QATAR GAS TRANSPORT COMPANY LTD.

“NAKILAT” QPSC

ENVIRONMENTAL
SOCIAL AND GOVERNANCE
ESG REPORT
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0
2
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 IN THE NAME OF ALLAH
THE MERCIFUL AND THE GRACIOUS

His Highness His Highness

Sheikh Tamim Bin Hamad Al Thani Sheikh Hamad Bin Khalifa Al Thani
Amir of the State of Qatar Father Amir
CONTENT NAKILAT ESG REPORT 2022

1. INTRODUCTION 5. SOCIAL
1.1 Environmental, Social and Governance (ESG) Report 01 5.1 Health, Safety and Wellbeing 55
1.2 Message from the CEO 03 5.2 Human Capital and Employee Relations 73
5.3 Diversity and Inclusion 83
2. BUSINESS OVERVIEW 5.4 Responsible Procurement and Supply Chain 85
5.5 Community Engagement 89
2.1 About Nakilat 05
2.2 Financial Performance Summary 09
6. GOVERNANCE
3. APPROACH TO ESG MANAGEMENT 6.1 Corporate Governance, Compliance and Ethics 92
6.2 Anti-Bribery, Anti-Corruption and Fair Competition 96
3.1 ESG Strategy and Statement 10
6.3 Risk and Crisis Management 98
3.2 ESG Governance 11
6.4 Information Security and Data Privacy 104
3.3 Stakeholder Management 13
6.5 Tax Transparency 105
3.4 Materiality Assessment 15
3.5 External ESG Commitments and Partnerships 19
7. ASSURANCE REPORT
4. ENVIRONMENT 7.1 Independent Limited Assurance Report 106

4.1 Environmental Management and Compliance 22

4.2 Climate Change and Emissions to Air 33 8. APPENDIX: ESG REPORTING FRAMEWORKS AND DATA
4.3 Energy Efficiency and Water Consumption 39 8.1 ESG Data Summary 109
4.4 Ocean Health and Biodiversity 46 8.2 Global Reporting Initiative (GRI) Content Index 121
4.5 Waste Management and Ship Recycling 50 8.3 United Nations Global Compact (UNGC) 128
8.4 Sustainability Accounting Standards Board (SASB) 129
8.5 Vessel AER/EEOI Data 138
8.6 List of Abbreviations and Definitions 141
 1. INTRODUCTION NAKILAT ESG REPORT 2022

1.1 About this Environmental, Social and

Governance (ESG) Report
2022 ESG Report is the third annual ESG Report issued by Nakilat
(Qatar Gas Transport Company, Symbol: QGTS) to inform our
internal and external stakeholders about Nakilat’s management
approach, strategy, and performance for key environmental, social
and governance risks and opportunities, and the progress made
during the year 2022. This report complements Nakilat’s 2022
Annual Report and 2022 Corporate Governance Report, which
integrate ESG information. The report content was developed to
align with our most material ESG topics and ESG strategy, across
our operations, supply chains, and the communities where we live
and work. Nakilat remains committed to transparency through
public disclosure of accurate and reliable non-financial performance
data.

Reporting Period Currency

This 2022 ESG Report covers Nakilat’s most ESG topics from and Verification (MRV) of CO2 emissions; and the International All financial data within this ESG Report is shown in Qatari Riyals (QAR), unless stated otherwise.
January 1st, to December 31st, 2022, in line with the financial Maritime Organization’s (IMO) Data Collection System (DCS) on
reporting period. The ESG Report intends to inform Nakilat’s fuel consumption. This year’s report does not entail any significant External Assurance
stakeholders of the implemented management approach for key changes in the reporting scope (topic boundaries) compared to
Our external auditor KPMG provided an independent limited assurance under ISAE 3000 (Revised) on the preparation of this ESG Report in
corporate ESG elements, challenges and trends, as well as the our previous ESG Report 2021. The list of material topics has
accordance with the GRI Standards. Furthermore, EY provided independent third-party assurance on Financial Statements and Corporate
progress against our ESG strategy and goals throughout the year of been updated as per the GRI Universal Standards 2021 (GRI sector
Governance Report for the year 2022. Nakilat’s ESG Committee, composed of Nakilat executives, endorsed Nakilat’s ESG Report to receive
2022. The 2021 ESG Report was published in January 2022. standards for Oil and Gas sector 2021).
external assurance.
Reporting Standards Scope and Boundaries

This report has been prepared in accordance with the GRI Standards Our reporting principles are based on those set out in the GRI
for the period from January 1st 2022 to December 31st 2022, indexed Standards and the report boundaries apply to all Nakilat group Feedback
on page 121. As a testament to our commitment to proactive entities, unless stated otherwise. In 2022, Nakilat’s shipping
transparency, we have also taken into our consideration other segment represented more than 90% of Nakilat’s revenues. In We welcome feedback on this report and any aspect of our ESG performance.
internationally recognized external frameworks and standards, addition, Nakilat’s fleet internationally operates (load and discharge)
Mr. Fotios Zeritis,
including Sustainability Accounting Standards Board (SASB), UN at different countries’ terminals in Europe, Asia, and North America,
Global Compact (UNGC), and Sustainable Development Goals among others. Head of Investor Relations & ESG Reporting, [email protected]
(SDGs). Furthermore, we disclose Greenhouse Gas (GHG) emissions
Mr. Rabie Baijou,
data based on the GHG Protocol Corporate Accounting and
Reporting Standard; the European Union (EU) Monitoring, Reporting ESG & Investor Relations Senior Officer, [email protected]

Qatar Gas Transport Company Ltd. (Nakilat)

Nakilat Headquarters
Shoumoukh Towers B, C Ring Road
PO Box 22271
Doha, State of Qatar
Tel: +974 4496 8811
Fax: +974 4448 3111

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 1.2 MESSAGE FROM THE CEO NAKILAT ESG REPORT 2022

Despite an unprecedentedly high-interest rate environment, that sustainability is a journey, and we are committed to
tightening monetary policy, and geopolitical uncertainty, Nakilat continuously improving our practices and performance. We believe
continues to meet the growing clean energy transportation demand that by working together, we can create a more sustainable and
responsibly, by balancing the environmental, social and governance equitable world for generations to come.
aspects of sustainability, steered by addressing climate-related
risks, excellence in health and safety environment, solid We look forward to many more milestones in the sustainable
governance, and ethical business practices. As a recognition of the growth of our company.
company’s commitment to effectively manage its health and safety
WE BELIEVE THAT BY risks, we were awarded, consecutively for the fih time, the Sword
of Honor Award by the British Safety Council, which represents the
WORKING TOGETHER, WE CAN pinnacle of achievement in the world of health and safety
CREATE A MORE management. Winning the award for five consecutive years shows
consistency in maintaining HSE standards in line with industry best
SUSTAINABLE AND practices. All these efforts come as part of Nakilat’s drive to
become a global maritime sustainability leader and to make a
EQUITABLE WORLD FOR positive impact on the world.
GENERATIONS TO COME Nakilat’s Board of Directors and senior management believe that
transparency and accountability are critical to achieving our ESG
goals, and this report is a demonstration of our commitment to
both. Our ESG Report is more than just a document - it is a
reflection of our values and a roadmap for our future. We recognize

Eng. Abdullah Al-Sulaiti

Chief Executive Officer

On behalf of Nakilat, I am pleased to present Nakilat’s 2022 Environmental, Social, and Governance (ESG) Report, which
highlights our commitment to sustainability and responsible business practices.

At our company, we understand that sustainable practices as ESG ESG matters continue to pave the way for us and have been
actions are not just a moral imperative, but a business necessity, as embedded in our commitment to deliver clean energy to the world
we recognize our significant role in promoting responsible consistently, reliably, and sustainably. In all these years, Nakilat has
environmental stewardship throughout the maritime value chain. been consistently compliant with the policies and regulations of the
Since the company’s inception, Nakilat’s Board of Directors and International Maritime Organization (IMO) and we will continue to
senior management have been committed to continuously be compliant with IMO’s revised regulations including its ambition
providing the required and expected transparency to meet its for greenhouse gas (GHG) emissions to reduce shipping’s total
stakeholders’ long-term expectations, as we have been producing annual GHG emissions. All these IMO industry decarbonization
our sustainability reporting since 2014. measures will ensure GHG emission reductions in the short,
medium, and long-term.
This year’s report is a testament to our progress towards
sustainability approach to address ESG’s prominent issues for Our focus is on the sustainable development of Nakilat’s fleet
sustainable operations, including elements related to climate beyond 2030, which contributes towards the realization of Qatar
change, social responsibility, supply chain management, as well as National Vision 2030.
cybersecurity, and good governance. For determining our material
topics for ESG Report 2022, we have extensively consulted a wide We intend to continue investing in the most technologically
range of stakeholders, recognizing that their unique insights advanced ships, industry pilot projects, and partnerships that have
provide valuable and continuous contribution to Nakilat in this the potential to enable further decarbonization of our energy
regard. The identified material topics are not solely based on transportation.
internal considerations but also aligns with our stakeholders’
perspectives and interests. Such consultative approach fortifies our
commitment to transparency, accountability, and sustainability.

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 2. BUSINESS OVERVIEW NAKILAT ESG REPORT 2022

74 vessels
NSQL
operated vessels

69* LNG 25 LNG

carriers carriers

4 LPG 4 LPG
carriers carriers

1 FSRU 1 FSRU
*includes 1 newbuild

ONE OF THE WORLD’S •

•
Technologically Advanced
Environmentally Sound
Customer Engagement

LARGEST GAS FLEET •

•
Cost Efficient
Majority on Long-Term Charter Agreements
Nakilat’s market dominance directly stems from our unwavering
commitment to customer centricity. Creating value for our
customers is at the center of our operations, enabling us to make
operational matters, associated with specific voyages or the charter.
Broadly and formally, the current typical channel of communication
and escalations is Nakilat’s commercial department. Nevertheless,
significant contributions to every aspect of the maritime services. we are currently exploring the adoption of a formal management
Our strategic formula hinges in maintaining close customer approach to customer engagements and managing customer
engagement to continually enhance our brand’s value. With the help relationships. The anticipated enhancements in customer
2.1 About Nakilat of an annual customer satisfaction survey, we gather feedback from engagement would enable Nakilat to gain a deeper level of insight
Established in 2004, Nakilat is a shipping and maritime company Company (NAC) at all Qatari ports and terminals, as well as Nakilat’s strategic and priority customers. This survey includes into the market forces, emerging technologies, risks and other
based in the State of Qatar. A global leader in energy transportation, towage and other marine support services through its joint elements to capture our customers’ insight into our commercial factors affecting customer expectations and needs.
Nakilat owns one of the world’s largest Liquefied Natural Gas (LNG) venture NSW. The company’s Vessel Support Unit (VSU) offers operations, responsiveness to their needs, flexibility in meeting
Nakilat is committed to offering exceptional customer service, and
shipping fleet, consisting of 69 LNG carriers, 4 LPG carriers and one chandlery, storage, and logistics services for vessels operating their market requirements, and our ability to provide proactive
this approach involves delivering effective and reasonable solutions
floating storage regasification unit (FSRU), providing the essential in Qatari waters. solutions to the customers’ challenges. This enables Nakilat to
to their grievances. Historically, Nakilat’s customer grievances have
transportation link in Qatar’s LNG supply chain. Through its wholly recalibrate, striving for perpetual improvements while identifying
Markets and Customers Served been addressed in a structured manner, with the establishment of
owned subsidiary, Nakilat Shipping Qatar Limited (NSQL), the and monitoring our customers’ expectations and needs; hence,
an appropriate baseline honoring the mutually agreed contractual
company manages 25 LNG carriers, as well as owns, manages and providing them with high-quality services and products.
Nakilat’s headquarters is in Doha, Qatar, while transportation terms, and a further investigation into any concerns. Customer
operates one (FSRU and four Very Large LPG carriers (VLGCs).
services are offered in various locations internationally. Our customers enjoy the flexibility to engage in open, direct, and grievances are handled by qualified and experienced teams and
In addition to its core shipping activities, Nakilat operates the Nakilat’s LNG vessels have loaded in 26 countries and seamless communication with their respective stakeholders escalated to appropriate levels of management as needed.
Erhama Bin Jaber Al Jalahma Shipyard in Ras Laffan Industrial discharged in 26 countries in more than 95 terminals in 2022. or counterparts within Nakilat. For instance, customers can
City, providing comprehensive ship repair and offshore fabrication directly communicate with Nakilat’s operations team(s) for vessel
Our customers are predominantly LNG producers and major
services through N-KOM and Qatar Fabrication Company (QFAB).
international energy companies.
It also provides shipping agency services through Nakilat Agency

764 10% 58+ million MT

LNG Cargos Global LNG Shipping Volume of LNG
Shipped in 2022 Capacity (appx.)* Shipped in 2022

26 95 Note:
Countries Ports of Call *Global LNG Shipping Capacity: this calculation
Delivered to Worldwide excludes FSRUs

5 6
 2. BUSINESS OVERVIEW (continued) NAKILAT ESG REPORT 2022

Values Definition
Setting the Purpose, Values and Strategy
We are honest with others and ourselves. We meet the highest ethical standards in
An annual off-site meeting is convened involving the CEO and the Senior Management Team (SMT) to review Nakilat’s strategy and to all business dealings. We accept responsibility and hold ourselves accountable for
deliberate on potential internal and external opportunities and business risks. Preceding to the meeting, internal and external information • Integrity: Honesty with sound moral
our work and our actions. Our leaders encourage this virtue within the workforce by
is collected from employees across various levels, departments and key customers. The outcomes of the off-site meeting are documented principles
fostering an open dialogue on all issues among all employees. At Nakilat, we regard
and presented to the entire organization. These results constitute of a pivotal component of the strategy update and the new business and reward employees for demonstrating integrity.
development plan.
We respect and support each other, and we strive to earn the complete trust of our
• Respect: Value other’s diversity and
colleagues and partners. We are committed to maintaining an environment of trust,
perspective
built upon honesty, ethical behavior, respect, and candor.

We place the highest priority on the health and safety of our workforce and strive
for the protection of our assets and the environment in which we operate. Nakilat’s
• Safety: Incident and injury free constant attention to safety is the cornerstone upon which we build success. We are
committed, individually and as a team, to protecting the public health and safety of our
team members, and our assets.

We encourage and value the uniqueness of individuals and the varied perspectives and
talents they provide. Nakilat’s most powerful asset for achieving its mission success
• Encouragement: Be motivated and
is a multidisciplinary team of diverse, competent individuals across the organization.
motivate people around you
Our approach to teamwork is based on the philosophy that each team member brings
unique experiences and important expertise to the organization.

We are committed to excellence and are passionate about achieving results that
• Passion: Strong commitment towards exceed expectations. To achieve the highest standards in safe energy transportation,
continuous improvement Nakilat is committed to nurturing an organizational culture in which individuals make
valuable use of their time, talent, and opportunities to pursue excellence.

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 Total Income G&A Employees Costs* Paid Dividends Social and Sports Fund Contribution
(billion QAR) (billion QAR) (billion QAR) (million QAR)

2017 3.62 2017 0.08 2017 0.55 2017 0.02

2.2 FINANCIAL
2018 3.64 PERFORMANCE SUMMARY
2018 0.08 2018 0.55 2018 0.02 3. APPROACH TO ESG MANAGEMENT NAKILAT ESG REPORT 2022

2019 3.88 2019 0.08 2019 0.55 2019 0.03

Direct
2020Economic
4.02
Value Generated and Distributed 2020 0.06 2020 0.61 2020 0.03 3.1 ESG Strategy and Statement
The consolidated financial statements of the Group have been prepared in accordance with the International Financial Reporting Standards Our Environmental, Social and Governance (ESG) strategy consists of within our company and across our value chain. Our commitment to
2021 4.14 2021 0.07 2021 0.67 2021 0.03
(IFRS) issued by the International Accounting Standards Board (IASB) and in compliance with Qatar Commercial Law No. 11 of 2015, whose these strategic focus areas is formalized through our ESG statement.
certain
2022provisions
4.40 were subsequently amended by Law No. 82022
of 2021,0.07
as applicable. 2022 0.72 2022 0.04

ESG Statement Economic Impacts and Supply Chain:

As a company with one of the world’s largest gas • Improve and sustain our financial position to
G&A
G&A Operating
Employees
EmployeesCosts
Costs*
Costs* Paid
Paid
Dividends
Dividends Social
Social
and
and
Sports
Sports
Fund
Fund
Contribution
Contribution fleet delivering clean energy globally, Nakilat is maintain the shared value with all the economies
(billion (billion
(billion QAR) QAR)
QAR) (billion
(billion
QAR)
QAR) (million
(million
QAR)
QAR)
continuously committed to the Qatar National we serve, including the State of Qatar
20172017 Vision 2030, which serves as a transformative
2017 0.080.08 0.70 2017
2017 0.550.55 2017
2017 0.020.02 • Ensure responsible sourcing of goods and
roadmap for Qatar, harmonizing economic growth
services and prohibit any kind of human rights or
20182018
2018 0.080.08 0.68 2018
2018 0.550.55 2018
2018 0.020.02 with the sustainable management of its human
environmental infringement in our supply chain
and natural resources, thus propelling the nation
20192019
2019 0.080.08 0.70 2019
2019 0.550.55 2019
2019 0.030.03 towards a prosperous future. This vision constitutes Employees:
a beacon that guides economic, social, human and
20202020
2020 0.060.06 0.73 2020
2020 0.610.61 2020
2020 0.030.03 environmental development of the country in the • Ensure career development, training, life-long
coming decades, so that it is inclusive and beneficial learning, and employability
20212021
2021 0.070.07 0.75 2021
2021 0.670.67 2021
2021 0.030.03
for the citizens and residents of Qatar in various
• Provide an excellent workplace, which includes
aspects of their lives.
20222022
2022 0.070.07 0.76 2022
2022 0.720.72 2022
2022 0.040.04 promoting social welfare, respecting of
In line with Nakilat’s Vision and Mission statements, ergonomics and caring for employee’s wellbeing and
Total Total
IncomeIncome G&A Employees Costs*Costs*
G&A Employees Paid Dividends
Paid Dividends SocialSocial
and Sports Fund Fund
and Sports Contribution
Contribution
Code of Business Ethics and Conduct, and Safety, reducing stress
(billion QAR)
(billion QAR) (billion QAR)
(billion QAR) (billion QAR)
(billion QAR) (million (million
QAR) QAR) Health, Environment and Quality (SHEQ) policy, our
ESG commitments cover all areas of operations, Governance, Ethics and Compliance:
2017 2017
3.62 3.62 2017 2017
0.08 0.08 2017 2017
0.55 0.55 2017 2017
0.02 0.02 including:
• Operate ethically by maintaining the highest
2018 2018
3.64 3.64 2018 2018
0.08 0.08 2018 2018
0.55 0.55 2018 2018
0.02 0.02 Safety, Health and Environment: levels of fairness, integrity, transparency and
accountability in all markets where we operate
2019 2019
3.88 3.88 2019 2019
0.08 0.08 2019 2019
0.55 0.55 2019 2019
0.03 0.03 • Ensure the health and safety of all our
• Prevent any kind of misconduct including fraud,
employees, prevent occupational injuries, and
2020 2020
4.02 4.02 2020 2020
0.06 0.06 2020 2020
0.61 0.61 2020 2020
0.03 0.03 conflict of interest, anti-corruption, or anti-
ensure employees’ well-being
competition
2021 2021
4.14 4.14 2021 2021
0.07 0.07 2021 2021
0.67 0.67 2021 2021
0.03 0.03 • Adopt measures to minimize environmental
impacts of our operations including energy, GHG
2022 2022
4.40 4.40 2022 2022
0.07 0.07 2022 2022
0.72 0.72 2022 2022
0.04 0.04 emissions, waste, and biodiversity

* G&A Employees Costs includes cost items directly related to

the employee’s job function, such as training.
Responsible and sustainable business practices are integral to our long-term success and our dedication to ESG principles. Our business
Operating CostsCosts
Operating strategy revolves around this commitment, and we strive to continually enhance our performance in these domains. We firmly believe that
(billion QAR)
(billion QAR) by prioritizing ESG, we do not only secure our own prosperity but also contribute to the wellbeing of the communities we serve.

2017 2017
0.70 0.70

2018 2018
0.68 0.68

2019 2019
0.70 0.70

2020 2020
0.73 0.73

2021 2021
0.75 0.75

2022 2022
0.76 0.76

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 3.2 ESG GOVERNANCE NAKILAT ESG REPORT 2022

Nakilat’s ESG Committee has the following key responsibilities:

• Oversee the ESG strategy, policies, and business practices throughout the Group

• Oversee ESG reporting and external disclosures, in accordance with international standards and industry best practices

• Ensure the Group compliance with applicable laws and regulations concerning ESG

• Oversee the ESG due diligence process for potential investment and provide recommendations on outcomes

• Review and approve ESG topics of strategic importance to the company

• Assess feedback from external stakeholders regarding to material ESG topics and provide guidance and direction to senior
management

• The CEO, who serves as the Chairman of the ESG Committee, updates the Board of Directors on ESG related impacts on the company
and progress made in ESG risk mitigation

When appropriate, the Committee may delegate all, or a portion of its duties and responsibilities, to one or more sub-Committees when
deemed appropriate. Each sub-Committee shall have the full power and authority of the Committee, regarding the matters delegated.

ESG Organogram

Board of Directors
Social, and Governance) and are responsible for the day-to-day
By emphasizing transparency, ethical conduct, and responsible
management of Nakilat’s ESG reporting, data collection and
leadership, we aim to foster a culture of sustainability and resilience
consolidation. The ESG Task Force reports to the ESG Committee
throughout our business. Below we provide a comprehensive over- ESG Committee
and meets regularly to drive continuous improvement in the
view of how we uphold and integrate ESG considerations into our
management of Nakilat’s ESG performance. Further, the ESG Task
decision-making processes, organizational structure, and account-
Force also engages in discussions on the prevalent global and
ability frameworks.
national ESG developments, disclosure requirements, and their
impacts on Nakilat. Environmental
ESG Committee Charter ESG Task Force
Working Group
In 2021, Nakilat established the ‘Environmental Working Group’
The ESG Committee comprises of Nakilat’s Executives. The (EWG) to further extend support to the ESG Committee, in
committee provides regular updates to the Board of Directors, who the capacity of a subject matter expert for Nakilat’s material
holds overall accountability for all ESG-related matters across the environmental topics. The EWG was established to provide
Group. relevant environmental information and recommendations to
The ESG Committee meets regularly and at least twice a year the ESG Committee, including policies, strategies, initiatives, Environment Team Social Team Governance Team
and is responsible for maintaining oversight of the company’s measurements, and monitoring of actions to enhance the
strategies, policies and risks related to environment, social and environmental component of Nakilat’s ESG performance. Nakilat
governance topics. This encompasses all these topics identified as seeks excellence in all areas across the organization by pushing
having a material impact on the business such as climate change, the boundaries to explore opportunities beyond the compliance
GHG emissions, energy consumption, health and safety, human requirements with the aim of reducing the environmental impact in
capital, human rights, good corporate governance, and community line with the Paris Agreement, IMO GHG strategy and Qatar Vision
engagement. 2030.

The Committee is supported by the ESG Task Force composed of

senior employees who represent each ESG pillar (Environment,

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 3.3 STAKEHOLDER MANAGEMENT NAKILAT ESG REPORT 2022

Engaging with stakeholders is crucial to Nakilat’s success and the development of our sustainable strategy and efforts. Nakilat’s ESG
strategy and approach were developed following extensive consultation with key internal and external stakeholders. The engaged include
customers, investors, shareholders, employees, suppliers, students, community members, and government entities.

The channels for engagement can be found in the figure below:

STAKEHOLDER GROUP WHO THEY ARE ENGAGEMENT PLATFORM ACTIVITIES

• Regular forums and meetings with • Close contact with charterers is maintained through
Business Partners and Leading shipping and maritime companies from around business partners regular meetings and participation in key industry events
Joint Venture Companies the world who collaborate with Nakilat to meet our • Periodic audits
growth strategy

Major charterers • Close contact with charterers is maintained through regular quarterly meetings and a customer satisfaction survey
Customers twice per year
(local and international companies)

Pillars of the organisation • Annual employee forum, regular surveys and questionnaires
Employees
200+ employees at Nakilat and 1100+ total crew

Suppliers and Service Vendors and businesses whom we procure goods or • Timely updates on business requirements, with an emphasis on procurement from the local market
Providers services from 200+ suppliers

• Nakilat is a Qatari listed company that owns, • Nakilat strives to protect the interests of investors
Any person or other entity who commits capital with the operates and manages LNG/LPG vessels, provides by way of following corporate governance and
expectation of receiving financial returns shipping and marine-related services to a range of keeps them informed about its financial state of
Investors participants within the Qatari hydrocarbon sector, affairs by publishing quarterly and annual financial
and serves international customers reports on the Qatar Exchange and issuing annual
governance report

• Conformance to laws and regulations towards operating in safe, efficient and reliable manner, as well as spurring
Government and Regulatory Policy makers local socio-economic growth
Authorities

Local Community Communities within the area of our operations • Implement various initiatives aimed at contributing to the society at large (corporate social responsibility)

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 3.4 MATERIALITY ASSESSMENT NAKILAT ESG REPORT 2022

The Process of Nakilat’s Materiality Assessment:

Materiality assessment is a critical process for our organization perspectives and interests of each stakeholder group, appreciating
to identify and prioritize the most prominent ESG issues that their input will enrich our decision-making and shape our
relevant to our business operations, stakeholders, and overall future actions.
sustainability strategy.
By extensively consulting our stakeholders, we ensure that the
Nakilat undertakes a periodic evidence-based review of its process of determining material topics is not a unilateral exercise
material on ESG topics in accordance with the GRI Standards. but a collaborative effort. The most significant ESG topics for our
This entails industry analysis, peer benchmarking, external stakeholders form the basis for the development of Nakilat’s ESG
stakeholder surveys, and internal validation by the ESG Report, and subsequently, respective disclosures of the material
Committee. topics. The prioritization also helps inform the evolution of Nakilat’s
ESG strategy and level of ambition for certain topics.
In 2022, as part of the identification of key ESG risks and
opportunities, we conducted a high-level overview of our In 2022, based on the results from the assessment process,
activities and business relationships, the sustainability context, twelve material topics were prioritized and generated Nakilat’s
and an overview of our stakeholders, which provided us ESG materiality matrix, plotting the company’s priority topics Identification and benchmarking Assessment and stakeholder engagement Prioritization and determining
with information for identifying actual and potential impacts, against stakeholder importance, and the significance of impact Following the use of GRI’s sector We engaged with internal and external material topics
if any. To help identify material ESG impacts, we engage on Nakilat’s business. This prioritization followed the assessment standards and considering topics and stakeholders through surveys and engaging The identified ESG material topics
through various methods and processes transparently and of GRI’s sector standards (Oil and Gas Sector 2021), the GRI’s impacts described in the GRI sector sessions to assess identified ESG topics. are tested and prioritized based on
through open communication channels every two years across topic standards, industry benchmarking, analysis of selected standards (Oil and Gas Sector 2021), their importance to stakeholders
our activities and business relationships with internal and international ESG rating agencies and assessment of stakeholder benchmarking was then conducted Examples of external and internal and Nakilat’s business. Nakilat’s ESG
external stakeholders, including groups and individuals. These surveys. The materiality matrix forms the basis for reporting and encompassing shipping industry peers stakeholder groups Committee and ESG Task Force have
stakeholder groups include shareholders, investors, suppliers, disclosure of the organization’s sustainability approach, providing across sector leaders to further identify overseen the process, reviewed and
relevant ESG topics and best practices.
• Investors
approved the material topics.
joint ventures partners, charterers, ship classification societies, a clear and transparent overview of the company’s sustainability
employees, ESG specialists and ESG rating agencies, among risks, opportunities, and performance. We utilize industry recognized external • Shareholders
others. Through this stakeholder dialogue, we assess and map ESG rating assessments to assist this
the relevance of ESG topics that impact our business and the
Nakilat’s ESG materiality assessment process below illustrates how process. • Ship Classification Societies
we identify, engage, and take action surrounding the key identified
wider society.
material topics of greatest interest to our stakeholders regarding
• Suppliers
Categories of the material issues:
We employ various methods to gather inputs from stakeholders. Nakilat’s environmental, social, and governance performance. In • JV Partners
We conduct surveys to collect information, enabling us to addition, Nakilat has internally tested and reviewed its selection 1. Environment
gain a broad understanding of their priorities. We also engage of material topics against the topics in the applicable GRI Sector • Charterers
2. Human rights
discussions to delve deeper into market experiences and Standards for Oil and Gas Sector 2021. • Brokers
expectations. These interactive sessions allow us to capture the 3. Human resources and labor practices
nuances and complexities of their viewpoints. • Financial Institutions
4. Corporate governance, compliance
Throughout the consultation process, we listen attentively, valuing and risk management • Insurers and P&I Club
every voice and opinion. We seek to understand the unique • Flag State
5. Social and community relations
• C-Suite Executives

• ESG Committee

• ESG Task Force

• Middle-Management

• Employees

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 3.4 MATERIALITY ASSESSMENT (continued) NAKILAT ESG REPORT 2022

NAKILAT’S ESG MATERIAL TOPICS:

Social

• Occupational health and safety

• Employment practices HIGH

• Responsible procurement and supply chain

Energy
• Diversity and inclusion Efficiency and
Resource Use
• Local communities
Risk and Crisis
Management

Anti-Bribery and
anti-corruption

Occupational
Health and Safety GHG and
Air Emissions

Stakeholder Relevance
Corporate
Governance and
Compliance

Biodiversity and
Ocean Health
Information Security /
MEDIUM Cyber Privacy
Nakilat’s Material
ESG Topics Employment
Practices

Responsible Procurement
Governance and Supply Chain
• Corporate governance and
compliance
Diversity and
• Anti-bribery and anti-corruption Inclusion

• Risk and crisis management

• Information security/cyber
security
Local Communities
Environment
• Energy efficiency and
resource use LOW MEDIUM HIGH
• GHG and air emissions
• Biodiversity and ocean Significance of Impact
health

17 18
 3.5 EXTERNAL ESG COMMITMENT AND PARTNERSHIP NAKILAT ESG REPORT 2022

External Initiatives and Membership Organizations External Awards

International and National Frameworks

The State of Qatar has placed an emphasis on environmental protection and sustainable development, with all of the country’s
stakeholders committed to achieving the objectives of Qatar National Vision (QNV) 2030 and the United Nations’ Sustainable
Development Goals. At Nakilat, we are committed to the objectives of Qatar National Vision 2030 and the United Nations’ Sustainable
Development Goals, which is underscored by the fact that we have closely aligned and developed our corporate and ESG strategies to
reflect and achieve these objectives.
The International Seafarers’ Welfare and Assistance British Safety Council’s Occupational Health and Safety
Network (ISWAN)
Nakilat has been awarded ‘Sword of Honour’ by the British Safety
Qatar National Vision (QNV) 2030 ISWAN is a membership organization that promotes and supports Council, UK for the fifth consecutive year. By receiving this award
the welfare of seafarers worldwide. It has a 24-hour, multilingual for five consecutive years, Nakilat has demonstrated that its safety
Launched in October 2008 by the General Secretariat for Development Planning in the State of Qatar, QNV 2030 is a development plan aimed helpline called ‘Seafarer Help’ which has been provided to Nakilat’s standards have been continually improving and thus maintained at
to transform Qatar into an advanced society capable of achieving sustainable development by 2030. To aid with its implementation, QNV is seafarers as a direct welfare service that can support mental health par with the global standard of excellence.
supported by the National Development Strategy, which is set every 5 years. QNV 2030 consists of four interconnected pillars: onboard. ISWAN also provides routine health information that
Nakilat has consistently maintained its commitment towards,
we share with the vessels to make seafarers aware of the issues
health, safety, and general welfare of staff members and
affecting them and the support they can receive if required. Nakilat’s
PILLARS OF THE QATAR NATIONAL VISION 2030 contractors throughout these years, despite many challenges, with
wholly owned subsidiary, Nakilat Shipping Qatar Limited (NSQL),
COVID-19 being a prominent challenge. Nakilat adopted robust
has been an active member of ISWAN since 2018.
health and safety measures during the pandemic, which lasted
for close to 3 years, without lowering its guard toward personnel
safety. The ‘Injury and Incident Free’ initiative has always been a
prominent fixture in all HSE endeavors of the company for the past
few years, to instill a culture of zero injuries or damage. A few of
Society of Gas as a Marine Fuel (SGMF) these endeavors included in-house and external training programs,
Economic Development Environmental Development Social Development Human Development HSE campaigns in coordination with external ministerial bodies of
Development of a competitive Management of the environment Development of a just and Development of all its Nakilat is a founding member of the SGMF, a nongovernmental Qatar, welfare measures during the pandemic, and motivational
and diversified economy capable such that there is harmony caring society based on high people to enable them international organization (NGO) established a decade ago to spot award schemes to encourage staff to become IIF.
of meeting the needs of, and between economic growth, moral standards, and capable to sustain a prosperous promote safety and industry best practices in the use of gas as a
securing a high standard of living social development and of playing a significant role society In 2022, Nakilat’s JV partner, N-KOM, achieved a 5-Star rating in the
marine fuel. The Society is the definitive information resource for
for, all its people both for the environmental protection in global partnerships for British Safety Council’s Occupational Health and Safety Audit in its
industry. It has consultative status with the International Maritime
present and for the future development very first attempt. Subsequently, owing to its consistent efforts in
Organization (IMO) and is the definitive information resource for
implementing and maintaining high standards in health, safety and
industry. Nakilat’s Chief Operating Officer, Mr. Samir Bailouni,
wellbeing of its workforce, N-KOM was also awarded the British
is the President of SGMF. The UK-based SGMF is the leading
Safety Council’s ‘Sword of Honor’.
international body for the use and adoption of gasses as fuel for
shipping and associated supply infrastructure. Furthermore, the
society is governed by a representative Board and driven by three
United Nations Sustainable Development Goals (UN SDGs) Crew Welfare principal committees: Technical, Environmental, and APAC. The
SGMF has several working groups at any one-time solving issues
The UN Sustainable Development Goals (SDGs) are the overarching The success of an organization relies on the people who form and producing outputs such as formal publications and technical
framework for sustainability, with 17 goals and 169 targets to be its foundation, as they play a vital role in achieving operational guidance notices for the industry. In 2022, SGMF published several British Safety Council’s Environmental Sustainability
achieved by 2030. The SDGs seek to coordinate efforts to reduce excellence. Seafarers’ welfare remains one of the company’s new guidelines to improve the safety of LNG-fueled ships. The
inequality, combat climate change, end all forms of poverty, highest priorities. We have implemented practical steps and guidelines are intended to assist in greater standardization of crew Nakilat has achieved a five-star grade in its first attempt from Five
and promote sustainable economic growth. The objectives are initiatives toward solutions that aim to achieve work-life balance competency and vessel design. Star Environmental Audit conducted by the British Safety Council in
general and apply to all industries. While our sustainability efforts for all of our seafarers by introducing additional junior engineers, December 2022.
contributed to most 17 SDGs, at Nakilat, we prioritize the SDGs that cadetship programs, and several other measures that support
are most in line with our corporate objectives and ESG strategy. an improved lifestyle onboard, combined with enhancement The company underwent a detailed, quantified, and objective
We consider the risks and possibilities that our business face, of cybersecurity, to further cement our seafarers’ protection evaluation of our environmental management system. The audit
our worldwide impact and the importance of our stakeholders’ from malicious attacks. During the fleet officers' meetings, the measured our performance against several of key best practice
interests. management pledged to continue the company’s efforts in operating indicators and achieved the highest available rating.
The Society of International Gas Tanker and Terminal Opera-
transparency and responsibly leading the way toward sustainable tors (SIGTTO) The British Safety Council’s Five Star Environmental Audit provides
The International Maritime Organization (IMO) is a specialized
growth across our operations, which will positively impact our organisations with a worldwide benchmark of their environmental
organization of the United Nations tasked with ensuring the safety SIGTTO is an international organization established for the exchange
people, community and environment while creating value for our management systems against the current best practices to enable
and security of ships as well as mitigating ship-related marine of safety and technical information and experience, between
stakeholders and shareholders. continual improvement. The audit specification was revised in 2021
and atmospheric pollution. The activities of the IMO directly aid in industry members involving gas tankers and terminals, to enhance
achieving the UN Sustainable Development Goals. to recognize the importance of an integrated approach toward
the safety and operational reliability of gas tankers and terminals. environmental sustainability and its links to other management
Nakilat has been a member since 2007. disciplines within an organisation in this respect.

