Acwa Power Annual Report 2021 En-64-104

CORPORATE REVIEW continued
RISK MANAGEMENT continued
Main Risk Areas Key Risks Mitigants
Revenue i. Volume and price risk i. Long-term Offtake contract to protect us against demand or
(excluding foreign exchange, price risk. The substantial majority of the Offtakers are government-
covered above) related entities with direct government credit support or with other
ii. Fossil fuel-based assets are contractual protection.
exposed to performance risk ii. EPC performance guarantees in place to protect newly built facility
iii. Renewable assets are against any performance shortfall.
exposed to decrease in supply iii. NOMAC (wholly owned subsidiary – O&M) has implemented
of solar or wind resources and Reliability of Supply Framework along with in-house developed plant
performance risks simulation and optimisation tool to address and enhance reliability
of supply in a systematic and proactive way.
iv. Wind and solar resource studies carried out for renewable assets
basis long-term historical average.
v. Insurance solutions to protect our assets against unforeseeable
risks or unexpected business interruptions with agreed deductible
periods and minimum deductible amount.
Operations and i. O&M costs overruns i. To minimise the operational risks, the company generally entrusts
Maintenance ii. Plant under performance NOMAC, its wholly owned and best-in-class O&M subsidiary to operate
or lack of reliability during and maintain its assets for the full tenor of the Offtake agreements.
the operation period ii. NOMAC’s contracts cover the Offtake agreement term and are
indexed for inflation and indexation. The applicable penalties are capped
in the contracts.
iii. NOMAC continues to deploy monitoring and prediction digital
platforms for critical equipment by using big data and advanced pattern
recognition capabilities to enhance overall performance.
iv. NOMAC has extensive capabilities as an O&M contractor and
implements a standardised management and operational model to
ensure superior control and understanding of operating assets
through the life cycle, provide stable long-term income and super
senior cash flows.
v. NOMAC has a reliable supply framework to ensure high reliability
of assets.
vi. NOMAC Maintenance Energy Services (NMES), a 100 percent-
owned subsidiary of NOMAC, provides turnkey and specialised
maintenance services, including major overhauls for the entire fleet of
steam turbines, combustion turbines, generators, large pumps and
other rotating equipment.
Fuel supply and i. A significant increase in the i. Most of our fossil fuel-based plants are contracted on tolling
consumption price or the interruption in the arrangements whereby fuel supply and cost risks are borne by Offtaker.
provision of fuel ii. Whenever tolling arrangements are not there, the fuel supply and
ii. Fuel cost under recovery price risk are passed to the Offtaker.
iii. Ongoing plant efficiency optimisation as part of value proposition
when needed to reduce or eliminate under recovery exposures.
Termination i. Early termination of Offtake i. If the cause of termination is attributable to the Offtaker, the project
and extension agreement for a reason company will receive termination payments which in most projects cover
attributable to the Offtaker outstanding debt repayment and equity (including a return on equity).
ii. Early termination of Offtake ii. These termination payments by the Offtaker benefit from direct
agreement for a reason government credit support or other forms of contractual protection.
attributable to the project iii. Selection of the right technology, quality construction and
company (material under- reliable operations to manage performance requirements of the
performance) Offtake agreement.
iii. Non-renewal of Offtake iv. The estimated future costs of decommissioning are reviewed
agreements at the end of annually and adjusted as appropriate.
their term (Asset retirement v. Align plants’ existing useful life to its assessed economic life and
obligation) timely pursue discussions with Offtaker to seek extension for Assets
nearing expiry as part of value creation initiatives.
62
Main Risk Areas Key Risks Mitigants
Information i. Cyberattacks i. Defence-in-depth strategy around IT systems (servers, network, end-
technology ii. Reliability of the Group’s user machines, etc.) to prevent cyberattacks, in compliance with the ISO
Infrastructure IT infrastructure (to support standards at the corporate-level.
remote working, uninterrupted ii. Proven disaster (natural or man-made) recovery plans.
operations) iii. IT security assessments and periodic IT audits conducted by skilled IT
auditors to ensure effectiveness of controls on IT systems.
iv. ACWA Power and NOMAC have been certified under the
ISO/IEC 27001.
Environmental, i. ESG targets if not met fully, i. Establishing a robust framework to evaluate the impact of climate-
Social and partially or timely related risks.
Corporate ii. Set time-bound interim and end-state targets based on the reporting
Governance principles of the Global Reporting Initiative (GRI) and the Taskforce on
(ESG) Climate-related Financial Disclosures (TCFD).
iii. Identified, selected and prioritised material topics to ensure that
the effects of climate change, as well as corporate social and
governance responsibilities, are routinely considered in our business
and investment decisions
iv. No new investment for high carbon emission-based fossil fuels, such
as coal thus increasing the share of our portfolio dedicated to clean and
low-carbon power technologies.
v. Initiatives put in place on leadership in low-carbon products, water
management, health and safety, and corporate governance.
Governance i. Non-adherence or non- i. ‘Tone at the top’ established by the Board of Directors, Board
and compliance with prescribed Committees and senior management.
management organisation policies and ii. Internal controls, systems and procedures in conformity with
processes or laws and the relevant sanctions, anti-bribery, anti-money laundering and anti-
regulations terrorism laws.
ii. Improper conduct of iii. Governance framework supported by ad-hoc control by Board
employees or business partners Committees with significant independent member participation in
iii. Inappropriate governance each Committee.
and systems iv. Independent internal audit function reporting to Board
Audit Committee (BAC).
v. Whistleblowing programme and process to by ensure a recognised,
industry-leading ethics and compliance culture.
vi. An integrated and comprehensive, technology-based governance, risk
management, internal control and compliance tool being implemented
for better alignment and reporting to reduce risks, costs and duplication
of efforts.
Information i. Cyberattacks i. Defence-in-depth strategy around IT systems (servers, network, end-
technology ii. Reliability of the Group’s user machines, etc.) to prevent cyberattacks, in compliance with the ISO
Infrastructure IT infrastructure (to support standards at corporate-level.
(IT Systems remote working, uninterrupted ii. Regularly review, update and evaluate all software, applications,
and Cyber operations) systems, infrastructure and security which includes regular vulnerability
Threat) assessment and penetration testing.
iii. Proven disaster (natural or man-made) recovery plans.
iv. IT security assessments and periodic IT audits conducted by skilled
IT auditors to ensure effectiveness of controls on IT systems.
v. ACWA Power and NOMAC have been certified under the ISO/IEC 27001.
ACWA Power Company Integrated Annual Report 2021 63

