilitating social and economic recovery. As it pertains to our enduring dedication to Corporate Social Responsibility, this year we delivered 84 public CSR events staged at The Avenues. These community-centric initiatives represented an investment of KD 811,900 underscoring our determination to driving positive societal change.
Our governance is rooted in the principles of honesty, accountability, and transparency. At Mabanee, we work diligently to ensure our organization's culture and procedures are designed to effectively manage risks while adhering to the highest standards of ethics, justice, and equality. This is demonstrated in the Board's approach to effective governance.
SUSTAINABILITY REPORT 2023
Our stakeholders' unwavering support has been instrumental in our journey thus far; hence, we take this opportunity to express our sincere gratitude for your role in our success. Whether you are customers, depending on us for sustainable developments, partners and communities supporting our operations, investors seeing our potential for long-term value creation, or our dedicated employees constantly driving our success - we kindly acknowledge your contribution.
Thank you for your continued support.
WALEED KHALED ALSHARIAN
CHIEF EXECUTIVE OFFICER
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SUSTAINABILITY REPORT 2023
1.3 KEY
SUSTAINABILITY REPORT 2023
ESG Parameters | Highlights 2023 | |
• Total Scope 1 Greenhouse Gas (GHG) | 1,640 (*Improvements in considering | |
emissions (mtCO2e) | additional categories under scope 1) | |
• Total Scope 2 Greenhouse Gas (GHG) | 87,322.8 | |
emissions (mtCO2e) | ||
Energy Consumption Intensity (kWh/m2) | 24% reduction in Landlord Controlled Energy | |
consumption w.r.t baseline year | ||
Water consumption Intensity (Imperial | 14% reduction in total water consumption | |
Gallons/m2) | intensity | |
• Waste recycling (kg) | 2,002,287 | |
• Total employees | 294 employees | |
• Total hours of training conducted | 4000+ hours | |
22.7% increase in the hiring of Kuwaiti | ||
• Diversity and inclusion | Nationals | |
SOCIAL | 9.4% increase in new female hires | |
• Active suppliers | Local Suppliers: 916 | |
Foreign Suppliers: 229 | ||
• Percentage of Kuwaiti employees in 2023 | 30 Kuwaiti employees associated with | |
Mabanee in 2023 | ||
• Board Diversity (Female board member) | 1 Board Secretary Female | |
• No. of independent directors | 2 | |
GOVERNANCE | ||
• Percentage of the number of women in | 18% | |
managerial positions | ||
• No. of whistleblowing instances | 0 | |
PERFORMANCE HIGHLIGHTS
ESG Rating
ESG Rating
Rater
- Sustainalytics
- Refinitiv
- MSCI
- S&P
2023
22.1
51
BB
26
2022
21.7
47
CCC
26
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SUSTAINABILITY REPORT 2023 | SUSTAINABILITY REPORT 2023 |
2. MABANEE'S PURPOSE AND STRATEGY
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Mabanee Company KPSC published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 05:27:16 UTC.