19 20
 3.5 EXTERNAL ESG COMMITMENT AND PARTNERSHIP (continued) 4. ENVIRONMENT NAKILAT ESG REPORT 2022

Voluntary Green Awards Program1 International Standards

Nakilat LNG vessels, that make regular calls to NW (Northwest) Nakilat holds certification in the following Integrated Management
Europe, are recipients of the Green Award, a voluntary program that System (IMS) standards with Lloyds Register:
symbolizes surpassing industry standards in terms of safety, quality
and environmental performance, and acts as a quality mark which • ISO 9001:2015 (Quality Management)
brings benefits to its holders. The program is endorsed by ports,
• ISO 14001:2015 (Environmental Management) and
shipping organizations and maritime service providers that want to
support and enhance the environmental and safety performance of • ISO 45001:2018 (Occupational Health and Safety)
ships and to promote the highest quality standards.
This integrated approach empowers us to ensure the highest level
Seatrade Maritime Awards of international quality standards, enhancing customer satisfaction,
confidence, occupational health and safety focusing on hazard
Nakilat’s Global series vessel was one of the top 3 finalists identification, risk assessment including control measures to
nominated for ‘Ship of the Year’ at the Seatrade Maritime Awards in prevent incidents, protect workers’ wellbeing and environmental
London. management throughout its operations. This framework
4.1 Environmental Management and The SHEQ Policy was developed keeping Nakilat’s vision and core

enables Nakilat to consistently deliver reliable and efficient LNG

Compliance values as a foundation and incorporating all applicable elements
of ISO 9001, ISO 14001 and ISO 45001. Nakilat is committed
Annual Qatarization Crystal Award transportation services while continuously improving its operational Environmental management and compliance are vital aspects of to a continuous improvement of the safety of our people, our
efficiency and effectiveness. sustainable business operations, demanding immediate attention customers, the communities, and the environment in which we
• 2021 - Annual Qatarization Crystal Award for ‘Support for
from all stakeholders. They entail implementing strategies and operate. This policy applies equally to all employees whether
Learning and Development at the Energy Sector’s 2021 Strategic The integration of these three standards into Nakilat’s management
best practices aimed at reducing the environmental impact of temporary, permanent, office or site based, as well as service
Qatarization Plan awarded in June 2022 system ensures a cohesive and comprehensive approach to
Nakilat’s overall business activities. Due to its global LNG shipping providers, clients, visitors, and company representatives.
• 2020 - Annual Qatarization Crystal Award for ‘Supporting quality, health, safety, wellbeing and environmental management.
operations, Nakilat is subject to an extensive array of regulations
Qatarization’ at the Energy Sector’s 2020 Strategic Qatarization It enables us to optimize its processes, reduce duplication of The policy also considers the environmental impact of Nakilat’s
and requirements related to environmental management. Guided by
Plan awarded in July 2021 efforts, and foster a culture of continuous improvement across the operations and ensures the highest standards of quality are
robust risk management practices and corporate policies, Nakilat
organization. delivered across the business in all JVs and projects. The policy
• 2018 - Annual Qatarization Crystal Award for ‘Supporting undertakes a multitude of measures to safeguard the environment
Training and Development’ at the Energy and Industry Sector’s Through our established integrated management system, Nakilat and ensures compliance with international standards and internal is approved and formalized by the CEO and is accessible to all
2018 Annual Qatarization awarded in May 2019 demonstrates its commitment to operational excellence, employee governance mechanisms. In alignment with Qatar National Vision employees through the Nakilat SharePoint. This policy is reviewed
wellbeing, and environmental sustainability, positioning itself as a 2030 and the United Nations Sustainable Development Goals, annually by the senior management and is revised as necessary
leader in the LNG shipping industry. Nakilat has developed proactive environmental commitments to reflect changing operational conditions, new technologies,
striving towards a sustainable future. regulations and legislation.
Additionally, Nakilat holds also certifications for ISO 27001:2013
(Information Security Management) and ISO 22301:2019 (Business Nakilat actively contributes to the development of industry best In December 2022, Nakilat’s environmental commitments, approved
Continuity Management). practices and adheres to the following practices as a minimum: by the CEO, were officially released. These commitments establish
Nakilat’s dedication to minimizing its environmental footprint and
Responsible waste management and disposal both on-land and fostering sustainable practices throughout the organization. They
ships (off-shore) encompass a range of objectives, including reducing greenhouse
gas emissions, enhancing energy efficiency, implementing effective
• Comprehensive policies and procedures to prevent oil spills
waste and water management strategies, promoting awareness,
and effectively manage them with minimum impact
and actively supporting Qatar’s National Climate Change Action
• Prompt reporting of incidents, followed by thorough Plan 2030. Additionally, Nakilat aligns itself with the International
investigations and lessons learnt Maritime Organization’s revised greenhouse gas reduction strategy
as per Marine Environment Protection Committee (MEPC 80), 3-7
• Proactive maintenance of equipment on vessels and within
July 2023.
shipyards
Cooperation and efforts of all employees is essential for achieving
• Regular updates of environmental management system in
these commitments. Nakilat therefore requires its entire workforce
line with Nakilat’s vision, local and international rules and
to integrate sustainable practices into existing processes and daily
regulations
work.
• Ongoing training for shore and vessel staff
As part of its environmental commitments, Nakilat has directed
• Strict compliance with local and international pollution its efforts to achieve significant milestones in the development of a
prevention regulations carbon footprint calculation and long-term reduction strategy. This
strategy includes a comprehensive, long-term action plan until 2030
• Active engagement in sustainable initiatives organised by
that encompasses all operational functions within Nakilat.
external stakeholders

Environmental Management at Nakilat is guided by our SHEQ

policy which defines the company’s commitment towards ‘Quality
of Services’, ‘Health and Safety at Workplace’ and ‘Environmental
https://www.greenaward.org/sea-shipping/certificate-holders-ships/list-of-certificate-holders/
1 Protection’.

21 22
 4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued) NAKILAT ESG REPORT 2022

Combining the goals of continuous development in a rapidly evolving energy market with a significant reduction of its carbon footprint,
Nakilat’s long-term strategy takes full commitment to reducing all GHG emissions from company’s operations (Scopes 1, 2, and and part
of scope 3).

Corporate Policies Level 1

Level 2
Departmental Policies and Procedures

Manuals, Work Instructions, Level 3

Handbooks, Plans, Protocols
and Guidelines

“ACTIONS FOR A SUSTAINABLE WORLD”

Level 4
As a global leader in energy transportation with an extensive business portfolio providing a wide
range of maritime services, Nakilat is committed to environmental protection in line with the IMO Circulars, Memos and Letters
GHG strategy, UNFCCC Paris Agreement accord and Qatar National Vision 2030.

As a responsible corporate citizen, Nakilat recognizes the importance of giving back to society and
protecting the environment by: Level 5
Forms, Templates
1. Ensuring compliance with local and international environmental laws, regulations, and and Records
standards, and implementing best practices to improve environmental performance

2. Identifying and adopting responsible practices to manage the environmental

performance of operating activities, including greenhouse gas emissions, energy
management, waste management, water management, and biodiversity, with an
enhanced focus on protected areas
Nakilat has established and maintains procedures to discern the environmental aspects of its activities, products, and services, those that it
3. Working towards minimizing the use of pollutants that have a negative impact on our can control and those that it can influence, to determine those which have or may have a significant impact on the environment, considering
operating environment the life cycle perspective.
4. Setting objectives with clear targets to protect the global environment and biodiversity The procedure to identify the significant environmental impacts considers the following points:
5. Providing clear roles and procedures to drive efficient utilization of resources, energy • Changes, including planned or new developments, and new or modified activities, products, or services.
saving, material recycling and reducing waste generation
• Both normal and abnormal conditions, including potential emergency situations.
6. Raising awareness of environmental issues among employees, customers, joint
venture partners and the community Furthermore, the procedure to identify the significant environmental impacts considers, where applicable:

7. Monitoring and reporting our progress in continuously improving environmental • Air emissions
performance, aiming to be an industry leader in environmental protection • Water pollution
8. Collaborating with stakeholders on environmental issues • Waste management
9. Supporting Qatar National Climate Change Action plan 2030 • Contamination of land

• Impact on communities

• Resources use (raw material, energy, water, chemicals, etc.)

Eng. Abdullah Al-Sulaiti
Chief Executive Officer • Other local environmental issues

We maintain thorough documentation concerning all environmental impacts and take significant impacts into consideration when setting
our environmental objectives. We also communicate significant environmental aspects and impacts among the various levels and functions
of the company, as required.

23 24
 4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued) NAKILAT ESG REPORT 2022

Nakilat’s SHEQ Management System and Integrated SHEQ Committee Meeting

Management System (IMS)
Within the Nakilat IMS, Nakilat has also established, documented, The scope of Nakilat’s Integrated Management System is to
implemented, and maintained a SHEQ management system ‘manage, operate, and provide corporate services and due diligence
which is continually improved for its effectiveness in accordance for a fleet of gas and related products’ vessels, company joint
with the requirements of ISO 9001:2015, ISO 14001:2015 and ISO ventures, agency and vessel support’. All Nakilat employees and
45001:2018. This is achieved through the following measures: contractors are responsible for complying with the requirements
of the IMS. This is communicated effectively through the following
• Identifying the process necessary for SHEQ and applying them
channels to ensure effective implementation:
to all relevant areas and situations within the organization.
• SHEQ Committee meetings
• Determining of the sequence and interaction of the
fundamental SHEQ processes within each department. • Departmental meetings

• Determining and applying criteria and methods for effective • SHEQ induction
operation and control of these processes. Nakilat ensures that
both the operation and control of these processes are effective
• Toolbox talks
by monitoring, measuring, and having performance indicators • SHEQ policy and procedures communications
in place.
Training and mass toolbox talks are conducted at least once every
• Ensuring the availability of resources and information quarter and covering topics such as waste management, control of
necessary to support the operations and monitoring of these substances hazardous to health, safety data sheets, reduce/reuse/
processes. recycle, environmental aspects and impact analysis, and others.
This also includes risk assessment, risk management, and risk
• Assigning responsibilities and authorities for these processes.
communication.
• Implementing actions required to achieve planned results and
continuously improve these processes.

• Identifying Nakilat’s business risks and opportunities to

enhance business performance.

• Improving the processes and the SHEQ management system.

Nakilat’s SHEQ performance is enabled and guided by the use of an

effective Integrated Management System (IMS) that incorporates
Quality Management System (QMS), Environment (EMS), and
Occupational Health and Safety (OHS) Management Systems, in
conformance with the respective internationally certified standards
(ISO 9001:2015, ISO 14001:2015, ISO 45001). In accordance with
these policies and regulations, each group company sets its
compliance management items to be observed by its business
divisions and sites.

25 26
 4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued) NAKILAT ESG REPORT 2022

Auditing
An annual management review of the IMS is conducted every first quarter of the financial year. Further, Nakilat’s Corporate SHEQ environmental, occupational health and safety importance of the operations concerned, changes affecting the company and the results of
department conducts annual internal and external audits of Nakilat’s IMS, in conjunction with the International Safety Management (ISM) previous audits.
code. While the annual internal audit of the IMS is conducted and verified by the Chief SHEQ Officer, the external audits are conducted by
Internal audits are meticulously planned to ensure that all SHEQ processes are audited minimum once a year. These internal audits are
an external agency Lloyd’s Register. Additionally, the group companies (N-KOM, QFAB and NSW independently) manage their own annual
conducted by qualified internal auditors, independent of the process being audited. Audit procedures are established, implemented, and
internal and external audit regime in line with IMS.
maintained, that address:
Environmental Compliance • The responsibilities and requirements for planning and conducting audits, reporting results and retaining associated records

Management Approach • The determination of audit criteria, scope, frequency and methods.

Environmental sustainability stands as a fundamental pillar of Nakilat’s business model and corporate strategy. Our approach is long-term The audit findings are documented and promptly communicated to all relevant parties in a timely manner to facilitate prompt correction,
– reflecting our long-term commitment – and we steer environmental sustainability through our decision-making processes and across corrective/preventive actions, and to enable verification of their effectiveness.
our global operations. Environmental compliance is a material topic for our operations across all regions. However, regulations largely vary
Environmental Laws and Regulations
between regions and countries. Nakilat delegates the responsibility for environmental compliance to all operating joint venture entities. They
all have to sustain a management system according to ISO 14001, which includes legal compliance and a compliance assurance mechanism No relevant fines and no non-monetary sanctions have been imposed on Nakilat due to non-compliance with environmental laws and
with internal and external controls. regulations in this and previous reporting years. Nakilat strives for full legal and regulatory compliance, which are the foundation of its
During management review, each joint venture entity assures that no compliance failures have occurred, or fines have been incurred, and is business. Therefore, all subsidiaries are ISO certified and have a process in place to help them understand regulatory requirements and
verified periodically. Nakilat perceives this approach as effective in view of the absence of the receipt of a summons, citations or legal action changes. Those subsidiaries uphold certified management systems according to ISO 9001 (Quality), ISO 14001 (Environment), and OHSAS
related to environmental non-compliance against any of its joint ventures or subsidiaries. 45001 (Health and Safety).

ISO 14001 mandates companies to follow up on new legislation and implement legal requirements accordingly. Subsidiaries are audited
Compliance
by legal and internal audit for compliance. Each joint venture is obliged to strictly adhere to applicable legislation and to supervise the
Nakilat adopts a proactive approach to all compliance-related matters. With respect to environmental matters, Nakilat’s OHS and subsidiary accordingly. Each year, they have to verify the level of compliance in their company together with their management teams and
environment procedures and statutory, regulatory and other OHS and environmental requirements register are the guiding procedural confirm it through a global reporting system (the compliance confirmation).
documents, enabling Nakilat to remain compliant with the applicable laws, rules, and regulations. The following legal and other
KPIs
requirements are applicable to Nakilat:

• International Maritime Organization (IMO) Conventions Environmental Compliance 2020 2021 2022 Scope
• Qatar Environment Protection Law Noncompliance with environmental laws and regulations

• Ras Laffan Port Information and Regulation Guide Significant fines and non-monetary sanctions for non-compliance
0 0 0 Nakilat Group
with environmental laws and/or regulation
• Mesaieed Port Information and Regulations
Regulations
• Ras Laffan City (RLC) Health, Safety and Environment Requirements

• Environmental Regulations for Ras Laffan Industrial City (RLIC) Nakilat Shipping Qatar Limited (NSQL) provides safe, competitive, and reliable shipping services, to meet the needs of its customers
while minimizing the impact on the environment. As a socially responsible company, Nakilat adheres to all local, regional or international
• Classification Societies environmental regulations as applicable.
• United States Coast Guard (USCG)
IMO and UN SDGs
• European Maritime Safety Agency (EMSA)
Nakilat complies with all IMO regulations and conventions, listed hereunder. Hence, we have established adequate controls mandated by
Nakilat has developed necessary mechanisms, such as, ISO certified management systems and related procedures, for identifying and IMO. Further, we have established the linkages between the organization’s technical assistance work and the UN SDGs with the help of the
accessing statutory, regulatory, and other applicable HSE and related requirements. IMO SDG brochure.
Nakilat has identified the sources through which EMS/OHS, legal and other requirements are identified and regularly liaises with industry
subject matter experts to keep abreast with amendments to the existing acts/rules or the introduction of new legislation.

Aligned with its commitments to adhere to all applicable regulatory and other OHS requirements, Nakilat has a procedure for internal audit
which defines the SHEQ internal audit process and ensures that:

• Nakilat’s internal requirements related to its SHEQ management system are met.

• Planned arrangements and the requirements of ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 are met.

• The SHEQ management system has been effectively implemented and maintained.

The audit and verification programs are planned, established, implemented, and maintained by Nakilat taking into consideration the quality,

27 28
 4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued) NAKILAT ESG REPORT 2022

Overview of IMO regulations mapped against the United National Sustainable Development Goals (UN SDGs)
Plans and Procedures
Category Control in Place International Convention / Regulation Sea Area In compliance with the previously-mentioned regulations, Nakilat has established the following environmental plans and procedures to
enable robust management of the company’s shipping activities.
GHG Emissions EEDI (Energy Efficiency Design Index) MARPOL Annex VI Open Sea
These plans are incorporated within the Safety Management System and encompass the following environmental facets:
EEXI (Energy Efficiency Existing Ship
MARPOL Annex VI Open Sea
Index) • Garbage management • Navigation and passage planning to minimize environmental risks
CII (Carbon Intensity Index) MARPOL Annex VI All Areas • Oil pollution emergency response plan • Cargo handling and management

• Energy efficiency management • Ballast water management

DCS (IMO Data Collection System) MARPOL Annex VI (Fuel Oil Data Collection) All Areas
• Emission reporting to regulatory authorities (IMO DCS and EU • Bunkering procedures
MRV (EU Monitoring, Reporting and MRV)
Verification)
Regulation (EU) 2015/757 Open Sea and in Port • Incident reporting and management
• Emergency preparedness
SEEMP (Ship Energy Efficiency • Reporting of environmental non-conformances
MARPOL Annex VI All Areas
Management Plan)
Air Emissions NOx (Nitrogen oxides) MARPOL Annex VI ECA The plans incorporated within the shore joint ventures include, but is not limited to:
SECA (max 0.1%
Sulphur) • SHEQ policy • Operation environmental management plan
SOx (Sulphur oxides) MARPOL Annex VI
Open Sea (max 0.5% • Waste management plan • Material safety data sheets
Sulphur)
PM (particulate matter) MARPOL Annex VI SECA Objectives and Targets
Biodiversity SOPEP (Shipboard Oil Pollution ‘MARPOL (Maritime Pollution) Convention - Nakilat establishes SMART (Specific, Measurable, Achievable, Relevant and Time-Bound) objectives across all levels within the organization,
Open Sea
Emergency Plan) Annex I - Prevention of Pollution by OIL’ which are derived from the company’s annual business plan and strategic corporate objectives, and ensures it is within the framework of
SHEQ Policy. Based on these strategic objectives, the Fleet department sets specific targets and/or key performance indicators (KPIs).
Ballast Water Management System (BWMS)
Ballast Water Open Sea These KPIs are systematically monitored through ‘AMOS’ application. A comprehensive monthly review is carried out for the entire fleet and
Code
then shared through NSQL fleet scorecard with all the managed vessels. Additionally, a monthly performance benchmark is also carried out
MARPOL (Maritime Pollution) Convention - among all the JV partners. During scheduled bi-annual management review the fleet scorecard is also reviewed, with new targets then set
Sewage Treatment Annex IV - Prevention of Pollution by Sewage All Areas for the subsequent year.
from Ships
Performance and Environmental Targets 2022-2023:
MARPOL (Maritime Pollution) Convention -
Garbage Management Annex V - Prevention of Pollution by Garbage All Areas CATEGORY KPI* 2022 2023 TARGET
from Ships LPG – 8.4 LPG <7.5
International Convention on the Control of DSME QMAX – 8.2 DSME QMAX <9.5
Hull Fouling Harmful Anti-fouling Systems on Ships (AFS), Open Sea
2001 DSME QFLEX – 8.9 DSME QFLEX <9.5

Recycling Annual Efficiency Ratio (AER) HHI QFLEX – 10.2 HHI QFLEX <9.5
The Hong Kong International Convention for the
Ship Recycling Safe and Environmentally Sound Recycling of All Areas SHI QFLEX – 10.1 SHI QFLEX <9.5
Ships, 2009 ENVIRONMENT
SHI QMAX - 9.0 SHI QMAX <9.5
- Regulation (EU) No. 1257/2013 of the
GLOBAL – 8.5 GLOBAL <7.5
European Parliament and of the Council of 20
November 2013 on Ship Recycling (EU SRR) Garbage Reduction 5% 5%
IHM (Inventory of Hazardous Material) All Areas
- Hong Kong International Convention for the Oil Spill to Water 0 0
Safe and Environmentally Sound Recycling of
Ships, 2009 SR/CONF/45 (HKC) Number of Environmental Incidents 0 0

Verification Regulatory Surveys (Annual, Periodical, IMO and Flag State requirements (SOLAS, LSA, *See appendix for KPI definitions
All Areas
Intermediate, Renewal 5 Yearly) FSS, IGC, MARPOL, ISM, ISPS, COLREG)

Classification Societies (ABS, BV, DNV, LR) and

Classification Surveys (Annual,
IACS (International Association of Classification All Areas
Intermediate, Renewal 5 Yearly)
Societies) Requirements

Oil Companies International Marine Forum

Ship Inspection Report Program (SIRE) All Areas
(OCIMF) Requirement

29 30
 4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE NAKILAT ESG REPORT 2022

Nakilat’s Focus Areas on Environmental Management Include:

To ensure adherence to applicable international standards, all the vessels managed by Nakilat Shipping Qatar Limited (NSQL) comply with Concerning Nakilat’s non-shipping segment, various programs are and external stakeholders for the identification of statutory,
international environmental standards, our strategic approach on reducing the environmental impact of our ongoing operations. undertaken to support the initiatives on the environment, such as regulatory, and voluntary guidance related to Nakilat environmental
monitoring of environmental parameters, reductions in electricity aspects.
Building on our ISO 14001 and IMO guidelines, we have identified the following environmental focus areas to enable us to stay focused on
consumption and plastic usage, water conservation, digitization of
Nakilat’s material environmental impacts: Nakilat management, employees and contractors are committed
records, beach cleaning, tree planting, and minimizing office paper
to the protection of the environment. We provide appropriate and
• Energy efficiency – Optimizing energy consumption and sourcing environmentally friendly materials responsibly usage. In addition, waste segregation and disposal are carried out in
sufficient resources, including training to comply with legal and
an environmentally friendly manner and Nakilat enforces the “3R’s”
• Water management - Responsible and prudent water consumption waste hierarchy principles of ‘Reduce, Reuse and Recycle’ while
other requirements in order to achieve set environmental targets
and objectives.
• Waste reduction – Increasing practices to diminish generated waste and minimize disposal handling its waste.
Periodic audits and reviews of the environmental management
• Greenhouse gas emissions - Sustainable development in the shipping industry by supporting IMO’s efforts to reduce ship emissions, The comprehensive SHEQ manual maintained at Nakilat
system are carried out to identify opportunities for improvement of
contributing to climate change meticulously encompasses all of the above elements in detail.
the system and environmental performance.
Nakilat maintains documented information on all environmental
The aforementioned focus areas were approved by Nakilat’s management in agreement with all Nakilat interest entities, i.e., key impacts and considers significant impacts when developing Nakilat cares about Health and Safety, Environment and Quality
stakeholders. management plans and setting its environmental objectives. and conveys a strong message of its commitment through
An environmental report is generated by all Nakilat interest vessels for monitoring and measuring information to support the performance following.
In pursuit of environmental excellence, Nakilat consistently
of Nakilat environmental management. The report is structured as a minimum to: maintains communication and constructive relation with internal
• Provide status of environmental management programs designed to fulfil environmental objectives and targets

• Provide status of performance indicators as related to targeted timeframes

• Provide compliance status of environmental operating permits issued by environmental regulatory agencies

C A R E S
As for Nakilat shore entities, environmental data is regularly compiled and monitored through established mechanisms and environmental
reporting is performed during management review meetings.

Nakilat undertakes planned inspections of its premises on a regular basis and as necessary. Line supervisors and managers or nominated
persons conduct regular checks at work sites to monitor the implementation and effectiveness of key operational procedures. Regular
Comply with applicable Achieve SHEQ Reduce pollution; Educate our staff, Strive for continual
inspections facilitate dialogue between the supervisor/manager and the work group (outsourced company/contractor, if any) and enable
Health and Safety, objectives and targets prevent personal contractors, and the improvement
the sharing of best practices. In addition, internal audits and annual ISO 14001 audits are also used for monitoring and measurement Environmental exposures to health community
of processes. The output of these audits/inspections are taken for management reviews, corrective/preventive action, review of risk regulations, and and safety hazards and
assessments and analysis of data. statutory requirements prevent injury

Environmental Aspects and Effects

Nakilat has established effective procedures, such as Nakilat OHS and Environment policy and procedure that enable us in identifying
the environmental aspects of relevance to our business activities, products, and services. By employing these procedures, it guides us in
controlling and determining the best practices for the environment, considering a life cycle perspective.

The aspects (interaction with the environment) and impacts (any change to the environment) of Nakilat’s core business activities are
assessed and appropriate operational controls are established to introduce any opportunity for improvement. To ensure the effective
implementation of the Nakilat OHS and environment policy and procedure, monitoring processes are in place to check and measure the
efficiency of our controls. The company communicates the identified significant environmental aspects among the various levels and
functions of the company, as required.

Within Nakilat’s shipping and fleet division, the key environmental aspects identified that require specific monitoring to enable evaluation of
environmental performance are:

• Air emissions and pollution: NOx, SOx, CO2, CHFCs, HCFCs, CFCs, VOCs

• Fuel consumption, energy efficiency and associated GHG emissions

• Potential cargo and bunker spills harmful to marine life and biodiversity

• Waste disposal: solid, liquid, special and hazardous

31 32
 4.2 CLIMATE CHANGE AND EMISSIONS TO AIR NAKILAT ESG REPORT 2022

2. Reduction of the total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008*;
and
Management Approach and Progress
3. Reduction of the total annual GHG emissions from international shipping by at least 70%, striving for 80%, by 2040, compared to 2008*.
Nakilat is committed to sustainable development within the shipping industry and supports IMO’s efforts to reduce ship emissions. Our
efforts are concentrated on optimizing the fuel efficiency of the fleet, where our largest carbon dioxide (CO2) emissions occur. This is *Note: As indicated, IMO emissions’ reduction targets are not intended for individual ships nor for individual companies and will be
achieved through detailed attention to engine/boiler performance, hull/propeller fouling, speed policy, and schedule optimization. translated into specific targets for different shipping segments through new specific guidelines after more work at the IMO.

KPIs (Shipping)

Greenhouse Gases and their Global Warming Potential Climate Change and Emissions to Air 2020 2021 2022 Scope
Greenhouse Gas (GHG) emissions 2
Nakilat has successfully completed the transition to zero Ozone Depletion Potential (ODP) in 2020. All refrigeration systems using
refrigerant HCFC R22 have been upgraded to use R410A which is classed as a zero ODP refrigerant. However, Nakilat’s newbuild vessels Gross direct (Scope 1) GHG emissions (TCO2)3 5,564,216 5,353,949 5,812,436
have onboard systems that use HFCs, such as R407C, R410A, R417A and R134A (HFCs), which despite being zero-ozone depleting, still have
GHG emissions intensity (TCO2/Nm)
4
1.26 1.12 1.06
global warming potential (GWP) of around 1,300-1,600 (CO2 GWP = 1). R404A has a very high GWP of 3,260 and is not acceptable to Class
for EP notation. Currently, there are no restrictions on equipment or use of the above-mentioned refrigerants. Organization-specific metric chosen to calculate the
intensity ratio: Total Sailing Distance5 (Nautical Mile 5,493,714 6,579,066 7,378,156
Nakilat aims to minimize any losses from the systems by continuous monitoring. The vessels are reporting their refrigerant inventory
[Nm])
monthly. Any losses are considered as a loss of primary containment (LOPC) triggering an internal deficiency report. Each deficiency
requires an investigation, corrective, and preventive measures to be satisfactorily closed. There has been only one leakage case reported Nitrogen oxides (NOx), sulfur oxides (SOx), CH4 and other significant air emissions (tons) Shipping
from a vessel in 2022. NOx 138,610 128,659 138,404

Refrigerant 2021 2022 SOx 15,961 13,942 14,767

Refrigerant Consumption 6,692 Kg 7,754 Kg Particulate matter 11,975 10,897 11,688

Sulphur Oxides (SOx) and Low Sulphur Fuels CH4 (GRI 11-1- ref. Note 1) 466 433 466

The main changes to MARPOL Annex VI have brought a progressive reduction in SOx emissions from ships, with the global sulphur cap Despite the increase in gross direct (Scope 1) GHG emissions within the shipping segment from 2021 to 2022, stemming from the increase
reduced initially to 3.5%, effective from 1 January 2012; then progressively to 0.50%, effective from January 2020. The limits applicable in in the level of shipping activities, the GHG emissions intensity decreased in 2022 compared to 2021.
Sulphur Emission Control Areas (SECA) were reduced to 1.00%, from 1 July 2010, then further reduced to 0.10%, effective from 1 January This data represents our entire shipping fleet (wholly owned and Joint venture). Our reported GHG emissions data are based on the GHG
2015 onward. Protocol, European Union (EU) Monitoring, Reporting and Verification (MRV) of CO2 emissions, and IMO Data Collection System (DCS) on fuel
All vessels in Nakilat’s fleet adhere the new sulphur caps using compliant low-sulphur fuels, as mandated by IMO sulphur 2020 regulations. consumption.
To comply with these new global sulphur caps set under the regulations, the transition to low-sulphur fuels posed certain risks arising from Note 1: Total CH4 emission data (as per above table) under SCOPE-1 are regarded as from fuel combustion process on ships.
strict regulatory requirements, as identified below:
The calculation of these data uses conversion factors from the following standards: IPCC 2006 / ENTEC / CORINAIR / MEPC 686 and ISO
1. Risk of fuel supply shortage due to new IMO fuel sulphur caps conversion factors for Lower Calorific Value (LCV) indicated below: LCV MGO= 42.7GJ/T, LCV HFO= 40.6GJ/T, LCV Fuel Gas= 50.0GJ/T. The
2. Compatibility issues of new low sulphur (LS) fuels GHG accounting and disclosure is based on equity share.

3. Combustion/operational issues of new low sulphur (LS) fuels KPIs (Non-Shipping)

To manage the risks identified as a result of a change to SOx emissions regulatory requirements, the organization has taken the following
steps to reduce the impact of the subject regulations on its operations: Climate Change and Emissions to Air 2020 2021 2022 Scope
Greenhouse Gas (GHG) emissions
1. An independent study was carried out by Lloyd’s Register across the fleet to assess market availability, compatibility issues and
operational issues related to new low sulphur fuel. The study highlighted the challenges of compatibility between fuels of different Gross direct (Scope 1) GHG emissions (TCO2)6 20,834 22,935 24,872 Non-shipping
origins and production from different processes. Nevertheless, the proposed operational mitigation measures were found to be robust
to address any compatibility issue that might arise. Our operational procedures have been amended to reflect Lloyd’s study findings and The rise in gross direct (Scope 1) GHG emissions between 2021 and 2022 in the non-shipping segment is primarily attributed to the
recommendations. increased level of business activities at QFAB.

2. A local supply agreement for low sulphur fuels has been secured in collaboration with our main charterer. Note: This data represents emissions from fuel used by our non-vessel Joint ventures including fuel used for business purposes by
corporate office. The majority of non-shipping fuel is used by tugs for harbour operations and so the calculation of these data uses
3. The possibility of carrying modifications on existing fuel storage, transfer and treatment systems was assessed. conversion factors for MDO from the following standards: IPCC 2006

Nitrogen Oxides (NOx) **This is only non-shipping data under scope 1. Types of fuels included within figures: Diesel (Density-0.8213) and LPG (Conversion Factor-MJ to KG:
1 MJ = 0.02 kg of LPG).
Nakilat complies with IMO Marpol Annex VI regulation 13 NOx requirement on all new ships built after 1 January 2000 (Part of EP notation).
All our vessels built after this date must have an Engine International Air Pollution Prevention (EIAPP) Certificate or International Air
Pollution Prevention (IAPP) Certificate. Measurements have been done on board Nakilat vessels to enable calculations to be made of the
NOx emissions per vessel. In the reporting year, there were no significant VOC emissions across our shipping fleet.

Nakilat Shipping Fleet Annual Efficiency Ratio (AER) and Energy Efficiency Operational Indicator (EEOI)
2
It is to be noted that GHG emissions data for the mentioned years have been restated following availability of missing quantity.
We support the IMO’s revised Green House Gas Strategy 2023 in its overall level of ambition of reaching net-zero emissions by 2050 or
Shipping data is declared only under scope 1 as all GHG emissions are produced by the vessels when generating their own energy to sustain their respective operation.
3

earlier as possible and on following checkpoints: Only CO2 is included in this calculation. Declaration is based on equity share.

1. Reduction in carbon intensity (CO2 emissions per transport work), as an average across international shipping, by at least 40% by
4
For ships: Emissions Intensity = Total Emissions / Total Sailing Distance. Equity share doesn’t apply to intensity.
2030, compared to 2008*. 5
Total Sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed.
Nakilat is already reporting carbon intensity metrics, AER and EEOI, for its operated fleet. 6
Non-Shipping data shown separately under scope 1.

33 34
 4.2 CLIMATE CHANGE AND EMISSIONS TO AIR (continued) NAKILAT ESG REPORT 2022

N-KOM Ambient Air Quality Monitoring 2. Waste Heat Recovery Systems Installation with Alfa Laval

To ensure that emissions to the ambient air remain within statutory limits as provided and monitored by Qatar Ministry of Environment and N-KOM initiated Technical and Business-to-Business engagements with Alfa Laval on Waste Heat Recovery Systems (WHRS) installation on
Climate Change, through regular monitoring, N-KOM tracks and ensures that its operations produce minimal pollutants as demonstrated LNG vessels.
in the data provided below. In 2022, Nakilat has successfully managed to keep emission values for NOx, SOx, PM2.5 and PM10 well within The discussions have progressed towards the development of an MoU that is targeted to be signed in 2023.
limits prescribed by Qatar’s Ministry of Environment and Climate Change (MOECC) with the help of initiatives, detailed in the 2022 objectives
and targets table below.

In 2021, we also commenced disclosing Carbon Monoxide (CO), Volatile Organic Compounds (VOC) and aromatic hydrocarbons for N-KOM.
Nakilat aims to achieve air emissions reductions and remain well below the prescribed limits by Qatar’s Ministry of Environment and Climate
Change (MOECC).

This reporting year, we shall also begin disclosure on carbon monoxide (CO), volatile organic compounds (VOC) and aromatic hydrocarbons
for N-KOM. Nakilat aims to achieve air emissions reductions and remain well below the prescribed limits by Qatar’s Ministry of Environment
and Climate Change (MOECC).

Emissions to Air 2020 2021 2022 MME Limits7 Scope

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions 8

NOx 20.75 ug/m3 27.00 ug/m3 30.00 ug/m3 150 ug/m3

SOx 12.50 ug/m 3
24.75 ug/m 3
24.00 ug/m3
365 ug/m3
Particulate matter (PM2.5) 22.75 ug/m3 18.25 ug/m3 25.00 ug/m3 35 ug/m3
Particulate matter (PM10) 72.75 ug/m3 77.00 ug/m3 95.00 ug/m3 150 ug/m3 Non-shipping
CO n/a 423.5 ug/m 3
467.25 ug/m 3
10,000 ug/m 3

VOC n/a 11.75 ug/m 3

11.00 ug/m3
160 ug/m3
Aromatic hydrocarbons n/a 8.54 ug/m3 7.00 ug/m3 160 ug/m3 3. 3D Cadmatic Modelling Software for Marine and Offshore Projects

Note: N-KOM data only. The source of NOx, SOx, PM, CO, VOC and aromatic hydrocarbon are due to air emissions from the shipyard’s N-KOM’s acquisition of the Cadmatic 3D modelling software package enabled us to enhance our in-house engineering capabilities and
operations. Monitoring requirements and the respective limits are prescribed by the Qatar Ministry of Environment and Climate Change provide value-added turnkey solutions for marine and offshore projects.
(MOECC). N-KOM has successfully used the Cadmatic software to complete several BWTS upgrades and cooler replacements for LNG carriers, cargo
In 2022, Nakilat Shipyard, N-KOM enhanced its in-house capabilities to deliver Sustainable Shipping Solutions and Services as per the below: system piping for an FSO conversion, a fresh water- cooling system upgrade, and an air lubrication system layout feasibility study to meet
EEXI regulations.
Compliance with Carbon Intensity Indicator (CII) & Energy Efficiency Existing Ship Index (EEXI) in 2 Ways:

1. Air Lubrication Systems Installation with Silverstream Technologies

A memorandum of understanding (MoU) was signed with Silverstream Technologies (UK) in the field of Air Lubrication Systems (ALS)
installation on LNG vessels.

This MoU strengthens N-KOM’s regional capacity in sustainable green shipping solutions. The MoU was signed during Posidonia 2022.

4. Ballast Water Treatment System (BWTS) after Sales Service Station

N-KOM has established partnerships with major global BWTS vendors for after-sales and project support to meet EEXI regulations.

Ministry of Environment and Climate Change (MOECC).

7

Each parameter is averaged for the year 2020.