SUSTAINABILITY REVIEW
At the heart of
our operations
This review provides a snapshot of our 2021

sustainability and ESG performance, as well
as updates on our commitments for the years
ahead. These commitments are supported by
our ESG strategy, developed in 2020 and
rolled out in 2021.
Empowering women
Launching Women’s Initiative

for Networking and Global
Solutions (WINGS) – an initiative
focusing on sustainable female
empowerment and inclusion,
while simultaneously ensuring
that female leaders are given
opportunities to progress
in the Company.
Khalladi Wind IPP, Morocco
64
Facilitating the inclusion of Improving people management
climate-related risks into our Updated and harmonised
decision-making several HR policies to enhance
Combining sustainability with performance, follow best
risk and strategy in one single practice and ensure consistency;
function, led by a senior C-level improved our people management
executive with a seat on the processes, including talent
Management Committee, and acquisition, performance
facilitating the inclusion of management, learning and
climate-related risks in our development and renumeration.
decision-making processes.
Improving ESG data New strategy for localisation

management Initiating the development of a
Striving for an ongoing clear localisation strategy and
improvement in our ESG data remaining committed to
management by strengthening achieving our Saudisation targets
our internal reporting systems in the Kingdom, as well as other
and processes and adopting localisation targets in our
Synergi Life to educate and countries of operation.
disseminate information and
monitor the performance of HSSE
and environmental indicators.
Continuous improvement Centre of Excellence launched

of emission reporting Ongoing collaboration with the
Adopting the GHG Protocol University of Science and
Corporate Accounting and Technology (KAUST) to pursue
Reporting Standard, the most goal-oriented research aimed at
relevant and internationally achieving further cost efficiencies in
recognised GHG accounting and desalinated water production and solar
reporting standard for calculating power generation. Established Master
and reporting emissions. Research Agreement (MRA) with KAUST
to officially launch the ACWA Power
Centre of Excellence for Desalination
Global award for and Solar Power (KAPCOE).
procurement excellence
First power and water company
in the region to achieve the
CIPS Procurement Excellence
Programme (PEP) Standard,
a globally-recognised award
presented to organisations
demonstrating excellence in
their procurement and supply
chain activities.
Sustainability at 66 Enabling the low- 80 Contributing to our 100

ACWA Power carbon transition communities
Embodying corporate 70 Creating shared value 92

excellence for our people and
communities

SUSTAINABILITY REVIEW continued
Sustainability at ACWA Power

The corner stone of our ESG approach and strategy is centred
on the energy transition, low-carbon product leadership, water
management, health and safety and corporate governance.
ACWA Power’s ESG strategy The cornerstone of our ESG For our ESG strategy to be
There is growing recognition in the approach and strategy is centred implemented with impact, it is
investor community that ESG issues on energy transition; low-carbon supported by an ESG framework
have a direct correlation with the product leadership; water which includes set targets for our
economic value of an investment. management; health and safety; most material ESG topics.
Most investors are now taking and corporate governance.
meaningful steps to integrate ESG ACWA Power’s ESG framework
considerations into their investing In 2021, we focused on supporting
Our ESG strategy is shaped by our
criteria when evaluating the the implementation of our ESG
stakeholders’ priorities and, as such,
environmental and social impact of strategy. While we continued to work
we engaged with a variety of key
their portfolios. towards our ESG goals, we also
stakeholders, including employees,
refined our approach and systems for
off-takers, partners, shareholders
This became even more crucial in improved data monitoring, including
and suppliers, in formulating our
2021 when ACWA Power shares for our water use indicators.
ESG strategy.
debuted on the Saudi Exchange’s
main market. The Saudi Exchange is a ACWA Power’s ESG strategy is part
Last year, we conducted an extensive
partner exchange which supports the of our business strategy – we see it
stakeholder survey to produce a
UN Sustainable Stock Exchanges as a source of long-term value
comprehensive materiality
Initiative. It promotes ESG awareness, creation. As such, we are responding
assessment which helped us identify
initiatives and encourages to a changing societal context, as
the most material topics and will be
sustainable investment, in well as supporting the shift to a low-
updated every two to three years. We
collaboration with market participants carbon economy, while capturing
supplemented our initial materiality
such as issuers and investors. growing business opportunities in
assessment by referencing it against
energy transition.
the GRI reporting standards, as well
Against this backdrop, we refined our as industry best practices. The
ESG strategy in 2020 and set ESG This strategy also enables the
investment community to assess our materiality assessment helped us to
goals for the coming years. Building identify our core ESG focus topics
on our existing ESG values, we performance against ESG-related
indicators, and it demonstrates and indicators, which include climate
initiated the development of a change, water, health and safety, and
comprehensive long-term strategy to transparency and the effective
management of our priorities. governance, and to develop our ESG
help shape our ESG priorities. framework accordingly.
In 2021, we made progress on the following:
In setting our medium- to We initiated a We continue to work In working towards

long-term strategy, we comprehensive GHG towards embedding best effective management
consider our low-carbon inventory exercise, which practices across all and disclosure, we are
portfolio targets and aim will provide for a solid elements of corporate gradually starting to post
to raise our renewable baseline from which we governance and aspire relevant desalination
portfolio, working can work towards to reflect the highest and water consumption
towards achieving net achieving our GHG corporate governance KPIs as part of our
zero emissions from our emission intensity excellence. As such, we operational monitoring
portfolio by reducing our targets. We aim to updated our corporate processes.
GHG emission intensity. complete the exercise in policies and procedures
the first quarter of 2022. to ensure they align with
the requirements of the
Saudi Exchange.
66
For our ESG strategy to be ACWA Power’s ESG strategy is
implemented with impact, it is part of our business strategy –
supported by an ESG framework we see it as a source of long-
which includes set targets for term value creation.
our most material ESG topics.
Energy transition Water and waste

• Low-carbon portfolio management
• GHG emissions • Water and waste water
• Climate risks management
• Solid waste management
1 3
Corporate
governance
• Anti-corruption Health and safety
• Regulatory compliance • Health and safety
• Data governance and 4
privacy 9 • Emergency response
• Human rights ACWA Power’s planning
• Competitive behaviour ESG Framework
8 5 Human capital
Technology • Employee
advancements development
• Innovation • Diversity and equal
7 6 opportunity
• Local workfare
development
Systematic risk Community
management development
• Climate risks and • Community
opportunity engagement and impact
• Systematic risk • Responsible procurement
management • Local content

Our highest-ranking sustainability officer is the

Chief Risk, Strategy and Sustainability Officer
(CRSSO), who is a member of the Management
Committee, sets ESG strategy, goals and initiatives,
and takes the key decisions on prioritisation,
targets, budgets and resources.
We see materiality as dynamic and Progressing towards our ESG targets Our ESG governance
want to ensure agility in our ESG In 2021, we identified a set of Last year, we updated our
strategy and framework development. flagship initiatives to start the governance and management
process of meeting our ESG targets. processes in the context of our ESG
It was important to ensure we had To fulfil our ESG commitments, we strategy. We demonstrated further
dedicated experts working towards will report our progress in an annual commitment to sustainability this
implementing the framework with ESG review, as part of our Annual year with ESG now overseen at Board
cross-functional working teams set Report. Additionally, we will regularly level. The Board makes overall
up to implement the initiatives. update our main indicators on the strategic recommendations and
ACWA Power website. guides direction, as well as oversees
progress on sustainability and ESG
targets. It ensures alignment with
overall corporate strategy and vision.
With 64 projects across 12

different countries, it is
essential that the monitoring
of our ESG related KPIs are not
only centralised, but also
digitised for more efficient
analysis and reporting
64

64 projects
12

12 countries
NOORo III CSP IPP, Morocco
68
We continue to strengthen Regular stakeholder
internal reporting systems engagement is an essential
and processes and strive for part of our approach to ESG.
the ongoing improvement of
our ESG data management.
Our highest-ranking sustainability By reporting regularly on our ESG After the successful initial adoption
officer is the Chief Risk, Strategy and KPIs, we are aiming to unlock the of Synergi Life, we are considering
Sustainability Officer (CRSSO), who is relevant information that key expanding its scope to include the
a member of the Management stakeholders need to make informed monitoring and reporting of
Committee and sets the direction of decisions about our ability to create additional ESG-related KPIs.
ESG strategy, its goals and initiatives, value in the short, medium and
and takes the key decisions on longer term. Our ESG reporting process
prioritisation, targets, budgets and ACWA Power’s reporting process
resources. The CRSSO also monitors ESG performance metrics ensures that the improvement and
progress on key initiatives and Our ESG performance is continually communication of our ESG
current performance. measured, monitored and assessed performance is ongoing. Our
against our overarching sustainability stakeholder partnerships are central
In 2021, ACWA Power’s dedicated
ambitions and material KPIs. to the journey towards excellence
sustainability and CSR function
and, as such, we value stakeholder
(reporting to the CRSSO) continued KPIs are assigned to relevant feedback as a critical resource for
to drive overall ESG strategy, as well departments, with sustainability improving our strategic goals and
as reporting to external and internal performance measurement, plans. Our aim is to understand any
stakeholders. The sustainability monitoring and management issues of concern and to respond
function will continue to enable the responsibilities. Results are reported openly and transparently to
implementation of ESG and to the Management Committee and questions about our operations.
sustainability initiatives by: the Board and become a reference
against which to develop future Regular stakeholder engagement is
• Developing frameworks and
strategies to achieve our targets and an essential part of our approach
procedures relating to GHG
improve performance. to ESG, since the process underpins
inventory and ESG monitoring.
our engagement and collaboration
• Developing the CSR framework and ESG data management with governments, civil society,
monitoring its implementation at local communities and others to
We continue to strengthen internal
corporate and local level. achieve ‘transformational change’ –
reporting systems and processes and
• Organising a company-wide strive for the ongoing improvement creating fundamental change to
‘sustainability network’ to foster of our ESG data management. With whole systems – not merely
commitment to sustainability 63 projects across 13 different incremental improvements.
and cascading it down to asset- countries, it is essential that the
level to enhance the impact of our As a part of ACWA Power’s Annual
monitoring of our ESG-related KPIs
sustainability efforts. Report, this ESG review will provide
are not only centralised but also
insights and updates on our most
digitised for more efficient analysis
Our ESG reporting material ESG issues and topics.
and reporting.
Our public listing in 2021 heightened
our commitment to disclosure on To fulfil this, we implemented a digital
ESG related topics. ACWA Power is monitoring, reporting and analysis
committed to demonstrating process and adopted Synergi Life –
transparency and effective using state-of-the-art tools and
management to enhance our ability techniques and a big-data platform
to attract long-term capital and – to educate and disseminate
favourable financing terms. information and monitor the
performance of HSSE and
Environmental indicators.

Our corporate governance approach

Our corporate governance approach guides our actions in
our endeavour to uphold the highest professional and
ethical business standards to build the environment of
trust, transparency and accountability necessary for
fostering long-term sustainable growth.
Our corporate governance Supported by a robust framework

structure is built around designed to enhance accountability
the Board of Directors, through the recognition and
elected by the ordinary management of all risk areas, our
general assembly. comprehensive corporate
governance structure specifies the
distribution of roles and
responsibilities among various
stakeholders within the organisation,
including our Board of Directors and
its four functional boad committees,
our senior management and our
employees. Kindly refer the
Governance Report on Page 104 of
this Annual Report for further details.
Governance body
Our corporate governance structure
is built around the Board of Directors,
elected by the ordinary general
assembly, in accordance with the
Company’s Bylaws, the Company’s
four functional Board Committees -
each of which have their respective
charters that stipulate the respective
committees’ roles and responsibilities
and delegated powers within the
context of their specific expertise. The
Board Committees conduct voting
decisions of their own on various
matters and provide quarterly
updates and reporting to the Board
of Directors for information, guidance
and/or approvals, as applicable.
Subsequent event
The Extraordinary General Assembly
meeting of the Company held on 5
January 2022 elected new members
of the Board of Directors of the
Company for its new term, which
began on 5 January 2022 for a
period of three years ending on 4
January 2025.
Pursuant to the resolution of the Board of Directors, dated 19 January 2022, the Related Party Transaction & Conflict of Interest Committee (RPTC) was
dissolved on 11 October 2021 (Company’s Listing Date) whereby the RPTC’s role and responsibilities was transferred to the Board Audit Committee, in line
with the CMA’s Corporate Governance Regulation.
70
To obtain a comprehensive,
integrated picture of the
combined skills of the Board
of Directors, the key areas of
expertise of its members
were mapped.
The new Board of Directors have also

Key expertise related to our ESG ambitions and strategy:
formed its Board Committees in
accordance with the approved
duties and responsibilities, appointed •
Energy transition
the Board Secretary and the •
Environmental Management
Representatives of the Company in • Waste Management
front of the Capital Market Authority
and the Saudi Stock Exchange
(Tadawul). Please refer the Governance
Report on page 104 for further details.
Our Board of Directors Energy Water

transition management
The Board of Directors of ACWA
Power offers wide-ranging and
complementary knowledge, skills 1 3
and experience enabling it to take
into account the interests of all its
stakeholders, including its
Corporate Health
shareholders, and meet the 4
governance 9 and safety
environmental, social and governance ACWA Power’s
related issues and challenges of ESG Framework
today and tomorrow, specifically
those relevant to the energy and 8 5
water desalination industries. Technology
Human
advancements
The composition of the Board of 7 6 capital
Director captures a breadth of
dimensions critical to governance, Systematic
with its members amounting on Community
risk
average between 25 and 30 years development
management
of experience in, but not limited to,
corporate governance, risk
management, legal and compliance,
strategy, technology and finance. In
order to obtain a comprehensive,
integrated picture of the combined Key governance areas of expertise: Key social areas of expertise:
skills of the Board of Directors, the
key areas of expertise of its members • Strategic partnership • L
ocal and regional knowledge
were mapped. The mapping • Stakeholder dialogue and content
demonstrates that the skill sets • Health and Safety
• Regulatory environment
brought to the table are balanced
• Strategic oversight, corporate • Human Capital Development
and comprehensive, in line with the
ACWA Power’s strategic ambitions. strategy, governance and
risk management
• Digital transformation
and innovation

ACWA Power promotes alignment

between pay, other incentive practices
and its corporate strategy.
The Board Risk Management

Committee (RMC) consists of
five members serving for a
period not exceeding the term
of the Board membership.
General areas of expertise: Key expertise related to our ESG Board Committees
• Finance, Strategy Internal Control, ambitions and strategy: Board Executive Committee
Risk Management The Board Executive Committee (BEC)
Key environmental areas
• Corporate governance and ESG comprised five (5) members, appointed
of expertise:
• Legal, Ethics and Compliance by the Board of Directors for a period
• Energy transition not exceeding the term of the Board
• Operational management of large/
• Environmental Management membership, exclusively consisting of
multinational corporations/
• Waste Management members of the Board of Directors. The
financial institutions
Chairman of the Board of Directors
• Knowledge of the energy sector Key social areas of expertise: chairs the Board Executive Committee.
• Information technologies • Local and regional knowledge The Board Executive Committee assists
and content the Board in its responsibility to
The Board of Directors of ACWA oversee ACWA Power’s business and
Power assumes the responsibility • Health and Safety
investment operations by analysing
of providing direction, guidance • Human Capital Development
investment policies, strategies,
and leadership on strategy, transactions, opportunities and the
operations, and business expansion, Key governance areas of expertise:
performance of the Company. The
while assessing opportunities, • Strategic partnership
Board Executive Committee enables the
challenges, risks and associated • Stakeholder dialogue Board to act between full board
mitigative measures and ensures • Regulatory environment meetings by reviewing, monitoring,
its implementation, including and approving key financial and non-
• Strategic oversight, corporate
commitments in terms of financial business, and taking
strategy, governance and risk
environmental, social and operational decisions for the Company,
management
governance responsibilities. within the authority defined by the
• Digital transformation and
innovation Board in line with the Company’s
The Board of Directors encompasses
bylaws. Specifically, the BEC is
a wide variety of ESG competencies.
The full composition of the Board of responsible, among other things, for
Director is set out in the Governance evaluating and approving proposals
Report, part of our Annual Report, submitted to it from, and
and on the company website. recommended by the Executive
Management, regarding any project or
investment/ divestment opportunities
and deciding on whether the Company
will execute or participate in the
proposed project of the proposed
investment/divestment opportunity.
72
The Chairman of the BAC In line with the CMA Corporate
presents quarterly updates to Governance regulation, none of the
the Board of Directors on the Nomination and Remuneration
committee’s discussions and Committee (NRC) members
recommendations/endorsements. exercise any executive function or
make any administrative decisions
in the Company.
Board Audit Committee In addition, the Committee provides Management; (iv) the development of
The Board Audit Committee (BAC) the Board with independent advice the Code of Corporate Governance;
comprised five (5) members, and guidance regarding the adequacy and (v) Any other tasks which the
appointed by the Ordinary General and effectiveness of Management’s Board of Directors may entrust to the
Assembly for a period not exceeding practices and potential Committee, within the scope of its
the term of the Board membership. improvements to those practices. activities, the framework of these rules
The Chairman of the BAC is an Nevertheless, the RMC provides an and the directives of the Board. The
independent member. In addition, in oversight and supervisory role and Chairman of the Nomination and
line with regulation, there is one (1) none of its committee members Remuneration Committee presents
independent Board member serving exercise any executive function or quarterly updates to the Board of
on the committee. The Board Audit make any administrative decisions in Directors on the committee’s
Committee assists and provide the Company. The Chairman of the discussions and recommendations/
insight to the Board in fulfilling its RMC presents quarterly updates to endorsements. In line with the CMA
fiduciary responsibilities by providing the Board of Directors on the Corporate Governance regulation,
an independent assurance on the committee’s discussions and none of the NRC members exercise
integrity and effectiveness of the recommendations/endorsements. any executive function or make
reports, financial statements and any administrative decisions in
internal control systems. In addition, The Nomination and the Company.
the Committee reviews and monitors Remuneration Committee
the Company’s Compliance system The Nomination and Remuneration Other corporate governance
and endorses related party Committee consists of five (5) mechanisms
transactions prior to submittal to the members, serving for a period not Tax transparency: ACWA Power is
Board for endorsement and General exceeding the term of the Board transparent in its revenue reporting,
Assembly for approval. The Chairman membership. In line with the CMA which can be found in the financial
of the BAC presents quarterly Corporate Governance Regulation, report section. Furthermore, the
updates to the Board of Directors on as of 31 December 2021, the NRC 2021 Board of Director's Report
the committee’s discussions and Chairman is an Independent Board highlights the Group's consolidated
recommendations/endorsements. member. The Nomination and financial results, including its Zakat
Remuneration Committee is and tax contributions. ACWA Power
Board Risk Management Committee responsible, amongst other things, to was not involved in any tax-related
The Board Risk Management assist and provide insight to the Board controversies in 2021.
Committee (RMC) consists of five (5) in fulfilling its fiduciary responsibilities
members, serving for a period not by providing independent advice and Pay: ACWA Power promotes alignment
exceeding the term of the Board assurance that the leadership and between pay, other incentive
membership. The Board Risk human capital resources required for practices and its corporate strategy.
Management Committee assists the the Company to achieve its purpose
Board in discharging its oversight and strategic objectives are met. Ownership & Control: ACWA Power’s
responsibility in respect of the risk Accordingly, the NRC periodically majority shareholder is the Public
management practices of the reviews and endorsed for the Board’s Investment Fund (PIF). ACWA Power
Company. Accordingly, the RMC review and approval the following: (i) has publicly listed approximately
advises the Board on the Company’s the respective Selection Policy and the 11.67 percent of its share capital on
risk appetite, monitors the Remuneration Policy of the Board of the Saudi Stock Exchange, Tadawul.
Company’s principal strategic, Directors, Board Committees and We align to the CMA when
financial, operational, business, and Executive Management; (ii) the addressing shareholder rights and
reputational risks or exposures, appropriate skills and qualifications the interests of investors.
advise and recommend actions to required for the Board, Board
minimise such risks, and provide Committees and Executive
oversight and guidance as to the Management; (iii) the structure of the
overall risk management functions Board of Directors and Executive
within the Company.

Detailed information on the One of the most important

composition of each Board factors for the success of any
Committee can be found in organisation is its compliance
the Governance Report, with laws, rules and regulations.
part of this Report.
Accounting: The 2021 Board of Completion % Completion % for

Director's Report reviews the year’s Training Name for employees MC members
performance and key achievements,
in addition to the consolidated Making Ethical Decisions 93 82
financial statements and auditor’s Code of Ethics 92 82
report for the year ended on 31
December 2021. The Board Audit
Committee (‘BAC’) provides
independent assurance, and of the
integrity and effectiveness of the ACWA Power has
reports, financial statements, and accomplished high
internal control systems. Details of standards of ethics and
our financial results are presented in integrity in all aspects of
the audited consolidated financial our business conduct.
statements and accompanying notes.
Our corporate behaviour

In addition to adhering to and
promoting good corporate
governance, ACWA Power supports
exemplary corporate behaviour
by adopting a stringent compliance
approach to ensure that we adopt
the highest standards of ethics,
conduct business with reputable
third parties and comply with
international best practice.
Our compliance approach

One of the most important factors for
the success of any organisation is its
compliance with laws, rules and
regulations. Compliance protects the
Company’s reputation and credibility,
serves shareholders’ interests,
ensures customer satisfaction and
reduces litigation. Compliance is a
comprehensive and multi-aspect
responsibility involving all parties in
a company: it starts with the Board
of Directors and senior management
and ends with all employees and
contractors, each according to the
authority and responsibilities
entrusted to them.
74
ACWA Power strives to offer a secure and
positive work environment to encourage
its employees to work to the very best of
their abilities.
ACWA Power has accomplished high

standards of ethics and integrity in
all aspects of our business conduct.
We are committed to complying
with the applicable legislation and
obligations in force in the countries
where we operate. To facilitate this
objective, the Company has
developed and implemented a
Compliance Management Framework,
which is intended to demonstrate the
Company’s commitment, in the
clearest possible terms, as follows:
• Highest standards of ethics and

compliance with all applicable laws,
regulations, rules and policies;
• Detecting and swiftly correcting
identified compliance gaps; and
• Eliminating misconduct and
other wrongdoing.
The Compliance Management

Framework lays down the policy
guidelines and the detailed compliance
practices to be implemented.
Our Code of Conduct

ACWA Power strives to offer a secure
and positive work environment to
encourage its employees to work to
the very best of their abilities but, at
the same time, expects employees to
portray certain ethical and cultural
values and to project an image of
integrity and professionalism.
The Company has implemented a

Code of Conduct and Ethics (the
Code), which sets down key
guidelines and compliance practices
which all employees are expected to
observe, wherever they are located or
operate. The Code is a forward-looking
document and outlines the ethical
responsibilities that will grow our
organisation, reputation and business.

ACWA Power has accomplished high standards of

ethics and integrity in all aspects of our business
conduct. We are committed to complying with the
applicable legislation and obligations in force in
the countries where we operate.
It aims to provide guidance on Being a responsible global A dedicated Compliance line provides
general conduct in order to maintain corporate citizen a mechanism for the confidential and
harmonious working relations ACWA Power is committed to anonymous submission of concerns
internally, with clients and other conducting its business ethically and through an independent third party,
stakeholders, in line with the laws in compliance with all applicable Ethics Point, which is accessible at
of the relevant jurisdiction and domestic and foreign anti-money any time.
ACWA Power’s values, ethics and laundering, counter terrorist
corporate policies. financing, anti-bribery and anti- Our commitment to human rights
corruption laws and regulations. ACWA Power places great emphasis
To help foster awareness of the Code,
on treating employees and
we have developed two mandatory Our policies in this regard help to individuals in the communities in
e-learning modules, Making Ethical meet the following objectives: which we operate and throughout our
Decisions and Code of Ethics Policy,
supply chain with dignity and respect.
which offer guidance in an interactive • Ensure that employees are aware
Where we don’t have managerial
and engaging way to help employees of their obligations and the need to
control, we expect and require
gain a better understanding of the remain vigilant in the fight against
compliance with this policy. We
guidelines and practices set out in bribery, corruption, money
regularly review and update our
the Code and so adhere to the laundering and terrorist financing;
policies and procedures proactively
highest ethical standards. • Set out the scope, processes and to identify, address and respond to
controls required to mitigate any unfavorable human rights issues with
The above training is ongoing and risk related to bribery, corruption,
is mandatory for all employees to which we are possibly involved. We
money laundering and terrorist are dedicated to complying with the
complete before the end of the first financing within the Company;
quarter of 2022. pertinent laws and implement
• Set out the responsibilities of controls wherever we operate. Where
Engaging with trusted partners ACWA Power, and those who work national law and international human
for the Company, in observing and rights standards differ, we adopt the
With business regulations worldwide
upholding our position on bribery, higher standard.
becoming increasingly complex,
corruption, money laundering and
it is essential for ACWA Power to
terrorist financing; Among the broader human rights
entertain business exclusively with
• Provide information and guidance issues identified, we consider the
partners of good repute, to ensure
on how to recognise and deal with following as crucial and non- negotiable:
that third-party risk can be mitigated.
bribery, corruption, money
• Providing access to grievance
In view of our global expansion, laundering and terrorist financing
mechanisms
we have implemented a thorough related issues and assist
Know Your Customer (KYC) process, stakeholders in reporting same. • Supporting access to water
so risk-based due diligence on and sanitation
third parties can be conducted Our whistleblowing programme • Preventing child labour, modern
before agreements are entered into. At ACWA Power, our commitment slavery, forced labour and human
The process helps reduce potential to integrity and transparency extends trafficking
risks such as fraud, corruption, to implementing an efficient and • Ensuring a decent living wage
bribery, money laundering and confidential whistleblowing and income
similar malpractices. programme, which enables any • Ensuring safety and health
employee or third party to report • Empowering and supporting women
concerns through dedicated channels.
76
ACWA Power places great
emphasis on treating employees
and individuals in the communities
in which we operate and
throughout our supply chain with
dignity and respect.
With business regulations In view of our global expansion,

worldwide becoming increasingly we have implemented a thorough
complex, it is essential for ACWA Know Your Customer (KYC)
Power to entertain business process, so risk-based due
exclusively with partners of good diligence on third parties can be
repute, to ensure that third-party conducted before agreements
risk can be mitigated. are entered into.

Since ESG strategy is integral to the Company’s

overall strategy, we have elected to combine
sustainability with risk and strategy in one single
function, led by a senior C-level executive with a
seat on the Management Committee.
Our disclosure and We recognise that the identification Any non-compliance with these
transparency approach and management of these risks is guidelines is considered a breach of
ACWA Power’s commitment to central to achieving our strategic the Risk Appetite level and needs
transparency is long-standing and business and ESG objectives. Board approval.
weaved into our fabric. Since our
listing on the Kingdom’s main stock Risk and opportunity oversight Any deviation from the principles and
exchange, Tadawul, last year, we must limits defined in the Risk Appetite
The Board Risk Management
also comply with Capital Market Statement will be reported to, and
Committee (RMC) assists the Board
Authority laws and regulations. require the approval of, the Board.
in executing its fiduciary
responsibility for overseeing and
We have implemented a disclosure reviewing the identification and ESG and climate-related risks
and transparency mechanism to evaluation by management of the In addition to the environmental,
identify, assess and, if needed, company’s principal strategic, operational and financial risks
disclose to the public, any material financial, operational, business to our businesses, climate-
development originating as part of and compliance risks. These include related risk is increasingly set to
our business that might affect the the company’s risk management become a core element of our risk
Company’s financial position, its ESG framework and the policies, management framework.
rating or evaluation. This is in procedures and practices employed
compliance with the specific provisions to manage risks. As global warming affects our
set out in the Rules on the Offer of environment – with changes in average
Securities and Continuing Obligation. This Committee supports the Board air temperature, sea levels and rain
in monitoring our risk environment patterns, and the frequency of extreme
Risk management strategy and provides direction for any weather events – we are consciously
and principles activities that will mitigate any risk factoring into our risk assessment
Another of our core objectives is to that could adversely affect the the eventual physical threats
optimise how we manage risk. company’s ability to achieve its goals. associated with these environmental
changes to our assets and our people
We are committed to increasing long- Risk appetite in all the locations where we operate.
term shareholder value by fostering To ensure a confident response to
a culture that balances growth with Since ESG strategy is integral to the
risks, effective risk management Company’s overall strategy, we have
effective, disciplined and proactive should support informed decision-
risk management. elected to combine sustainability
making in line with a set risk appetite, with risk and strategy in one single
reflecting the type and amount of risk function, led by a senior C-level
The following section highlights that the Company is willing to accept
some of the main components of executive with a seat on the
to achieve its business objectives. Management Committee. This should
our risk approach. For a detailed ACWA Power’s risk appetite is
overview, please refer to page 56. facilitate determining the right
modelled on objectives, including accountability for managing ESG
ESG considerations, outlined in the strategy and executing, monitoring
Risk and opportunity management Risk Appetite Statement, providing a and reporting identified initiatives.
ACWA Power operates in a fast- framework which enables us to make
changing and highly competitive informed management decisions. We believe in ensuring transparency
environment that can give rise to a The Risk Appetite Statement around climate-related risks and
host of risks across its value chain, considers and requires compliance opportunities and are working
which could have a materially adverse with all Company-wide guidelines towards integrating the voluntary
effect on its business, financial on strategic, financial and non- recommendations of the Financial
position, operations and reputation. financial risk categories, approved Stability Board (FSB) Task Force
by the Board. on Climate-related Financial
Disclosures (TCFD).
78
In addition to the environmental, We are committed to increasing
operational and financial risks to long-term shareholder value by
our businesses, climate-related fostering a culture that balances
risk is increasingly set to become growth with effective, disciplined
a core element of our risk and proactive risk management.
management framework.
Considering the possible Provide a safe and fair work Uphold the highest ethical
impact of climate change environment for the employees standards of conduct and
all the while preserving the while operating in a fair, safe maintain a robust governance.
long-term financial and sustainable way.
resilience of the Company.
We have zero tolerance for any We have zero-tolerance approach We have zero-tolerance
knowing or intentional acts that to health, safety and security approach to fraud, corruption
may have negative consequences risks. We do not tolerate any risk and conflict of interest.
on the environment or on that may lead to fatalities or injury
natural resources. to our employees, clients, We aim to conduct business
subcontractors or suppliers, with honesty and integrity and
We will seek to minimise and to or threaten the safety of the strive to promote an
keep as low as reasonably general public. organisational culture that
possible all the risks that can endorses ethical conduct.
have a detrimental impact on the We seek to attract, retain,
environment or on the local motivate and develop high
communities where we operate. performing people, by offering
them a safe and fair work
We develop and implement an environment, with zero tolerance
ESG strategy and we assess the for discrimination, unethical
risks arising from climate change. behaviour and unfair treatment.

Enabling the low-carbon transition

At the heart of our strategy lies our publicly declared target to reduce
our portfolio’s specific GHG intensity by 50 percent by 2030, largely
facilitated by a rapidly rising share of renewables generation capacity
reaching a 50/50 green-brown ratio by 2030. We are also committed to
reaching net zero emissions from our portfolio by 2050.
Our commitment to tackling climate

GRI 305: Emissions of the total portfolio (‘000 tCO2) 2019 2020 2021
change reflects an ambition to lead
and drive the transformation towards Total CO2 Emissions – Scope 1 and 2 63,421 67,083 70,532
low-carbon energy systems, provide CO2 emissions (TMT) – Scope 1 63,015 66,209 69,882
reliable energy and enhance resource Scope 1 emissions for electricity production 52,884 55,992 60,063
efficiency. At the heart of our strategy Scope 1 emissions for water desalination
lies our publicly declared target to (thermal desalination) 7,189 6,810 6,792
reduce our portfolio’s specific GHG Scope 1 emissions for steam production 2,942 2,601 3,027
intensity by 50 percent by 2030,
CO2 emissions (TMT) – Scope 2 406 873 651
largely facilitated by a rapidly rising
share of renewables generation Scope 2 emissions for electricity production 138 170 243
capacity reaching a 50/50 green- Scope 2 emissions for water desalination 269 703 408
brown ratio by 2030. We are also
committed to reaching net zero
emissions from our portfolio by 2050. CO2 emissions of the total portfolio (‘000 tCO2) – Scope 1
2021
Our emissions
More than a year ago, we announced 2020
our commitment to a specific GHG
intensity reduction of 50 percent in 2019
our portfolio by 2030 from where it 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
stood at the end of 2020. We believe Scope 1 emissions for electricity production
we will achieve this target by focusing Scope 1 emissions for water desalination (thermal desalination)
our investments on renewables and Scope 1 emissions for steam production
transitional low CO2 emitting assets,
including capturing viable fuel-switch
opportunities and increasing and CO2 emissions of the total portfolio (‘000 tCO2) – Scope 2
optimising the energy efficiency of 2021
our portfolio.
2020
We monitor, measure and report, and
2019
will continue to do so, our portfolio’s
absolute Scope 1 and 2 emissions 0 100 200 300 400 500 600 700 800 900
and the emission intensity. While Scope 2 emissions for electricity production
our targets are based on ACWA Scope 2 emissions for water desalination
Power’s equity share in our projects,
we will never lose sight of the total
Total CO2 emissions ('000 tCO2) – Scope 1 and 2
portfolio metrics and will continue to
report them. 2021
2020
2019
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
CO2 emissions (TMT) – Scope 1

CO2 emissions (TMT) – Scope 2
80
More than a year ago, we We monitor, measure and
announced our commitment report, and will continue to do
to a specific GHG intensity so, our portfolio’s absolute
reduction of 50 percent in our Scope 1 and 2 emissions and
portfolio by 2030 from where the emission intensity.
it stood at the end of 2020.
GRI 305: Emissions from ACWA Power’s equity In conducting our emission
share of the portfolio ('000 tCO2) 2019 2020 2021 calculations for 2021, we aligned with
Total CO2 Emissions – Scope 1 and 2 24,976 26,979 28,987 the most relevant internationally
CO2 emissions (TMT) – Scope 1 24,748 26,492 28,578 recognised GHG accounting and
reporting standard for calculating
Scope 1 emissions for electricity production 19,926 21,561 23,754
and reporting emissions:
Scope 1 emissions for water desalination
(thermal desalination) 1,910 1,806 1,827 • GHG Protocol Corporate
Scope 1 emissions for steam production 2,912 2,575 2,997 Accounting and Reporting Standard
CO2 emissions (TMT) – Scope 2 228 487 409 (WBCSD & WRI, 2004)
Scope 2 emissions for electricity production 66 93 135 • GHG Protocol Scope 2 Guidance
Scope 2 emissions for water desalination (RO) 158 392 274 (WBCSD & WRI, 2015)
ACWA Power’s footprint is based

CO2 emissions from ACWA Power’s equity share on the equity share consolidation
of the portfolio (‘000 tCO2) – Scope 1 approach, including under Scope 1
& 2 emissions from assets based
2021 on the company’s share of equity.
ACWA Power’s 2021 carbon
2020
footprint covers all our 32 assets
2019 globally, excluding offices, and
0 5,000 10,000 15,000 20,000 25,000 30,000
includes applicable emission
sources that account for more than
Scope 1 emissions for electricity production
5 percent of the total emissions.
Scope 1 emissions for water desalination (thermal desalination)
Scope 1 emissions for steam production
ACWA Power’s Scope 1 emissions
include direct emissions from
CO2 emissions from ACWA Power’s equity share stationary fuel combustion from our
of the portfolio (‘000 tCO2) – Scope 2 assets. Fuels include natural gas,
fuel oil, coal and diesel. ACWA
2021
Power’s Scope 2 emissions include
2020 indirect emissions from grid-
supplied electricity consumption
2019 from our assets.
0 100 200 300 400 500
Scope 2 emissions for electricity production
We excluded the scope 1 emissions
Scope 2 emissions for water desalination (RO) from owned fleet (mobile fuel
combustion emissions). Also
excluded are the scope 1 emissions
TOTAL CO2 Emissions from ACWA Power's share from fuel consumption and the
of the portfolio ('000 tCO2) – Scope 1 and 2 scope 2 emissions from grid-
2021 supplied electricity and district
heating/cooling consumption, both
2020 from owned offices. These
emissions are expected to represent
2019 less than 5 percent of total Scope 1
0 5,000 10,000 15,000 20,000 25000 30,000 and 2 emissions. However, ACWA
CO2 emissions (TMT) – Scope 1 Power will work towards estimating
CO2 emissions (TMT) – Scope 2 these emissions in the future.

In 2021, we continued to lead the transition

to green electricity and low-carbon water in
terms of cost and technology.
In 2021, the total (Scope 1 and 2)

ACWA Power CO2 emission intensity of the total portfolio 2019 2020 2021
CO2 emissions across all assets
measured 70.5 million tons, of CO2 intensity of gross electricity generation
which ACWA Power’s share was [tonCO2 /MWh] 0.45 0.45 0.46
29 million tons. CO2 intensity of RO water desalination (kg CO2 /m ) 3
4.40 3.76 3.73
Since 2021, we have calculated the CO2 intensity thermal water desalination (kg CO2 /m3) 13.01 12.24 12.07
CO2 emission intensity of our gross
electricity generation by including
Scope 1 and Scope 2 emissions from ACWA Power CO2 emission intensity of the total portfolio
electricity production. We have
13.01
12.24
12.07
calculated the CO2 intensity figure

retrospectively for 2020 and 2019
using this same approach. We also
calculate the CO2 emission intensity
of Reverse Osmosis (RO) water
4.40
3.73
3.76
desalination as well as of thermal

water desalination.
0.46
0.45
0.45
The introduction of coal drove much

2019 2020 2021
of the increase in emissions in 2021.
CO2 intensity of gross electricity generation (tonCO2 /MWh)
Since ACWA Power has made the
CO2 intensity of RO water desalination (kgCO2 /m3)
decision to transition to a low-carbon CO2 intensity thermal water desalination (kg CO2 /m3)
and coal-free portfolio, this increase
is provisional.
CO2 emission intensity of ACWA Power’s
equity share of the portfolio 2019 2020 2021
CO2 intensity of gross electricity generation

[ton CO2 /MWh] 0.50 0.48 0.49
CO2 intensity of RO water desalination (kg CO2 /m ) 3
5.02 3.9 4.11
CO2 intensity thermal water desalination (kg CO2 /m3) 13.84 13.02 12.96
CO2 emission intensity of ACWA Power’s equity share of the portfolio

13.84
13.02
12.96
5.02
4.11
3.9
0.48
0.50
0.49
2019 2020 2021

CO2 intensity of gross electricity generation [tonCO2 /MWh]
CO2 intensity of RO water desalination (kgCO2 /m3)
CO2 intensity thermal water desalination (kgCO2 /m3)
82
70.5 mn
The introduction of coal drove

much of the increase in emissions
in 2021. Since ACWA Power has tons
made the decision to transition to a
In 2021, the total (Scope 1 and 2)
low-carbon and coal-free portfolio,
CO2 emissions across all assets
this increase is provisional. measured 70.5 million tons, of
which ACWA Power’s share was
29 million tons.
Breakdown of Scope 1
CO2 emissions per fuel type 2019 2020 2021
Natural gas 34,509,443 37,681,471 38,534,587

Electricity production 32,002,222 35,284,923 36,420,643
Water desalination 2,507,221 2,396,548 2,113,943
Heavy fuel oil 28,489,231 28,510,794 28,842,706
Electricity production 20,869,672 20,502,034 21,138,695
Water desalination 4,678,759 4,412,917 4,676,902
Steam production 2,940,801 2,599,844 3,027,109
Coal - 12,019 2,462,010
Electricity production - 12,019 2,462,010
Diesel 12,570 5,193 42,650
Natural gas (million) Heavy fuel oil (million)

2021 2021
2020 2020
2019 2019
0 10 20 30 40 0 10 20 30
Electricity production Electricity production

Water desalination Water desalination
Steam production
Coal (million) Diesel (thousand)

2021 2021
2020 2020
2019 2019
0 0.5 1.0 1.5 2.0 2.5 3.0 0 10 20 30 40 50
Electricity production Electricity production

50/50
To support our ESG strategy,

and in line with our
decarbonisation efforts, we
are shifting our portfolio to
We are doing this by increasing the
renewables and other low-
share of renewables generation
carbon technologies. capacity to achieve a green/brown
capacity ratio of 50/50 by 2030.
ACWA Power’s low-carbon portfolio Upcoming power capacity by technology (MW)

To support our ESG strategy, and in
line with our decarbonisation efforts, Under construction
we are shifting our portfolio to
renewables and other low-carbon
technologies. We are doing this by Oil Coal Natural Gas
increasing the share of renewables 0 0 5,400
generation capacity to achieve a
green/brown capacity ratio of 50/50
CSP PV Wind
by 2030. Additionally, we have made
the decision not to develop or invest 800 3,690 0
in new coal or oil-fired power projects.
Advanced development
ACWA Power halted its participation
in the development of the coal-
fired Nam Dinh 1 plant (1,200 MW) Oil Coal Natural Gas
during the year. Although we are
withdrawing from this project, we 0 0 0
remain committed to Vietnam’s
electricity sector and look forward to CSP PV Wind
expanding the renewable energy 0 3,140 5,940
footprint we have established with
the Vinh Hao 50MW PV power plant,
which is already dispatching energy
to the Vietnamese grid.
The 2,400MW Hassyan IPP in Dubai

converted from clean coal to natural
gas. This step supports the Dubai
Clean Energy Strategy 2050 and
Dubai’s carbon neutrality strategy
2050 which aims to provide 100
percent of the energy production
capacity from clean energy sources
by 2050.
84
2,400
MW
The 2,400 MW Hassyan IPP
in Dubai converted from clean
coal to natural gas.
35
%
In 2021, 35 percent of the total
gross capacity of our portfolio
consisted of renewable
technologies, including assets
under construction or in advanced
development. This represents
42 percent of ACWA Power’s net
share of the gross capacity.
Bokpoort CSP IPP, South Africa
In 2021, we continued to lead the • Egypt 1,100 MW Wind IPP was • Announcing the start of
transition to green electricity added to projects in advanced construction on the 100 MW
and low-carbon water in terms of development, following the Redstone concentrated solar
cost and technology. Some of the Council of Ministers of the power (CSP) plant following
highlights included: Government of Egypt’s approval financial close. Redstone is
to sign a PPA. the largest renewable energy
• The inauguration of the 300 MW • ACWA Power finalised the project investment in South Africa
first stage of the 900 MW Shuaa agreements for the 100 MW to date.
Energy 3 PSC, the fifth phase of Nukus wind project in the Republic
the Mohammed bin Rashid Al of Uzbekistan, supporting our In 2021, 35 percent of the total
Maktoum Solar Park in Dubai. commitment to Uzbekistan’s gross capacity of our portfolio
• Achieving the financial close for energy future and a major step consisted of renewable
the 1,500 MW Sudair Solar plant, towards diversifying the country’s technologies, including assets
a key project under the Public energy mix and, in line with recent under construction or in advanced
Investment Fund (PIF) renewable strategic reforms, increasing its development. This represents 42
energy programme. renewable energy capacity. percent of ACWA Power’s net share
of the gross capacity.

The choice of SWRO water The Taweelah SWRO

desalination technology will integrates renewable
play a critical part in significantly energy to the project, to
reducing water production costs reduce CO2 emissions.
and contribute to our
sustainability and ESG goals.
Renewable capacity in 2021 Breakdown of operational and under-construction

renewable projects per technology for 2021
Total portfolio gross ACWA Power’s
Project phase capacity (MW) net share (MW) Renewable energy Total portfolio gross ACWA Power’s
technologies capacity (MW) net share (MW)
In operation 1,576 894
Under construction 4,490 1,551 PV 4,586 1,913
Advanced development CSP Parabolic 410 277

phase 8,740 5,673 CSP Tower 950 225
Total 14,806 8,119 Wind 120 31
Renewable technologies account for 35 percent of the

total investment costs and 46 percent of our invested
equity share, including assets under construction or in
advanced development.
Renewable capacity in 2021 Breakdown of operational and Power split (MW)

under-construction renewable by technology (%)
projects per technology for 2021
14,806 6,066 42.7

MW MW GW
ACWA Power’s net share (MW) ACWA Power’s net share (MW) Oil 17
In operation PV Natural Gas 48
Under construction CSP Parabolic PV 18
Advanced development phase CSP Tower CSP – Parabolic 2
Wind CSP – Tower 1
Total portfolio gross capacity (MW) Wind 14
+ In operation Total portfolio gross capacity (MW)
+ Under construction + PV
+ Advanced development phase + CSP Parabolic
+ CSP Tower
+ Wind
86
90
%
This includes the Gulf, one of the
66
%
More than two thirds of our
highest impacted regions, where desalination plants use
water desalination contributes to world-class energy-efficient
more than 90 percent of daily technology, namely seawater
water requirements. reverse osmosis (SWRO).
Sustainable water management ACWA Power’s water desalination portfolio per type of technology
We operate in water-scarce regions, (capacity under management)
where global issues such as climate
change, population growth, Desalination technology '000 m3/day Number of assets
industrialisation and water waste Multi-stage Flash distillation (MSF) 971 2
are likely to increase water scarcity
Multiple effect distillation (MED) 800 1
in the future.
Seawater reverse osmosis (SWRO) 4,634 13
This includes the Gulf, one of the
highest impacted regions, where
water desalination contributes to GRI 303: Water and Effluents 2019 2020 2021
more than 90 percent of daily water
Water export (m ) 3
790,241,825 828,278,300 890,230,937
requirements. But heavy dependence
on desalination poses sustainability Sea water intake (m3) 6,622,328,827 13,548,405,950 15,210,258,604
risks in itself, with cost and Sea water discharge (m3) -
environmental impact remaining estimate 6,195,354,935 12,682,995,995 13,972,263,195
key concerns.
Sweet/River water intake (m ) 3
- - 7,522,278
To address these challenges, more Sweet/River water discharge (m3) - - 1,411,707
than two thirds of our desalination
plants use world-class energy- Specific electricity consumption
efficient technology, namely seawater for RO based water desalination
reverse osmosis (SWRO). As we grow [kWh/m3] 5.85 5.3 5.23
our capacity, SWRO will be the sole
technology used in our desalination
plants. The choice of SWRO water Desalination technology Number of assets
desalination technology will play a
critical part in significantly reducing
water production costs and
contribute to our sustainability and
ESG goals.
In 2021, ACWA Power successfully 6.4mn 16

launched the Taweelah SWRO, the Total number
world’s largest standalone sea
m3/day of assets
water reverse osmosis plant, and
delivered its first water into the
Abu Dhabi network. The Taweelah
Desalination Company opened the Multi-stage Flash distillation (MSF) 15% Multi-stage Flash distillation (MSF) 2
valve, connecting the plant with the Multiple effect distillation (MED) 13% Multiple effect distillation (MED) 1
distribution network and began Seawater reverse osmosis (SWRO) 72% Seawater reverse osmosis (SWRO) 13
exporting the first 230,000m3/day of
the planned 909,200m3/day of water.
The Taweelah SWRO integrates
renewable energy to the project, to
reduce CO2 emissions.

The ideal way to reduce the stress

on disposal systems is to reduce
the amount of waste that is
produced, so our emphasis is on
reduction, reuse and recovery
before disposal.
650 tons
We continue to actively increase the The world’s largest green

efficiency of our desalination plants hydrogen facility and it is
and employ innovative technologies per day estimated to produce 650 tons
to reduce costs. This is undertaken per day of hydrogen by
1.2 per year

while simultaneously mitigating the electrolysis, nitrogen by air
environmental impact for our separation and 1.2 million tons
customers, our stakeholders and mn tons per year of green ammonia.
our planet.
To further our technological

improvements in water desalination,
ACWA Power collaborates with the
King Abdullah University of Science
and Technology (KAUST). The
partnership aims to prioritise research
in water quality monitoring and
system performance modelling using
several KAUST research centres.
ACWA Power’s water desalination

portfolio per type of technology
(capacity under management)
We continue to improve the

measuring and reporting of our water The facility will be entirely powered Sustainable waste management
performance by integrating internal by renewable electricity, NEOM ACWA Power implements an
reporting systems for water metrics. Helios, will be the world’s largest integrated waste management
green hydrogen facility and procedure to manage hazardous and
Green Hydrogen, the next step estimated to produce 650 tons per non-hazardous waste. This ensures
in the energy transition day of hydrogen by electrolysis, minimal impact on the environment
nitrogen by air separation and 1.2 and that local and international
The time is now right to develop the
million tons per year of green regulatory requirements are
potential of hydrogen to play a key
ammonia. This is expected to save satisfied. The ideal way to reduce the
role in a clean, secure and affordable
an overall three million tons of CO2 stress on disposal systems is to
energy future. Green hydrogen is
per year. reduce the amount of waste that
created using renewable sources of
energy to isolate and collect the is produced, so our emphasis is
NEOM is an ideal location for the on reduction, reuse and recovery
hydrogen used for fuel. As energy project because of its unique
transition gains speed, this is a before disposal.
availability of wind, solar power and
significant step towards a future supplementary battery storage. This To develop our integrated waste
global economy less dependent is critical to lowering the final cost of management system, we identified
on hydrocarbons. green ammonia to competitive price the level or levels at which the
levels. