Abu Dhabi National Oil Co for Distribution PJSC

The Board of Directors of ADNOC Distribution is the leading authority responsible for monitoring and reporting on sustainability initiatives across the Company. The following governance structures monitor and evaluate the Company's progress towards its ESG goals: f ADNOC Distribution's Board of Directors, which sanctions the Code of Conduct that outlines the Company's values, also approves the Company's vision, mission, strategies, policies, and goals. The Board ensures the alignment of sustainability goals and targets with significant local, national, regional, and international guidelines while maintaining a sense of mutual benefit. The Board is ultimately tasked with approving the Company's sustainability strategy and overseeing its execution. f The Chief Executive Officer of ADNOC Distribution is in charge of formulating and executing a Company-wide Sustainability Strategy and reporting on the advancement of key initiatives in the economic, environmental, and social spheres. The CEO delegates part of these responsibilities to certain members of the Executive Management team to help drive the Company's sustainability strategy and assist in the implementation, tracking, and reporting of key initiatives. To further reinforce the governance of sustainability management procedures, ADNOC Distribution has formed a corporate-level Sustainability Committee, consisting of members from the Executive Management. The committee supports the implementation of sustainability initiatives and meets either monthly or as needed. It ensures that the Sustainability Strategy Framework is universally understood within the organization and supports various initiatives across each pillar of the framework. The committee also aims to create proactive systems to integrate sustainability throughout the value chain and aids in identifying, assessing and monitoring all elements, ranging from strategies to material risks that could impact the Company's sustainable performance. The committee works to align the Company with ADNOC Group's 2030 Sustainability Strategy, Abu Dhabi Economic Vision 2030, and other ESG guidelines and requirements for the future. Additionally, a Chief Strategy, Transformation, and Sustainability Officer was appointed in 2023 to direct, coordinate, and keep track of the implementation of sustainability initiatives and to cultivate a sustainability-focused culture within the Company and amongst all of its stakeholders.

To monitor and review metrics based on key performance indicators (KPIs), ADNOC Distribution established the Organizational Performance Scorecard. The Scorecard is a tool of the company's internal governance process. The company is undertaking key initiatives to reduce GHG emissions and taking concrete steps to reduce its energy intensity in line with the de-carbonization strategy. Oversight and progress on our ESG goals is monitored through the following governance structures: \n\n▪ The Board of Directors approved the Code of Conduct, which sets out ADNOC Distribution's values. It also approved the company's Vision, Mission, Strategies, Policies, and Goals. The Board ensures that sustainability targets remain mutually beneficial and serve key local, national, regional, and international directives. The Board is overall responsible to approve the company's sustainability strategy and oversee its progress. \n\n▪ ADNOC Distribution's CEO is responsible for developing and implementing a company-wide Sustainability Strategy, while also delegating the responsibility of consultation between different stakeholders. The CEO is also responsible for monitoring and reporting on the progress of key initiatives under economic, environmental, and social areas. The CEO has sub-delegated some of these responsibilities to key executive management team members to assist in driving sustainability strategy of the company as well as in implementation, tracking and reporting of key initiatives. \n\n▪ ADNOC Distribution is in the process of formalizing Corporate-level Sustainability Committees comprising of members from the Executive Leadership team. The committee will assist the CEO in embedding sustainability and ESG concepts within every facet of the Company's future planning. The Sustainable Committee will also promote a proactive approach to integrate sustainability across all operational streams. The committee will also be responsible for monitoring and reporting progress on implementation of ADNOC Distribution's Sustainability Strategy to concerned stakeholders as well as collecting, reviewing, and acting on feedback from shareholders and investors on ADNOC Distribution's ESG activities and way forward, while also ensuring alignment to ADNOC's 2030 Sustainability Strategy, Abu Dhabi Economic Vision 2030 and external ESG guidelines and regulatory requirements.

Governance of IT security and risks remains a cornerstone to ensure oversight of its cybersecurity strategy implementation, proactively protecting information assets and creating safe and resilient infrastructure which empowers the business to thrive. [...] ADNOC Distribution established a Sustainability Committee in 2021 to oversee the management of ESG topics at a management level. For further information on our Sustainability Committee, please refer to the **'Governance of the Framework' section.** In addition, ADNOC Distribution has also established the CSR sub-committee to develop, implement and manage CSR strategy and initiatives. [...] A corporate-level Sustainability Committee comprising members from executive management has also been established to ensure robust governance of the framework. The committee meets monthly and provides insights and recommendations to the CEO on activities and policies relevant to integrating sustainability across the organization and beyond. [...] Sustainability topics are also included as a standing agenda item in the Board of Directors quarterly meetings to review the sustainability performance and progress initiatives. [...] The Board reviews sustainability performance by integrating key targets into the organizational performance scorecard.