8

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 4.2 CLIMATE CHANGE AND EMISSIONS TO AIR NAKILAT ESG REPORT 2022

2022 Objectives and Targets (N-KOM):

EMP* Risk Focus Area Objective Target/KPI Negative Environmental Impact Mitigation Measures
Emissions to air To ensure control To ensure that (a) Air pollutants
measures are in air emissions
- Activities which produce air pollutants are controlled via enclosed
place to mitigate from the yard
chambers, extraction systems and filtration. Examples: blasting
risks associated are within the
chamber, fume hoods and extraction fan
with emissions legislative limits
to air. and implement - Machinery and equipment which produce air pollutants are
mitigation serviced and maintained on a stipulated basis as per government
measures if regulations/OEM guidelines
results are above
regulatory limits. (b) Spray painting at open locations - performed under
encapsulation of canvas cover

(c) Grit blasting outside the docks - performed either under

encapsulation or using wet grit blasting medium

(d) Ambient air quality - monitoring is done by 3rd party contractor

(e) Quarterly environmental monitoring report - monitoring

requirements and the respective limits are prescribed by the Ministry
of Environment and Climate Change (MOECC) and stated in the Nsw Environmental Objectives and Target -2022
Consent to Operate (CTO) license granted to the shipyard
Objective/Ambition Target Measures
*Environmental Management Plan
1. Reduce fuel 1. Installing GPS tracker/monitoring system to control vehicle movement
Emissions of Ozone-Depleting Substances (ODS) - Exclusive to N-KOM consumption by 2%
2. Advance planning of tasks for efficient and economic logistics arrangement
N-KOM neither produces, imports, nor exports any ODS. The details of all refrigerant products procured in 2020 and up to date in 2022 are 3. Crew arrival and departure on selective days during the week - reducing transport
tabulated below. Ozone Depleting Substances are Refrigerants used in the Yard HVAC systems. requirements
These substances are regularly monitored during preventive and corrective maintenance. 4. Reducing vessels’ standby/slow steaming time

Quantity Purchased Y2020 Total Y2021 Total Y2022 Total 5. Avoid aggressive maneuvering while on operation
No Material Description Tank Size (s)
/ Under Order Quantities Quantities Quantities
6. Vessels to use economical steaming while demobilizing
1 R-22 (Chlorodifluoromethane)
7. Coordinated with QatarEnergy for additional shore power installations for vessels
R-22 (Chlorodifluoromethane (Halocarbon 22)) 13.6KG 210 CYL 120 CYL 130 CYL 70 CYL
2 while alongside
– CHCLF2
8. Use public transportation.
R-134A (Tetrafluoroethene), Norflurane, HFC-
3 134a-P, Refrigerant Gas R134a, HFC134a, 13.6KG 150 CYL 90 CYL 72 CYL 195 CYL To ensure that 9. Monitor preventive maintenance schedule will increase fuel economy
HFC134a-P, F134a, Dymel®134a/P. environmental
2. Reduce fuel 1. Make use of LED lights
R-404A (Pentafluoro ethane (HFC-125) aspects of activities
consumption by 2%
4 1,1,1-Trifluoroethane (HFC- 143a) 10.9KG 40 CYL 30 CYL 8 CYL 10 CYL and services from the 2. Run AC at room temperature and reduce cooling outside office hours
1,1,1,2-Tetrafluoroethane (HFC- 134a) company are controlled
and mitigated so that 3. Switch off lights, electrical appliances outside the office hours
R-407C (Difluoromethane (HFC-32) Pentafluoro there is no potential of
5 4. Unplug the cable from the socket when not in use
ethane (HFC-125) 13.0KG 105 CYL 50 CYL 50 CYL 25 CYL adverse impact on the
1,1,1,2-Tetrafluoroethane (HFC-134a) environment 5. Utilizing renewable energy
6 R-410A (Difluoromethane) (Pentafluoro ethane) 11.0KG 180 CYL 110 CYL 80 CYL 45 CYL
3. Reduce waste/ 1. Eliminate the single-use plastic water bottle
garbage generation
Nakilat Shipyard, N-KOM Enhanced its Range of In-House Capabilities, Solutions and Services 2. Eliminate the single-use plastic utensils
by 2%
1. Stern Tube Seals Supply, Repair and Propulsion Solutions with Aegir Marine 3. Eliminate the use of paper cups

N-KOM established a partnership with Aegir Marine LLC for stern tube seals supply and repair during Posidonia 2022. The partnership 4. Improving staff knowledge and skills through competence, training and
enhances N-KOM’s capability of offering cost-effective and reliable after-sales solutions for ship propulsion systems. awareness

5. Bring a refill bottle

6. Purchase products with simple or little packaging such as reusable over single-
use packaging to deliver provision on board

7. Avoid toilet paper and use water instead

8. Print as little as necessary

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 4.3 ENERGY EFFICIENCY AND WATER CONSUMPTION NAKILAT ESG REPORT 2022

Fleet Digitalization

Innovations in technology have the potential to make sailing safer and more efficient. The rapid and dynamic growth of technologies and
innovations and their different applications in recent years is creating more opportunities for adaptation to systems onboard vessels.
Digitalization in this context is about making the vessels and the systems onboard more efficient. Fleet digitalization enhances vessel
performance through effective monitoring and timely evaluation and is therefore of a strategic importance to Nakilat, our partners and
customers.
It allows us to continuously improve our service efficiency to achieve operational excellence. In addition, automation of processes onboard,
allows the crew to operate the vessel in a safer and more efficient manner and eventually reduces the reporting's workload.
The current and future complex maritime regulatory frameworks incentivized Nakilat to expand the scope of our own digitalization
programs to incorporate high- frequency data acquisition and machine learning. These tools are expected to offer detailed insights on the
ship's operational profile for crew , shore operators and to our customers.
Insights from upgraded digitalization will allow rapid assessments of new technologies trialed on board our vessels, which in turn will help
informed decision making for deployment fleet wide of the technologies providing the best improvements. The digitalization project has
also a component for predictive maintenance that will be rolled out for GAS compressors initially, and if this pilot experience proves to be
Energy Efficiency
successful, it will be then extended to other key machinery and equipment on board.
Management Approach and Progress Joint Development Project CO2 Capture Onboard LNG Vessels
In line with Nakilat’s general business principles, we continually look for ways to reduce the environmental impact of our operations,
In 2021, Nakilat engaged in a collaboration with a major LNG shipping company, a major classification society and a leading Korean shipyard
products, and services. All managed ships are operated in the most energy-efficient and safe manner possible.
to work on the next generation of carbon capture systems and further contribute to the classification society rules for LNG vessels funnel
We have effective procedures, such as Energy Efficiency Policy and Procedure that enable us in identifying the environmental aspects of emissions treatment.
relevance to our business activities, products, and services. These procedures guide us in controlling and determining the best practices for
This joint development project (JDP) had the following initial outcomes in 2022:
the environment, considering a life cycle perspective.
- The Approval in Principle of the CO2 absorption technology on board LNG carriers by the Classification society partner.
The aspects (interaction with the environment) and impacts (any change to the environment) of Nakilat’s core business activities are
assessed and appropriate operational controls are established to introduce any opportunity for improvement. To ensure the effective - A preliminary retrofit impact study on machinery arrangements was performed for a conventional size LNG carrier.
implementation of policy and procedure, monitoring processes are in place to check and measure the efficiency of our controls. The
- The benefit on the carbon emissions intensity per transport work was evaluated against current regulations and against potential future
environmental goals and targets are set by the management and monitored/reviewed regularly. The company communicates the identified
strengthened regulations.
significant environmental aspects among the various levels and functions of the company, as required.
Propeller Super-Polish and Edge Modification
Ship Energy Efficiency Management Plan (SEEMP)
Our twin-engine, twin-propeller LNG vessels were delivered with coated propellers which faced the same fouling issue similar to the hull
Each vessel, maintains and complies with a SEEMP. SEEMPs are developed as ship-specific plans by Nakilat, which seeks to improve whilst in operations. In 2012, an independent study was conducted to determine the root cause of premature overloading of the engines
every ship’s energy efficiency by following the steps of planning, implementation, monitoring, self-evaluation and improvement. These in slight sea conditions, as additional fuel consumption had been observed to achieve the vessels’ design revolutions per minute (rpm).
components play a critical role in the continuous cycle of improvements that lead to effective ship energy management. After due diligence and consultation with the original makers and industry experts, a decision was made to trim the propellers, remove
the propeller coating and super-polish the surfaces to further improve vessel performance. Upon recommendation, vessels underwent
Fleet energy targets are set during the scheduled annual management review. Depending on vessel type, trade pattern and each vessel’s
propellers blade edges modification to ‘lighten’ the propellers, a process also known as increasing LRM (Light Running Margin). Adequate
operational profile, a set of measures are adopted to meet the set KPIs. Some of the operational energy efficiency measures implemented
LRM indicates better propeller performance. These refits ensure that our vessels operate more efficiently with lower fuel consumption
for Nakilat’s fleet are:
to achieve the design speed. For some vessels, this was accomplished while the vessel was in service through utilization of certified
• Voyage management in close cooperation with charterers underwater diving companies. Meanwhile, for other vessels, this has been carried out during their routine dry docking.

• Cargo conditioning management Accommodation Block Heat Insulation

• Trim optimization The company started a pilot project in 2022 to implement reflective coating on the monkey island to reduce the temperature within the
• Weather routing accommodation and reduce air conditioning/heating energy consumption. The project was successful and reflective coating will be applied
across the fleet and included as a standard requirement in the new sea stock contract.
• Engine power limitation (EPL)
LED Lights Installation
Environmentally Friendly and Higher Performance Hull Coating Systems
The company is gradually replacing all lights in the engine rooms, accommodation and deck with LED lights.
As a result of a continuous advanced voyage performance analysis of an upgraded coating system trialed over five years on one ship, the
hull fouling was found to be very limited, resulting in only 1.5% speed loss over five-year period without hull cleaning. All Nakilat’s LNG N-KOM: Power Demand Protocols
vessels’ hulls have been coated with this upgraded coating system since 2012.
There are maximum demand level requirements agreed upon and set within the Bulk Supply Agreements for Power from the national
Enhanced and Integrated Hull Performance Monitoring government supplier, Kahramaa. In 2022, N-KOM exceeded the maximum demand level by 1.05 MW in 1 month due to project load
requirement. This is a significant improvement over 2021 where N-KOM exceeded the maximum demand level by an average 3.4 MW for
Nakilat’s intend to integrate hull performance monitoring regime in line with the ISO 19030: Ships and Marine Technology standard 7 out of 12 months. The requisite management control protocols have been initiated to ensure Nakilat’s high consumption/demand assets
on performance monitoring. Existing onboard performance monitoring equipment was first upgraded to ensure timely recording and such as the two dry docks and the floating dock are not operated simultaneously, as it would result in overconsumption.
forwarding of data to shore at established intervals for selected performance parameters. Shore analysts produce either monthly or per-
voyage performance monitoring reports primarily focusing on emissions related performance. Guided by the performance reporting, the
vessels’ hull scrubbing, and propellers polish can then be decided and documented. An average hull clean and propellers polish intervals
were established and implemented using the most advanced ocean-friendly remotely operated vehicle (ROV) system as soon as the
performance deteriorated to a predetermined set point.

39 40
 4.3 ENERGY EFFICIENCY AND WATER CONSUMPTION (continued) NAKILAT ESG REPORT 2022

KPIs (Shipping) KPIs (Non-Shipping)12 13

Energy 2020 2021 2022 Scope Energy 2020 2021 2022 Scope
Energy consumption Electricity consumption
Total fuel consumption within the Total electricity consumption (kWh) Corporate 935,517 1,169,485 1,067,695
organization from non-renewable 74,015,625 73,694,908 80,204,392 Total electricity consumption (kWh) N-KOM 63,400,000 69,400,000 72,830,000
sources (GJ)9
Total electricity consumption (kWh) QFAB 7,460,000 6,505,700 8,173,611
Total fuel consumption within
the organization from renewable 0 0 0 Total electricity consumption (kWh) NSW n/a 1,956,150 2,260,278
sources (GJ) TOTAL ELECTRICITY CONSUMPTION (kWh) Corporate, N-KOM, QFAB
71,795,517 79,030,635 84,331,584
Total energy consumption within the and NSW
74,015,625 73,694,908 80,204,392 Shipping
organization (GJ) Total electricity consumption (GJ) Corporate 3,368 4,210 3,844
Energy intensity Total electricity consumption (GJ) N-KOM 228,240 249,840 262,188
Energy intensity ratio (GJ/Nm)
10
17.30 15.79 14.90 Total electricity consumption (GJ) QFAB 26,856 23,418 29,425
Organization-specific metric chosen Total electricity consumption (GJ) NSW n/a 7,042 8,137
to calculate the intensity ratio: Total
6,023,833 6,579,066 7,378,156 TOTAL ELECTRICITY CONSUMPTION (GJ) Corporate, N-KOM, QFAB, NSW 258,464 284,510 303,594
Sailing Distance11 (Nautical Mile
[Nm]) Fuel consumption
Total fuel consumption (GJ) Corporate 734 329 190
Note: This data represents our entire shipping fleet (in-house and joint ventures).
Total fuel consumption (GJ) N-KOM 37,339 43,147 55,190
Total fuel consumption (GJ) QFAB 393 333 5,297
Total fuel consumption (GJ) NSW 287,742 315,385 327,182
TOTAL FUEL CONSUMPTION (GJ) Corporate, N-KOM, QFAB, NSW 326,208 359,194 387,859
Total energy consumption (electricity + fuel)
Total energy consumption (GJ) Corporate 4,102 4,539 4,034
Total energy consumption (GJ) N-KOM 265,579 292,987 317,378 Non-Shipping
Total energy consumption (GJ) QFAB 27,249 23,751 34,722
Total energy consumption (GJ) NSW 287,742 322,428 335,319
TOTAL ENERGY CONSUMPTION (GJ) Corporate, N-KOM, QFAB, NSW 584,672 643,705 691,453
Energy intensity14 15
Energy intensity ratio (Electricity + Fuel consumption (GJ) / per employee)
16.6 16.5 16.1
Corporate
Organization-specific metric chosen to calculate the intensity ratio (average
250 275 250
number of employees) Corporate
Energy intensity ratio (Electricity + Fuel consumption (GJ) / employee
204.3 225.4 200.1
N-KOM
Organization-specific metric chosen to calculate the intensity ratio (average
1,300 1,300 1,586
number of employees) N-KOM
Energy intensity ratio Electricity + Fuel consumption (GJ) / per employee)
317.2 349.3 108.9
QFAB
Organization-specific metric chosen to calculate the intensity ratio (average
86 68 319
number of employees) QFAB
Energy intensity ratio (Electricity + Fuel consumption (GJ) / per employee)
846.3 942.8 986.2
NSW16
Organization-specific metric chosen to calculate the intensity ratio (average
340 342 340
number of employees) NSW
Total energy intensity ratio (Electricity Consumption + Fuel (GJ) / per
295.9 324.3 277.1
employee) Corporate, N-KOM, QFAB and NSW
Organization-specific metric chosen to calculate the intensity ratio (average
1,976 2,016 2,495
number of employees) corporate, N-KOM, QFAB, NSW

12
2020 fuel figures are restated, and difference can be noted due to diesel oil consumption figures which are made available by N-KOM for 2019 onwards.
This is only non-shipping data under scope 1. Types of fuels included within figures: Diesel (Density-0.8213) and LPG (Conversion Factor-MJ to KG: 1 MJ = 0.02 kg of
13

LPG).
9
This is only shipping data under scope 1. Types of fuels included within figures: HFO, MGO, LNG. 14
All energy intensity ratios represent electricity and fuel usage, except for QFAB and NSW (see below).
10
For SHIPS: Energy Intensity = Total Energy/ Total sailing Distance. Intensity is declared in total. 15
Energy Intensity Ratio has been restated in GJ/No. of employee for alignment.
11
Total sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed. 16
NSW Electricity data not available in 2020 and so only fuel data used.

41 42
 4.3 ENERGY EFFICIENCY AND WATER CONSUMPTION (continued) NAKILAT ESG REPORT 2022

Reduction of energy consumption 2020 2021 2022 Scope

Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives (fuel and electricity)
WATER CONSUMPTION
Total energy reductions (GJ) Corporate 2,501 2,363 12,256
Total energy reductions (GJ) N-KOM 16,804 16,804 16,804
Total energy reductions (GJ) QFAB 26,856 24,048 n/a Non-Shipping N-KOM’s CWTP plant facilitates contaminated water generated from
washing of vessels at the dry docks to be filtered, purified, and tested
Total energy reductions (GJ) NSW n/a n/a n/a for conformance (as per Qatar’s Ministry of Environment and Climate
Total energy reductions (GJ) Corporate, N-KOM, QFAB and NSW 46,161 43,112 29,060 Change (MOECC) guidelines and parameters) before discharges of
water are released into the sea as per the Consent to Operate (CTO)
certificate requirements. N-KOM also submits quarterly reports of
CWTP treatment to MOECC.
Electricity sold 2020 2021 2022
Total electricity sold (GJ)- (N-KOM)* 5,246 25,029 15,930 KPIs (Shipping)

*Electricity sold to vessels in dock via metered connections. Water 2020 2021 2022 Scope
Water withdrawal and discharge 17

Total seawater
withdrawal 28,398 25,056 24,959
(megaliters)
Management Approach and Shipping
Total seawater
Progress Shipping discharge 28,398 25,056 24,959
Water is an essential element of life, and ensuring its availability (megaliters)
for everyone is a global challenge recognized by UN Sustainable Note: This data represents our entire shipping fleet. The reported data
Development Goal (6). As a company operating in a water-stressed are aggregated values from wholly owned and JV vessels for seawater
region, Nakilat, through its ‘Commitment to Environment’ aims to used for ballasting the vessels. The ballast water figure that has been
reduce water consumption with proper management and to the used indicates that the ballast water has either been treated according
best of its ability for the benefit of our operations as well as of the to IMO Ballast Water Convention D2 for vessels fitted with a treatment
environment and community. We also support Qatar climate change system. For other vessels which are still to be fitted with a treatment
action plan 2030 to ensure sustainable and integrated management system the ballast water has been replenished through exchange during
of water resources exploring keys areas of opportunities to ensure the voyage as per IMO Ballast Water Convention D1. The same quantity
water security for our country and company. of seawater that is loaded in discharge ports is discharged afterwards
Nakilat adopts a responsible and prudent approach to water in loading ports. Only seawater for ballasting is discharged. Calibrated
consumption. Our vessels do not withdraw or discharge any fresh remote sounding system and approved ballast tank tables have been
water, nor consume water from a third party. Fresh water is used to calculate ballast water quantities declared. Seawater salinity
produced on board from waste heat energy and water is discharged and density is determined from international oceanographic tables.
back into sea through treatment systems. Water fountains are fitted At NSW (Nakilat SvitzerWijsmuller), encourages all vessels and shore
onboard. We have discontinued single-use plastic water bottles, and staff through a campaign to take the following measures and initiatives
water samples are regularly landed ashore for analysis to ensure to reduce or to help save water consumption.
quality onboard.
• Use water-efficient appliances: Water-efficient faucets and
In addition, all the company vessels closely monitor the electric showerheads in vessel accommodation can help reduce water
power consumption for the most efficient use and intervene to consumption significantly. These appliances are designed to
devise power management planning. use less water without sacrificing performance. Ensure that
all appliances are in good working order, and repair leaks
Non-Shipping
immediately to avoid wasting water.
Potable water for domestic use is supplied by Kahramaa to • Limit water usage or turn off the taps when you are not using
Nakilat’s office, via Ras Laffan Industrial City infrastructure them. Encourage crew members to be mindful of their water
controlled by QatarEnergy. All sewage water is discharged into usage. Simple steps, such as turning off the water when brushing
the municipal sewage system in accordance with Ministry of teeth or washing dishes, can go a long way in reducing water
Environment and Climate Change regulations. QatarEnergy provides consumption. When possible, wash dishes in a basin rather than
treated industrial water for the use of Nakilat’s operating units in running the water continuously.
industrial processes. Industrial water runoff within the docks is
treated via our Contaminated Water Treatment Plant (CWTP). • Only run washing machines when full: Running these appliances
when they are only partially full wastes water and energy.

17
It is to be noted that seawater data for the mentioned years have been
restated in ‘megaliters’ than earlier shown unit of ‘tonnes’.

43 44
 4.3 ENERGY EFFICIENCY AND WATER CONSUMPTION (continued) 4.4 OCEAN HEALTH AND BIODIVERSITY NAKILAT ESG REPORT 2022

• Use seawater for non-potable purposes: Utilize seawater for non-potable purposes such as flushing toilets and washing decks. This
can significantly reduce freshwater usage.

• Educate all crew members on water conservation: Ensure that all crew members are aware of the importance of water conservation
and understand how they can contribute to this effort. Simple steps such as fixing leaks, turning off the water when not in use, and
reusing water can have a significant impact on water conservation efforts.

KPIs (Non-Shipping)

Water 2020 2021 2022

Water consumption
Freshwater/ Potable water consumption (megaliters) Corporate 0.73 0.61 1.28
Freshwater/ Potable water consumption (megaliters) NSW 11 11.49 11.58
Freshwater/ Potable water consumption (megaliters) N-KOM 248 304 444
Freshwater/ Potable water consumption (megaliters) QFAB 52.2 33.6 53.4 Non-shipping
Total Freshwater/ Potable consumption 312 350 510
Industrial water consumption (megaliters) N-KOM 100 100 41 Management Approach and Progress
Industrial water consumption (megaliters) QFAB 52 0.03 0
Biodiversity is a fundamental element of Qatar’s heritage, culture and future. It serves as the foundation for food security and for sustainable
*Water is supplied by Kahramaa, a third-party. agriculture development. Nakilat actively participates in maintaining biodiversity in close liaison with its private and public stakeholders by
actively participating in all the initiatives to preserve ocean health and biodiversity. Through its ‘Commitment to Environment’ and well-
developed policies/procedures, Nakilat supports Qatar’s national biodiversity strategy and action plan based in Qatar National Vision 2030
which aims to prevent, minimize and offset potential damage to ecosystems while at the same time adapting biodiversity to climate change.

Spill Management

Oil and chemical spills may arise from many different sources and activities in the shipyard, such as the oil discharged from vessels,
bunkering, facility maintenance, blasting and painting operations, yard’s machinery, and mobile equipment operation and maintenance, as
well as administrative processes. To mitigate this risk, Nakilat has developed oil and chemical spill contingency plans covering the entirety
of our vessels; operations and the Erhama Bin Jaber Al Jalahma Shipyard. These plans detail ways to minimize the potential harm of oil
and chemical spills to people and the environment by ensuring timely and coordinated responses. All JVs have developed an emergency
preparedness procedure in alignment with these plans. There are seven spill kits of different sizes located in strategic places around the whole
yard which are inspected every month and replenished as and when necessary. Throughout the year 2022, we have not recorded any spills.

Nakilat Fleet

Nakilat fleet of vessels have ship specific, and Class approved Shipboard Oil pollution Emergency Plan (SOPEP). USCG approved Nontank
Vessel Response Plan (NTVRP), Vessel General Permit (VGP) and contracts with National Response Corporation (NRC) and with Oil Spill
Response Organization (OSRO) for spill management.

Ballast Water Treatment System (BWTS)

In order to meet the recommendations of the IMO assembly resolution A.868(20), ‘Guidelines for the control and management of ships’
ballast water to minimize the transfer of harmful aquatic organisms and pathogens’, Nakilat’s fleet of vessels have ship-specific Ballast
Water Management Plan(s), approved by Class. Nakilat is 100% compliant with the Ballast Water Management System (BWMS) Convention.
Newbuild vessels were fitted with a BWTS at the shipyard, and BWTS systems are being retrofitted to existing ships.

Low Sulphur Fuel Selection

Nakilat complies with sulphur emissions caps of IMO 2020 by using lower sulphur fuels rather than employing exhaust gas scrubber
systems which have the potential to increase pollutant discharges to the ocean environment.

N-KOM’s Marine Water Quality Monitoring to Protect Ocean Health

N-KOM conducts water quality monitoring at five locations along its shore. Water samples from each location are tested for the same
parameters such as Total Suspended Solids (TSS) and pH value. On average, N-KOM’s TSS value did not cross 5.0 mg/l when compared with
the Ministry of Environment and Climate Change limit of 35 mg/l. Also, N-KOM pH value has always been within 6-9, as per Qatar’s Ministry
of Environment and Climate Change (MOECC) regulation.

The full lists of limits are as follows: pH - 6.5 - 9.0; TSS - 400 mg/l; TDS - 1750 mg/l; BOD – 260 (average) – 400(max) mg/l; COD - 760 mg/l;
Oil & Grease - <10 mg/l; NH3-N- 40 mg/.

45 46
 4.4 OCEAN HEALTH AND BIODIVERSITY (continued) NAKILAT ESG REPORT 2022

KPIs (Non-Shipping)

2022 Objectives and Targets (N-KOM):

EMP* Risk Focus Areas Objective Target Negative Environmental Impact Mitigation Measures Description Target / KPI 2022 Performance
(a) To have zero high Levels should not
To ensure that Marine Water Quality Monitoring at Different Locations TSS = <5 (mg/l)
environmental impact (a) EIA - covers all activities per production section cross:
environmental To ensure concentrations of pH and Total Suspended Solids (TSS) of marine (see note below)
rated operational (b) HSSE Audit - conducted annually for each production TSS = 35 (mg/l)
aspects of activities, activities. water are within the Ministry of Environment and Climate Change (MOECC)
section regulatory limits pH = 8.0
products and services pH: 6 - 9
(b) To reduce (see note below)
Environmental Impact from the company Reference for (a)
Assessment (EIA) are controlled and environmental Contaminated Water Treatment
impacts of high • IMS-HSSE-P-0003, identification and analysis of
To ensure that contaminated water from dry docks 1 and 2 are filtered of pH: 6 - 9
pH: 7.5
mitigated so that environmental aspects and impacts procedure. (see note below)
there is no potential and medium rated waste/contaminants before the water is released back into the sea
for adverse impacts activities to as • IMS-HSSE-F-0014, environmental aspects and impacts
identification and assessment form. BOD: 24
on the environment. low as reasonably BOD: 50
(see note below)
achievable.
COD: 96
(a) Contaminated water from dry docks and Phase 5 washing COD: 150
To maintain the discharged water at environmentally acceptable/regulatory (see note below)
bay undergo regular treatment at the Contaminated Water
limits as per the Ministry of Environment and Climate Change (MOECC) TSS: <3.5
Treatment Plant (CWTP). Within the CWTP contaminated TSS: 50
To maintain the (see note below)
water is processed through several stages of purifications.
discharged water
Oil & grease: <1
at environmentally (b) Treated water - Prior to discharge, samples are sent to Oil and grease: 10
To filter waste / (see note below)
acceptable / third-party laboratories for verification of water constituents.
contaminants of Cd: <0.02
Discharges to Sea regulatory limits Treated water is discharged to the sea only if the results are To ensure that contaminated water from dry docks 1 and 2 are filtered Cd: 0.1
water from dry docks (see note below)
as per Ministry of within the regulatory limits.
1&2
Environment and Pb: <0.01
(c) Environmental monitoring report - Quarterly monitoring Pb: 0.1
Climate Change (see note below)
requirements and respective limits are prescribed by the
(MOECC).
Ministry of Environment and Climate Change (MOECC) and Ni: 0.04
Ni: 0.5
stated in the Consent to Operate (CTO) License granted to the (see note below)
shipyard. Cu: 0.09
Cu: 0.5
(a) Vessels are under RLC and N-KOM regulations – No (see note below)
discharges allowed to sea other than treated ballast water. Cr: <0.001
Cr: 0.2
(b) Vessel activities which produce pollutants that can To maintain the discharged water at environmentally acceptable/regulatory (see note below)
To ensure
concentrations of pH contaminate marine environment and docks. Within the dry limits as per the Ministry of Environment and Climate Change (MOECC) Fe: 0.09
Fe: 1
and Total Suspended docks, all liquid and semi-solid discharges are contained (see note below)
Solids (TSS) of the within incorporated systems of the docks which either treat
To monitor marine Mn: <0.01
Marine Water marine water are or hold pollutants for collection. Mn: 0.05
water quality at (see note below)
Monitoring within the Ministry (c) Waste disposal requirements - managed via licensed
different locations. Phosphate: 3.8
of Environment and waste management contractors. Phosphate: 30
(see note below)
Climate Change
(MOECC) regulatory (d) Environmental monitoring report - Quarterly monitoring Sulfide: <0.1
Sulfide: 0.1
limits. requirements and respective limits are prescribed by the (see note below)
Ministry of Environment and Climate Change (MOECC) and
N-KOM only.
stated in the Consent to Operate (CTO) license granted to the
shipyard. Note: Monitoring requirements and the respective limits are prescribed by Qatar’s Ministry of Ministry of Environment and Climate Change
(MOECC) and stated in the Consent to Operate (CTO) license granted to the Shipyard.
N-KOM only.
*PM10, SO2 and NOX - 99.7% of all daily measurements taken during the period of one calendar year
*Environmental Management Plan **CO - 99.8% of all eight (8) hour measurements taken during the period of one calendar year
***Aromatic Hydrocarbon - Ras Laffan Industrial City (RLIC) Standards for non-methane hydrocarbons
****PM2.5 - United States Environmental Protection Agency (USEPA) Standards for PM2.5

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 4.4 OCEAN HEALTH AND BIODIVERSITY (continued) 4.5 WASTE MANAGEMENT AND SHIP RECYCLING NAKILAT ESG REPORT 2022

Conserving our Environment

As part of our commitment to practice environmental conservation, our staff participated in 2 activities organized by QatarEnergy, Ras
Laffan Industrial City.

1. Beach Clean-Up 2022

On 9 March, N-KOM staff participated in marine life conservation through the ‘Turtle Beach Clean-Up’. The activity focused on ensuring that
the RLIC beach which is home to the Hawksbill Sea turtles could offer a conducive environment for them to nest.

The beach clean-up event is performed annually around the turtle nesting season to ensure that the nesting grounds are free from waste
and safe for the turtles to nest within, thus ensuring continued flourishing of the turtle species.

Management Approach and Progress

Making Ship Recycling Safer with Inventory Hazardous Materials (IHM)

The European Union (EU) pursues an ambitious policy to make ship recycling greener and safer. The EU legislation on Inventory Hazardous
Materials (IHM) came into force on 30th December 2020. IHM is a structured system to control hazardous materials onboard ships.
Occupational health risks can be identified during ship operations to inform crew, as well as repair and conversion yards about any
hazardous materials onboard for incident preparedness and response. This enables advanced planning to ensure that ship decontamination
activities must be conducted by trained workers, appropriate equipment and adequate plans for the removal and disposal of any hazardous
materials (HAZMATs). Nakilat has obtained the IHM certification and inventory of hazardous material for fleet vessels. Nakilat has also
conducted extensive surveys involving the assessment of the hazardous materials samples in the laboratories for potential risks.

In addition to all mandatory certifications, our vessels maintain voluntary compliance certification with Hong Kong International Convention
for the Safe and Environmentally Sound Recycling of Ships. Compliance with this requirement enables Nakilat to maintain a record of all
potentially hazardous materials onboard, which is maintained throughout the operational life of the ships.

Shipping (Onboard) Waste Management

2. Tree Planting Drive
Waste generation, and its subsequent impacts, are related to domestic waste generated by on board crew during the ship’s operational
On 6 March, Nakilat Shipyard, N-KOM staff volunteered for the ‘Tree Planting Drive’. The activity sought to develop the Ras Laffan Industrial
activities, such as plastic, paper, metal, and food waste. The waste is collected onboard and segregated as per the approved vessel’s
City (RLIC) boundaries with a ‘green belt’ of trees, thereby improving the air quality.
garbage management plan. The data is then reported on the vessel’s flag approved garbage logbook maintained onboard. All the waste
The purpose of the trees planted in this zone is to serve as an air purification system which maintains a clean quality of air and provides a generated onboard our vessels is segregated before being disposed of ashore to an approved facility. Only a fraction of this waste is
degree of cooling to the general air temperature. incinerated onboard in an IMO-approved incinerator.

This green belt serves to enhance the air quality not only within RLIC but also in the public cities and zones neighboring RLIC. Chest freezers are provided for biodegradable materials for discharge outside Arabian Gulf in compliance with MARPOL Annex V.
No Single-use plastics (plastic bags and bottles) onboard.

Non-Shipping Waste Management

Nakilat has made conscious efforts to reuse and recycle waste where possible to reduce the amount of waste generated or disposed.
There are seven major types of waste generated by Nakilat and its local joint venture partners’ operational activities, which are categorized
as follows: General, wood, food, hazardous, metal, paper, electrical/electronic. Nakilat has a contractual agreement with approved local
contractors for the transportation and disposal of all types of waste. Recycling is in line with the local regulatory requirements.

At N-KOM, all major blasting activities are conducted at graving docks and floating dock; grit blasting is suspended during high wind speed
conditions above 25 knots to prevent the spread of grit dust. When grit blasting is performed on small vessels at the phase 5 washing bay
area, wet blasting technique is applied.

For blasting of loose items, outfitting and other small structures, blasting chamber facility is used while onsite ballasting operation of small
items requires encapsulation of the full structure along with engineering controls - dust collector, dehumidifier and vacuum machine that
are mandatory, as open blasting is not allowed.

N-KOM has a contract with the Ministry of Environment and Climate Change (MOECC) approved waste treatment factory to collect and
dispose waste. As per the contract, the contractor is required to collect, transport, and dispose waste as per established local authority
(MOECC) regulations. The respective N-KOM Sections’ person in charge are responsible for daily waste collection at yard and coordination
activities with the third-party contractors for waste disposal.

All wastewater from vessels washing at the shipyard is treated via the shipyard’s contaminated water treatment plant and returned to the
sea within the regulatory limits. Monitoring of environmental parameters are performed for treated water, seawater, drinking water and air
quality. All analyses are performed and validated by third party contractors. All contractors to the company are pre-audited and assessed
based on set criteria covering necessary environmental certifications and compliance.

49 50
 4.5 WASTE MANAGEMENT AND SHIP RECYCLING (continued) NAKILAT ESG REPORT 2022

QFAB has implemented a waste management plan to specify a waste management system for all QFAB processes that produce waste to KPIs (Non-Shipping)
ensure that the waste is effectively controlled, handled, transported, and responsibly disposed to protect and safeguard the environment
and to further reduce the risk of current and future liabilities. In all instances and in line with the QHSES policy and procedures, the most Waste 2020 2021 2022 Scope
environmental-friendly approach will be utilized as far as reasonably practicable. The fabrication operations general superintendent is
Total = 16,271 m3, Total = 19,200 m3 Total = 19,054 m3,
considered as the principal waste producer for all construction activities within QFAB and has a ‘Duty of Care’ to ensure that all waste
7,082 tons & & 9,681 tons 34,492 tons &
generated is properly handled and disposed complying with the applicable regulatory requirements.
365,000 gallons 1,195,790 gallons
Cat A, B, C & F
NSW has implemented initiatives such as eliminating the use of single-use plastic water bottles and instead providing all employees with
Cat A, B, C & F (General) = 13,566 m3 Cat A, B: 14,434 m3
dedicated approved drinking bottles.
(General) = 12,817 m3
Total weight of waste Cat C & F = 3,520 m3 Cat C: 4,620 m3
At NSW18, all shipboard generated garbage, domestic waste, food waste, bilge waste and waste oil products are recorded and disposed in a
generated (m3 or tons), and Cat C & F = 2,360 m3
controlled, safe and legal manner. Cat C & F = 3,077 tons Cat F: 2,301 tons
a breakdown of this total by
Cat C & F = 2,104 tons
In accordance with MARPOL Annex V, Garbage Management Plan is implemented onboard NSW vessel which provide guidance to the composition (CAT 22) of the Cat I = 22.86 tons Cat I: 25.13 tons
master and crew on board the ship on the procedures for collecting, storing, processing and disposing of garbage, including the use of the waste - N-KOM Cat I = 12.62 tons
Other = 2,114.16 m3 Other: 211.15 tons
equipment onboard. All vessels are equipped with adequate garbage storage in the designated color codes fire retardant bin for different
Other = 1,094 m3
types of waste generated onboard vessels. Proper guidance been provided to crew on vessel in the form of placards/poster on garbage Other = 6,581.36 tons Other: 31,836 tons
disposal. Other = 4,965 tons
Other: 118.51 tons
NSW always ensures the compliance with OVMSA (Offshore Vessel Management and Self-Assessment) in the fleet and additionally drives Other = 365,000 gallons
awareness coaching sessions with crew to ensure compliance with Garbage Management Plan and international/local maritime regulations. Other: 1,195,790 gallons
To verify the regulatory compliance, vessels are being audited regularly by internal and external authorities. Total = 67.86 m3 Total = 125.11 m3 Total = 173.26 m3

KPIs (Shipping): Total weight of waste Cat C & F Cat C & F Cat C & F
generated (m3 or tons), and (General) = 18.297 m3 (General) = 30.691 m3 (General) = 57.150 m3
a breakdown of this total
Waste 2020 2021 202219 Scope Cat A (Plastic) = 4.361 m3 Cat A (Plastic) = 9.59 m3 Cat A = 12.783 m3
by composition (CAT) of the
Waste generated waste - NSW Others Others Others = 103.327 m3
Non-
Total = 7,805 m3 (Oily waste) = 45.20 m3 (Oily waste) = 84.825 m3
Total = 6,895 m3 Total = 6,879 m3 shipping
Cat A = 1,984.08 m3
Cat 1 = 2,044 m3 Cat 1 = 1,939 m3 Total = 48.98 m3 & Total = 18.88 tons & Total = 786.61 tons
Total weight of waste generated (m3), and a Cat B = 334.67 m3
Cat 2 = 333 m3 Cat 2 = 326 m3 2.85 tons 264 Gallons
breakdown of this total by composition (CAT20) Cat C = 2,534.57m3 CAT A & B
Cat 3 = 2,233 m3 Cat 3 = 2,199 m3
of the waste21 Cat D = 1.20 m3 Cat A, B, C & F Hazardous waste = (General) = 158.652 tons
Cat 4 = 155 m3 Cat 4 = 161m3
Cat E = 127.66 m3 (General) = 48.98 m3 2.16 tons
Other = 2,129 m3 Other = 2,254 m3 Cat C & F = 627.957 tons
Others = 2,822.86 m3 Total weight of waste
generated (m3 or tons), and Cat C & F = 2.58 m3 CAT A & B
Waste disposal
a breakdown of this total (General) = 10.785 tons
Total = 6,895 m3 Total = 6,879 m3 Total = 7,805 m3 Cat C & F = 2.85 tons
Shipping by composition (CAT) of the Cat C & F = 5.94 tons
Cat 1 = 2,044 m3 Cat 1 = 1,939 m3 Cat A = 1,984.08 m3 Cat I = 0 tons
waste - QFAB
Total weight of waste directed to disposal in Cat 2 = 333 m3 Cat 2 = 326 m3 Cat B = 334.67 m3 Other
cubic meter, and a breakdown of this total by Cat 3 = 2,233 m3 Cat 3 = 2,199 m3 Cat C = 2,534.57m3 Other = 0 m3
(Oily waste) = 264.0 gallons
composition of the waste22 Cat 4 = 155 m3 Cat 4 = 161m3 Cat D = 1.20 m3 Other = 0 tons
Other = 2,129 m3 Other = 2,254 m3 Cat E = 127.66 m3
Others = 2,822.86 m3 Other = 0 gallons
Incineration onsite (without energy recovery) Total = 2.73 m3 Total = 0.59 m3 Total = 0.27 m3
775 1,061 1,545
(m3) Total weight of waste Cat C & F Cat C & F Cat A = 0.27 m3
Total waste disposal offsite (m3)23 6,120 5,818 6,261 generated (m3 or tons), and (General) = 0.51 m3 (General) = 0.56 m3
a breakdown of this total
Note: This data represents our entire shipping fleet. by composition (CAT) of the Cat I = 2.22m3 Cat I = 0.012 m3
It is to be noted that 2020 data has been re-categorized between the Joint Venture partners to align with NSQL. Nevertheless, the total waste - Corporate Hazardous waste =
waste generated remains the same. 0.02 m3

Garbage on shore is classified into the following categories (CAT A & B: General; CAT C & F: Wood & Metal; CAT I: Batteries; CAT OTHER- Spent Grit, Paint Drums, Sludge,
24
18
NSW- Nakilat SvitzerWijsmuller
Oily Water & Oily Rags)
19
2022 onwards-Garbage on ships are classified into the following categories as per MARPOL Annex V:

• Category A: Plastics • Category D: Cooking Oil • Category I: E-Waste

• Category B: Food Waste • Category E: Incinerator Ashes
• Category C: Domestic Waste • Category F: Operational Waste
20
Until 2021-Garbage on ships is classified into the following categories (Cat): 1-Plastics; 2- Floating dunnage, lining, and packing material; 3- Ground down paper
products, rags, glass, metal bottles, and crockery; 4-Domestic waste; 5- Incinerator ash; 6- Normal paper products, rags, oily rags, glass, and metal scrap; 7-Operational
waste; 8- Animal Carcasses onboard livestock carrier; 9- E-Waste; 10- Cooking oil waste produced in the galley; 11- Cargo residues onboard ships carrying solid cargo
in bulk which are not harmful to the marine environment (Non-HME); 12- Cargo residues onboard ships carrying solid cargo in bulk which are harmful to the marine
environment (HME); Others” encompass all what is not listed between cat 1 and cat 12.
21
Total waste (disposed to sea + incinerated + landed ashore) in m3. Data provided in cubic meter and not in tons as reported by the vessels and approved by the flag state.
22
Bilge doesn’t fall under garbage requirement.
23
The rest of the segregated waste is disposed to an approved shore facility for processing.

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 4.5 WASTE MANAGEMENT AND SHIP RECYCLING (continued) NAKILAT ESG REPORT 2022

Waste 2020 2021 2022 Scope Waste 2020 2021 2022 Scope

Total weight of waste diverted Total = 34,492 tons Total waste disposal – landfill
Total = 3,099.86 tons NA 12.945 tons 203.147 tons
from disposal in metric tons, (m3 or tons) QFAB
Cat F: 2,301 tons
and a breakdown of this total NA CAT C & F = 3,077 tons Total waste disposal – Non-
Cat I: 25.13 tons NA 60.225 tons 583.46 tons
by composition of the waste. recycling (m3 or tons) QFAB Shipping
CAT I = 22.86 tons
- N-KOM Others: 32,166 tons Total waste disposal –
NA NA 0.84 tons (paper)
Total weight of hazardous recycling (m3 or tons) QFAB
waste diverted from disposal
in metric tons, and a
NA CAT I = 22.86 tons Cat I: 25.13 tons
breakdown of this total by the
following recovery operations 2022 Objectives and Targets (N-KOM):
-SOLD- N-KOM
EMP Risk Focus Areas* Objective Target Negative environmental impact mitigation measures
Total weight of non-hazardous
waste diverted from disposal Waste To ensure that, in accordance To maintain Waste management plan:
in metric tons, and a with legislation, waste will baseline waste (a) Contracts - in place with licensed waste contractors
NA CAT C & F= 3,077 tons Cat F: 2,301 tons be managed in a sustainable recycling rate to dispose waste at government approved waste
breakdown of this total by the
following recovery operations manner following the waste of 80% for treatments centres.
SOLD- N-KOM hierarchy of prevention, reuse, recyclable waste. (b) Scrap metal - sold to interested companies for
recycling, and disposal to reuse.
Total = 16,271 m3, Total= 19,200.16 m3 & Total: 19,054 m3,
ensure the reduction in waste is (c) HSE walkthroughs and environmental Inspections -
7,082 tons & 9,681.22 tons 34,492 tons &
sent to landfill. conducted to ensure waste is managed in a sustainable
365,000 gallons 1,195,790 gallons
Cat A, B, C & F manner.
Cat A, B, C & F (General) = 13,566 m3 Cat A, B: 14,434 m3
Reference
Total weight of waste directed (General) = 12,817 m3 Cat C & F = 3,520 m3 Cat C: 4,620 m3
• IMS-HSSE-F-0120, Health and Safety Inspection
to disposal in metric tons, and
Cat C & F = 2,360 m3 Cat C & F = 3,077 tons Cat F: 2,301 tons Record
a breakdown of this total by
composition of the waste - Cat C & F = 2,104 tons Cat I = 22.86 tons Cat I: 25.13 tons • IMS-HSSE-F-0131, Environmental Inspection
N-KOM Report
Cat I = 12.62 tons Other = 2,114.16 m3 Other: 211.15 tons
Non-
• IMS-HSSE-P-0004, Waste Management Procedure
Other = 1,094 m3 Other = 6,581.36 tons Other: 31,836 tons
Shipping N-KOM only
Other = 4,965 tons Other: 118.51 tons
*Environmental management plan
Other = 365,000 gallons Other:1,195,790 gallons
Total = 125.11 m3
Total = 173.26 m3
Total weight of waste directed Cat C & F Materials (Non-Shipping):
to disposal in metric tons, Cat C & F
Other (Oily waste) = (General) = 30.691 m3
and a breakdown of this total (General) = 57.150 m3 Nakilat’s facilities do not consume or use raw materials in its operations, given the nature of its business offerings. The recurring materials
45.20 m3 Cat A (Plastic) = 9.59 m3 employed are limited to corporate-use or specific material use. Materials are sourced from Original Equipment Manufacturers (OEMs) and
by composition of the waste Cat A = 12.783 m3
- NSW other suppliers. These materials, such as paper, are used to support the retail and service nature of the entity operations.
Others
Others = 103.327 m3
(Oily waste) = 84.825 m3 Materials that have a high impact on the environment are monitored. Nakilat is constantly exploring more environmentally friendly products/
Total = 18.88 tons & materials where available.
264 gallons
Materials 2020 2021 2022 Scope
Hazardous Waste =
Total weight of waste directed Material used by weight and volume
2.16 tons Total = 786.6 tons
to disposal in metric tons, Paper (kg) - Corporate 2,216 1,248 2,515
and a breakdown of this total NA CAT A & B (General) = Non-hazardous
by composition of the waste 10.785 tons Paper (kg) - N-KOM 6,394 6,475 9,962
Waste=786.6 tons
- QFAB Copper Slag (tons)-N-KOM 4,928 12,857 40,664
Cat C & F= 5.94 tons
Non-shipping
Steel (tons)-QFAB n/a n/a 18,000
Other (Oily waste) =
264.0 gallons Paper (kg) - QFAB n/a 570 5,050
Total: 17,086 m3 & Paper (kg) - NSW n/a n/a 1,400
Total: 15,177 m3 &
6,425.74 tons Total: 19,054 m3 &
4,903 tons
32,167 tons Note: Nakilat office, N-KOM, NSW and QFAB data only.
Total waste disposal – landfill CAT A, B, C & F
General = 12,817 m3
(m3 or tons) N-KOM (General) = 13,566 m3 Cat A, B & C: 19,054 m3
Wood = 2,360 m3
CAT C & F = 3,520 m3 Other: 32,167 tons
Spent Grit = 4,903 tons
Other = 6,425.74 tons

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 5. SOCIAL NAKILAT ESG REPORT 2022

5.1 Health, Safety and Wellbeing Safety Moments:

Management Approach and Progress At Nakilat, HSE moments sessions are conducted at the commencement of each organizational meeting. These sessions involve brief safety
discussions aimed at increasing awareness of potential hazards and fostering a safe work environment and healthy practices. HSE moments
Nakilat and its joint ventures (JVs) are committed to health and serve to prioritize safety and encourage employees to take personal responsibility for their wellbeing and that of their colleagues. They are
safety at the workplace for our employees, temporary personnel, and held not only at the beginning of meetings but also whenever employees gather together, reinforcing the significance of safety in all aspects
contractors in line with the requirements established under Qatar of our operations.
National Vision 2030 and Nakilat’s Safety, Health, Environment and
HSE moments cover a range of topics, including workplace hazards, near misses, best practices for safe behavior, in addition to the
Quality (SHEQ) policy. We ensure compliance with applicable legal and
importance of following safety protocols, health, and environmental protection, among others. They are delivered in a variety of formats,
other requirements pertaining to health and safety in all our activities.
such as stories, videos, or interactive discussions. The goal is to make the HSE moments engaging and relevant to the employees, so they
We spare no efforts to advance in strengthening safety in all our are more likely to remember the key messages.
operations and thus reduce risks to our employees and workers. We
In addition to raising awareness about health and safety, HSE moments also promote a culture of safety in the workplace. When employees
place consistent focus on injury prevention and seek to enhance our
see that safety is a priority for the company, they are more likely to take safety seriously and to speak up when they see unsafe behavior or
safety culture through number of initiatives including an Incident and
conditions.
Injury Free (IIF) environment campaign continued in 2022 and Hand
and Finger Safety campaign started in 2022. The whole idea is to raise To make safety moments effective, Nakilat SHEQ plans them in advance and makes them a regular part of the workplace routine. At Nakilat,
awareness and change mindset about safety. It’s a way of thinking we believe that it is also important to create a safe and supportive environment where employees feel comfortable discussing safety
that avoids incidents and injuries, making safety a high priority on concerns and sharing their experiences.
both a personal and organizational level.
In 2022, more than 400 HSE moments were conducted covering a wide range of topics on health, safety, environment, and quality
Policy management.

For SHEQ policy, please refer to section 4.1 of this report. Conducted HSE Moments

We place SHEQ at the top of our agenda to ensure that we operate in a safe, reliable, and efficient manner within our society and natural
environment. The fundamentals of how we deliver safe and reliable operations remain our number one priority. We believe that all incidents Q1 Q2 Q3 Q4
and injuries are preventable; hence we strive to create an Incident and Injury Free (IIF) environment, both at the workplace and at home. Our
SHEQ policy ensures the achievement of these commitments within the organization. It is accessible to all employees and contractors within
Nakilat through SharePoint, company website and is also physically displayed at several prominent locations within office premises. Nakilat
ensures the policy’s compliance, effectiveness, and suitability by continuously reviewing it during the management review meetings. JAN APR JUL OCT

Governance
Safety and Security in Office Health & Safety Heat Stress Cybersecurity Awareness
Nakilat’s SHEQ Committee, consisting of all department chiefs and the CEO, governs and oversees occupational health, safety, wellbeing, Premises/Visitors During Ramadan
and Environment in the organization. The SHEQ Committee is responsible for decision-making and implementation of key OHS strategies
within the organization. Management teams maintain regular communication to ensure systems and processes in place are up to date and
capture all potential risks. Nakilat has an Occupational Health and Safety Management System (OHSMS) in place, and it is certified against
ISO 45001:2018 standard by Lloyd’s Register as a third-party certification body. The certificate is valid for 3 years with annual audits. Hazard FEB MAY AUG NOV
identification, incident investigation and risk assessments are carried out in accordance with a detailed procedure.

Regarding incident updates, Nakilat JV partners and NSQL share these updates on a weekly and on a monthly basis along with exposure First Aid/Medical Treatment Incident & Injury Free Travel Safety Emergency Evacuation
hours and other information related to near miss/unsafe act/condition reports in a running log. Nakilat’s SHEQ department is responsible for (IIF)
the verification of incident information, categorization and follow-up on the incident investigation and for sharing the lessons learnt.

Additionally, the senior management Team (SMT), which includes all departments’ chiefs and the CEO, is responsible for following up on all
the HSE matters on a weekly basis and the actions taken as well as providing high-level guidance.

As for the safety performance, the SMT, headed by the CEO, conducts a performance review twice a year where the overall safety MAR JUN SEP DEC
performance is discussed and actions to be taken are identified to close the gaps as part of investigations. The board is then responsible for
reviewing the safety performance which is presented to them on a quarterly basis including the follow-up actions that were taken during CPAR/Near Miss Reporting Green Habit to Save Planet Workplace Communication Personal Protective
that period of time. The safety performance presented includes both overall performance and that of individual entities within Nakilat. Equipment (PPE)
Further, Nakilat underwent the British Safety Council’s Five Star OHS audit and achieved a 5-Star rating with a score of 96.39%. The
audit focused on key aspects of managing occupational health and safety in the workplace and offered a structured path for continual
improvement towards best practice status. This audit is the most comprehensive, contemporary, quantified audit process available, which
allows any organization to test its health and safety performance against the latest legislation, recognized standards and best practice
techniques. It provides a quantified outcome with detailed recommendations against a contemporary best practice specification (including
the requirements of ISO 45001) over and above the current Occupational Health and Safety Management Systems (OHSMS) standard
requirements.

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 5. SOCIAL (continued) NAKILAT ESG REPORT 2022

Safety Performance Track Record for the Nakilat Group (Nakilat, NSQL, Shore and Fleet JVs and Nakilat wholly Owned Vessels) Case Study: Cultivating IIF Culture
Nakilat has made significant investments in our people, processes, and equipment, which directly impacts Nakilat’s safety performance. Nakilat and its JV partners continued with their commitment to implement the IIF campaign, a safety leadership program that empowers
We have witnessed a continuous improvement in our safety performance, leading to the achievement of better results in comparison to the people to foster a safer working environment.
benchmarked average of our peer group and ITOSF.
• Conducted online e-learning and training programs as part of the commitment towards being IIF. Six mandatory e-learning programs
were launched for shore-based employees which are regularly monitored and updated with new content.
LTIF (Lost Time Injury Frequency) 2020 2021 2022 Scope
• Training sessions to raise awareness of employees and to enhance their knowledge on the respective subjects:
Benchmark-ITOSF* 0.39 0.41 0.38
All Nakilat and NAC and • Understanding of health and safety risk assessment
Nakilat - KPI** 0.43 0.41 0.31 Joint Ventures (JVs)
• Difference between SHEQ audit and internal audit
Actual 0.39 0.19 0.37
• Familiarization of SHEQ mandatory trainings/programs

TRCF (Total Recordable Case Frequency) 2020 2021 2022 Scope • The company’s efforts at being IIF were recognized with Nakilat being awarded the Sword of Honor by the British Safety Council for
the fifth consecutive year. This award represents the pinnacle of achievement in the world of Health and Safety Management and is
Benchmark-ITOSF* 1.03 1.16 1.30
also a recognition of the company’s commitment towards effectively managing its health and safety risks.
All Nakilat and NAC and
Nakilat - KPI** 1.21 1.15 1.09 Joint Ventures (JVs)
Actual 0.63 1.11 1.14

*ITOSF- Informal Tanker Operators’ Safety Forum

**KPI- Key Performance Indicator

Key Safety Performance Highlights

The company’s solid safety performance reflects the effort and dedication of staff both at sea and ashore. Nakilat’s prime objective is to
achieve an ‘Incident and Injury Free (IIF)’ work environment and our 2022 safety results greatly complement our commitment toward being
IIF. Nakilat’s wholly owned, joint venture and in-house operated vessels have demonstrated first-class operational and safety performance
despite the demanding operations worldwide. Key highlights of our industry-leading vessel safety performance are as follows:

0.37 LTIF and 1.14 TRCF

Nakilat’s Fleet Nakilat’s Fleet achieved an overall LTIF of 0.37 and a TRCF of 1.14,
both below the benchmark averages of those metrics.
17 years LTI-free
Nakilat Agency Company (NAC) NAC continued its track record and remained LTI-free for 17 years
since its inception.
13.4 million safe man-hours
Nakilat Svitzer-Wijsmuller (NSW) NSW accumulated more than 13.4 million exposure hours with zero
LTIs and TRCs in 2022.

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 5. SOCIAL (continued) NAKILAT ESG REPORT 2022

Case Study: Flu Vaccination Campaign Caring for our Staff, Contributing to our Environment
Nakilat conducts flu vaccination campaign for its staff every year as it is important that people take suitable measures to protect
Nakilat’s JV company, N-KOM Recreation Committee (NKRC) organized a tree planting event at our workforce accommodation at the Ras
themselves and their families against the flu. Flu is a serious disease that can lead to hospitalization and sometimes, even death. The
Laffan Global Village on 23rd September 2022. During the event, our staff and subcon volunteers had fun planting more than 150 trees
annual seasonal flu vaccine is the best and safest way to reduce the chances of catching the flu and potentially spreading it to the families.
saplings along a green belt around the accommodation blocks. The aim behind this initiative was to demonstrate care for our staff and
Vaccination to prevent influenza is particularly important for people who are at high risk for the flu and its complications. This includes the
contribute to our environment.
elderly, young children, pregnant women and people with certain medical conditions.

Case Study: Safety During FIFA

Nakilat conducted safety sessions for its employees in close coordination with Supreme Committee for Delivery and Legacy to ensure
safety and wellbeing of its employees. Given the huge influx of fans from all over the world for the FIFA World Cup, there were significant
disruptions in Qatar regarding traffic movement, and diversions along with specific restrictions.

Nakilat ensured that all its employees are made aware of such changes in order to maintain business continuity and their safety.

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Case Study: Nakilat Safety Climate Survey 2022 Case Study: N-KOM Launches Monthly Stakeholder Incentive Program
Nakilat uses the United Kingdom (UK), Health and Safety Executive (HSE) to conduct the Safety Climate Survey tool. The safety climate In 2022, N-KOM Management introduced the Monthly Stakeholder Incentive program.
survey tool provides powerful insights into the safety climate of a workplace. The aim of this program is to accord company-level recognition to staff, sections/
departments through the following monthly public incentivization/awards:
It is an essential tool for companies to evaluate their safety culture and identify areas that need improvement. It is a questionnaire that is
designed to assess employees’ perceptions and attitudes towards health and safety in the workplace while guaranteeing anonymity within • Safe Worker
an organization. This survey measures the employees’ understanding of safety policies, the level of communication about safety, and the
employees’ participation in safety activities. The safety climate tool delivers an objective measure of Nakilat’s safety culture - the ‘way
• Monthly Zone Champion
things are done’ in the organization when it comes to health and safety. This is a powerful tool to continually improve and raise standards. • Monthly Workshop Champion
The survey is conducted for shore employees as well as for ship crew at Nakilat by informing employees about the survey in advance, • Best Worker - Blue-Collar Operations Staff
providing them with an opportunity to ask questions, and ensuring that the survey is anonymous and confidential. Once the survey is and White-Collar Staff from all Sections
completed, it generates a comprehensive report and provides guidance that helps Nakilat to develop action points for each factor and
the identified issues in collaboration with all department managers. The plan is communicated to all employees onshore and ashore. • Best Department
Based on the result, a detailed presentation is drawn up along with an action plan to address areas where improvements can be made. This initiative to boost stakeholder recognition and engagement has received positive
All employees are then given a proper cascade of the results and planned action which also includes action owner and timeline for feedback from the employees.
completion.

Monthly HSSE Meetings with Subcontractors

N-KOM regularized meetings with its contractors. The four-fold aim of monthly meetings
attended by subcontractors’ management and supervision are:

• To align subcontractors’ occupational health and safety systems with N-KOM’s HSE
standards and practices

• To raise the standards of N-KOM stakeholders beyond compliance

• To bring about tangible improvements across all sections employing subcontractors

• To deliver value to our clients through the conduct of safe, reliable and efficient
maintenance, servicing and repair operations by our staff and subcontractors alike

• The meetings have been well-received and positive outputs have been noted from
the subcontractors engaged in the forum

At NSW, safety culture embraces learning and continual improvement through employee
engagement and support. We are committed to driving continuous improvement in health
and safety and the environment. We take responsibility for promoting awareness training,
knowledge sharing and a proactive approach to our own health and safety and to the
wellbeing of others being supported by the following initiatives taken by NSW:

• Safety competitions to promote the health and safety culture within the organization

• Celebrating Global Safety Day annually

• ‘Mariner of the Month’ program is in place to recognize crew members for their extraordinary efforts

• Organizing year ending celebration as crew welfare program promoting ‘Stop Work Authority’ culture through Safety posters
containing family members’ pictures
NSW annually conducts ‘Global Safety Day’ which is a yearly event to mark safety in an organisation, first initiated in 2013. ‘Global Safety
Day’ instigates an approach to managing safety, securing an aligned and companywide approach, formalizing, and adapting same tools
and methodologies across all operations, implementing ‘Harmonized Safety Management’,

Through NSW’s safety management system, we have continuously applied further actions and initiatives to improve the safety culture.

‘Global Safety Day’ in 2022 was celebrated September 1st with theme ‘we learn and adapt’ and focused on our top and most critical risks
to our operations. Amongst others this addressed mooring operations, safe access, and personnel transfer at sea.

Adhering to COVID protocols, several sessions were conducted onboard vessels, as well as with shore-based teams, facilitated by
onshore leadership team members establishing effective engagement and sharing of ideas and experiences on the topics.

To further engage our team members, NSW launched a competition inviting all to express their individual comprehension of what ‘Learn
and Adapt’ means to them, illustrating this with posters, slogans or by sharing stories/experiences. NSW’s team members showed great
engagement with high contribution to the competition, in turn recognized and appreciated by NSW, awarding prizes for contributions.

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NAKILAT ESG REPORT 2022

##Pictures
Pictures
Picturesofof NSW
ofNSW
NSW Safety
Safety
Safety Day
Day celebration
Celebration
Day celebration NSW-Global Safety Day NSW-Toolbox Talk with Workshop

NSW-Morning Toolbox Talk NSW-Toolbox Talk on Vessel

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NAKILAT ESG REPORT 2022

Customized E-Learning Objectives and Targets

Using the existing partnership with external agencies, Nakilat has added more e-learning modules of established occupational health and KPI 2020 Target 2021 Target 2022 Target 2023 Target
safety awareness programs for its employees.
Loss Time Injury Frequency (LTIF) 0.43 0.41 0.31 0.31
Course modules that were added in 2021 include:
Safety Climate Survey 3.85 3.90 3.95 3.85
• Lifesaving rules
Number of major safety incidents 0 0 0 0
• Fire safety
BSC 5 Star rating
• Integrated Management System (IMS) – 96% Participate in
Obtain BSC Obtain BSC
• Management of change Percentage compliance with select international industry Royal Society
Obtain Sword of Sword of Honour Sword of Honour
standards (British Safety Council: membership, 5-star for Prevention of
Honour and Globe of and BSC Globe of
These training courses were introduced in a phased manner, through the company’s online learning module. rating, Sword of Honour) Accidents Award
Honour Award Honour Award
Prepare for Scheme
Conducting Tabletop Exercises On COVID-19 Pandemic Response Globe of Honour
A comprehensive tabletop exercise was conducted with all stakeholders involved in the pandemic response. The drill focused on business % of Number of completed recommendations on Nakilat
continuity in the event of an outbreak. Actions assigned to each department were defined and established during the exercise. Specific 100% 95% 95% 95%
incidents, CPARS, and Audit
measures tested and successfully implemented include:
Nakilat SHEQ policy applies to all Nakilat personnel, including contractors and visitors on all our sites, without exceptions. Sites are audited
• Identification and contact tracing of close contacts on a regular basis for compliance with health and safety regulations as well as policies. These audits are conducted by internal and third-
• Disinfection routines party auditors. Lessons learned and best practices are shared across the wider business.

• Back-to-office guidelines Occupational Health and Safety 2020 2021 2022 Scope
• Fit to work screening post quarantine For all employees and workers

• Awareness sessions for frontline staff (ex: housekeeping staff, security, IT service desk support staff, etc.) Number of lost time injuries25/incidents 10 5 11
Lost-time injury rate (LTIF) 26
0.39 0.19 0.37
Comprehensive Risk Assessments
Number of work-related fatalities 0 0 0
Specific risk assessments were carried out to identify the risks arising as a result of the pandemic, and appropriate mitigation actions that Number of recordable cases 16 29 34 All
were required to be implemented. A detailed action plan with timelines were assigned against each control. Risk assessments that were Nakilat
Total Recordable Case Frequency (TRCF)
27 28
0.63 1.11 1.14
undertaken include: and NAC
Caught in/Between, Caught in/Between, and Joint
• Risk assessment for Nakilat agents boarding vessels at Ras Laffan Minor Cuts and Cuts/Laceration/ Burn/ Rash, Caught Ventures
• Review of biological risks in the wake of the pandemic Bruises/Sprains Puncture, Heat in/Between, Strain/ (JVs)
The main types of work-related injury
and Strain/Foreign Exhaustion, Strain/ Sprain. Foreign
• Assessment on crew transfer between Doha and Ras Laffan and related transportation arrangements Particle in eye Sprain and Struck Particles and
• Evaluation of risks for operations and measures post de-escalation by/ Against Struck by/ Against
The number of hours worked29 25,526,586 26,027,630 29,940,323
KPIs
403-10: Work related Ill Health 2020 2021 2022 Scope
With the help of the Lost Time Injury Frequency (LTIF) indicator, we are able to record the rate of work-related injuries or illnesses that
For all employees and workers
renders the injured person temporarily unable to perform his work on the day after the day on which the injury occurred. On the other hand,
the Total Reportable Case Frequency (TRCF) indicator allows us to record all work-related incidents. The latter is defined as injuries that Fatalities as a result of work-related ill health-Number 0 0 0 All
result from an event or exposure in the work environment and occurred during the course of work being done or aggravated a pre-existing Fatalities as a result of work-related ill health-Rate 0 0 0 Nakilat
injury or illness. Work-related accidents are considered relevant if they occur on the vessels, on business premises or during business and NAC
Recordable work-related ill health-Number 0 0 0
travel. and Joint
Recordable work-related ill health-Rate 0 0 0 Ventures
Main types of work-related ill health There were no cases of work-related ill health reported (JVs)

Nakilat has procedures in place for the ongoing identification of hazards, assessment of risks, and implementation of necessary control
measures. We proactively identify sources or situations arising from the company’s activities, procedures, and services, with potential
to cause work-related injury or ill health using proactive tools such as process hazard analysis, prestart-up safety review and job safety
analysis. Additionally, post-event hazard analysis is conducted using root cause analysis to identify action to prevent recurrence.

Nakilat maintains risk registers that document all identified hazards and responsible persons who ensure risks associated with each hazard
are managed to ‘As Low as Reasonably Practicable’ (ALARP).

25
Lost-time Injury represents the high-consequence work related injuries.
26
Injury Rate at 1,000,000 hours worked.
27
Excluding first-aid incidents as they do not result in more than one day of absence or do not impose restriction on working ability.
28
First-aid incidents are not included in the TRCF since these usually do not result in more than one day of missed work or impose any restriction on the working ability of
an employee.
29
Exposure hours shows the time an employee is exposed to work related hazards and risks. Data is submitted by each entity on monthly basis.

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NAKILAT ESG REPORT 2022

A Safety climate survey was also completed to identify opportunities and develop actions to address the improvement areas. Nakilat’s 10 Life Saving Rules
golden rules were developed and adopted across the organization which are about changing how we act as individuals and as a team.

Nakilat has revised lifesaving rules to align with the International Association of Oil & Gas Producers (IOGP) recommendations. IOGP
launches a simplified set of life-saving rules to provide workers in the industry with the actions they can take to protect themselves and
their colleagues from fatalities. IOGP aims to improve the level of industry-wide adoption across the global oil and gas industry. They are for
mandatory compliance by all employee and contractors while on Nakilat business.
Bypassing Safety Controls Confined Space Driving
Nakilat safety scores are well below the industry average which is due to various measures being taken and maintained to manage
workplace hazards as below: Obtain authorisation before overriding or Obtain authorisation before entering a Follow safe driving rules
disabling safety controls confined space • I always wear a seatbelt
• Health surveillance enhancement program • I understand and use safety-critical • I confirm energy sources are • I do not exceed the speed limit,
equipment and procedures which isolated
• Safety campaign: hand and finger safety and dropped object campaign and reduce my speed for road
apply to my task • I confirm the atmosphere has been conditions
• Enhanced near miss reporting • I obtain authorisation before: tested and is monitored
• I do not use phones or operate
• disabling or overriding safety • I check and use my breathing devises while driving
Enhanced quality of toolbox talks (TBT) ° apparatus when required
equipment • I am fit, rested and fully alert while
• HSE Training Programs - Risk assessment and risk management training, Control of Substances Hazardous to Health (COSHH)
deviating from procedures • I confirm there is an attendant driving
assessment training and defensive driving training, to name a few ° standing by
° crossing a barrier • I follow journey management
• Advanced firefighting training and basic life support/ first aid course/training (CPR, AED and First Aid) for HSSE personnel
• I confirm a rescue plan is in place requirements
• I obtain authorisation to enter
• Development and sharing of heat index forecast followed by implementation of effective controls in the workplace
• HSSE inspections and walkthroughs

• Safe worker awards presentation and commendable performance - rewards and recognition

• Core HSE trainings to N-KOM identified workforce

• HSSE audits of departments/sections and contractors Energy Isolation Hot Work Line of Fire
• Safety campaigns/programs Verify isolation and zero energy before Control flammables and ignition Keep yourself and others out of the line
work begins sourcese of fire
• Health campaigns/programs
• I have identified all energy sources • I identify and control ignition • I position myself to avoid:
• Environment campaigns/programs • I confirm that hazardous energy sources
moving objects
sources have been isolated, locked • Before starting any hot work: °
• Sharing lessons learnt and working on actions and tagged ° vehicles
° I confirm flammable material has
• Visible felt leadership tours (senior management) • I have checked there is zero energy been removed or isolated ° pressure releases
and tested for residual or stored dropped objects
energy ° I obtain authorisation °
• Before starting any hot work in a • I establish and obey barriers and
hazardous area I confirm: exclusion zones
a gas test has been completed • I take action to secure loose objects
° and report potential dropped
° gas will be monitored continually objects

Safe Mechanical Lifting Work Authorisation Working at Height

Plan lifting operations and control the Work with a valid permit when required Protect yourself against a fall when
area • I have confirmed if a permit is working at height
• I confirm that the equipment and required • I inspect my fall protection
load have been inspected and are fit • I am authorised to perform the equipment before use
for purpose work • I secure tools and work materials to
• I only operate equipment that I am • I understand the permit prevent dropped objects
qualified to use
• I have confirmed that hazards are • I tie off 100% to approved anchor
• I establish and obey barriers and controlled and it is safe to start points while outside a protected
exclusion zones area
• I stop and reassess if conditions
• I never walk under a suspended change
load

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NAKILAT ESG REPORT 2022

Occupational Health – Nakilat Shipyard - N-KOM Medical Examination

As part of N-KOM’s ongoing commitment to enhance all stakeholders’ health, safety Health surveillance is provided for all trades which is detailed in N-KOM IMS- HSSE-P-0060 ‘Health Surveillance Procedure’. This procedure
and wellbeing, a series of holistic occupational wellbeing studies were commenced facilitates monitoring for early signs of ill health, prevention and early diagnoses along with physical and mental health effects that may be
by the N-KOM medical team. Support was provided by QatarEnergy and N-KOM top linked to workplace hazards.
management. These studies included the identification of potential hazards that arise in
Medical screening includes an annual health surveillance, fatigue assessments, pre-employment fitness to work review and case
the business from workload, work activities, environmental heat stress factors, along
management. The ‘fitness to work’ examination procedure is in coordination with QatarEnergy Occupational Health.
with seasonal humidity. N-KOM IMS-HSSE-P-007 Rev 4 Hazard Identification and Risk
Assessment Procedure was utilized for In addition, the yard health facility with attached ambulance paramedic provides 24x7 walk-in health check for employees and contractors,
the identification of all of the above in so ensuring that all who need medical care are able to receive it immediately and will respond to medical emergencies within the KPI of
far as mental health and wellbeing are QatarEnergy, Ras Laffan.
concerned. This formed the basis of the
studies.

A clear, documented procedure for the

setting of mental health and wellbeing objectives was established in IMS HSSE procedures,
Policies and Forms Part 3 – Health Manual. The process for the objective setting includes
top management leadership and commitment, identification of roles and responsibilities,
and participation of all relevant stakeholders. Consideration of legislative and sector
requirements, outcomes of risk assessment and risk profiling outcomes together with
outputs from management reviews was included in the revisions.

Culture that Supports Good Mental Health

Nakilat shipyard, N-KOM top management identified and facilitated (through the BSC) Mental Health First Aid training for section managers
and Human Resources personnel. This training established a baseline understanding for recognition of the signs and symptoms of mental
health issues in the workplace and provided the skills for successful intervention.

A Health and Wellbeing Committee was formed within each section of the business with identified health champions nominated as
representatives. The Health and Wellbeing Committee meeting is conducted quarterly and is attended by section management, the senior
nursing officer, and a member of top management.

The introduction of stress management training was identified during the assessment stage. The training was developed with medical and
HR and is conducted by the N-KOM Training Center for all employees. In-house psychologist consultation service is available within the
employee accommodation - 6 days per week and is free to all.

Stress Management Workshop

Working together for a Safer and Healthier Shipyard - Nakilat

Health programs and initiatives are facilitated throughout the year and include: - Influenza and COVID-19 vaccines (for employees and
subcontractors), healthy lifestyle awareness programs such as diabetes, cancer, hand hygiene, smoking cessation awareness, mobile health
screening, and others.

Health awareness campaigns are also communicated through posters, health alerts, electronic broadcasting through company emails, and
communications translated into the main languages spoken in the shipyard (Tamil, Malayalam, Hindi, Bengali, and Tagalog).

Wellbeing objectives including a stand-alone health and wellbeing policy are being developed for inclusion in the 2023 objectives, targets and KPIs.

Health Champion Meeting

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NAKILAT ESG REPORT 2022

Health KPI Unit of Measure (UOM) 2022

N-KOM - Confined Space Attendant Rescue
and Gas Meter Carrier Training N-KOM - Shipyard Safety Training
To maintain the number of health surveillance conducted in 2021 Number of health surveillance
362
All black trades/mechanical engineers are to undergo an annual Health surveillance conducted by health/medical team

To conduct a healthy lifestyle program among employees by the end of Q3 2022

Number of healthy lifestyle program
Includes smoking cessation, employee assistance programs and reduction of 12
conducted
alcohol consumption
To conduct a program for medical drills by the end of Q1 2022 includes
Number of medical drills conducted 8
communicable diseases, heat stress, trauma and medical Illness
To enhance the staff health and welfare forum across all trades by Q2 2022
Number of staff health and welfare
To be included the monthly department HSSE meeting and will include 3
forum/ health champion
subcontractors

Health and Safety Trainings N-KOM - Fire Watchman Training

Nakilat encourages employees to enhance their skills and knowledge with an extensive array of training courses. We provide our employees
with several health and safety trainings to educate and empower them to ensure their behaviors are safe at all times, while present on
Nakilat’s premises. Please refer to the case study for more information on Nakilat’s N-KOM Shipyard training center.

Case Study: N-KOM Shipyard Training Center

The shipyard is a manpower-centric organization and training is a critical node in ensuring the desired safe performance of shipyard
activities.

The training center was established since the beginning of the shipyard, and it was revamped in 2019 as the Shipyard Training Center
(STC). It delivers competency requirements for the organization, develops internal training contents on safety awareness and facilitates
skills training that are required to elevate the competence status of our workforce. STC continues to deliver health, safety and environment
training and other technical/ operational training to the employees. In addition, STC conducts safety induction on HSSE and International
NSW - Firefighting Training N-KOM - Working at Height Training
Ship and Port Facility Security Code (ISPS) awareness for all newcomers to the shipyard including sub-contractors and business partners
engaged in our business.

Based on competency requirements identified annually by department managers and as per changing business requirements pertaining to
health, safety and environment, trainings needs are identified and organized as per the below:
Total No. Trainings Conducted in 2022
N. Type of Courses Total Personnel Trained*
1 HSSE Induction and ISPS Awareness Training 6,423
2 Fire Watchman Training 1,159
3 Confined Space Attendant / Rescue and Gas Meter Carrier Training 1,320
4 Shipyard Safety Training 455
5 Work at Height Training 555
6 Fire Fighting Training 88
7 Hydrogen Sulphide / Breathing Apparatus Training (OPITO**) 33
NSW - Man Overboard Training
8 Tropical - Basic Offshore Safety Induction Emergency Training (OPITO**) 44
9 Incident Injury Free (IIF) Training 203
10 Hazard Elimination & Reporting Programme 168
TOTAL TRAINED 10,448

*Including employees and sub-contractors

**Offshore Petroleum Industry Training Organization (OPITO)

71 72
 5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS NAKILAT ESG REPORT 2022

Identification of Nomination of Mapping Successors Facilitation of Development of

Critical Positions Successors to Critical Talent Forum Successors
(1) (2) Positions (3) (4) (5)

Key stakeholders:

Activity/Step Facilitated by Participants

Management Approach and Progress • Identification of critical positions • Head of L&D and HRM • Chiefs/Line manager
• Nomination of potential successors and mapping • Head of L&D, and L&D team • Chiefs/Line managers
Employment – Attracting, Recruiting and Retaining Talent • Talent forum • HRM and Head of L&D • Chiefs
• Development of successors and monitoring of • L&D specialist • Line managers and employees
Nakilat’s organizational values aptly reflect our belief that our employees are the most powerful asset, enabling Nakilat to achieve its progress on development plans
mission success. The multidisciplinary team of diverse, competent individuals across the organization, are the driving force behind the
growth and impact of Nakilat. This requires us to not only retain our best talent, but to continue attracting young, dynamic, and further, • During 2022, the review of the progress and the development of nominated successors has continued as well as the continuation of
experienced talent as needed. Phase 2 rollout to ensure the nomination of potential successors and mapping is complete.

The Human Resources (HR) department governs employment, and it is guided by the recruitment policy which covers the compensation, • During 2021, the implementation of succession planning continued in terms of assessing successors to identify development
allowances and benefits offered to its employees at all levels. Nakilat conducts reviews of policies, procedures, processes every three (3) needs and to generate comprehensive development plans to facilitate their growth and leverage their potential for possible future
years, in line with the company’s standard. Career plans are reviewed annually to achieve our commitment towards our employees. This opportunities. Based on the extensive analysis, the development of the nominated successors is ongoing and will continue with regular
approach also guides our in-house recruitment team which is responsible for acquiring new talent through a robust recruitment process reviews and revalidations conducted to ensure readiness. Phase 2 of the rollout was also initiated in identifying potential successors
that ensures hiring qualified, competent, skilled talent fairly and consistently, and reduce the risk of discrimination. for additional roles in the organization.

Nakilat believes that the retention of talent is paramount to its success, and it strives to surpass the career aspirations of its employees to KPIs
support the achievement of its vision and mission to foster a positive work environment that values employee feedback and encourages
open communication between management and staff. We also strive to maintain a competitive position as the employer of choice for our Total Number of Employees / Workforce 2020 2021 2022 Scope
employees. Nakilat is committed to motivating and recognizing its employees for their contributions and commitments as well as aligning Total number of employees 270 278(1) 272(1)
their annual compensation with the company’s long-term interest. Retention is managed by implementing industry best practices, exposure Full time 270 278 272
to cutting-edge projects and the latest technology systems, offering attractive and competitive salary packages and career progression,
Part time 0 0 0
enabled by systematic and transparent processes.
Breakdown by contract type
Nakilat extensively works on enhancing its Employer Value Proposition (EVP) by utilizing a combination of platforms to attract and hire the
Indefinite or permanent contracts 213 216 210 All Nakilat and NAC
best talents such as an internal talent pool, corporate website, online recruitment portals, newspapers, online media, social media, career
fairs, as well as employee referrals. Job applications are accepted all year round to maintain a strong pool of potential candidates. Fixed-term or temporary contracts 57 62(2) 62(2) employees
Breakdown by career level
Nakilat continues to invest in the development of its workforce, which is a critical aspect of any company’s growth and success, by providing
a plethora of interventions to address learning requirements and further development. With a total investment of QAR 3,781,137 invested in Senior management 12 12 12
2022, employees were provided with continuous training through various platforms such as e-learning, face-to-face training, and internal Middle management 59 51 48
coaching. Nakilat has also continued its investment in designing custom competency development plans for post holders and developees, Non-management 199 215 212
developing them towards continuous improvement and specific target positions respectively. By investing in the development of our
workforce, Nakilat creates a culture of lifelong learning and growth; attracts and retains top talent; and positions for the company’s long- (1) Total employees in Nakilat and NAC (direct hire and through third-party agency)
term success in a rapidly changing business environment. (2) Secondees (6) to JVs are included
Employee Benefits
Case Study: Nakilat’s Approach to Succession Planning
Nakilat provides its employees with competitive benefits in line with its HR – Rewards and Organizational Development (R&OD) policy to
Phase 1: compensate for their efforts and to ensure their commitment to achieving the company’s goals. These benefits include:
• Evaluate senior positions, specifically at Chief (N-1) and Manager (N-2) levels, to identify the critical positions by evaluating each • Educational Assistance - The main objective of this benefit is to secure a level of schooling for all its employees (both nationals and
position in terms of their business impact. expats) with standards comparable to what the children would have received in their home country. Nakilat supports them financially in
• Screen and ratify the employees that were nominated. school education and hostel facility dues.
• These successors complete the development center’s assessments, including personality, ability, and competency-based
• Life Insurance is provided to all employees in both cases, death and disability.
assessments.
• In conjunction with the results of these assessments as well as the input from the learning needs analysis, development plans are • Health Insurance is provided to all employees and their dependents where they receive medical treatment/coverage.
developed to address technical and behavioral competency gaps to facilitate their growth and leverage their potential for possible • Pension Contribution is provided to Qatari and GCC nationals within the company.
future opportunities.
• Development is ongoing and will continue with regular reviews and revalidations to ensure readiness.
• End of Service Benefits (EBS) are provided to both expatriate employees and national employees where upon termination,
expatriate employees are entitled to these benefits for all the years that they served in the company, whereas national employees are
Phase 2: entitled to these benefits after completing 20 years of service. EBS is commonly known as a gratuity or severance payment, and it
is paid by Nakilat to its employees upon the completion of the work relationship where the leave and notice periods are inclusive of
• This phase is for N-3 level positions where the latter were reviewed, and successors were nominated for these positions.
whether they were worked or not.
• Monetary and Non-Monetary Awards such as long service awards, team awards, outstanding achievement awards, etc.
• Annual Merit and Performance Bonus are determined based on Nakilat’s performance in the qualifying year, employees’
performance, set budget and applicable eligibility criteria.

73 74
 5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued) NAKILAT ESG REPORT 2022

Notice Period Parental Leave

The notice period for both the company and the employees, either due to resignation, or new acquisition and business restructuring is Nakilat offers maternity and paternity leaves for its female and male employees who demonstrates the company’s commitment to
established contractually and in line with the recruitment policy. The established notice period, unless defined otherwise in the employment supporting employees through major life events to improve employee morale and productivity. In the case of female employees, this leave is
contract, is as follows: to enable their recovery following their delivery and to take proper care of their new-borns. Paternity leave, i.e., the parental leave for male
employees, is to support their family and their new-borns. In addition, Nakilat grants its female employees a one-hour nursing time daily
• On probation to 1 year of employment: Notice period of 1 month
after getting back from their maternity leave for a period of one year.
• 1 year and up to 5 years of employment: Notice period of 2 months
Nakilat grants its employees a maternity leave of 60 Calendar days and a paternity leave of 1 day.
• Exceeding 5 years of employment: Notice period of 3 months
KPIs
KPIs
Parental Leave 2020 2021 2022 Scope
During 2022, 34 new employees were hired, of which 85% were male, and 15% were females. In comparison to 2021, the total number of
Number of employees that were entitled to parental leave
new hires decreased by 21% due to a relatively stable workforce established and following optimization of manpower costs, few new roles
were introduced during 2022. Breakdown by Gender
Female 46 25(1) 34
New Hires and Turnover 2020 2021 2022 Scope
Male 224 202 (1)
236
Number of new hires1
Number of employees that took parental leave
Breakdown by Age
Breakdown by Gender
18-30 years old 3 3 7
Female 5 3 4
31-50 years old 17 33 22
Male 4 4 4
51+ years old 2 7 5 All Nakilat and
Number of employees that returned to work after parental leave NAC employees
Breakdown by Gender
Breakdown by Gender
Male 19 43 29
Female 5 3 4
Female 3 0 5
Male 4 4 4
Total number of new hires* 22 43 34
Retention Rate
Number of employees leaving employment during the reporting period (voluntary and involuntary)
Total number of employees returned from parental leave who
Breakdown by Age 9 7 8
were still employed twelve months after return to work
18-30 years old 1 7 4 Return to work rate 100% 100% 100%
31-50 years old 19 20 26 Retention rate 100% 100% 100%
51+ years old 4 7 4
(1) The numbers are reported for all married employees only. Numbers reported in past years include all employees, irrespective of their
Breakdown by Gender marital status.
Male 18 30 24 All Nakilat and NAC
employees
Female 6 4 10
Total number of employees leaving employment
during the reporting period (voluntary and 24 34 34
involuntary)*
Employee turnover rate (voluntary and involuntary) 9% 12% 13%
Number of employees leaving employment during the reporting period (voluntary)
Breakdown by Age
18-30 years old 0 3 14
31-50 years old 5 9 3
51+ years old 1 2 3
Breakdown by Gender
Male 4 11 15
Female 2 3 5
Total number of employees leaving employment
6 14 20
during the reporting period (voluntary)*
Employee turnover rate (voluntary) 2% 5% 7%

(1) Total employee in Nakilat and NAC (Direct hire and through third party agency, excluding outsourced

*All Nakilat’s employees are based in the region of Middle East (Qatar)

75 76
 5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued) NAKILAT ESG REPORT 2022

Human Rights and Grievances Learning and Development

Nakilat respects and upholds international standards on human rights and does not engage in any conduct that hinders or interferes with Nakilat is committed to developing and retaining talent and to fulfill employee potential that will support Nakilat in the achievement of its
them. Nakilat avoids infringing on the human rights of others and endeavors to address adverse impacts, which the company may be strategic direction and operational requirements. All learning and development initiatives ensure and support the engagement, retention,
associated with as part of its operations. Nakilat is committed to human rights where it will not engage, tolerate, or work with business and competence of employees as per the illustration below.
partners that employ children or minors or engage in human trafficking, forced, bonded or compulsory labor.
Nakilat’s Learning and Development policy guides these initiatives by defining the processes related to performance management and
Nakilat also believes that its employees must be treated fairly and equally to achieve its commitments towards integrating a multinational learning and development requirements of learning need analyses, annual training plans, certifications, management of training service
group of employees into a cohesive and effective workplace, establishing a healthy working environment and maximizing employees’ providers, training evaluations, and learning management systems. The policy is reviewed every 3 years by the Head of Learning and
contribution to the efficiency and productivity of the company. Development and Human Resources Manager. Any changes to the policy are then managed and updated through the SHEQ MOC process.
The implementation of the policy is managed by the Learning and Development team and the Head of Learning and Development.
Nakilat’s Code of Business Ethics and Conduct ensures its commitment to human rights and summarizes the standards that guide our
actions towards achieving these commitments. These standards represent the company’s policy and establish conditions for Nakilat’s
employment. Additionally, Nakilat adopts a policy of fair dealing and integrity in all aspects of its business. It is the responsibility of Nakilat’s
employees to comply with human rights laws, behave with integrity, and treat all organizations and people in a fair and honest manner.
Nakilat’s suppliers and contractors are expected to adhere to the Code of Business Ethics and Conduct equivalent to the provisions of the
adopted policy. The Learning and Development Policy refers to the Grievance Policy under the Employee relations policy and procedures Employee Progression Employee Engagement
manual for details on the grievance handling procedure. Nationals with leadership capacity Employees, especially Nationals, who are
Qatarization
In order to achieve fairness and equality among its employees, the company has established proper communication channels for dealing and technical competence will possible successors and developed as
Development
with employees’ individual problems and grievances and has established a clear policy and procedure for corrective guidance and progress in Nakilat leaders will be highly engaged
disciplinary procedure, subject to a review once in 3 years.
At Nakilat, the performance management grievances are raised when any employee disagrees with the final ratings that have been provided Accelerated Internal
after the calibration process that is conducted with the divisional chiefs. To resolve these grievances, input is required from the employee Devevelopment Knowledge
and the line manager to validate the ratings that have been provided and to clarify the differences in ratings. Recommendations are then Plans Sharing
made to Human Resources Manager (HRM) and Chief Administration Officer (CAO) to review the evidence before a final decision is made in
resolving the disagreement.
Leadership Succession
We continuously monitor and track the effectiveness of our response regarding our final decision, with transparent reporting and L&D
Development Planning
communication on how impacts are addressed. To improve performance management with respect to decreasing the number of grievances,
we have planned for a whole company training on 'How to conduct Performance Management Effectively' before the mid-year process to
ensure that managers can develop their abilities to give effective feedback and measure performance accurately, with the aims of decreasing Competence
Annual
the grievances raised due to mis-alignment of ratings. Furthermore, a year-end mandatory training is conducted to ensure that managers Development
Training Plan
and employees understand the performance management appraisal process and how to manage feedback discussions and provide fair and Plans
accurate ratings.

KPIs Employee Competence Employee Performance

Competence High performance requires strong
Technical competence is the
Nakilat always ensures to treat all employees fairly and equally. In 2022, no incident of discrimination has been reported. Development technical competence combined with
cornerstone of performance
motivation for future succession
Grievances* 2020 2021 2022 Scope opportunities
Number of grievances filed in the reporting period 5 6 1
Number of grievances addressed or resolved 5 6 1 All Nakilat and
Number of grievances filed prior to the reporting period that NAC employees
0 0 0
were resolved during the reporting period
To achieve these objectives, we provide our employees with world-class learning and development opportunities across all aspects of
*Grievances listed in the table are in relation to performance management grievances only and raised at the end of the performance our business. A foundational process in this regard is the learning needs analysis where we conduct a detailed gap analysis for both the
management cycle of each year (in December of each reporting year) technical and behavioral competencies of our staff. This analysis is conducted on an annual basis whereby line managers evaluate the
proficiency level of the behavioral and technical competencies of our staff as defined by the employee’s job description. After identifying these
Security (Contractors)
gaps, the development approach to address them is indicated by the line manager, and development interventions are defined accordingly
Security services for Nakilat headquarters in Doha are outsourced to trusted third-party contractors through rigorous technical and including training, coaching, and mentoring and/or on the job training. To further improve this analysis process, a learning needs analysis
commercial exercises. Crisis communications response training and awareness session was conducted for all the security personnel to help training is provided to line managers to ensure they are able to provide effective input regarding the requirements for training.
them in understanding their role, and to provide them with the necessary skills and knowledge to interact effectively with individuals from Given Nakilat’s aim to develop a culture of high performance and continuous learning, this assessment of learning and development needs,
diverse backgrounds to ensure that any violations that do occur are addressed and remedied promptly. These contractors are managed by as well as additional mandatory business training requirements informs the customization of development opportunities to enhance
the General Services Department within Nakilat. employee competencies for current and future organizational needs. In this regard, learning interventions align to the following framework.

77 78
 5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued) NAKILAT ESG REPORT 2022

1. Technical Training
Training Applicable Learning Assessment Types of Trainings 2022 Update
2. Behavioral and Interpersonal Skills Training Categorization Population Objectives Method

3. Safety, Security and Compliance Training Induction, New Staff Integration of new Mandatory Learning Health and safety Completed 24 new
Orientation joiners into the Foundations training, courses for joiners mandatory
4. Induction, Orientation and New Joiner Mandatory Training and new joiner organization culture Training Curriculum all new staff according training from ER,
mandatory Training and familiarization to their role and as well as the
5. Leadership and Personal Effectiveness Training
with critical training seniority. Learning Foundation
6. Language Training programs Programme.

7. Information Technology and Risk Management Training Leadership Management Enhancement of Learning Needs Executive 1-2-1 44 employees
and Personal Grades (Managers/ management core Analysis / SMT coaching from a successfully
8. Internal Knowledge Sharing and Capabilities Training Effectiveness Heads and high competencies and Corporate Program professional coach. completed the
Training potential managing the development Leadership
leaders) of leadership Development
Training Applicable Learning Assessment Types of Trainings 2022 Update capabilities Programme last Feb
Categorization Population Objectives Method 2023. This leadership
development
Technical Training All Staff Technical Learning Needs SAP ADM328 HANA - Delivered 67
programme was
competencies for Analysis/ Conversion, Certified technical training
launched in 2021
each role are at the Development Centre Cloud Security programs to 81
and continues in
required level Professional, Finance employees with 127
2022 and completed
for Non-Finance training occurrences.
2023. All three
Professionals, ISO
- Our Shipyard cohorts completed
45001:2018 Lead
Training Centre the programme
Auditor, E&Y IFRS
delivered technical compiled of facilitated
Update and many
training programs experiential learning
more.
for staff working on and executive
our shipping Joint coaching.
Venture companies Language Training Non-Native English Competence in Learning Needs English Language 2 Nationals
in areas such as Speakers verbal and written Analysis / courses completed English
mechanical, piping, English language Development Centre Training.
electrical, welding and skills to IELTS level
maintenance. 5.5
Behavioral and All Staff Behavioral Learning Needs Soft skills and 285 courses were Information All Staff and Ensure effective Learning Needs SAP UX 100 SAP Fiori 14 IT Courses were
Interpersonal competencies for Analysis / technical competence offered in 2022 with Technology and Specialist IT Staff use of IT systems Analysis / System Foundation, SAP delivered in 2022.
Skills Training each role are at the Development Centre applications with each topics such as being Risk Management and programs, and Upgrades UX400 Developing
required level role. an effective team Training development of the Uis with SAPUI5,
member, public latest technology Comptia Project+,
relations foundations, in support of Certified Secure
Microsoft power operations Software Lifecycle
apps feedback skills, Professional,
development of trust, Microsoft Course
communication skills, Identity with Windows
project management Server 2016
and personal
Internal knowledge All Staff Cross-fertilization Core Process Nakilat Internal Delivered 36 topics
effectiveness, etc.
sharing and and transfer and Procedure Capabilities with 38 NICE session
Safety, Security All Staff Ensure the Mandatory SHEQ Health and safety Delivered 20 capabilities of knowledge Requirements Enhancement specialized trainings;
and Compliance continuation of an Training Curriculum training programs, mandatory courses Training internally to create (NICE) program to 794 man-hours of
Training Incident and Injury delivered by internal which equated to greater synergy share knowledge training conducted
Free workplace. trainers and external just over 1100 hours among departments and insights related by our staff in
Compliance with consultants. of training. Courses and groups to the different their respective
safety standards included topics such business operations expertise areas on
and legislation as defensive driving, and to enable the common processes
incident and accident improvement of and practices that
reporting, lifesaving presentation and could impact other
rules, and information public speaking skills. operations.
security.

79 80
 5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued) NAKILAT ESG REPORT 2022

Enhancing Skills and Knowledge of Qatari Nationals to Access Jobs in the Shipping Industry

Nakilat is committed to enhancing the skills and knowledge of Qatari nationals as well as helping them access jobs within the shipping industry. Our Budget Spent on Learning and Development*
commitments are achieved through raising awareness of the opportunities present within the industry, including raising awareness about career
paths and professional development opportunities within Nakilat. Thousands Qatari Riyal
Our annual internship program enables university and school students to get hands-on knowledge and an opportunity to learn from subject matter
experts in the business for a 6-week period. In 2022 we hosted 2 interns who were university students in the Finance and SHEQ departments
respectively. Furthermore, our recruitment program aims to raise awareness about the marine sector and available jobs in the sector and we 3,781
provide the opportunity for students to study as Marine Cadets on sponsorship where upon graduation, the marine cadets are certified to go on
deck ships and be part of the fleet on deck operating these vessels. Nakilat also provides customized development plans to ensure a structured and
tailored approach to increasing their competencies and skills.

Our National Development Program is implemented to develop Qatari nationals that have graduated but have less than two years of work
experience and raise their awareness on the shipping industry. It is designed to develop them professionally within targeted business positions in the
2,362
industry, through on-the-job experience as well as coaching from subject matter experts to ensure that they are developing the required competency
skills. It is a 2-year plan that is phased, and each phase has specific development objectives to ensure that they are developing towards their target
positions effectively.

Nakilat also provides secondment (inbound/outbound) opportunities, to employees within energy/shipping companies, in order to enhance their
knowledge and skills within those sectors.
969
KPIs

Training hours increased by 52% in 2022 as compared to 2021 due to the implementation of closer monitoring for mandatory trainings, the
completion of the leadership development programme and an increase in the type of training available. Additionally, the online learning academy
was launched, and it included the learning foundations curriculum for new joiners at Nakilat. In 2022, employees returned to their offices and normal
business hours were resumed; thus, more face-to-face trainings were offered in comparison to 2021 where the COVID-19 pandemic forced the
cancellation and postponement of a number of courses and trainings. 2020 2021 2022

*Budget spent on learning and development includes training costs of Developees

Learning and Development 2020 2021 2022 Scope
Total training hours 4,125 7,438 11,269
Average training hours per employee 15 27 42
Breakdown by career level
Senior Management 12 12 12
Total training hours 93 293 156
Average training hours per employee 8 24 13
Middle Management 59 51 48
Total training hours 805 1,728 2,936
Average training hours per employee 14 34 61
Non-management 199 215 210
Total training hours 3,227 5,417 8,177
Average training hours per employee 16 25 39
Breakdown by Gender All Nakilat and
Male NAC employees
Total training hours 3,228 5,725 9,064
Average training hours per employee 14 24 38
Female
Total training hours 897 1,712 2,205
Average training hours per employee 19 41 65
Performance reviews
Total number of employees receiving regular performance and career
220 229 226
development reviews
Percentage of employees receiving regular performance and career
81% 82% 84%
development reviews (%)
Breakdown by Gender
Female 36 37 34
Male 184 192 236

81 82
 5.3 DIVERSITY AND INCLUSION NAKILAT ESG REPORT 2022

Management Approach and Progress Female Employment 2020 2021 2022 Scope
Nakilat is committed to providing a workplace where our employees Total number of employees with disabilities
0 0 0
are respected and treated fairly in line with our Code of Business (number)
Ethics and Conduct. Total % of employees with disabilities (%) 0 0 0
Nakilat hires, evaluates, transfers, compensates, and promotes By career level
employees based on skills and performance. Employees facing Board of Directors
discrimination have the right to voice their concerns to their
supervisor, a member of the management, human resources Number of female employees 0 0 0
contact, or a member of the Ethics Committee. Reprisals or Percentage of female employees 0% 0% 0%
retribution against an employee who lodges a complaint in good Senior management All Nakilat
faith is not tolerated. and NAC
Number of female employees 0 0 0
Nakilat’s approach to managing diversity in the workplace is employees
Percentage of female employees 0% 0% 0%
with actionable tips and advice, and by maintaining effective
communication with employees. Policies, procedures, safety Middle management
rules and other important information are designed to overcome Number of female employees 7 6 3
language and cultural barriers.
Percentage of female employees 12% 12% 6%
Equal Pay Non-management
Number of female employees 39 36 31
The company conducts market surveys to ensure fair and competitive pay in comparison to its peers. The ratio of the entry-level wage is
equal to 1 (as a minimum) or above the Qatar minimum wage, for both male and female employees. Nakilat conducts applicable reviews to Percentage of female employees 19% 17% 15%
ensure compliance with this requirement and rectifies any cases if found. Equal Pay

KPIs N-KOM and

Gender pay ratio (Ratio of basic salary* and
0.82 to 1 1.03 to 1 1.17 to 1 QFAB not
remuneration of women to men)
In 2022, the youth employment rate decreased by 2%, with six graduates and emerging talent joining the business. The female employment included
rate decreased by 2% in 2022. Nakilat adopts an equal opportunity approach when hiring, and considers candidates based on their skills,
*Median male salary to median female salary
experience, and competencies to meet the job requirement.
Nakilat ensures an alignment with the recruitment policy where it has a diverse workforce of 38 nationalities as represented in the table below.
Diversity and Inclusion (Employees) 2020 2021 2022 Scope
Breakdown by age Workforce Nationalities No. %

18-30 years old 45 35 31 Pakistani 15 6%

31-50 years old 199 209 196 Filipino 23 8%

51+ years old 26 34 43 British 24 9%

Youth employment rate 17% 13% 11% Qatari 56 21%

Breakdown by gender Other Nationalities 72 26%

All Nakilat and
Male 224 236 236 NAC employees Indian 80 30%

Female 46 42 34
Female employment rate 17% 15% 13%
Breakdown by nationality
Qatarization* 34% 30% 30%

*Percentage of all Qatari nationals (including JVs) against the total of Nakilat’s established position.

83 84
 5.4 RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN NAKILAT ESG REPORT 2022

Nakilat Supply Chain:

Logistics
The stages of Liquefied Natural Gas (LNG) supply chain consist of natural gas production and exploration, liquefaction and storage, shipping Teamwork
Quality
and receiving, regasification and distribution. Nakilat’s business and operations in the shipping services within the LNG supply chain play a Awareness
major role in providing the essential transportation link in Qatar’s LNG supply chain, enabling access to cleaner energy to various countries
around the world. The corporate products and services procured by Nakilat are:
Distribution
• IT products Quality
Assurance
• SHEQ products Objectives
Goods and
Services
NATURAL GAS LIQUEFIED NATURAL GAS NATURAL GAS • Various corporate products, including food, table and chairs
Cost
• Various corporate services, including rental of premises, Saving
electricity and cleaning services Strategy

In addition to the services provided, the Supply department assists

with the following, as per the illustrative image on the right:
REGASIFICATION Agreement Awareness
PRODUCTION LIQUEFACTION TRANSPORTATION INFRASTRUCTURE CONSUMPTION

Nakilat Scope of Operations

Management Approach and Progress

Nakilat’s Supply department is one of the main stakeholders in various projects across our company as it provides a diverse range of spare Nakilat maintains close and mutually beneficial relationships with its suppliers and contractors as a direct result of our commitment to
parts and services to the end users, including Nakilat’s marine, corporate, and joint ventures. long-term collaborations with business partners who share our values and commitment to rigorous ESG standards, maintaining a view on
safety, quality, business resilience, environmental emissions, and the ultimate goal of continuously improving our business operations and
processes. We continue to support the local economy through procurement from local suppliers whenever possible.

IT Investments
Services
Corporate Marine JV Interface VSU Logistics Supplier IT infrastructure, enterprise applications, and communications are critical area of importance to Nakilat that enable the productivity of the
Services Services Services Services Services Relationships
company. Nakilat continues to invest in the latest technologies, such as cloud data centers, software services, and satellite communications
to meet market expectations. Through close collaboration with IT specialists, we take advantage of innovation, acquiring the latest and most
reliable software and hardware to facilitate our day-to-day activities. In 2021, we invested in Artificial Intelligence (AI) for invoice processing,
Products robotics automation processing (RPA), and enterprise content management to meet the increased demand for fleets under Nakilat ship
Corporate
Materials
Marine
Products
Ship Chandery IT Products SHEQ
Products
management, thereby boosting our operational excellence. Our ERP system was migrated into the latest available edition to support the
new business demands. Our satellite communications onboard the vessels were upgraded with KA band capabilities and unlimited Fleet
Xpress connectivity solutions to improve the onboard experience, exemplified by our crew entertainment services with enhanced internet
speeds so that they can keep in contact with their loved ones. As a result, Nakilat’s IT expenses increased by 64% between 2021 and 2022,
Projects
reaching a total value of QAR 15.4 million.
MEGL Buildings Vessel Vessel Deploying New
Transition Acquisiton Tawteen Dry
Transition Process in SAP
Docking Information Security and Data Privacy 2020 2021 2022 Scope
IT expenses (QAR millions) 7.9 9.3 15.4
Breaches of customer privacy and losses of Nakilat Group
For the marine segment, Nakilat’s Supply department offers a variety of services, spares or consumables needed for our vessels to move 0 0 0
customer data (number)
cargo from the loading point to the discharging point and vice versa, including:
*Yearly average
• Marine services: maintenance and repairs, dry docking, classification societies, overhaul, and inspection

• Marine products: original equipment manufacturer spares for any type of machinery and equipment available on board
IT Investments* (millions QAR)
• Marine consumables and ship chandlery: safety equipment, lubricating oil, paint, chemical and gases, tools, gasket and food

• Marine logistics: to supply the service and the goods to the vessel
15.4

9.3
7.9

* Yearly average
2020 2021 2022

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 5.4 RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN (continued) NAKILAT ESG REPORT 2022

Third-Party Code of Conduct Supplier Environmental Assessment:

Nakilat has integrated a third-party supplier code of conduct in the template of its contracts, terms and conditions and invitation to Nakilat has in place a procedure for supplier assessment on environmental matters. Nakilat is responsible for effectively managing and
tender. Vendors are requested to provide a signed version of the document or to confirm their acceptance. The third-party code of conduct overseeing the performance of its suppliers. This includes establishing, controlling, and updating the approved suppliers used. By doing so,
encompasses social aspects, including human rights, labor laws, child labor, health, and safety matters. Additionally, our suppliers are Nakilat ensures that the anticipated value and benefits identified during the contracting strategy development phase are duly realized.
requested to provide their certifications, including ISO 14000 (Environmental Management), which is vetted for accuracy prior to the entity’s
Implementing Supplier Performance Management (SPM) brings advantages to the business. These include enhanced Safety, Health, and
registration as an approved supplier. To ensure their compliance with international standards, suppliers are also required to complete the
Environment (SHE) practices, improved efficiency, higher quality standards, access to innovative technologies, increased competency, and
vendor questionnaire which includes our ESG requirements.
cost savings. SPM plays a pivotal role in optimizing supplier relationships and driving overall performance excellence within Nakilat.
In a bid to support the company’s green procurement initiatives, Nakilat consolidates group demand, resulting in the maximization of work
efficiency and the minimization of paperwork and effort. In addition, we purchase products and services that support our sustainability vision. KPIs (Shipping)

Local Procurement Responsible Procurement and Supply Chain 2020 2021 2022 Scope

As part of Nakilat’s ESG strategy, we engage responsibly and ethically with our suppliers to foster direct and indirect job creation and Supplier environmental assessment
increase shared value across the supply chain. Nakilat works with different suppliers and vendors, national as well as international from New suppliers assessed for environmental impacts (%) 100% 100% 100%
both emerging and developed economies. Our foreign suppliers include UK, USA, Singapore, Netherlands, South Korea, Norway, and other Suppliers identified as having significant actual and potential Shipping
countries from different regions. 0 0 0
negative environmental impacts (number)
In 2022, Nakilat’s activities generated a wide range of direct and indirect jobs worldwide. In 2022, the company engaged 329 suppliers
globally, representing 56% of total suppliers. That same year, the value of purchased goods and services amounted to approximately USD KPIs (Non-Shipping)
302 million, of which approximately 69% have been paid directly to foreign countries due to end-user requirements. The percentage of total
procurement from local suppliers increased by 36% in comparison to 2021 with a value of purchased goods and services amounting to N-KOM: Pre-qualification of all new suppliers includes environmental certification as part of the evaluation criteria
approximately USD 94 million. NSW: Vendor questionnaire updated to include ESG requirements. Pre-qualification of all new suppliers includes environmental certification
as part of the evaluation criteria
Local Procurement
Year 2020 2021 2022 Scope QFAB: Vendor questionnaire updated to include ESG requirements

Value of goods and services (USD) Corporate: The new vendor questionnaire has been updated to include the ESG requirements
from local suppliers 80,204,110 69,194,899 94,050,214 No suppliers have been reported to have a significant actual or potential negative impact on the environment.
from foreign suppliers 105,696,606 132,659,162 207,830,245
Responsible Procurement and Supply Chain 2020 2021 2022 Scope
Percentage of total procurement from local suppliers 43.1% 34.2% 31.2% Nakilat and Supplier environmental assessment
Number of suppliers NSQL
Suppliers assessed for environmental impacts (number) 10 20 18
Local 292 251 255
Number of suppliers identified as having significant actual and
0 0 0
Foreign 300 326 329 potential negative environmental impacts
Significant actual and potential negative environmental impacts
0 0 0
identified in the supply chain
Non-
Percentage of suppliers identified as having significant actual and shipping
Value of Goods and Services potential negative environmental impacts with which improvements 0 0 0
Number of Suppliers
(Millions USD) were agreed upon as a result of assessment
300 326 329
208 292 255 Percentage of suppliers identified as having significant actual and
251
potential negative environmental impacts with which relationships 0 0 0
were terminated as a result of assessment, and why
133
106
94 Note: The data in this table refers to N-KOM and QFAB only.
80
69

2020 2021 2022 2020 2021 2022

QATAR FOREIGN QATAR FOREIGN

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 5.5 COMMUNITY ENGAGEMENT NAKILAT ESG REPORT 2022

Management Approach and Progress Community

Nakilat’s Corporate Social Responsibility (CSR) framework comprises of four key pillars: Education, Community, Health and Environment. Community is at the heart of our operations at Nakilat. In accordance with the Qatar National Vision 2030, Nakilat is focusing on community
In the coming years, we aim to conduct social impact assessments across the four pillars, taking into consideration ethnic background, development and engagement that facilitates the development of our people in Qatar; thus, promoting a prosperous society and achieving
indigenous descent, gender, age, migrant status, socioeconomic status, literacy levels, disabilities, income level, infrastructure availability or the Vision’s goal of human development.
specific human health vulnerabilities which may exist within the stakeholder community.
In 2022, the company worked closely with several organizations across Qatar to conduct a number of community outreach initiatives. We
We are proud to increase our social and sports fund contribution in 2022 by 6% in comparison to 2021. collaborated with Earthna, a member of Qatar Foundation, and presented our contributions to a sustainable maritime sector at the Awsaj
Academy. The presentation discussed new technologies to achieve low emission targets, CSR initiatives and training and development in the
Education
workplace. We continued association with Qatar Museums as a Patron Sponsor of the children’s adventure park at the National Museum of
Putting an emphasis on youth development, Nakilat launched a student outreach program targeting local school and university students. Qatar.
The program aims to provide the students with career advice and guidance, as well as expose them to the growing maritime industry
A roadmap of life-balance success is yet another pillar to a successful employee engagement strategy. In 2022, Nakilat held its annual
in Qatar. In this program, students learn how to effectively write a professional Curriculum Vitae (CV) from the company’s Learning
Townhall, bringing together all employees across Nakilat and its joint ventures in person and in one place for the first time since the
and Development (L&D) team. As part of the program, Nakilat representatives also regularly share their personal career journeys and
COVID-19 pandemic, when the Townhall was last held virtually. The Townhall provided an excellent opportunity to recognize and award
experiences through student engagement sessions, encouraging the students to adopt a lifelong learning approach towards achieving their
longest-standing employees as well as engage in open dialogue and address questions to Nakilat’s Senior Management Team. Nakilat
goals in the future. However, as a result of the COVID-19 pandemic, this program has been concluded this reporting year.
also engaged its workforce through the celebration of the FIFA World Cup Qatar 2022, where it organized football-themed activities for its
We also have long-standing partnerships with different universities in Qatar including Qatar University (QU), Northwestern University (NU- employees.
Q), Georgetown University (GU-Q), Carnegie Mellon University (CMU-Q) and Texas A&M University, extending support in the completion of
management projects to final year students. Nakilat provides these students with relevant information on our management and operations, Health
by revealing our company’s multiple facets; thus, fostering strong student relationships. In 2021, 3 students from CMU-Q studying Bachelor
As part of our CSR commitment towards championing the health of our workforce and the community, we conducted several activities in
of Science Major in Information Systems were hosted at Nakilat where they had exposure to the Information Technology department for a
alignment with QNV 2030, to promote the creation of a healthy and sustainable population in the country.
3-month internship.
The COVID-19 pandemic gave rise to many challenges to our business functions. The main priority of the company has been to safeguard
In 2022, we continued working closely with Georgetown University Qatar (GU-Q) for the Leadership Development Program (LDP), which
the health and safety of its people while maintaining safe and reliable operations. The COVID-19 Awareness and Prevention Plan and General
gives us direct access to Qatar and USA faculty who teach the program. We strengthened our formal partnership agreement with GU-Q by
Guidelines were established to minimize the risk to our employees and operations. Nakilat successfully managed to navigate the pandemic
launching our in-depth LDP for our management groups including Qataris and we agreed to support their undergraduate students in their
with minimum impact on our staff’s health and wellbeing. By July 2021, the company achieved a 95% staff vaccination rate. Nakilat ensured
final year research projects. The 12-month program has been customized and tailor-made to develop and meet the Nakilat leadership’s
continuity of its operations despite the logistical hurdles posed by the pandemic owing to the testing regime, travel restrictions and
needs, including a one-to-one executive coaching embedded program. We consider this program an important point in its investment in the
quarantine requirements.
development of the human element.
Nakilat also conducted a seasonal ‘Flu Vaccination Drive’ at our corporate office and shipyard facility where we administered flu shots to
all our staff in coordination with Ministry of Public Health (MoPH). The vaccination drive was extended to the families of our employees to
significantly reduce the chances of getting the flu and thereby prevent it from spreading. Additionally, we organized a health and wellbeing
campaign in partnership with Naseem Medical; thus, allowing our employees to avail a basic medical check-up as part of our efforts to
promote health and wellbeing amongst all staff. Check-ups included medical assessments, physician consultations, eye and ear check-
up, dermatology and dental consultations. The campaign was organized by Nakilat HQ to encourage employees to take a moment for
themselves and monitor their own health and wellbeing.

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 5.5 COMMUNITY ENGAGEMENT (continued) 6. GOVERNANCE NAKILAT ESG REPORT 2022

In 2022, Nakilat also conducted cancer awareness talk for all employees including JV 6.1 Corporate Governance, Compliance and Ethics
employees by a specialist speaker from Qatar Cancer society, informing employees about
the early signs and symptoms of cancer. Some cancer symptoms can be difficult to talk Management Approach and Progress
about, so opening a conversation about them can help recognise the importance of early Corporate governance is described as the systems of rules, practies and processes by which companies are governed and ensures that
detection and seeking medical advice, even if they feel embarrassed. By following these companies follow an appropriate and transparent decision-making process, and that the interests of all stakeholders and shareholderes are
guidelines, and being better informed about cancer, people can significantly reduce their protected. The company’s board of directors and executive senior management strives to build long-term relationships and commitment
health risk, and enjoy a healthy and happy life. among various Nakilat’s stakeholders to meet the company’s goals and objectives, and to stand in support of our sustainable success based
Adittionally in 2022, we also arranged on strong principles of governance.
for diabetic session for all our Nakilat believes that adopting best governance practices and standards will enable us to realize transparency, integrity, trust and enhance
employees in collaboration from Qatar the confidence of debtors, lenders, and shareholders in the company, as well as assist investors to make well-informed investment
Diabetes society to raise awareness decisions. Nakilat identifies governance as a framework to align the interests of all our stakeholders behind its purpose to unlock the power
about the disease, as well as ensure to delivering clean and reliable energy to enhance quality of life for everyone around the world.
the employees have the necessary
knowledge, skills, and confidence to
successfully manage their diabetes and
support those who care for a family
member with diabetes. The session
also talked about various programs to
lower risk of having a heart attack or
stroke, improve your health, help you
feel more energetic, and even reverse
your prediabetes diagnosis.

For the remainder of the year 2022, Nakilat ran a Hand and Finger Safety Campaign for
all its frontline workers both ashore and onboard in coordination with all its Joint venture
companies.

At Nakilat, we also promote an active lifestyle among our employees and across
our community by launching different sports activities that help reduce their stress. As a result of this commitment, we established a
partnership with Aspire Zone. This partnership provides access to sports infrastructure and facilities to communities in Qatar; thus, creating
and enabling sustainable lifestyles. We have an agreement with Aspire Zone where our employees are equipped with memberships to
access their sporting facilities in Doha and participate in customized activities such as Marathons. Due to the COVID-19 pandemic and
restrictions on public gathering, this has been put on hold temporarily.

At Nakilat, employee safety is our top priority. We are committed to providing safe and healthy work environment, ensuring our employees
return home to their families safely.

Environment

At Nakilat, we aim to minimize the environmental impact of our operations and give back to the community by organizing outreach
activities such as tree planting and by engaging with students at local schools to raise awareness on the importance of trees, environmental
protection, and its role in protecting the earth. Supported by Qatar’s Ministry of municipality nursery and Ras Laffan Industrial Complex,
N-KOM participated in a tree plantation drive near Ras Laffan Complex buffer zone. Qatar Fabrication Company commemorated World
Cleanup Day by organizing a beach clean-up activity at the Al Khor beach, with over 100 staff and family members volunteering to create a
sustainable environment.

N-KOM also participated in the conservation of marine life through the ‘turtle beach clean-up’ initiative. The activity focused on ensuring that Recognizing the relationship between good governance and sound financial performance, Nakilat strives to adhere to leading and best
the beach could offer a conducive environment for the Hawksbill sea turtles to nest. governance practices and complies with Qatar Financial Markets Authority (QFMA) governance code. Nakilat’s issued governance report has
been prepared in compliance with QFMA governance code reflecting Nakilat’s effort to meet all relevant regulatory requirements, and it is
shared with all concerned stakeholders and the public on Nakilat’s webiste.

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 6.1 CORPORATE GOVERNANCE, COMPLIANCE AND ETHICS (continued) NAKILAT ESG REPORT 2022

Nominating and Selecting the Highest Governance Body Remuneration

In addition to the Nomination Committee’s main duties reported in Nakilat’s Corporate Governance Report, the Nomination Committee also For the remuneration of senior executives, we follow the standard applicable policies and procedures of the company. There is a
recommends to the Board suitable candidates and ensures that the shareholders have criteria in place to help them in electing the most comprehensive policy and procedure in place for employees’ compensation, allowances and benefits at all levels including the executive
suitable candidates for board membership. The selection process considers the existing Board structure, size, composition, and diversity management.
(including independence, skills, knowledge, educational backgrounds, and areas of expertise) and senior executives following Nakilat’s ESG
Nationals are eligible for pension upon their retirement, whereas expatriates are eligible for end-of-service.
strategy. The Nomination Committee assesses the functional and operational skills required to be suitable for the position, including, but not
limited to, current or past ESG and sustainability experience. Regarding diversity in broader terms, Nakilat assesses the age of its executives The senior executives follow the same performance criteria applicable to other company employees, as per the learning and development
and directors, their leadership stability (represented by the frequency of executive and director turnover) their background and their policies and procedures in place, which are linked with the remuneration policies and procedures in terms of merit, bonus, and other awards
international exposure in different industries and sectors. The Nomination Committee conducts an annual self-assessment of the board’s eligibility.
performance, and then presents its evaluation to the board, identifying gaps and areas of improvement, if any.
Political Activities
Collective Knowledge of Economic, Environmental, and Social Topics
Political activities that employees are prohibited from doing while acting on behalf of the company include:
The board of directors has a balanced and right mixture of skillset, education, knowledge, and expertise to effectively manage and protect
the best interests of the company, partners, shareholders, and other stakeholders. a. Contributions of company funds, cash or in-kind, or other resources in support of political activities, organizations, political candidates,
parties or officials in the state of Qatar or anywhere else in the world, unless permitted by law and approved by the Board of Directors.
Nakilat’s corporate governance report presents a list of programs at Nakilat to enhance the executive and board-level collective knowledge
of economic, environmental, and social topics. In addition, regular awareness-raising programs are provided to the ESG Committee b. Solicitation of political contributions from individual employees.
members to hone their understanding and keep them up to date with the latest trends and emerging themes, whenever it is required, c. Political activity in the countries in which he is not entitled to exercise civic rights.
including, specific ‘Deep Dive’ presentations on ESG topics.
d. Contributions, donations or support to organizations that have social, cultural, educational or artistic missions are excluded from this
Furthermore, all Board members collectively have strong expertise in the oil and gas and marine transportation industry; as well as ESG definition.
expertise, including risk management, through their current and past executive positions and serving on the Boards of large complex
multinational companies, including Nakilat. e. Signing petitions, letters or statements, that would prejudice the reputation and prestige of the State of Qatar or adversely affect
relations with other countries.
For more information on our approach to corporate governance, please refer to Nakilat’s Code of Business Ethics and Conduct, Annual
Report and Corporate Governance Report. f. Inducing others to join in similar type pf political activities.

g. Distributing flyers or other publications related to political messaging.

Communicating Critical Concerns
Ethics Committee
Quarterly Performance Review (QPR) meetings are conducted with the CEO and the Senior Management Team (SMT) to review updates on
corporate and departmental KPI performance targets and corporate initiative progress. The focus of the meetings is to highlight any major Ethics Committee (Constitution Mandate)
deviations from the target and review the mitigation plans being undertaken to get back on track. Major actions are captured and circulated
to the SMT and CEO for follow-up. The Ethics Committee shall report directly to the Chief Executive Officer of the company. Its composition, responsibilities and procedures
shall be as follow:
Nakilat complies with the laws of the State of Qatar and abides by all the applicable laws of the countries where it operates. Nakilat is listed
on the Qatar Stock Exchange and complies with the Qatar Financial Markets Authority law and associated regulations. Nakilat’s compliance Composition
with Qatar’s Financial Markets Authority (QFMA) governance code is audited by external auditors.
Nakilat CEO shall appoint the voting members, consisting of six (6) Members; a chairman and five (5) other members.
By the nature of its activities, Nakilat’s vessels operate in a highly regulated environment and comply with the requirements of the laws of
the Flag State and with the international declarations, conventions and treaties such as the International Convention for the Safety of Life Members of the Ethics Committee shall be company employees, who collectively have broad knowledge of and experience with the
at Sea (SOLAS, 1974, as amended) and the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the company’s business activities and discipline and occupy managerial positions to facilitate fair, objective and impartial judgment.
Protocol of 1978 relating thereto and by the Protocol of 1997 (MARPOL), amongst others related to the transportation of LPG and LNG. In The members of the Ethics Committee cannot delegate their roles. Each Committee member is appointed for a term of four (4) years, which
addition, Nakilat complies with the requirements imposed by regulatory authorities, governmental organizations, classification societies and is reviewed bi-annually. An appointment to the Ethics Committee may be revoked only by a written resolution of all the other Committee
standards imposed by our charterers that are applicable to Nakilat’s business. members. A copy of any such resolution must be addressed to CEO for endorsement.
Nakilat’s Code of Business Ethics and Conduct highlights the importance of compliance with laws and international standards concerning A quorum for the purpose of any meeting is as per the following schedules:
the social and economic area, including accounting and prevention of tax fraud, corruption, bribery, ensuring and promoting fair competition,
the provision of products and services, and avoiding workplace discrimination, among others. Number of Member Quorum

Compliance with Nakilat’s Code of Business Ethics and Conduct is of utmost importance. Any breach or potential breach is investigated 4 3
and may result in the termination of employment, or of the relationship with the concerned third parties including vendors, suppliers, and 5 3
contractors. 6 4
In 2022, we have not identified any non-compliance with any laws and/or regulations concerning the social and economic area.
In the event of a tied vote, the Chairman will cast the final vote.

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 6.1 CORPORATE GOVERNANCE, COMPLIANCE AND ETHICS (continued) 6.2 ANTI-BRIBERY, ANTI-CORRUPTION AND FAIR COMPETITION NAKILAT ESG REPORT 2022

Responsibilities Management Approach and Progress

The Ethics Committee, which reports to CEO, shall deal with all questions related to the Code of Business Ethics and Conduct. Its major Anti-Bribery and Anti-Corruption
responsibilities are:
Nakilat is committed to conducting business in compliance with the
a. Assist CEO and/or HR with reviewing and providing consultancy services to matters in violation to the Code of Business Ethics &
principles established in its Code of Business Ethics and Conduct and
Conduct as referred to by HR.
the laws and regulations applicable in the countries where it operates.
b. Draw matters within its mandate to the attention of the CEO as occasion requires. Likewise, the company is committed to the highest standard of ethical
business conduct with zero tolerance for any form of bribery or
c. Act where appropriate as the Disciplinary Hearings Committee.
corruption. Nakilat works pro-actively to ensure that corruption does
d. Review those cases reported through the anonymous reporting (whistleblowing) channels and referred to the Ethics Committee by the not occur throughout its operations, both within the State of Qatar
Chief Internal Auditor. and globally.

e. Conduct or authorize investigations into any matters as it shall deem appropriate, including the authority to request any Employee or It is the policy of Nakilat that all employees, consultants and agent
external party working under an agreement with the company to meet with the Committee. are prohibited from offering, authorizing, giving, paying, soliciting,
accepting or receiving, either directly or indirectly, any bribe to or
f. Run periodical campaigns through publications to increase the level of awareness to the Code of Business Ethics and Conduct.
from any employee, official or agent of any government, public or
g. Review and assess all the report periodically to ascertain campaigns are also designed on emphasizing cases of frequent breaches to commercial entity, or individuals, in connection with the business
the Code of Business Ethics and Conduct. or activities of Nakilat. This includes the giving or receiving of an
improper advantage through undue influence, preferential treatment
Whistleblowing – Reporting Issues to Designated Authorities or any other form of illegal payment. Nakilat wholly owned
subsidiaries must also comply with this requirement.
All employees are expected to assume the responsibility, to ensure that any concerns and observations, which deviate from our values and
contradict to the code of Business Ethics and Conduct, shall be reported immediately to the designated authorities. These prohibitions do not apply to the situations where an individual’s
health, life and liberty are at risk.
If any employee reasonably believes that any policy, procedure, practice, or action of the company or any of its employees is in violation of
the laws, regulations, or the Code of Business Ethics and Conduct, he or she should report the violation immediately. Anti-Corruption Laws
In the first instance, employees shall address the concern, to their manager, but if it is not feasible or employee is unsatisfied to approach Anti-Corruption laws of most developed countries contain two important provisions: (1) that it is a crime to bribe any person anywhere in
the manager (either line supervisor, department manager or group chief), then he/she shall approach Internal Audit department within the world to influence a decision to obtain or retain business or gain a business advantage; and (2) a requirement that companies must have
human resources department. good accounting standards, accurately record transactions in their books and records, and maintain adequate internal controls.
Following are examples of issues, which shall be addressed to Head of HR Shared Services of his delegate: Bribery is a crime in Qatar and the law imposes penalties for public officials convicted of taking action in return for monetary or personal
a. Head of the department/section reporting about his direct subordinate. gain, or for other parties who take actions to influence or attempt to influence a public official through monetary or personal gain. The
current Penal Code governs corruption law and stipulates that individuals convicted of corruption may receive up to ten years’ imprisonment
b. Employee who is the victim of misconduct/behavior from peers or other employee within the company. and/or a fine of 5,000 Qatari riyals. Corruption investigations are handled by the Qatar State Security Bureau (QSS) and Public Prosecution,
c. Employees observation with regards to the policy and procedure practices in the company, which violates any governmental which is under the Attorney General’s authority. Final judgments are made by the Criminal Court.
regulations of Code of Business Ethics and Conduct. As a member of the Qatar Exchange, Nakilat is bound to its Corporate Governance Code for Companies Listed in Markets Regulated by the
d. Employee reasonably believed that an employee is involved in practices, which contravened to this policy. Qatar Financial Markets Authority. This code requires all companies to adopt good accounting standards in accordance with International
Financial Reporting Standards, accurately record all transactions in their books and records, and maintain adequate internal controls.
e. Employee is approached by external vendors, seeking favor or offering gifts.
Anti-Money Laundering Laws
If the employee is not satisfied with any of the above options, or if the employee wishes to make an anonymous report, then he shall report
through whistleblowing channels at: [email protected] Nakilat is committed to comply with applicable anti-money laundry law and regulations wherever it conducts business. It will only perform
financial transactions with verified recipients and financial institutions for legitimate and substantiated expenses and in accordance with
properly executed contractual commitments.

Money laundering occurs when the proceeds of crime are hidden in legitimate business dealings, or when legitimate funds are used to
support criminal activities, including terrorism. Nakilat employees, consultants and agents must be cognizant of suspicious transactions
involving numerous or unusual counter-parties and/or monetary transfers. It expects all such relationships and/or exchanges to undergo
a rigorous review in accordance with Nakilat’s due diligence standards. This includes for all customers, suppliers, joint venture partners or
any other third parties, especially whereby unusual or suspicious monetary requests are sought.

Concerns around the source or use of funds, irregular payments or unusual transactions must be brought to the attention of Nakilat Legal
department as and when the concerns present themselves. This means that employees, consultants and agents need to be familiar with and
understand the identity of the people and organizations with which Nakilat does business.

Fair Competition Laws

Competition or antitrust laws are designed to ensure a fair and competitive free-market system. While Nakilat will compete vigorously
in the marketplace, we will comply with the applicable competition and antitrust laws wherever we do business. This means that we will
compete on the merits of our products and services, the prices we charge and the customer loyalty we earn.

Some of the most serious competition offenses occur between competitors, such as agreements to fix prices or to divide customers,
territories or markets. It is therefore important to avoid discussions with competitors regarding pricing, terms and conditions, costs,
marketing or production plans, customers and any other proprietary or confidential information. Competition laws also may apply in other
circumstances, like benchmarking efforts, trade association meetings or strategic alliances involving competitors.

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 6.2 ANTI-BRIBERY, ANTI-CORRUPTION AND FAIR COMPETITION (continued) 6.3 RISK AND CRISIS MANAGEMENT NAKILAT ESG REPORT 2022

Be accurate and truthful with customers, and take particular care when describing the quality, features or availability of our products and Management Approach and Progress
services. Be similarly careful if you describe a competitor’s products or services. It is unwise to criticize a competitor to a customer, and it is
Nakilat’s risk governance approach is continuously enhanced through the adoption of leading practices related to Enterprise Risk
inappropriate to interfere with any contract between a competitor and a customer of the competitor.
Management (ERM), Information Security Management, Business Continuity Management (BCM), and Compliance. Having robust
Qatar has issued a law entitled Protection of Competition and Prohibition of Monopoly Practices, which deals with fair competition within governance enables Nakilat to shield the company from internal and external uncertainties and minimize any adverse impact or exposure on
Qatar and stipulates any person who violates the provisions of this law shall be punished with a fine of not less than QAR 100,000 and not the company’s performance. Nakilat aims to create a more risk-focused culture to provide reasonable assurance for the achievement of its
more than QAR 5,000,000. core strategic objectives.

All business partners are introduced to and are aware of Nakilat’s anti-corruption policies through the business code of ethics and
declaration form that is signed by all employees annually. All business partners must complete the declaration form each January.
ISO/IEC 27001 Certification Information ISO 22301 Certification
KPIs Security Management System Business Continuity Management

Anti-Bribery and Anti-Corruption 2020 2021 2022 Scope

• Nakilat recertified • Nakilat, NSQL and NAC certified reaffirm our
Total number and percentage of business partners that the commitment to comply with international best practices,
organization’s anti-corruption policies and procedures have been 100% 100% 100% • NAC, NSW and QFAB certified
providing assurance to our stakeholders that we have
communicated to A recognition of our commitment towards the appropriate business continuity arrangements in
No Anti Bribery information security maturity and demonstration place in mitigating the effects of any disruptive incidents.
Total number and percentage of governance body members that Corruption 75% 25% of compliance according to best practices. This is especially important as we expand our in-house
have received training on anti-corruption Conducted for (9 Chiefs) (3 Chiefs) fleet management, safeguarding the safety, reliability,
Chiefs All Nakilat efficiency and continuity of our operations.
Total number and percentage of employees that have received 3% 56% 32% and NAC
training on anti-corruption (8 employees) (156 employees) (82 employees) employees
Business Continuity Management (BCM)
Confirmed incidents of corruption and actions taken 0 0 0
Nakilat’s BCM has been built and established at Nakilat to ensure organizational resiliency towards unexpected adverse events and
Number of legal actions pending or completed during the opportunities, and excel in managing incidents, crises, and disasters. The Business Continuity Management System (BCMS) and Framework
reporting period regarding anti-competitive behavior and has geared the organization by ensuring the continuity of business operations with minimal disruption and retain stakeholder’s confidence in
0 0 0
violations of anti-trust and monopoly legislation in which the Nakilat’s services. This has been achieved by continuously evolving our BCM approach by identifying interdependencies among departments
organization has been identified as a participant to create end-to-end Business Continuity Plans.

Nakilat, Nakilat Shipping Qatar Ltd. (NSQL) and Nakilat Agency Company (NAC) have been certified for ISO 22301 Business Continuity
Management System (BCMS) awarded by Lloyd’s Register. The ISO 22301 is an international management systems standard that assists
organizations to provide a systematic approach to strengthen the continuity and resilience of the company. This reaffirms our commitment
to comply with international best practices in business continuity management and recognizes the steps that Nakilat and its Subsidiaries
have taken to implement processes and standards which provide continuity and organizational resiliency.

Enterprise Risk Management (ERM)

The ERM program in Nakilat is established to assist the strategic decision-making process that shall contribute to the achievement of
Nakilat’s strategic objectives, by evaluating, prioritizing, and managing potential risks to drive value creation. As part of Nakilat’s continuous
improvements towards enhancing the maturity level of its ERM program, an integrated link has been established between Nakilat’s
5-year strategy and risk management. This integration encompasses the assessment of emerging and existing risks associated with
strategic initiatives, new projects, and corporate and departmental objectives to ensure implementation of effective mitigation plans. The
ERM function strives to oversee, adopt, and facilitate leading risk management practices to build confidence and assurance to Nakilat’s
stakeholders and help Nakilat’s management in making informed business decisions.

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 6.3 RISK AND CRISIS MANAGEMENT (continued) NAKILAT ESG REPORT 2022

Compliance Nakilat Risk Management Governance

Nakilat is dedicated towards compliance with applicable rules, laws, regulations, standards, to ensure our business activities are always
conducted in utmost conformity to avoid any potential negative impact on the company. Thus, Nakilat has established a compliance function The Risk Management
The Sub-Committees
to provide holistic oversight of the compliance requirements in addition to existing risk disciplines such as Risk Management and Internal Committee consists of
will act as a second
Audit. The compliance function collaboratively works with all departments towards implementing the required measures, in order to identify level of filtration for Senior Executives in order
existing or foreseen compliance prerequisites to gain valuable insight and drive better detection and resolution of issues. risks. Only the key risks to bring comprehensive
will be escalated to Board of Directors visibility and coordinated
the Risk Management response to Nakilat’s Top
Committee Risks

Risk Management

Nakilat Risk Management Framework

Committee

Business Strategy

Operational Risk Financial Risk Continuity Risk

Framework Policy
Sub-Committee Sub-Committee Sub-Committee

XT
NTE
CO IDE
The entities in scope The entities in scope The entities in scope
K

Governance & Organization

NT
of sub-committee: of sub-committee: of sub-committee:

RI

IFY
Nakilat Risk Management Framework

Risk Appetite

Awareness
Profile

RISK

ERM Function
ERM Fleet Finance Corporate Planning and Risk

Risk Profile
Risk

RISK
Supply Treasury Information Technology

AT

AS
SHEQ Commercial and Business General Services

RE
T SE
SS
RISK
Legal and Insurance Development Human Resources
NAC Shipyard
Metrics Reporting & Monitoring
Public Relations

Compliance Internal Audit

Risk Governance The ERM function The Risk Champion is an

will facilitate and individual who supports and
Nakilat has established a robust ERM governance structure that • To monitor current and emerging risks and approve risk consolidate the risk facilitates the enterprise risk
consists of four risk committees. Nakilat has an Operational treatment plans for the identified risks output of all the management process in a
Risk Sub-Committee, a Financial Risk Sub-Committee, and a department and specific function/department of
Continuity Risk Sub-Committee, all of which report to the main
• To ensure that relevant risk treatment plans are implemented committees Nakilat
on a timely basis, and are managed successfully for all Top
Risk Management Committee chaired by Nakilat’s CEO. These
Risks
committees have clear roles and responsibilities that are detailed The figure above illustrates Nakilat’s Risk Management Governance
in the Risk Committees Charter, which is part of the appendix in the • To review Nakilat’s Top Risks profile annually and update
ERM manual. In addition, Nakilat reports its Top Risks on an annual them, when necessary, to ensure that key risks are identified,
basis to the Board of Directors through the annual Business Plan.
Process for Assessing Key Impacts, Risks and Opportunities
analyzed, evaluated, treated and monitored
We also have an established quarterly reporting cycle to the Board The Top Risks assessment is an annual process where the Risk Team starts by mapping the corporate strategy with the identified risks
of Directors on the progress and updates of the risk initiatives. • To promote a risk-aware culture and risk management
competence across Nakilat that can potentially hinder Nakilat’s ability to achieve its strategic objectives and ultimately, its vision to be a global leader. The Risk Team
Below is the scope of activities of the committees: then starts developing the definitions for each Top Risk, as well as the quantification of the impact and likelihood ratings. This quantification
• To ensure there is a system/process of risk assessment across requires obtaining information from all departments, which the Risk Team then analyses, filters, draws conclusions from, and is utilized to
• To review and approve the strategies, policies, frameworks, the organization on an ongoing basis support the Top Risks ranking and severity levels. This mapping, with all relevant data, is then presented to several subject matter experts
and procedures in place and the four Risk Committees in Nakilat, for their approval and endorsement. Once the Top Risks are approved, the Risk Team works with
• To review reports on selected risk topics as the committees
• To govern the risk identification, risk analyzation, risk deem appropriate from time to time respective risk owners to identify controls and develop treatment/mitigation plans. All this data is then consolidated and presented in a full
evaluation, risk treatment and risk monitoring processes in package to the four Risk Committees.
Nakilat Nakilat’s Risk department frequently and regularly reports to the
Risk Management Committees where all types of risk assessments The Risk Committee role is to review the Top Risks identification, severity levels and mitigation plans from a holistic perspective, and provide
• To define and endorse the organization’s overall risk tolerance whether departmental, ad-hoc/project based, or Top Risks are an unbiased opinion. The Risk Committees have the right to ask for any additional information deemed missing, and the Risk Team works
and strategy relating to key risks, including strategic, reported with assessments of performance. In addition, the Risk towards developing this information accordingly. After rounds of reviews and challenging discussions, the Risk Committees endorse the Top
operational, business continuity, and financial risks, as well Team reports on a quarterly basis to the Planning team on the Risks and the treatment plans on an annual basis. The final report on the Top Risks is then submitted to the Board of Directors for approval.
as the guidelines, policies and processes for monitoring and performance of the departmental objectives and KPIs, which
mitigating such risks are then presented to Nakilat’s senior management team during
quarterly performance meetings.

99 100
 6.3 RISK AND CRISIS MANAGEMENT (continued) NAKILAT ESG REPORT 2022

Approach to Prioritizing Challenges and Opportunities Nakilat ESG risks and opportunities

Nakilat has adopted the ISO 31000 Enterprise Risk Management (ERM) framework as a guideline for the basis of its framework and
governance structure. The purpose of risk evaluation is to help Nakilat make decisions regarding how it will address the outcomes of risk
analysis. These decisions include determining which risks require treatment and determining the priority of treatment implementation.
Nakilat adopts a 5 by 5 matrix for the evaluation of the impact and likelihood of its risks, where residual risks rankings are then plotted on a
Nakilat ESG RISKS AND
heat map according to their agreed assessments and evaluations, ranking from low, to medium, high, or severe. OPPORTUNITIES
ERM is designed to provide a framework for adequate decision-making and to create value for shareholders, employees, customers, and
the organization. The Risk Management process involves seven steps through which risks are continuously identified, analyzed, evaluated,
treated, and monitored that ensures the management of risks and opportunities:
Nakilat Risk Assessment Process Risk Opportunity
• Increasing pace of changes in • Reducing environmental impct (i.e.
emission rules emissions during transport) to become
prefered service provider
• Global decarbonization trend
Linkage with reducing natural gas demand in the • Mid-term demand increase for natural
the Top Risks
long-term gas as transition fuel
07
Assess and Measure
(Inherent) 03 Impact
01 04 Control
Effectiveness 06 Treatment
Options
Increase of operation’s complexity due to changing market patterns and
Final changes in technical requirements
Risk
Destination
Identification

02 05

E
Linkage with Risk Severity Ratings
the Objective (Residual)

The ERM practices are explained in detail within the ERM manual and captures the process for performance and how risk assessment is
conducted in relation to change. In addition, Nakilat has a separate process called Management of Change (MOC) that is run by the SHEQ
department. The MOC process governs any change that happens in the company whether it be minor or major, and whether it is temporary
or permanent. The MOC is integrated within the risk assessment process, where there are specific criteria for the kind of change that
will require to undergo the risk assessment process. The Planning team is responsible for tracking and reporting on all the corporate
performance targets in the company.

Impact of ESG risks

Impacts on Nakilat from any perspective (financial, regulatory, business disruption, sustainability and reputational etc.) are defined as per
S G
our departmental Risk Registers and the Top Risks.

The departmental Risk Registers process is similar to the Top Risks process, but instead of linking it to strategic objectives, it is linked to
Risk Risk
departmental objectives, so they are more of operational risks. This exercise is done with all departments within Nakilat. The Risk Registers
are developed by the departments and are then reviewed and challenged by the Risk Team and the Risk Committees. Each department • Recruiting opportunities for and • Widening pace and spectrum of
has dedicated Risk Champions who have been trained and equipped to utilize the risk management tools provided. The departmental Risk retention of national seafarers rules and regional differences
Registers are reviewed on a bi-annual basis to check the status of the treatment plans, and if there are any emerging or new risks that
should be brought to the attention of the Risk Team. The purpose of the departmental risk registers is to ensure that any potential risk that Opportunity Opportunity
may hinder a department’s ability to achieve its objective is reduced to an acceptable level. The Risk Team has also created a synergy with • Nationals to grow in the gas industry • Adhere to the most stringent
the Audit Team who utilize the departmental Risk Registers during their audits. regulations to be globally active and
ahead of the market

Impact Impact
Additional activities required to meet Increased operational and financial
Qatar›s 2030 national vision and implications to ensure regulations
Qatarization targets compliance

101 102
 6.3 RISK AND CRISIS MANAGEMENT (continued) 6.4 INFORMATION SECURITY AND DATA PRIVACY NAKILAT ESG REPORT 2022

Objectives and Targets Management Approach and Progress

Nakilat has a corporate strategy in place that details the corporate objectives. The Risk Team has achieved all its objectives and targets Nakilat has maintained the Information
during 2018, 2019, 2020, 2021, and 2022. The performance of all KPIs and targets are under the custody of the Planning team. Security Management System (ISMS)
as a commitment to effectively
Risk Team Objectives for 2018: foster security consciousness using
internationally recognized standards
1- Eliminate obstacles: Assessed the risks related to opportunities i.e., process change, organizational change, infrastructure upgrades and others
such as the ISO 27001. Nakilat and
2- Support any emerging projects by facilitating risk assessments its joint ventures, N-KOM, QFAB,
NSW and NAC have achieved the
3- Facilitate the workshops with Chiefs and subject matter experts for top risks to identify further consequences, controls, and treatment plans ISO 27001 certification from Lloyd’s
4- Establish risk response strategy implementation plan based on the Top Risks identified Register Quality Assurance (LRQA),
which affirms our continuous efforts at
5- Present Top Risks and treatment plans to Risk Management Committee for endorsement and approval managing information security risks and
implementation of appropriate controls
Risk Team Objectives for 2019:
to collect, store and handle information,
1- 100% readiness of the business continuity program as per the plan which could help to prevent potential
data loss or information leakage.
2- 100% closure of information security observations in the OT-System as per the plan
The implementation of the ISMS strives
3- 100% of treatment plans Top Risk successfully implemented as per the agreed plan to continuously provide assurance
that our business is running in a safe and secure environment by assuring the confidentiality, integrity, and availability of the company’s
Risk Team Objectives for 2020: information. Adherence to such internationally recognized standards sends a valuable boost of confidence to our shareholders, partners,
and clients, especially in these challenging times as the world shifts to a virtual working environment and information security becomes
1- 100% readiness of the business continuity program as per the plan
more important than ever before.
2- 100% closure of information security observations in the OT-System as per the plan
Nakilat is committed to securing and protecting its customers’ and external parties’ data. For the last five years, no complaints were
3- 100% of treatment plans Top Risk successfully implemented as per the agreed plan reported concerning breaches of customer privacy and losses of customer data.

Risk Team Objectives for 2021:

1- 100% readiness of the business continuity program as per the plan

2- 100% of treatment plans Top Risk successfully implemented as per the agreed plan

3- Risk and business continuity awareness sessions

Risk Team Objectives for 2022:

1- 100% readiness of the business continuity program as per the plan

2- 100% of treatment plans Top Risk successfully implemented as per the agreed plan

3- Risk and business continuity awareness sessions

4- Execution of business continuity drills and actioning lessons learn

103 104
 6.5 TAX 7. ASSURANCE REPORT NAKILAT ESG REPORT 2022

Management Approach and Progress

7.1 Independent Limited Assurance Statement
Nakilat takes a responsible and transparent approach to the
management and control of taxation issues by following both We have been engaged by the Board of Directors of Qatar Gas Transport Company Ltd. (“Nakilat”) to provide limited assurance in respect
Qatari and international tax laws. of Nakilat’s Environmental and Social Performance Indicators as identified below for the year ended 31 December 2022. The Assured
Sustainability Indicators are included in Nakilat’s ESG Report for the year ended 31 December 2022 (the “ESG Report”).
As part of Nakilat’s compliance process, Nakilat abides and
respects all the required deadlines set by Qatar’s General Tax The environmental and social performance indicators covered by our Limited Assurance Engagement are:
Authority and other tax authorities relevant to the group’s • Disclosure 302-1: Energy consumption within the organization
operations globally.
• Disclosure 305-1: Direct (Scope 1) GHG emissions
In 2022, Nakilat paid QAR 4.1 million as withholding tax and
pension payment. In the interest of transparency and fiscal • Disclosure 401-1: New employee hires and employee turnover
responsibility, Nakilat implements and maintains robust • Disclosure 403-9: Work-related injuries
whistleblowing channels for stakeholders to report misconduct,
unethical behavior, or any manner of concern relating to Nakilat’s • Disclosure 404-1: Average hours of training per year per employee
operations, functions, and safety. The same mechanisms are
Our conclusion
available to stakeholders to report any concerns with respect to
taxation. Our conclusion has been formed on the basis of, and is subject to, the matters outlined in this report.

Payments to Qatar General Tax Authority and Pension Authority and Social and Sports Fund Contribution We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Financial Year (FY) 2020 2021 2022 Based on the procedures performed and the evidence obtained, as described below, nothing has come to our attention that causes us to
believe that the environmental and social performance indicators, as defined above, for the year ended 31 December 2022, have not in all
Withholding tax and pension payment
4,205 4,262 4,058 material respects, been prepared with reference to the Global Reporting Initiative (GRI) 2021 Standards.
(Thousands QAR)
Social and Sports Fund Contribution Management’s responsibility
29,005 33,837 35,973
(Thousand QAR) Management is responsible for the preparation of the Limited Assurance Environmental and Social Performance Indicators with reference to
the Global Reporting Initiative (GRI) 2021 Standards.

These responsibilities include establishing such internal controls as management determines are necessary to enable the preparation of
the Limited Assurance Environmental and Social Performance Indicators that are free from material misstatement whether due to fraud
or error and selecting Global Reporting Initiative (GRI) 2021 Standards, as the criteria against which to measure/evaluate the Sustainability
35,973 Parameters.
33,837 Management is responsible for preventing and detecting fraud and for identifying and ensuring that Nakilat complies with laws and
regulations applicable to its activities.
29,005
Management is also responsible for ensuring that staff involved with the preparation of the description and ESG Report are properly trained,
information systems are properly updated and that any changes in reporting encompass all significant business units.

Our responsibility
Our responsibility is to express a limited assurance conclusion on the preparation of the Limited Assurance Environmental and Social
Performance Indicators included in the ESG Report, as defined above.
4,205 4,262 4,058
We conducted our assurance engagement in accordance with International Standard on Assurance Engagements ISAE 3000 (Revised),
Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing and
Assurance Standards Board.
2020 2021
The firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including
2022 documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and
Withholding Tax and Pension Payment (Thousands QAR)
regulatory requirements.
Social and Sports Fund Contribution (Thousand QAR) We have complied with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants,
(including International Independence Standards) (IESBA Code), which is founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and professional behavior.

Financial Assistance Received from Government

In 2022, Nakilat did not receive any financial assistance from any government.

105 106
 7. ASSURANCE REPORT (continued) NAKILAT ESG REPORT 2022

ISAE 3000 (Revised) requires that we plan and perform the engagement to obtain limited assurance about
whether the Limited Assurance Environmental and Social Performance Indicators are free from material Purpose of Our Report
misstatement. In accordance with the terms of our engagement, this assurance report has been prepared for Nakilat for the purpose of assisting Board of
A limited assurance engagement in accordance with IASE 3000 (Revised) involves assessing the risks of material misstatement of the Directors in determining whether Nakilat’s Limited Assurance Environmental and Social Performance Indicators are prepared with reference
Limited Assurance Environmental and Social Performance Indicators, whether due to fraud or error, responding to the assessed risks as to the Global Reporting Initiative (GRI) 2021 Standards, and for no other purpose or in any other context.
necessary in the circumstances of the engagement. The nature, timing and extent of procedures selected depend on our understanding of Inherent Limitations
the Limited Assurance Environmental and Social Performance Indicators and other engagement circumstances, and our consideration of
areas where material misstatements of the Limited Assurance Environmental and Social Performance Indicators are likely to arise. Due to the inherent limitations of any internal control structure, it is possible that errors or irregularities in the information presented in
the ESG Report may occur and not be detected. Our engagement is not designed to detect all weaknesses in the internal controls over the
In developing our understanding of the Limited Assurance Environmental and Social Performance Indicators and other engagement preparation of the Report, as the engagement has not been performed continuously throughout the period and the procedures performed
circumstances, we have considered the process used to prepare the Limited Assurance Environmental and Social Performance Indicators were undertaken on a test basis.
order to design assurance procedures that are appropriate in the circumstances, but not for the purposes of expressing a conclusion as to
the effectiveness of Nakilat’s internal control over the preparation Limited Assurance Environmental and Social Performance Indicators.

Our engagement also included: assessing the appropriateness of the Limited Assurance Environmental and Social Performance Indicators,
the suitability of the criteria used by Nakilat in preparing the Limited Assured Sustainability Parameters in the circumstances of the
engagement, evaluating the appropriateness of the quantification methods, reporting policies and procedures, and models used in the
preparation of the Limited Assurance Environmental and Social Performance Indicators and the reasonableness of estimates made by Yacoub Hobeika
Nakilat. Audit Registry No. 289
KPMG Qatar
Procedures Performed
Date: 21 June 2023
Our limited assurance engagement on the Limited Assurance Environmental and Social Performance Indicators consisted of making
enquiries, primarily of persons responsible for the preparation of the Limited Assurance Environmental and Social Performance Indicators,
and applying analytical and other procedures, as appropriate. These procedures were based on our professional judgement and included:

• interviews with senior management and relevant staff at corporate and selected site level concerning sustainability strategy and
policies for material issues, and the implementation of these across the business;

• enquiries of management to gain an understanding of Nakilat’s processes for determining material issues for Nakilat’s key
stakeholder groups;

• enquiries of relevant staff at corporate and selected site level responsible for the preparation of the Limited Assurance Environmental
and Social Performance Indicators;

• enquiries about the design and implementation of the systems and methods used to collect and report the Limited Assurance
Environmental and Social Performance Indicators, including the aggregation of the reported information;

• comparing the Limited Assurance Environmental and Social Performance Indicators to relevant underlying sources on a sample basis
to determine whether all the relevant information has been appropriately included in the ESG Report;

• reading the Limited Assurance Environmental and Social Performance Indicators presented in the ESG Report to determine whether
they are in line with our overall knowledge of, and experience with, the sustainability performance of Nakilat;

• reading the remainder of the Sustainability Report to determine whether there are any material misstatements of fact or material
inconsistencies based on our understanding obtained as part of our assurance engagement.

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable
assurance engagement, and consequently the level of assurance obtained in a limited assurance engagement is substantially lower than
the assurance that would have been obtained has a reasonable assurance engagement been performed. Accordingly, we do not express a
reasonable assurance conclusion on the Limited Assurance Environmental and Social Performance Indicators.

107 108
 8.1 ESG DATA SUMMARY NAKILAT ESG REPORT 2022

Climate Change and Emissions to Air 2020 2021 2022 Scope Energy 2020 2021 2022 Scope
Greenhouse Gas (GHG) emissions 31
Energy consumption
Gross direct (Scope 1) GHG emissions (TCO2) 32
5,564,216 5,353,949 5,812,436 Total fuel consumption within the organization from
74,015,625 73,694,908 80,204,392
GHG emissions intensity33 (TCO2/Nm) 1.26 1.12 1.06 non-renewable sources (GJ)38

Organization-specific metric chosen to calculate the Total fuel consumption within the organization from
5,493,714 6,579,066 7,378,156 0 0 0
intensity ratio: Total Sailing Distance34 (Nautical Mile [Nm]) renewable sources (GJ)

Nitrogen oxides (NOx), sulfur oxides (SOx), CH4 and other significant air emissions (tons) Total energy consumption within the organization (GJ) 74,015,625 73,694,908 80,204,392
Shipping Shipping
NOx 138,610 128,659 138,404 Energy intensity

SOx 15,961 13,942 14,767 Energy intensity ratio39 (GJ/Nm) 17.30 15.79 14.90

Particulate matter 11,975 10,897 11,688 Organization-specific metric chosen to calculate the
intensity ratio: Total Sailing Distance40 (Nautical Mile 6,023,833 6,579,066 7,378,156
CH4 (GRI 11-1- ref. Note-1) 466 433 466
[Nm])
This data represents our entire shipping fleet (inhouse and joint venture). Our reported GHG emissions data are based on the GHG Protocol,
Note: This data represents our entire shipping fleet. Data for mentioned year is restated following availability of missing data.
European Union (EU) Monitoring, Reporting and Verification (MRV) of CO2 emissions, and IMO Data Collection System (DCS) on fuel consumption.

Note 1: Total CH4 emission data (as per above table) under SCOPE-1 are regarded as from fuel combustion process on ships. Energy 2020 2021 2022 Scope
Electricity consumption
The calculation of these data uses conversion factors from the following standards: IPCC 2006 / ENTEC / CORINAIR / MEPC 686 and ISO
conversion factors for Lower Calorific Value (LCV) indicated below: LCV MGO= 42.7GJ/T, LCV HFO= 40.6GJ/T, LCV Fuel Gas= 50.0GJ/T. The Total electricity consumption (kWh) Corporate 935,517 1,169,485 1,067,695
GHG accounting and disclosure is based on equity share. Total electricity consumption (kWh) N-KOM 63,400,000 69,400,000 72,830,000

Climate Change and Emissions to Air 2020 2021 2022 Scope Total electricity consumption (kWh) QFAB 7,460,000 6,505,700 8,173,611

Greenhouse Gas (GHG) emissions Total electricity consumption (kWh) NSW n/a 1,956,150 2,260,278
Gross direct (Scope 1) GHG emissions (TCO2) 35
20,834 22,935 24,872 Non-shipping TOTAL ELECTRICITY CONSUMPTION (kWh) Corporate,
71,795,517 79,030,635 84,331,584
N-KOM, QFAB and NSW
Note: This data represents emissions from fuel used by our non-vessel Joint ventures including fuel used for business purposes by
Total electricity consumption (GJ) Corporate 3,368 4,210 3,844
corporate office. The majority of non-shipping fuel is used by tugs for harbour operations and so the calculation of these data uses
conversion factors for MDO from the following standards: IPCC 2006 Total electricity consumption (GJ) N-KOM 228,240 249,840 262,188

** This is only non-shipping data under scope 1. Types of fuels included within figures: Diesel (Density-0.8213) and LPG (Conversion Factor- Total electricity consumption (GJ) QFAB 26,856 23,418 29,425
MJ to KG: 1 MJ = 0.02 kg of LPG). Total electricity consumption (GJ) NSW n/a 7,042 8,137

Emissions to Air 2020 2021 2022 MME Limits36 Scope TOTAL ELECTRICITY CONSUMPTION (GJ) Corporate,
258,464 284,510 303,594
N-KOM, QFAB, NSW
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions37
Fuel consumption
NOx 20.75 ug/m3 27.00 ug/m3 30.00 ug/m3 150 ug/m3 Non-Shipping
Total fuel consumption (GJ) Corporate 734 329 190
SOx 12.50 ug/m 3
24.75 ug/m 3
24.00 ug/m 3
365 ug/m 3

Total fuel consumption (GJ) N-KOM 37,339 43,147 55,190

Particulate matter (PM2.5) 22.75 ug/m3 18.25 ug/m3 25.00 ug/m3 35 ug/m3
Non- Total fuel consumption (GJ) QFAB 393 333 5,297
Particulate matter (PM10) 72.75 ug/m3 77.00 ug/m3 95.00 ug/m3 150 ug/m3
shipping Total fuel consumption (GJ) NSW 287,742 315,385 327,182
CO n/a 423.5 ug/m3 467.25 ug/m3 10,000 ug/m3
TOTAL FUEL CONSUMPTION (GJ) Corporate, N-KOM,
VOC n/a 11.75 ug/m3 11.00 ug/m3 160 ug/m3 326,208 359,194 387,859
QFAB, NSW
Aromatic hydrocarbons n/a 8.54 ug/m 3
7.00 ug/m3
160 ug/m 3
Total energy consumption (electricity + fuel)
Note: N-KOM data only. The source of NOx, SOx, PM, CO, VOC & Aromatic Hydrocarbon are due to air emissions from the shipyard’s operations. Total energy consumption (GJ) Corporate 4,102 4,539 4,034
Monitoring requirements and the respective limits are prescribed by the Qatar Ministry of Environment and Climate Change (MOECC).
Total energy consumption (GJ) N-KOM 265,579 292,987 317,378
Total energy consumption (GJ) QFAB 27,249 23,751 34,722
Total energy consumption (GJ) NSW 287,742 322,428 335,319
TOTAL ENERGY CONSUMPTION (GJ) Corporate, N-KOM,
584,672 643,705 691,453
QFAB, NSW
It is to be noted that GHG emissions data for the mentioned years have been restated following availability of missing quantity.
31

32
FShipping data is declared only under scope 1 as all GHG emissions are produced by the vessels when generating their own energy to sustain their respective operation.
Only CO2 is included in this calculation. Declaration is based on equity share.
For ships: Emissions Intensity = Total Emissions / Total Sailing Distance. Equity share doesn’t apply to intensity.
33
38
This is only shipping data under scope 1. Types of fuels included within figures: HFO, MGO, LNG.
Total Sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed.
34
39
For SHIPS: Energy Intensity = Total Energy/ Total sailing Distance. Intensity is declared in total.
Non-Shipping data shown separately under scope 1.
35

Ministry of Environment and Climate Change (MOECC).

36
40
Total sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed.
Each parameter is averaged for the year 2020.
37

109 110
 8.1 ESG DATA SUMMARY (continued) NAKILAT ESG REPORT 2022

Energy 2020 2021 2022 Scope Water 2020 2021 2022 Scope
Energy intensity 41 42
Water consumption
Energy intensity ratio (Electricity + Fuel consumption (GJ) Freshwater/ Potable water consumption (megaliters)
16.6 16.5 16.1 0.73 0.61 1.28
/ per employee) Corporate Corporate
Organization-specific metric chosen to calculate the
250 275 250 Freshwater/ Potable water consumption (megaliters)
intensity ratio (average number of employees) Corporate 11 11.49 11.58
NSW
Energy intensity ratio (Electricity + Fuel consumption (GJ)
204.3 225.4 200.1 Freshwater/ Potable water consumption (megaliters)
/ employee N-KOM 248 304 444
Organization-specific metric chosen to calculate the N-KOM
1,300 1,300 1,586 Non-shipping
intensity ratio (average number of employees) N-KOM Freshwater/ Potable water consumption (megaliters)
52.2 33.6 53.4
Energy intensity ratio Electricity + Fuel consumption (GJ) QFAB
317.2 349.3 108.9
/ per employee) QFAB Total Freshwater/ Potable consumption 312 350 510
Organization-specific metric chosen to calculate the Non-Shipping
86 68 319 Industrial water consumption (megaliters) N-KOM 100 100 41
intensity ratio (average number of employees) QFAB
Energy intensity ratio (Electricity + Fuel consumption (GJ) Industrial water consumption (megaliters) QFAB 52 0.03 0
846.3 942.8 986.2
/ per employee) NSW43
*Water is supplied by Kahramaa, a third-party.
Organization-specific metric chosen to calculate the
340 342 340
intensity ratio (average number of employees) NSW
Waste 2020 2021 202245 Scope
Total energy intensity ratio (Electricity Consumption +
Waste generated
Fuel (GJ) / per employee) Corporate, N-KOM, QFAB and 295.9 324.3 277.1
NSW Total = 6,895 m3 Total = 6,879 m3 Total = 7,805 m3
Organization-specific metric chosen to calculate the Cat 1 = 2,044 m3 Cat 1 = 1,939 m3 Cat A = 1,984.08 m3
intensity ratio (average number of employees) corporate, 1,976 2,016 2,495 Total weight of waste generated (m3), and Cat 2 = 333 m3 Cat 2 = 326 m3 Cat B = 334.67 m3
N-KOM, QFAB, NSW a breakdown of this total by composition Cat 3 = 2,233 m3 Cat 3 = 2,199 m3 Cat C = 2,534.57m3
(CAT46) of the waste47 Cat 4 = 155 m3 Cat 4 = 161m3 Cat D = 1.20 m3
Reduction of Energy Consumption 2020 2021 2022 Scope Other = 2,129 m3 Other = 2,254 m3 Cat E = 127.66 m3
Others = 2,822.86 m3
Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives (fuel and electricity)
Waste disposal
Total energy reductions (GJ) Corporate 2,501 2,363 12,256
Total = 6,895 m3 Total = 6,879 m3 Total = 7,805 m3
Total energy reductions (GJ) N-KOM 16,804 16,804 16,804 Shipping
Cat 1 = 2,044 m3 Cat 1 = 1,939 m3 Cat A = 1,984.08 m3
Total energy reductions (GJ) QFAB 26,856 24,048 n/a Total weight of waste directed to disposal in Cat 2 = 333 m3 Cat 2 = 326 m3 Cat B = 334.67 m3
Non-Shipping cubic meter, and a breakdown of this total by Cat 3 = 2,233 m3 Cat 3 = 2,199 m3 Cat C = 2,534.57m3
Total energy reductions (GJ) NSW n/a n/a n/a composition of the waste48 Cat 4 = 155 m3 Cat 4 = 161m3 Cat D = 1.20 m3
Total energy reductions (GJ) Corporate, N-KOM, QFAB Other = 2,129 m3 Other = 2,254 m3 Cat E = 127.66 m3
46,161 43,112 29,060 Others = 2,822.86 m3
and NSW
Incineration onsite (without energy recovery)
775 1,061 1,545
Electricity Sold 2020 2021 2022 (m3)
Total Electricity Sold (GJ)- (N-KOM)* 5,246 25,029 15,930 Total waste disposal offsite (m3)49 6,120 5,818 6,261

*Electricity sold to vessels in dock via metered connections

Water 2020 2021 2022 Scope

Water withdrawal and discharge 44

Total seawater withdrawal (megaliters) 28,398 25,056 24,959

Shipping
Total seawater discharge (megaliters) 28,398 25,056 24,959

Note: This data represents our entire shipping fleet (inhouse and Joint ventures). The reported data are aggregated values from wholly
owned and JV vessels for seawater used for ballasting the vessels. The ballast water used has either been treated according to IMO Ballast
Water Convention D2 for vessels fitted with a treatment system. For other vessels which are still to be fitted with a treatment system the
45
G2022 onwards-Garbage on ships are classified into the following categories as per MARPOL Annex V:
ballast water has been replenished through exchange during the voyage as per IMO Ballast Water Convention D1. The same quantity of • Category A: Plastics • Category E: Incinerator Ashes
seawater that is loaded in discharge ports is discharged afterwards in loading ports. Only seawater for ballasting is discharged. Calibrated • Category B: Food Waste • Category F: Operational Waste
remote sounding system and approved ballast tank tables have been used to calculate ballast water quantities declared. Seawater salinity
• Category C: Domestic Waste • Category I: E-Waste
and density is determined from international oceanographic tables.
• Category D: Cooking Oil
46
Until 2021-Garbage on ships is classified into the following categories (Cat): 1-Plastics; 2- Floating dunnage, lining, and packing material; 3- Ground down paper
products, rags, glass, metal bottles, and crockery; 4-Domestic waste; 5- Incinerator ash; 6- Normal paper products, rags, oily rags, glass, and metal scrap; 7-Operational
waste; 8- Animal Carcasses onboard livestock carrier; 9- E-Waste; 10- Cooking oil waste produced in the galley; 11- Cargo residues onboard ships carrying solid cargo
in bulk which are not harmful to the marine environment (Non-HME); 12- Cargo residues onboard ships carrying solid cargo in bulk which are harmful to the marine
All energy intensity ratios represent electricity and fuel usage, except for QFAB and NSW (see below).
41 environment (HME); Others” encompass all what is not listed between cat 1 and cat 12.
Energy Intensity Ratio has been restated in GJ/No. of employee for alignment.
42 47
Total waste (disposed to sea + incinerated + landed ashore) in m3. Data provided in cubic meter and not in tons as reported by the vessels and approved by the flag state.
NSW Electricity data not available in 2020 and so only fuel data used.
43 48
Bilge doesn’t fall under garbage requirement.
It is to be noted that seawater data for the mentioned years have been restated in “megaliters” than earlier shown unit of “Tonnes’.
44 49
The rest of the segregated waste is disposed to an approved shore facility for processing.

111 112
 8.1 ESG DATA SUMMARY (continued) NAKILAT ESG REPORT 2022

Waste 2020 2021 2022 Scope Waste 2020 2021 2022 Scope
Waste generated Waste generated
Total = 16,271 m3, Total = 19,200 m3 & Total: 19,054 m3, Total weight of hazardous waste
7,082 tons & 9,681 tons 34,492 tons & diverted from disposal in metric
365,000 gallons 1,195,790 gallons tons, and a breakdown of this NA CAT I = 22.86 tons Cat I: 25.13 tons
Cat A, B, C & F
total by the following recovery
Cat A, B, C & F (General) = 13,566 m3 Cat A, B: 14,434 m3
operations -SOLD- N-KOM
(General) = 12,817 m3
Cat C & F = 3,520 m3 Cat C: 4,620 m3 Total weight of non-hazardous
Total weight of waste generated
Cat C & F = 2,360 m3 waste diverted from disposal in
(m3 or tons), and a breakdown of Cat C & F = 3,077 tons Cat F: 2,301 tons
this total by composition (CAT50) of Cat C & F = 2,104 tons metric tons, and a breakdown of NA CAT C & F= 3,077 tons Cat F: 2,301 tons
Cat I = 22.86 tons Cat I: 25.13 tons this total by the following recovery
the waste - N-KOM
Cat I = 12.62 tons operations -SOLD- N-KOM
Other = 2,114.16 m3 Other: 211.15 tons
Other = 1,094 m3 Total = 16,271 m3, Total= 19,200.16 m3 & Total: 19,054 m3,
Other = 6,581.36 tons Other: 31,836 tons
7,082 tons & 9,681.22 tons 34,492 tons &
Other = 4,965 tons
Other: 118.51 tons 365,000 gallons 1,195,790 gallons
Cat A, B, C & F
Other = 365,000 gallons
Other: 1,195,790 gallons Cat A, B, C & F (General) = 13,566 m3 Cat A, B: 14,434 m3
Total = 67.86 m3 Total = 125.11 m3 Total = 173.26 m3 (General) = 12,817 m3 Cat C & F = 3,520 m3 Cat C: 4,620 m3
Total weight of waste directed
Total weight of waste generated Cat C & F Cat C & F Cat C & F to disposal in metric tons, and Cat C & F = 2,360 m3 Cat C & F = 3,077 tons Cat F: 2,301 tons
(m3 or tons), and a breakdown of (General) = 18.297 m3 (General) = 30.691 m3 (General) = 57.150 m3 a breakdown of this total by
Cat C & F = 2,104 tons Cat I = 22.86 tons Cat I: 25.13 tons
this total by composition (CAT) of composition of the waste - N-KOM
Cat A (Plastic) = 4.361 m3 Cat A (Plastic) = 9.59 m3 Cat A = 12.783 m3
the waste - NSW Cat I = 12.62 tons Other = 2,114.16 m3 Other: 211.15 tons
Others Others Others = 103.327 m3
Other = 1,094 m3 Other = 6,581.36 tons Other: 31,836 tons
(Oily waste) = 45.20 m3 (Oily waste) = 84.825 m3
Total = 48.98 m3 & Total = 18.88 tons & Total = 786.61 tons Other = 4,965 tons Other: 118.51 tons
2.85 tons 264 gallons Non- Other = 365,000 gallons Other: 1,195,790 gallons
CAT A & B
shipping
Cat A, B, C & F Hazardous waste = Total = 125.11 m3
(General) = 158.652 tons Total = 173.26 m3
(General) = 48.98 m3 2.16 tons
Total weight of waste directed Cat C & F
Total weight of waste generated Cat C & F = 627.957 tons Cat C & F
Cat C & F = 2.58 m3 CAT A & B Other (Oily waste) = (General) = 30.691 m3 Non-
to disposal in metric tons, and (General) = 57.150 m3
(m3 or tons), and a breakdown of (General) = 10.785 tons
Cat C & F= 2.85 tons a breakdown of this total by shipping
this total by composition (CAT) of 45.20 m3 Cat A (Plastic) = 9.59 m3
Cat C & F = 5.94 tons composition of the waste - NSW Cat A = 12.783 m3
the waste - QFAB Cat I = 0 tons Others
Other Others = 103.327 m3
(Oily waste) = 84.825 m3
Other = 0 m3
(Oily waste) = 264 gallons
Total = 18.88 tons &
Othe r = 0 tons
264 gallons
Othe r = 0 gallons
Hazardous Waste =
Total weight of waste directed Total= 786.6 tons
Total = 2.73 m3 Total = 0.59 m3 Total = 0.27 m3 2.16 tons
to disposal in metric tons, and
NA Non- hazardous
Total weight of waste generated Cat C & F Cat C & F Cat A = 0.27 m3 a breakdown of this total by CAT A & B
(m3 or tons), and a breakdown of (General) = 0.51 m3 (General) = 0.56 m3 composition of the waste - QFAB (General) = 10.785 tons Waste= 786.6 tons
this total by composition (CAT) of Cat I = 2.22 m3 Cat I = 0.012 m3 Cat C & F = 5.94 tons
the waste - Corporate
Hazardous waste = Other (Oily waste) =
0.02 m3
Total: 17,086 m3 &
Total: 34,492 tons Total: 15,177 m3 & 6,425.74 tons
Total weight of waste diverted Total = 3,099.86 tons 4,903 tons Total: 19,054 m3 &
from disposal in metric tons, Cat F: 2,301 tons CAT A, B, C & F 32,167 tons
NA CAT C & F = 3,077 tons Total waste disposal – landfill General = 12,817 m3
and a breakdown of this total by Cat I: 25.13 tons (m3 or tons) N-KOM (General) = 13,566 m3 Cat A, B & C: 19,054 m3
composition of the waste. - N-KOM CAT I = 22.86 tons Wood = 2,360 m3
Others: 32,166 tons CAT C & F = 3,520 m3 Other: 32,167 tons
Spent Grit = 4,903 tons
Other = 6,425.74 tons
Total waste disposal – landfill
NA 12.945 tons 203.147 tons
(m3 or tons) QFAB
Total waste disposal – recycling
NA 60.225 tons 583.46 tons
(m3 or tons) QFAB
Total waste disposal – recycling
Garbage on shore is classified into the following categories (CAT A & B: General; CAT C & F: Wood & Metal; CAT I: Batteries; CAT OTHER- Spent Grit, Paint Drums, Sludge,
50 NA NA 0.84 tons (paper)
(m3 or tons) QFAB
Oily Water & Oily Rags).

113 114
 8.1 ESG DATA SUMMARY (continued) NAKILAT ESG REPORT 2022

Waste 2020 2021 2022 Scope Total Number of Employees / Workforce 2020 2021 2022 Scope
Total waste disposal – landfill NA 12.945 tons 203.147 tons Total number of employees 270 278 (1)
272 (1)

(m3 or tons) QFAB Full time 270 278 272

Total waste disposal – recycling (m3 or tons) NA 60.225 tons 583.46 tons Part time 0 0 0
Non-Shipping
QFAB
Breakdown by contract type
Total waste disposal – recycling (m3 or tons) NA NA 0.84 tons (paper)
QFAB Indefinite or permanent contracts 213 216 210 All Nakilat and NAC
Fixed-term or temporary contracts 57 62(2) 62(2) employees
LTIF (Lost Time Injury Frequency) 2020 2021 2022 Scope Breakdown by career level
Benchmark-ITOSF* 0.39 0.41 0.38 Senior management 12 12 12
All Nakilat and NAC and Joint
Nakilat KPI** 0.43 0.41 0.31 Middle management 59 51 48
Ventures (JVs)
Actual 0.39 0.19 0.38 Non-management 199 215 212
TRCF (Total Recordable Case (1) Total employee in Nakilat and NAC (Direct hire and through third party agency)
2020 2021 2022 Scope
Frequency)
(2) Secondees (6) to JVs are included
Benchmark-ITOSF* 1.03 1.16 1.30
All Nakilat and NAC and Joint New Hires and Turnover 2020 2021 2022 Scope
Nakilat- KPI** 1.21 1.15 1.09
Ventures (JVs)
Actual 0.63 1.11 1.14 Number of new hires
Breakdown by Age
*ITOSF- Informal Tanker Operators’ Safety Forum
18-30 years old 3 3 7
**KPI- Key Performance Indicator
31-50 years old 17 33 22
Occupational Health and Safety 2020 2021 2022 Scope 51+ years old 2 7 5
For all employees and workers Breakdown by Gender
Number of lost time injuries51/incidents 10 5 11 Male 19 43 29
Lost-time injury rate (LTIF) 52
0.39 0.19 0.37 Female 3 0 5
Number of Work-related fatalities 0 0 0 Total number of new hires* 22 43 34
Number of recordable Cases 16 29 34 Number of employees leaving employment during the reporting period (voluntary and involuntary)
All Nakilat and
Total Recordable Case Frequency53 (TRCF)54 0.63 1.11 1.14 Breakdown by Age
NAC and Joint
The main types of work-related injury Minor Cuts and Caught in/Between, Caught in/Between, Ventures (JVs) 18-30 years old 1 7 4
Bruises/Sprains Cuts/Laceration/ Burn / Rash, Caught in/ 31-50 years old 19 20 26
and Strain/ Puncture, Heat Between, Strain/Sprain.
Foreign Particle Exhaustion, Strain/ Foreign Particles and 51+ years old 4 7 4
in eye Sprain and Struck by/ Struck by/Against Breakdown by Gender
All Nakilat and NAC
Against Male 18 30 24 employees
The number of hours worked55 25,526,586 26,027,630 29,940,323 Female 6 4 10
Total number of employees leaving employment during
403-10: Work related Ill Health 2020 2021 2022 Scope 24 34 34
the reporting period (voluntary and involuntary)*
For all employees and workers Employee turnover rate (voluntary and involuntary) 9% 12% 13%
Fatalities as a result of work-related ill health-Number 0 0 0 Number of employees leaving employment during the reporting period (voluntary)
All Nakilat and
Fatalities as a result of work-related ill health-Rate 0 0 0 Breakdown by Age
NAC and Joint
Recordable work-related ill health-Number 0 0 0 Ventures (JVs) 18-30 years old 0 3 14
Recordable work-related ill health-Rate 0 0 0 31-50 years old 5 9 3
Main types of work-related ill health There were no cases of work-related ill health reported 51+ years old 1 2 3
Breakdown by Gender
Male 4 11 15
Lost-time Injury represents the high-consequence work related injuries.
51

Female 2 3 5
Injury Rate at 1,000,000 hours worked.
52

Excluding first-aid incidents as they do not result in more than one day of absence or do not impose restriction on working ability.
53 Total number of employees leaving employment during the reporting
6 14 20
period (voluntary)*
First-aid incidents are not included in the TRCF since these usually do not result in more than one day of missed work or impose any restriction on the working ability of
54

an employee. Employee turnover rate (voluntary) 2% 5% 7%

Exposure hours shows the time an employee is exposed to work related hazards and risks. Data is submitted by each entity on monthly basis.
55
*All Nakilat’s employees are based in the region of Middle East (Qatar)

115 116
 8.1 ESG DATA SUMMARY (continued) NAKILAT ESG REPORT 2022

Parental Leave 2020 2021 2022 Scope Learning and Development 2020 2021 2022 Scope
Number of employees that were entitled to parental leave Total training hours 4,125 7,438 11,269
Breakdown by gender Average training hours per employee 15 27 42
Female 46 25(1) 34 Breakdown by career level
Male 224 202(1) 236 Senior management 12 12 12
Number of employees that took parental leave Total training hours 93 293 156
Breakdown by gender Average training hours per employee 8 24 13
Female 5 3 4 Middle management 59 51 48
Male 4 4 4 Total training hours 805 1,728 2,936
All Nakilat and NAC
Number of employees that returned to work after parental leave employees Average training hours per employee 14 34 61
Breakdown by gender Non-management 199 215 210
Female 5 3 4 Total training hours 3,227 5,417 8,177
Male 4 4 4 Average training hours per employee 16 25 39
Retention rate Breakdown by gender
All Nakilat and NAC
Total number of employees returned from parental leave who were still Male employees
9 7 8
employed twelve months after return to work
Total training hours 3,228 5,725 9,064
Return to work rate 100% 100% 100%
Average training hours per employee 14 24 38
Retention rate 100% 100% 100%
Female
(1) The number are reported for all married employees only. Numbers reported in past years includes all employees, irrespective of their
marital status. Total training hours 897 1,712 2,205
Average training hours per employee 19 41 65
Grievances* 2020 2021 2022 Scope
Performance reviews
Number of grievances filed in the reporting period 5 6 1
Total number of employees receiving regular performance and career
220 229 226
Number of grievances addressed or resolved 5 6 1 All Nakilat and NAC development reviews
Number of grievances filed prior to the reporting period that were employees
Percentage of employees receiving regular performance and career
0 0 0 81% 82% 84%
resolved during the reporting period development reviews (%)
*Grievances listed in the table are in relation to performance management grievances only and raised at the end of the performance Breakdown by gender
management cycle of each year (in December of each reporting year).
Female 36 37 34
Male 184 192 236

Diversity and Inclusion (Employees) 2020 2021 2022 Scope

Breakdown by age
18-30 years old 45 35 31
31-50 years old 199 209 196
51+ years old 26 34 43
Youth employment rate 17% 13% 11%
Breakdown by gender
All Nakilat and NAC
Male 224 236 236 employees
Female 46 42 34
Female employment rate 17% 15% 13%
Breakdown by nationality

Qatarization* 34% 30% 30%

Percentage of all Qatari nationals (including JVs) against the total of Nakilat’s established position.
*

117 118
 8.1 ESG DATA SUMMARY (continued) NAKILAT ESG REPORT 2022

Female Employment 2020 2021 2022 Scope Responsible Procurement and Supply Chain 2020 2021 2022 Scope
Supplier environmental assessment
Total number of employees with disabilities (number) 0 0 0 Suppliers assessed for environmental impacts (number) 10 20 18
Total % of employees with disabilities (%) 0 0 0 Number of suppliers identified as having significant actual and potential
0 0 0
By career level negative environmental impacts

Board of Directors Significant actual and potential negative environmental impacts

0 0 0
identified in the supply chain Non-shipping
Number of female employees 0 0 0
Percentage of suppliers identified as having significant actual and
Percentage of female employees 0% 0% 0% potential negative environmental impacts with which improvements 0 0 0
Senior management were agreed upon as a result of assessment
All Nakilat and NAC
Number of female employees 0 0 0 Percentage of suppliers identified as having significant actual and
employees
Percentage of female employees 0% 0% 0% potential negative environmental impacts with which relationships were 0 0 0
terminated as a result of assessment, and why
Middle management
Number of female employees 7 6 3 Anti-Bribery and Corruption 2020 2021 2022 Scope
Percentage of female employees 12% 12% 6% Total number and percentage of business partners that the
Non-management organization’s anti-corruption policies and procedures have been 100% 100% 100%
Number of female employees 39 36 31 communicated to, broken down by type of business partner and region

Percentage of female employees 19% 17% 15% No Anti

Bribery
Equal Pay Total number and percentage of governance body members that have 75% 25%
Corruption
received training on anti-corruption, broken down by region (9 Chiefs) (3 Chiefs)
Gender pay ratio (Ratio of basic salary* and remuneration of N-KOM and QFAB not Conducted
0.82 to 1 1.03 to 1 1.17 to 1
women to men) included for Chiefs
*Median male salary to median female salary All Nakilat
and NAC
Total number and percentage of employees that have received training 3% 56% 32%
Information Security and Data Privacy 2020 2021 2022 Scope employees
on anti-corruption, broken down by employee category and region (8 employees) (156 employees) (82 employees)
IT expenses (QAR millions) 7.9 9.3 16.4 Nakilat Group

Local Procurement Confirmed incidents of corruption and actions taken 0 0 0

Year 2020 2021 2022 Scope
Number of legal actions pending or completed during the reporting
Value of goods and services (USD) period regarding anti-competitive behavior and violations of anti-trust
0 0 0
and monopoly legislation in which the organization has been identified
from local suppliers 80,204,110 69,194,899 94,050,214
as a participant
from foreign suppliers 105,696,606 132,659,162 207,830,245
Percentage of total procurement from local suppliers 43.1% 34.2% 31.2% Nakilat and NSQL Payments to Qatar General Tax Authority and Pension Authority and Social and Sports Fund Contribution
Number of suppliers Financial Year (FY) 2020 2021 2022
Local 292 251 255 Withholding tax and pension payment (Thousands QAR) 4,205 4,262 4,058
Foreign 300 326 329 Social and Sports Fund Contribution (Thousand QAR) 29,005 33,837 35,973

Responsible Procurement and Supply Chain 2020 2021 2022 Scope

Supplier environmental assessment
New suppliers assessed for environmental impacts (%) 100% 100% 100%
Shipping
Suppliers identified as having significant actual and potential negative
0 0 0
environmental impacts (number)

119 120
 8.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX NAKILAT ESG REPORT 2022

GRI STANDARD Page

GRI 2: General Omissions
Indicator and Disclosure Report Section/ URL Number in
GRI 2: General Disclosures 2021 Disclosures 2021 / remarks
this Report
2-19 Remuneration policies 5.2, 5.3 73, 83
Page
GRI 2: General Number Omissions Governance 2-20 Process to determine remuneration 5.2, 5.3 73, 83
Indicator and Disclosure Report Section/ URL
Disclosures 2021 in this / remarks 2-21 Annual total compensation ratio 5.2, 5.3 73, 83
Report 2-22 Statement on sustainable development
3.1 10
2-1 Organizational details 1.1 01 strategy
2-2 Entities included in the organization’s 2-23 Policy commitments 4.1, 5.1, 5.2, 6.1 22, 55, 73, 92
2.1 05
sustainability reporting 2-24 Embedding policy commitments 4.1, 5.1, 5.2, 6.1 22, 55, 73, 92
The organization and its
2-3 Reporting period, frequency and contact Strategy, policies and 2-25 Processes to remediate negative
reporting practices 1.1 01 4.1, 5.1, 5.2, 6.1 22, 55, 73, 92
point practices impacts
2-4 Restatements of information 2.1 05 2-26 Mechanisms for seeking advice and
6.1 92
2-5 External assurance 2.1 05 raising concerns
2-6 Activities, value chain and other 2-27 Compliance with laws and regulations 4.1, 5.1, 5.2, 6.1 22, 55, 73, 92
1.2 03
business relationships 2-28 Membership associations 3.5 19
Activities and workers
2-7 Employees 5.2, 5.3 73, 83 2-29 Approach to stakeholder engagement 3.3, 3.4 13, 15
2-8 Workers who are not employees 5.2, 5.3 73, 83 Stakeholder engagement
2-30 Collective bargaining agreements 0% covered -
6.1 - Corporate Governance Report
2-9 Governance structure and composition 2022 - p31-32, 39, 51-53 (article 6, 92 GRI 3: Material Topics 2021
18) ESG Committee Charter
Page
6.1 - Corporate Governance Omissions
Indicator and Disclosure Report Section Number in
2-10 Nomination and selection of the Report 2022 - page 44 (8-8), 51-54 / remarks
92 this Report
highest governance body (article18 & 19), 39 (article 6),
3-1 Process to determine material topics 3.4 15
page 31-32
3-2 List of material topics 3.4 15
Corporate Governance Report
2-11 Chair of the highest governance body -
2022 - page 31-32
GRI 11: Oil and Gas Sector 2021
6.1, 3.4 - Corporate Governance
2-12 Role of the highest governance body in Report 2022 - p31-32, 39, 51-53
15, 92 Likely Material Topics Report Section/Omissions /Remarks
overseeing the management of impacts (article 6, 18) ESG Committee
Charter
Corporate Governance Report Topic 11.1 GHG emissions 4.2
Governance 2022 - p31-32 Risk Committee: Nakilat is closely coupled to Qatar’s Liquefied Gases value chain, which is a vital part of the
2-13 Delegation of responsibility for Corporate Governance Report economy. In all Qatar Energy scenarios, there will be an increased demand for Liquefied Gas
-
managing impacts 2022p 36 (4-4), p41-42 (8-2-4), Topic 11.2 Climate adaptation, resilience, shipping. Nakilat continually evaluates further opportunities to diversify. Nakilat finds the
p42-46 (8-10), p56 (22-1, 22-6) and transition Representative Concentration Pathways (RCP) and Shared Socioeconomic Pathways (SSP)
ESG Committee Charter scenarios analysis in the International Maritime Organization 4th GHG study as a credible
2-14 Role of the highest governance body in reflection of increasing demand for Liquefied Gases shipping.
3.2 11
sustainability reporting Topic 11.3 Air emissions 4.2
2-15 Conflicts of interest 6.1 92 Topic 11.4 Biodiversity 4.4
2-16 Communication of critical concerns 6.1 92 Waste is not a material topic for Nakilat. Nakilat is not involved in the oil and gas extraction,
Corporate Governance Report development, production and processing activities. The generated waste by the company's
2-17 Collective knowledge of the highest Topic 11.5 Waste
2022 - Page 38-39 (5), p45 (9-4), - activities is considered insignificant and does not have negative impacts on environment and
governance body human health.
p44 (8-10)
2-18 Evaluation of the performance of the Water and effluents is not a material topic for Nakilat. The amount of water withdrawn and
5.2, 5.3, 6.1 73, 83, 92 consumed by Nakilat and the quality of its discharges does not have any significant long-
highest governance body
Topic 11.6 Water and effluents term impacts on ecosystems and biodiversity, cause health and development problems for
humans, and impair food security. Water supply and discharge is governed by Qatar's Ministry
of Environment and Climate Change regulations.
Closure and rehabilitation is not a material topic for Nakilat. Nakilat is not expected to close
assets, facilities and rehabilitate operational sites. Furthermore, Nakilat does not have
Topic 11.7 Closure and rehabilitation offshore structures to decommission and dismantle. In addition, Nakilat is not involved in oil
and gas fields and has no related impacts on impacts on the environment, local communities,
and workers.

121 122
 8.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX (continued) NAKILAT ESG REPORT 2022

GRI 11: Oil and Gas Sector 2021 Page

GRI 202: MARKET Number Omissions
Indicator and Disclosure Report Section
Likely Material Topics Report Section/Omissions /Remarks PRESENCE 2016 in this / remarks
Report

Topic 11.8 Asset integrity and critical 202-1 Ratios of standard entry level wage by gender
5.1, 5.5 5.3 83
incident management compared to local minimum wage
Market Presence
Topic 11.9 Occupational health and safety 5.1 202-2 Proportion of senior management hired from the
5.2 73
local community
Topic 11.10 Employment practices 5.2
Topic 11.11 Non-discrimination and equal Page
5.2, 5.3
opportunity GRI 203: INDIRECT Number Omissions
Indicator and Disclosure Report Section
Forced labour and modern slavery is not a material topic for Nakilat. Nakilat's workers rights ECONOMIC IMPACTS 2016 in this / remarks
are being respected and the company has never been involved on any violations of human Report
Topic 11.12 Forced labor and modern
rights or other instances of exploitation. In addition, Nakilat has never been involved with 203-1 Infrastructure investments and services supported 2.2, 5.2, 6.4 09, 73, 104
slavery
any incidence of forced labor and modern slavery as a result of its joint ventures and other Indirect Economic Impacts
business relationships. 203-2 Significant indirect economic impacts 2.2, 5.2, 6.4 09, 73, 104

Freedom of association and collective bargaining is not a material topic for Nakilat. Nakilat's
Page
workers rights are being respected and the company has never been involved in cases of
Topic 11.13 Freedom of association and GRI 204: PROCUREMENT Number Omissions
interference with freedom of association and collective bargaining including, detention of Indicator and Disclosure Report Section
collective bargaining PRACTICES 2016 in this / remarks
managers and other employees, invasion of privacy, not adhering to collective agreements,
Report
and preventing trade union access to workplaces to assist workers.
Procurement practices 204-1 Proportion of spending on local suppliers 5.4 85
Topic 11.14 Economic impacts 5.4, 5.5
Topic 11.15 Local communities 5.5
Page
Land and resource rights is not a material topic for Nakilat. Nakilat's projects are located in GRI 205: ANTI-CORRUPTION Number Omissions
Topic 11.16 Land and resource rights Indicator and Disclosure Report Section
uninhabited areas, and there are no plans to start projects in new areas. 2016 in this / remarks
Rights of indigenous peoples is not a material topic for Nakilat. The company's business Report
Topic 11.17 Rights of indigenous peoples
activities are not in proximity to indigenous communities. 205-2 Communication and training about anticorruption
6.2 96
Conflict and security is not a material topic for Nakilat. The company does not operate in policies and procedures
Topic 11.18 Conflict and security Anti-corruption
locations and situations of conflict.
205-3 Confirmed incidents of corruption and actions taken 6.2 96
Anti-competitive behavior is not a material topic for Nakilat. Nakilat is not involved on actions
Topic 11.19 Anti-competitive behavior which may result in collusion with potential competitors, abuse of dominant market position
or exclusion of potential competitors, thereby limiting the effects of market competition. Page
Topic 11.20 Anti-corruption 6.2 GRI 206: ANTI-COMPETITIVE Number Omissions
Indicator and Disclosure Report Section
BEHAVIOR 2016 in this / remarks
Payments to governments is not a material topic for Nakilat. Nakilat does not lack of
Report
transparency about payments to governments. Nakilat is committed to abiding by the tax
Topic 11.21 Payments to governments 206-1 Legal actions for anti-competitive behavior, anti-
law. Nakilat takes a responsible and transparent approach to the management and control of Anti-competitive behavior 6.2 96
taxation issues by following both Qatari and international tax laws. trust and monopoly practices
Public policy is not a material topic for Nakilat. The company does not participate in public
Topic 11.22 Public policy policy development, directly or through an intermediary organization, by means of lobbying or Page
making financial or in-kind contributions to political parties, politicians, or causes. Number Omissions
GRI 207: TAX 2019 Indicator and Disclosure Report Section
in this / remarks
Report
Page
GRI 201: ECONOMIC Number Omissions 207-1 Approach to tax 6.5 105
Indicator and Disclosure Report Section
PERFORMANCE 2016 in this / remarks Management approach 207-2 Tax governance, control, and risk management 6.5 105
Report disclosures 207-3 Stakeholder engagement and management of
2.2, Nakilat 6.5 105
201-1 Direct economic value generated and distributed 09 concerns related to tax
Annual Report
Topic-specific disclosures 207-4 Country-by-country reporting 6.5 105
201-3 Defined benefit plan obligations and
Economic Performance 5.2 73
other retirement plans
Page
201-4 Financial assistance received from government 6.5 105 Number Omissions
GRI 301: MATERIALS 2016 Indicator and Disclosure Report Section
in this / remarks
Report
Material 301-1 Materials used by weight or volume 4.5 50

123 124
 8.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX (continued) NAKILAT ESG REPORT 2022

Page Page
GRI 308: SUPPLIER
Number Omissions Number Omissions
GRI 302: ENERGY 2016 Indicator and Disclosure Report Section ENVIRONMENTAL Indicator and Disclosure Report Section
in this / remarks in this / remarks
ASSESSMENT 2016
Report Report
302-1 Energy consumption within the organization 4.3 39 308-1 New suppliers that were screened using
5.4 85
302-3 Energy intensity 4.3 39 Supplier environmental environmental criteria
Energy assessment 308-2 Negative environmental impacts in the supply chain
302-4 Reduction of energy consumption 4.3 39 5.4 85
and actions taken
302-5 Reductions in energy requirements of products
4.3 39
and services
Page
Number Omissions
Page GRI 401: EMPLOYMENT 2016 Indicator and Disclosure Report Section
in this / remarks
GRI 303: WATER AND Number Omissions Report
Indicator and Disclosure Report Section
EFFLUENTS 2018 in this / remarks
Report 401-1 New employee hires and employee turnover 5.2 73

303-1 Interactions with water as a shared resource 4.3 39 401-2 Benefits provided to fulltime employees that are not
Employment 5.2 73
Topic management disclosures provided to temporary or part-time employees
303-2 Management of water discharge-related impacts 4.3 39
401-3 Parental leave 5.2 73
303-1 Water withdrawal by source 4.3 39
303-2 Water sources significantly affected by withdrawal of Page
Topic disclosures 4.3 39 GRI 402: LABOR /
water Number Omissions
MANAGEMENT RELATIONS Indicator and Disclosure Report Section
303-3 Water recycled and reused 4.3 39 in this / remarks
2016
Report
Page 402-1 Minimum notice periods regarding operational
Labor / management relations 5.2 73
GRI 304: Number Omissions changes
Indicator and Disclosure Report Section
BIODIVERSITY 2016 in this / remarks
Report Page
304-2 Significant impacts of activities, products, GRI 403: OCCUPATIONAL Number Omissions
4.4 46 Indicator and Disclosure Report Section
and services on biodiversity HEALTH AND SAFETY 2018 in this / remarks
304-3 Habitats protected or restored 4.4 46 Report
403-1 Occupational health and safety management system 5.1 55
Page 403-2 Hazard identification, risk assessment, and incident
5.1 55
Number Omissions investigation
GRI 305: EMISSIONS 2016 Indicator and Disclosure Report Section
in this / remarks 403-3 Occupational health services 5.1 55
Report
Management approach 403-4 Worker participation, consultation, and
305-1 Direct (Scope 1) GHG emissions 4.2 33 5.1 55
disclosures communication on occupational health and safety
305-4 GHG emissions intensity 4.2 33 403-5 Worker training on occupational health and safety 5.1 55
305-5 Reduction of GHG emissions 4.2 33 403-6 Promotion of worker health 5.1 55
305-6 Emissions of ozone depleting substances (ODS) 4.2 33 403-7 Prevention and mitigation of occupational health and
5.1 55
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other safety impacts directly linked by business relationships
4.2 33
significant air emissions 403-8 Workers covered by an occupational health and
5.1 55
safety management system
Page Topic-specific disclosures
403-9 Work-related injuries 5.1 55
Number Omissions
GRI 306: WASTE 2020 Indicator and Disclosure Report Section 403-10 Work-related ill health 5.1 55
in this / remarks
Report
306-1 Waste generation and significant Page
4.5 50 GRI 404: TRAINING AND Number Omissions
Topic management disclosures waste-related impacts Indicator and Disclosure Report Section
EDUCATION 2016 in this / remarks
306-2 Management of significant waste-related impacts 4.5 50 Report
306-3 Waste generated 4.5 50 404-1 Average hours of training per year per employee 5.2 73
Topic disclosures 306-4 Waste diverted from disposal 4.5 50 404-2 Programs for upgrading employee skills and
5.2 73
306-5 Waste directed to disposal 4.5 50 Training and education transition assistance programs
404-3 Percentage of employees receiving regular
5.2 73
performance and career development reviews

125 126
 8.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX (continued) 8.3 UNITED NATIONS GLOBAL COMPACT NAKILAT ESG REPORT 2022

Page Human Rights

GRI 405: DIVERSITY AND Number Omissions Principle Relevant Report Section / Link
Indicator and Disclosure Report Section
EQUAL OPPORTUNITY 2016 in this / remarks
Report Principles 1: Businesses should support and respect the protection of
5.2, 5.4
internationally proclaimed human rights; and
405-1 Diversity of governance bodies and employees 5.3 83
Diversity and equal Principle 2: make sure that they are not complicit in human rights abuses. 5.2, 5.4
opportunity 405-2 Ratio of basic salary and remuneration of
5.3 83 Labor
women to men
Principle Relevant Report Section / Link
Page Principle 4: the elimination of all forms of forced and compulsory labor; 5.2, 5.4, Nakilat Code of Conduct and Ethics
GRI 406: NON- Number Omissions Principle 5: the effective abolition of child labor; and 5.2, 5.4, Nakilat Code of Conduct and Ethics
Indicator and Disclosure Report Section
DISCRIMINATION 2016 in this / remarks
Report Principle 6: the elimination of discrimination in respect of employment and
5.2, 5.4, Nakilat Code of Conduct and Ethics
occupation.
406-1 Incidents of discrimination
Non-discrimination 5.2 73 Environment
and corrective actions taken
Principle Relevant Report Section / Link
Page Principle 7: Businesses should support a precautionary approach to
4.1
Number Omissions environmental challenges;
GRI 408: CHILD LABOR 2016 Indicator and Disclosure Report Section
in this / remarks Principle 8: undertake initiatives to promote greater environmental
Report 4.1-4.5
responsibility; and
5.4, Nakilat Principle 9: encourage the development and diffusion of environmentally
408-1 Operations and suppliers at significant risk for Code of 4.3
Child labor 85 friendly technologies.
incidents of child labor Conduct and
Ethics Anti-Corruption
Principle Relevant Report Section / Link
Page Principle 10: Businesses should work against corruption in all its forms,
6.2
GRI 410: SECURITY Number Omissions including extortion and bribe
Indicator and Disclosure Report Section
PRACTICES 2016 in this / remarks
Report
410-1 Security personnel trained in human rights policies
Security practices 5.2 73
or procedures

Page
GRI 413: LOCAL Number Omissions
Indicator and Disclosure Report Section
COMMUNITIES 2016 in this / remarks
Report
413-1 Operations with local community engagement,
Local communities 5.5 89
impact assessments and development programs

Page
GRI 414: SUPPLIER SOCIAL Number Omissions
Indicator and Disclosure Report Section
ASSESSMENT 2016 in this / remarks
Report
414-1 New suppliers that were screened
Supplier social assessment 5.4 85
using social criteria

Page
GRI 418: CUSTOMER Number Omissions
Indicator and Disclosure Report Section
PRIVACY 2016 in this / remarks
Report
418-1 Substantiated complaints concerning breaches of
Customer privacy 6.4 104
customer privacy and losses of customer data

127 128
 8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) NAKILAT ESG REPORT 2022

SASB Marine Transportation Disclosures – (Scope: Shipping)

Units of Units of
Code Topic Accounting Metric Category 2020 2021 2022 Comment Code Topic Accounting Metric Category 2020 2021 2022 Comment
Measure Measure
TR-MT- Greenhouse Gross global Scope 1 Metric tons (t) (1) Number and (2)
Quantitative 5,563,390 5,357,396 5,812,436 Number,
110a.1 Gas Emissions emissions CO -e 2 TR-MT- Ecological aggregate volume of
Quantitative Cubic meters 0 0 0
Discussion of long- 160a.3 Impacts spills and releases to
(m³)
term and short-term the environment
strategy or plan to NSQL 0.36 0.27 0.26
manage Scope 1 Discussion STASCO 0.28 0 0
TR-MT- Greenhouse
emissions, emissions and n/a - - -
110a.2 Gas Emissions TK2 0 0 0
reduction targets, Analysis
and an analysis of TK3 0 0 0
performance against MOL 0 0 0
those targets Employee
TR-MT- Lost time incident rate Quantitative
Health and NYK1 0 0 0
(1) Total energy Gigajoules 320a.1 (LTIR) / Rate
Quantitative 74,015,625 73,847,933 80,204,392 Safety NYK2 1.01 1.01 0.98
consumed, (GJ)
TR-MT- Greenhouse (2) percentage heavy Percentage KLINE 1.77 1.8 1.88
Quantitative 73.28% 68.23% 73.36%
110a.3 Gas Emissions fuel oil (%) PRONAV 0.97 0 1.83
(3) percentage Percentage MGM 0.26 0 0
Quantitative 0% 0% 0%
renewable (%) ILT3 0 0 0
Grams of CO2 Number of calls at ports
Average Energy
TR-MT- Greenhouse per ton- in countries that have
Efficiency Design Index Quantitative 5.371 5.208 5.092
110a.4 Gas Emissions nautical the 20 lowest rankings
(EEDI) for new ships TR-MT- Business
mile in Transparency Quantitative Number 0 0 0
510a.1 Ethics
Air emissions of the International’s
following pollutants: Corruption Perception
Quantitative Metric tons (t) 138,610 128,659 138,404
- (1) NOx (excluding Index
N2O) Total amount of
Air emissions of the monetary losses
TR-MT-
Air Quality following pollutants: Quantitative Metric tons (t) 15,961 13,942 14,767 TR-MT- Business as a result of legal Reporting
120a.1 Quantitative 0 0 0
- (2) Sox 510a.2 Ethics proceedings associated currency
Air emissions of the with bribery or
following pollutants corruption
Quantitative Metric tons (t) 11,975 10,897 11,688
- (3) particulate matter Number of marine
Accident Number,
(PM10) TR-MT- casualties, percentage
and Safety Quantitative Percentage 0 0 0
Shipping duration in 540a.1 classified as very
Management (%)
TR-MT- Ecological marine protected areas Number of serious
Quantitative - - -
160a.1 Impacts or areas of protected travel days Accident Number of Conditions
TR-MT-
conservation status and Safety of Class or Quantitative Number 0 0 4
540a.2
Percentage of fleet Management Recommendations
implementing ballast Percentage Number -
Quantitative 77% 78% 30%    Number of port state 2 5 32
water (%) NSQL
- (1) exchange control Quantitative
TR-MT- Ecological Number -
Accident - (1) deficiencies 0 2 2
160a.2 Impacts Percentage of fleet TR-MT- STASCO
implementing ballast Percentage and Safety
Quantitative 23% 22% 70%    540a.3 Number -
water (%) Management Number of port state 0 0 0
NSQL
- (2) treatment control Quantitative
- (2) detentions Number -
0 0 0
STASCO

*Note: This data represents our entire shipping fleet.

**Shipping SASB- Energy and Fuel data for mentioned year is restated following availability of missing quantity.

129 130
 8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued) NAKILAT ESG REPORT 2022

SASB Activity Metrics Disclosures - (Scope: Shipping) SASB - Industrial Machinery and Goods– (Scope: N-KOM)
Code ACTIVITY METRIC CATEGORY UNIT OF MEASURE 2020 2021 2022 Comment Units of
Code Topic Accounting Metric Category 2020 2021 2022
Number of shipboard Measure
TR-MT-000.A Quantitative Number 3,362 3,017 3,409
employees 1) Electricity
Total distance - 262,188,000
TR-MT-000.B Quantitative Nautical miles (nm) 5,493,714 6,579,066 7,378,156 (1) Total energy
travelled by vessels MJ/262,188
consumed, (2) Gigajoules
1) 265,579 GJ 1) 292,987 GJ GJ 1) Total:
TR-MT-000.C Operating days Quantitative Days 26,583 26,605 13,296 RT-IG- Energy percentage (GJ),
Quantitative 2) 100% 2) 100% LPG - 40,655L
Thousand 130a.1 Management grid electricity, Percentage
TR-MT-000.D Deadweight tonnage56 Quantitative 7,878,487 7,974,870 8,076,621 3) 0% 3) 0% & Diesel -
deadweight tons (3) percentage (%)
1,493,968 L)
renewable
Number of vessels in 2) 100%
TR-MT-000.E Quantitative Number 70 73 74 3) 0%
total shipping fleet
Number of vessel port (1) Total recordable
TR-MT-000.F Quantitative Number 764 1,434 1,174 1) 17 TRCs
calls incident rate (TRIR),
Employee (TRCF - 2.45;
RT-IG- (2) fatality rate, 1) 0.65 1) 1.43
Company Health and Quantitative Rate TRIR - 0.49)
Twenty-foot 320a.1 and (3) near miss 2) 0 2) 0
fleet does Safety 2) 0
TR-MT-000.G equivalent unit (TEU) Quantitative TEU n/a n/a n/a frequency rate
not carry 3) NA
capacity (NMFR)
containers
N-KOM does N-KOM does N-KOM does
*Note: This data represents our entire shipping fleet. Sales-weighted not have any not have any not have any
Fuel Economy Gallons per
**Note: Deadweight tonnage data has been restated following the correct reporting from JV partners, there is no effect on any other value.. RT-IG- fleet fuel efficiency medium and medium and medium and
and Emissions in Quantitative 1,000 ton-
410a.1 for medium- and heavy-duty heavy-duty heavy-duty
Use-phase miles
heavy-duty vehicles vehicles in its vehicles in its vehicles in its
Inventory Inventory Inventory
Sales-weighted
emissions of: (1)
nitrogen oxides
(NOx) and (2)
particulate matter N-KOM P&M
(PM) for: (a) marine N-KOM does N-KOM does does not
Fuel Economy Grams per
RT-IG- diesel engines, not have (a), (b), not have (a), (b), monitor fuel
and Emissions in Quantitative kilowatt-
410a.4 (b) locomotive (c) & (d) in its (c) & (d) in its efficiency for
Use-phase hour
diesel engines, (c) Inventory Inventory non- road
on-road medium- equipment
and heavy-duty
engines, and (d)
other non-road
diesel engines2

56
Correction made on TR-MT-000.D data.

131 132
 8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued) NAKILAT ESG REPORT 2022

Code Topic Accounting Metric Category

Units of
2020 2021 2022
SASB - Industrial Machinery and Goods– (Scope: QFAB)57
Measure
Pre-qualification Units of
Pre-qualification Pre-qualification Code Topic Accounting Metric Category 2021 2022
for the suppliers Measure
for the suppliers for the suppliers
includes (1) Total energy consumed,
includes the includes the 1) 53,640 GJ 1) 34,722 GJ
Environmental Energy (2) percentage grid Gigajoules (GJ),
Environmental Environmental RT-IG-130a.1 Quantitative 2) 100% 2) 100%
Certification Management electricity, (3) percentage Percentage (%)
Certification Certification 3) 0% 3) 0%
criteria. renewable
criteria. criteria.
Description of the Furthermore,
Furthermore, Furthermore, (1) Total recordable
management of stock
Discussion stock stock incident rate (TRIR), 1) 0 1) 0
RT-IG- Materials risks associated replenishments Employee
and n/a replenishments replenishments RT-IG-320a.1 (2) fatality rate, and Quantitative Rate 2) 0 2) 0
440a.1 Sourcing with the use of for critical Health and Safety
Analysis for critical for critical (3) near miss frequency 3) 0 3) 2.34
critical materials
materials materials rate (NMFR)
materials through Material
through Material through Material QFAB does not QFAB does not
Resource
Resource Resource Fuel Economy Sales-weighted fleet fuel have any medium have any medium
Planning Gallons per
Planning system Planning system RT-IG-410a.1 and Emissions in efficiency for medium- and Quantitative and heavy-duty and heavy-duty
system are 1,000 ton-miles
also considered also considered Use-phase heavy-duty vehicles vehicles in its vehicles in its
also considered
to minimize to minimize Inventory Inventory
to minimize
associated risks associated risks
associated risks Sales-weighted emissions
Revenue from N-KOM does N-KOM does N-KOM does of: (1) nitrogen oxides
Remanufacturing remanufactured not engage in not engage in not engage in (NOx) and (2) particulate
RT-IG- Reporting matter (PM) for: QFAB does not QFAB does not
Design and products and Quantitative remanufactured remanufactured remanufactured Fuel Economy
440b.1 currency (a) marine diesel engines, Grams per have (a), (b), have (a), (b),
Services remanufacturing products and products and products & RT-IG-410a.4 and Emissions in Quantitative
services services services services (b) locomotive diesel kilowatt-hour (c) & (d) in its (c) & (d) in its
Use-phase
engines, (c) on-road Inventory Inventory
RT-IG- Number of
Quantitative Quantitative Number 1,300 1,300 1,586 medium- and heavy-duty
000.B employees
engines, and (d) other non-
road diesel engines2
Pre-qualification Pre-qualification
for the suppliers for the suppliers
includes includes
Description of the
Discussion Environmental Environmental
Materials management of risks
RT-IG-440a.1 and n/a Certification Certification
Sourcing associated with the use of
Analysis criteria. QFAB criteria. QFAB
critical materials
doesn’t procure doesn’t procure
any critical any critical
material. material.
QFAB does
Revenue from QFAB does not
Remanufacturing not do
remanufactured products Reporting do remanufacturi
RT-IG-440b.1 Design and Quantitative remanufacturing
and remanufacturing currency ng design and
Services design and
services services
services
Number of
RT-IG-000.B Quantitative Quantitative Number 90 319
employees

57
2021 SASB is the First declaration from QFAB.

133 134
 8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued) NAKILAT ESG REPORT 2022

SASB - Oil and Gas – (Scope: NSW)58

Units of Units of
Code Topic Accounting Metric Category 2021 2022 Code Topic Accounting Metric Category 2021 2022
Measure Measure
Total fuel consumed used (1) Total recordable
Quantitative Rate 0.68 0
in: incident rate (TRIR)
Gigajoules (GJ), 4,068 4,076
(1) on-road equipment and
(2) Fatality rate Quantitative Rate 0 0
vehicles
(3) Near miss frequency
Percentage renewable, Quantitative Rate 0 0
Emissions rate (NMFR)
percentage used in:
Reduction Percentage (%) 0 0 (4) Total vehicle incident
EM-SV- (1) on-road equipment and Quantitative Rate 0 1,814
Services vehicles Quantitative rate (TVIR)
110a.1
and Fuels
Total fuel consumed, used (5) Average hours of
Management
in: Gigajoules (GJ), n/a n/a health, safety, and
EM-SV- Workforce emergency response Quantitative Rate 1,595 n/a
(2) off-road equipment
320a.1 Health and Safety training for (a) full- time
Percentage renewable,
employees,
percentage used in: Percentage (%) n/a n/a
(2) off-road equipment Average hours of health,
safety, and emergency
Emissions Quantitative Rate n/a n/a
Discussion of strategy or response training for (b)
Reduction Discussion SMS 10-003 SMS 10-003
EM-SV- plans to address air contract employees,
Services and n/a Environmental Environmental
110a.2 emissions-related risks, Average hours of health,
and Fuels Analysis management management
opportunities, and impacts safety, and emergency
Management Quantitative Rate n/a n/a
response training for (c)
Emissions
Percentage of engines in short-service employees
Reduction
EM-SV- service that meet Tier 4 NSW is certified NSW is certified
Services Quantitative Percentage (%) n/a 11,590
110a.3 compliance for non-road to the following to the following
and Fuels
diesel engine emissions Integrated Integrated
Management
Management Management
(1) Total volume of
Water Thousand cubic System (IMS) System (IMS)
EM-SV- fresh water handled in Quantitative 11,494 0
Management meters (m³), standards standards
140a.1 operations
Services with GCL with GCL
(2) percentage recycled Percentage (%) 0 n/a International. International.
Description of
Discussion of strategy - ISO 9001:2015 - ISO 9001:2015
management systems
Water or plans to address Discussion Discussion Quality Quality
EM-SV- EM-SV- Workforce used to integrate a culture
Management water consumption and and n/a n/a n/a and n/a Management Management
140a.2 320a.2 Health and Safety of safety throughout the
Services disposal-related risks, Analysis Analysis System System
value chain and project
opportunities, and impacts - ISO 14001:2015 - ISO 14001:2015
lifecycle
Environmental Environmental
Volume of hydraulic Thousand cubic
EM-SV- Chemicals Management Management
fracturing fluid used, Quantitative meters (m³), n/a n/a
150a.1 Management System and System and
percentage hazardous Percentage (%)
- ISO 45001:2018 - ISO 45001:2018
Discussion of strategy Occupational Occupational
Discussion
EM-SV- Chemicals or plans to address Health and Safety Health and Safety
and n/a n/a n/a
150a.2 Management chemical-related risks, Management Management
Analysis
opportunities, and impacts System System
Average disturbed acreage Amount of net revenue
Ecological Quantitative Acres (ac) n/a n/a
EM-SV- per (1) oil in countries that have
Impact Business Ethics
160a.1 Average disturbed acreage EM-SV- the 20 lowest rankings Reporting
Management Quantitative Acres (ac) n/a n/a and Payments Quantitative n/a n/a
per (2) gas well site 510a.1 in Transparency currency
Transparency
International’s Corruption
Discussion of strategy or
Perception Index
Ecological plan to address risks and Discussion
EM-SV-
Impact opportunities related to and n/a n/a 0
160a.2
Management ecological impacts from Analysis
core activities

58
2021 SASB is the first declaration from NSW.

135 136
 8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued) 8.5 VESSEL AER/EEOI DATA NAKILAT ESG REPORT 2022

Units of Annual Annual Annual EEOI EEOI EEOI

Code Topic Accounting Metric Category 2021 2022
Measure Cargo Efficiency Efficiency Efficiency (gr/ton (gr/ton (gr/ton
Year Technical Nakilat’s
NSW has defined NSW has defined Vessel Name Propulsion Capacity Ratio Ratio Ratio Cargo- Cargo- Cargo-
built management Ownership
its commitment its commitment CBM (AER)* (AER)* (AER)* nm) ** nm) ** nm) **
to excellence to excellence 2020 2021 2022 2020 2021 2022
in Safety, in Safety, AAMIRA Motor 266,000 2010 STASCO 100% 10.41 8.89 10.17 23.43 20.00 22.90
Environment Environment AL AAMRIYA Motor 210,168 2008 MOL 40% 9.20 9.52 9.20 24.57 25.44 24.58
and Quality in and Quality in
Description of the AL AREESH Steam 148,786 2007 TK 30% 13.11 12.21 11.87 36.77 34.25 33.27
its Safety and its Safety and
Business Ethics management system for Discussion
EM-SV- Sustainability Sustainability AL BAHIYA Motor 210,100 2009 STASCO 100% 8.86 8.71 9.60 23.67 23.29 25.65
and Payments prevention of corruption and n/a
510a.2 Policy. This is Policy. This is AL DAAYEN Steam 148,853 2007 TK 30% 13.29 13.03 11.96 37.25 36.52 33.52
Transparency and bribery throughout the Analysis
supported by supported by
value chain AL DAFNA Motor 266,366 2009 NSQL 100% 9.03 8.82 8.65 22.36 21.85 21.42
the A.P. Moller the A.P. Moller
– Maersk Core – Maersk Core AL GATTARA Motor 216,200 2007 NSQL 100% 10.39 10.19 11.06 25.09 24.61 26.70
Values and the Values and the AL GHARIYA Motor 210,150 2008 PRONAV 45% 9.82 9.91 9.87 26.22 26.46 26.35
APMM Commit APMM Commit
AL GHARRAFA Motor 216,200 2008 NSQL 100% 10.27 9.70 9.93 24.85 23.47 24.01
(governance (governance
framework) framework) AL GHASHAMIYA Motor 217,591 2009 NSQL 100% 9.11 9.58 9.65 22.31 23.48 23.64
Discussion of AL GHUWAIRIYA Motor 263,300 2008 NSQL 100% 7.98 8.05 8.68 21.61 21.82 23.51
corporate positions AL HAMLA Motor 216,200 2008 NSQL 100% 11.10 10.64 10.69 26.80 25.68 25.80
Management related to government
Discussion IMO - MARPOL IMO - MARPOL AL HUWAILA Motor 217,000 2008 TK 60% 12.11 10.90 11.35 28.13 25.32 26.38
EM-SV- of the Legal regulations and/or policy
and n/a convention and convention and
530a.1 and Regulatory proposals that address AL JASSASIYA Steam 145,700 2006 MGM 40% 15.38 13.39 13.02 41.14 35.82 32.69
Analysis protocols protocols
Environment environmental and social AL KARAANA Motor 210,100 2009 STASCO 100% 9.14 8.89 9.07 24.46 23.78 24.27
factors affecting the
AL KHARAITIYAT Motor 216,300 2009 NSQL 100% 10.09 9.39 10.70 24.45 22.76 25.93
industry
AL KHARSAAH Motor 217,000 2008 TK 60% 10.57 11.77 10.71 24.55 27.34 24.88
Description of
SMS 09-15 Risk SMS 09-015 Risk AL KHATTIYA Motor 210,150 2009 STASCO 100% 8.41 8.31 9.26 22.47 22.20 24.73
Critical Incident management systems Discussion
EM-SV- Management - Management -
Risk used to identify and and n/a AL KHUWAIR Motor 217,000 2008 TK 60% 11.08 10.64 9.63 25.76 24.73 22.39
540a.1 Safe System of Safe System of
Management mitigate catastrophic and Analysis
Work Work AL MAFYAR Motor 266,370 2009 NSQL 100% 8.79 8.44 9.07 21.78 20.90 22.46
tail-end risks
AL MARROUNA Steam 149,539 2006 TK 30% 12.40 13.54 11.12 34.61 37.78 31.04
EM-SV-000.A - Number of active rig sites Quantitative Number n/a n/a
AL MAYEDA Motor 266,000 2009 NSQL 100% 9.22 8.59 9.10 22.84 21.28 22.53
Number of active well
EM-SV-000.B - Quantitative Number n/a n/a AL NUAMAN Motor 210,100 2009 STASCO 100% 8.40 9.37 9.42 22.43 25.02 25.16
sites
Total amount of drilling AL ORAIQ Motor 210,200 2008 KLINE 40% 8.91 9.43 9.65 23.84 25.21 25.82
EM-SV-000.C - Quantitative Meters(m) n/a n/a
performed AL REKAYYAT Motor 216,293 2009 NSQL 100% 10.25 10.65 9.96 24.84 25.80 24.13
Total number of hours AL RUWAIS Motor 210,150 2007 PRONAV 45% 9.83 10.07 9.18 26.23 26.87 24.50
EM-SV-000.D - Quantitative Number n/a n/a
worked by all employees
AL SADD Motor 210,200 2009 NSQL 100% 8.82 8.99 9.06 23.56 24.01 24.20
AL SAFLIYA Motor 210,150 2007 PRONAV 45% 9.85 10.29 9.81 26.28 27.47 26.19
AL SAHLA Motor 216,200 2008 NYK 40% 12.29 11.60 10.82 27.40 25.86 26.21
AL SAMRIYA Motor 263,300 2009 NSQL 100% 7.90 6.50 8.06 21.41 17.62 21.83
AL SHAMAL Motor 217,000 2008 TK 60% 10.68 11.72 11.34 24.82 27.22 26.34
AL SHEEHANIYA Motor 210,200 2009 NSQL 100% 9.10 9.13 9.44 24.32 24.41 25.22
AL THUMAMA Motor 216,200 2008 NYK 40% 12.74 12.14 11.15 28.40 27.08 24.86
AL UTOURIYA Motor 215,000 2008 NYK 40% 11.03 12.92 11.28 24.70 28.93 25.25

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 8.5 VESSEL AER/EEOI DATA (continued) NAKILAT ESG REPORT 2022

Annual Annual Annual EEOI EEOI Annual Annual Annual EEOI EEOI EEOI
EEOI (gr/
Cargo Efficiency Efficiency Efficiency (gr/ton (gr/ton Cargo Efficiency Efficiency Efficiency (gr/ton (gr/ton (gr/ton
Year Technical Nakilat’s ton Cargo- Year Technical Nakilat’s
Vessel Name Propulsion Capacity Ratio Ratio Ratio Cargo- Cargo- Vessel Name Propulsion Capacity Ratio Ratio Ratio Cargo- Cargo- Cargo-
built management Ownership nm) ** built management Ownership
CBM (AER)* (AER)* (AER)* nm) ** nm) ** CBM (AER)* (AER)* (AER)* nm) ** nm) ** nm) **
2022
2020 2021 2022 2020 2021 2020 2021 2022 2020 2021 2022
AL WUKIR** Motor 82,491 2008 NSQL 50% 7.93 7.74 9.03 18.05 17.62 20.53 TEMBEK Motor 216,200 2007 NSQL 100% 10.41 10.15 10.16 25.14 24.50 24.54
ASEEM DFDE 155,003 2009 ILT3 20% 10.48 8.76 8.74 26.97 22.54 22.51 UMM AL AMAD Motor 210,200 2008 KLINE 40% 8.55 9.25 8.95 22.80 24.67 23.86
BU SAMRA Motor 266,000 2009 NSQL 100% 8.97 8.41 9.38 22.29 20.91 23.30 UMM BAB Steam 145,000 2005 MGM 40% 14.56 11.87 10.03 39.14 31.91 30.46
BU SIDRA** Motor 82,419 2008 NSQL 50% 8.58 8.22 8.76 19.54 18.72 19.96 UMM LAQHAB Motor 82,408 2008 NSQL 50% 8.18 8.51 8.64 24.93 25.92 26.34
DUHAIL Motor 210,150 2008 PRONAV 45% 9.86 9.66 10.37 26.31 25.79 27.68 UMM SLAL Motor 265,978 2008 NSQL 100% 8.99 8.53 9.18 16.66 15.81 17.01
EJNAN Steam 145,000 2007 NYK 30% 14.43 15.67 12.44 35.93 39.00 30.97 WOODSIDE
DFDE 159,800 2013 MGM 40% 7.06 6.89 5.71 18.34 17.90 15.33
EXQUISITE - GOODE
FSRU 83,163 2009 NSQL 55% NA NA NA NA NA NA
FSRU WOODSIDE
DFDE 159,800 2013 MGM 40% 7.50 8.22 7.90 19.48 21.40 21.17
FRAIHA Motor 210,100 2008 MOL 40% 9.71 8.81 9.00 25.94 23.53 24.04 ROGERS

GLOBAL ENERGY MEGI 173,400 2020 NSQL 60% 11.74 6.88 6.47 29.52 17.30 16.27 ZARGA Motor 266,000 2010 STASCO 100% 9.62 9.21 10.17 21.63 20.71 22.86

GLOBAL SEA
XDF 173,400 2021 NSQL 60% NA 5.89 6.21 NA 14.56 15.35
SPIRIT
Note:
GLOBAL SEA
XDF 173,400 2022 NSQL 60% NA NA 5.14 NA NA 12.64 *(AER) Annual Efficiency Ratio with Formula:
LINE
GLOBAL STAR MEGI 173,400 2021 NSQL 60% NA 6.60 5.81 NA 16.60 14.62 ∑ (Total CO2 emissions in grams) / ∑ (Deadweight in tons x Distance in nm)
LIJMILIYA Motor 263,300 2009 NSQL 100% 8.33 8.01 8.24 22.60 21.74 22.35 **(EEOI) The Energy Efficiency Operational Indicator (gr/ton Cargo-nm) with formula:
LUBARA** Motor 82,452 2009 NSQL 50% 8.03 8.58 8.53 18.27 19.54 19.40
∑ (Total CO2 emissions in grams) / ∑ (98.5% Cargo capacity in tons x Distance in nm x 50%)
MARAN GAS
DFDE 174,000 2016 MGM 40% 6.46 6.17 8.29 15.84 15.13 17.48 Denominator multiplied by 50% to make average adjustment for ballast voyages.
ACHILLES
MARAN GAS ***EEOI Figures has been restated for year 2020 and 2021 using above EEOI formula.
DFDE 161,870 2015 MGM 40% 6.81 6.45 7.73 17.54 16.59 17.48
ALEXANDRIA
MARAN GAS
DFDE 161,870 2014 MGM 40% 6.58 6.54 7.81 16.93 16.82 17.63
APOLLONIA
MARAN GAS
Steam 145,822 2008 MGM 40% 17.07 12.36 10.36 45.64 33.03 30.51
ASCLEPIUS
MARAN GAS
Steam 145,700 2012 MGM 40% 13.25 12.29 11.22 35.50 32.92 32.81
CORONIS
MARAN GAS
DFDE 159,800 2014 MGM 40% 7.41 7.39 6.72 19.15 19.09 16.92
DELPHI
MARAN GAS
DFDE 159,800 2014 MGM 40% 6.76 6.97 7.19 17.48 18.01 19.31
EFESSOS
MARAN GAS
DFDE 161,870 2014 MGM 40% 7.96 6.46 6.47 20.23 16.42 17.04
LINDOS
MARAN GAS
DFDE 161,870 2014 MGM 40% 6.06 8.05 7.45 15.59 20.68 19.76
POSIDONIA
MARAN GAS
DFDE 159,800 2015 MGM 40% 6.46 7.03 6.63 16.83 18.30 17.62
SPARTA
MEKAINES Motor 266,476 2009 NSQL 100% 8.58 9.09 9.13 21.19 22.46 22.56
MESAIMEER Motor 216,312 2009 NSQL 100% 12.33 10.79 11.04 29.87 26.14 26.76
MOZAH Motor 266,253 2008 NSQL 100% 9.24 8.89 9.17 22.88 22.02 22.72
MURWAB Motor 210,100 2008 MOL 40% 9.32 8.96 9.92 24.89 23.94 26.48
ONAIZA Motor 210,150 2009 NSQL 100% 8.42 8.34 8.49 25.27 25.02 25.49
RASHEEDA Motor 266,276 2010 STASCO 100% 10.57 8.99 9.48 23.79 20.24 21.35
SHAGRA Motor 266,276 2009 STASCO 100% 9.99 9.44 10.16 22.46 21.22 22.83
SIMAISMA Steam 145,889 2006 MGM 40% 14.05 12.45 11.07 37.63 33.33 32.61

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 8.6 LIST OF ABBREVIATIONS AND DEFINITIONS NAKILAT ESG REPORT 2022

LIST OF ABBREVIATIONS List of Abbreviations

ABC Anti-Bribery and Corruption IMO International Maritime Organization IFRS International Financial Reporting Standards SGMF The Society for Gas as a Marine Fuel.
ABMS Anti-Bribery Management System (ISO 37001:2016) IMS IMO Integrated Management System IGC Code IMO International Gas Carrier Code SHI Korean shipyard
ABS American Bureau of Shipping IOPP International Oil Pollution Prevention International Code of Safety for Ships using Gases or
IGF Code SHEQ Safety Health Environment Quality
AGM Annual General Meeting ISO International Organization for Standardization other Low-flashpoint Fuels

AER Annual Efficiency Ratio ISM IMO International Safety Management Code IHM Inventory of Hazardous Material SIRE Ship Inspection and Reporting acc. OCIMF system

API American Petroleum Institute ISPS International Ship and Port Facility Security Code Specific, Measurable, Achievable, Relevant, Time
ILO International Labour Organization SMART
Based
BWM Ballast water management JV Joint venture
IMCA International Marine Contractors Association STASCO Shell Trading and Shipping Company
BWMS Ballast Water Management System KPI Key performance indicator
PM10 /
BWTS Ballast Water Treatment System LOPC Loss of Primary Containment Particulate Matter STCW Standards of Training, Certification and Watchkeeping
PM2. 5
CAPEX Capital expenditure LNG Liquefied natural gas SOx Sulphur Oxides TCO2 Tonnes CO2
cbm Cubic meter LPG Liquefied Petroleum Gas NOx Nitrogen Oxides TMSA Tanker Management and Self-Assessment
CEO Chief Executive Officer LSA Code IMO Life Saving Appliance Code VOC Volatile Organic Compounds TRCF Total recordable case frequency
CFO Chief Finance Officer LTI Lost time injury dBA Decibels, A weighted UN United Nations
CG Corporate governance LTIF Lost time injury frequency pH potential of hydrogen ug/m3 Micro gram per cubic meter
COLREG IMO Collision Avoidance Regulations MARPOL IMO Marine Pollution Convention COD Chemical Oxygen Demand mg/l Milligram per liter
COO Chief Operating Officer MDO Marine Diesel Oil Pb Lead CO Carbon Monoxide
CWTP Contaminated Water Treatment Plant MGO Marine Gas Oil Cu Copper TSS Total Suspended Solids
DCS Data Collection System MGM Maran Gas Maritime Fe Iron BOD Biological Oxygen Demand
DFDE Dual Fuel Diesel Electric MRV Monitoring, Reporting and Verification Cd Cadmium
DSME Korean Shipyard NGO Non-Governmental Organisation Ni Nickel
DWT Deadweight tonnage NSQL Nakilat Shipping Qatar Ltd. Cr Chromium
ECA Emissions Control Area (designated by IMO) OCIMF Oil Companies International Marine Forum Mn Manganese
EEDI IMO Energy Efficiency Design Index (New ship) ODS Ozone Depleting Substance
EEOI IMO Energy Efficiency Operational Index OHS Occupational Health and Safety
EEXI IMO Energy Efficiency Design Index (Existing ship) OWS Oily Water Separator
EMS Enterprise Management System P&I Protection and indemnity
EMSA European Maritime Agency PDPA Personal Data Protection Act
ERM Enterprise Risk Management PSC Port State Control
ESG Environmental, social and governance QMS Quality Management System
ETA Estimated Time of Arrival QMax/ QFlex Size category of largest LNG ships in the world
EU European Union ROV Remotely Operated Vehicle
FSS Code IMO Fire Safety System Code RLIC Ras Laffan Industrial City
GHG Greenhouse gas SECA Special Emissions Control Area (designated by IMO)
HHI Korean Shipyard SOLAS IMO Safety of Life at Sea Convention
HR Human Resource SCR Selective Catalytic Reduction
HSE Health, safety and environment SDG Sustainable Development Goal
HSSEQ Health, safety, security, environment and Quality SEEMP IMO Shipboard Energy Efficiency Management Plan

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 8.6 LIST OF ABBREVIATIONS AND DEFINITIONS (continued) NAKILAT ESG REPORT 2022

- KPI Definitions - KPI Definitions

An accident is an unplanned / unwanted event, resulting in loss to people, damage to property or process loss. Any unexpected or undesired event or sequence of events that could have resulted in an incident involving injury,
Accidents: NM (Near Misses)
Almost every accident is the result of a combination of causes. illness, damage to assets, environment or Company reputation or consequential business loss, but did not.
An unplanned event or chain of events that has or could have a negative impact on the Environment. For reporting Occupational injury is any injury such as a cut, fracture, sprain, amputation, etc., which results from a work
Occupational Injury
purposes following to be recorded: accident or from an exposure involving a single incident in the work environment.
Environmental Releases to shore, Oil & chemical releases of 10 kgs. and above; Any abnormal condition or disorder, other than one resulting from an occupational injury, caused by exposure to
Incident: Releases to sea, all releases, regardless of quantity; Occupational Illness environmental factors associated with employment. It includes acute and chronic illnesses or diseases which may
Releases to air, gas releases of 10kgs and above (Refrigerant releases shall be recorded separately, reference as be caused by inhalation, absorption, ingestion, or direct contact.
below)
Unsafe Acts: It is the action of a person or persons that, if continued, might lead to an accident, incident or injury.
Exposure hours shows the time an employee is exposed to work-related hazards and risks. Exposure hours are
Exposure hours: It is an existing physical condition in the workplace which, if not corrected, might lead to an accident, incident or
used for the calculation of the safety performance indicators. Unsafe Condition:
injury to personnel.
FAC (First Aid This is any one-time treatment and subsequent observation or minor injuries such as bruises, scratches, cuts,
Case): burns, splinters, etc. First aid may or may not be administered by a physician or registered professional. RWC (Restricted This is an injury which results in an individual being unable to perform all normally assigned work functions during
Work Case) a scheduled work shift or being assigned to another job on a temporary or permanent basis on the day following.
A fatality is a death directly resulting from a work injury regardless of the length of time between the injury and
death. It is the sum of all work related Lost Time Injuries (LTI’s), Restricted Work Cases (RWC’s) and Medical Treatment
FAT (Fatality): TRC (Total Cases (MTC’s).
Note: Fatalities are included in the Lost Time Injury (6000 man-days lost for one fatality). Recordable Cases)
(TRC’s = LTI’s + MTC’s + RWC’s)
An incident is a general term of any unplanned event, or chain of events, which has, or could have caused, injury,
Incident Total Recordable Case Frequency (TRCF) is defined as the number of major HSE incidents (TRC’s) per million-man
illness, damage or loss. It is used to include all accident and near misses.
hours. TRC’s are defined using a strict classification system and have major implications to fleet management.
Is any work-related injury or illness that renders the injured person temporarily unable to perform their work on Procedures and new initiatives are often introduced as a result of TRC’s in order to pursue the group objective of
the day after the day on which the injury occurred. The day after includes rest day, weekend day, scheduled holiday, Goal Zero.
TRCF
public holiday or subsequent day after ceasing employment. For the purposes of classification an LTI includes
LTI (Lost Time Fatalities (FAT), Permanent Partial Disabilities (PPD), Permanent Total Disabilities (PTD) and Lost Work Case Total number of LTI’s X 1 Million
Injury) (LWC). TRCF =
Total exposure hours
LTI = (FAT + PTD + PPD + LWC)

Note: if, in a single Incident 20 people receive lost time injuries, then it is accounted as 20 LTI’s (not 1 LTI) Oil Spill to Water Number of oil spill incidents, any amount.
The ratio of a ship’s carbon emissions per actual capacity- distance (e.g., dwt/nm sailed). The AER uses the
Lost Time Incident Frequency (LTIF) is defined as the number of work-related injuries that have resulted in lost
parameters of fuelconsumption, distance travelled, and design deadweight tonnage.
time.
LTIF:
Total number of LTI’s X 1 Million Annual Efficiency
LTIF = Ratio (AER)
Total exposure hours
Major Incidents (Other than personnel Injury) Where Ci is the carbon emissions computed using the fuel consumption and carbon factor for each type of fuel,
Major Incidents are defined as those that have been classified as Tier II or above, Major, such other classification, as defined in the dwt is the design deadweight of the vessel, and Di is the distance travelled in a year.
organisations Emergency Response Procedures / Plans. Such incidents would typically definedby: Measurement of the fuel efficiency of a ship in operation. It is a carbon intensity indicator “CII” and represents the
• Country or region wide with extended media coverage and interest. demand for transport work.

• Larger incident and requiring significant measures to bring under control, with a possibility of escalating further.
• Site Equipment insufficient to deal with the incident. External aid and assistance are required to bring under control.
• Not Restricted to Company/ Customer /contractor Property. Calculation being done using simplified average approach for whole year.
• Incident will have an impact on organisations business functions, reputation or financial position. Energy Efficiency
Operating Indicator Where:
MTC (Medical Treatment Case)
(EEOI) • is the fuel type;
j
This is any work related loss of consciousness (unless due to ill health), injury or illness requiring more than First-Aid treatment by a
physician, dentist, surgeon or registered medical personnel, e.g., Nurse or paramedic, under standing orders of a physician. • FCj is the mass of consumed fuel j ;
MTC includes the following : • CFj is the fuel mass to CO2 mass conversion factor for fuel j;
• Injuries which result in loss of consciousness even if the individual resumes work after regaining consciousness (Note : This does
• mcargo is cargo carried (tonnes) basis 98.5% capacity of vessel.
not cover loss of consciousness due to ill health)
• D is the distance in nautical miles adjusted by 50% to make average adjustment for ballast voyages.
• Sutures for non-cosmetic purpose
• Use of casts, splints or other means of immobilisation
• Any general surgical treatment
• Removal of embedded objects from eye by surgical means
• Use of a series of compressions for treatment of bruises, sprains or strains. MTC’s exclude the following:
• First Aid Cases, LTI’s and RWC’s.
• Hospitalisation from observation without treatment.
• One off tetanus injections.
• Consultative visit to, or examination by a physician or registered professional for the purpose of a confirmatory check.

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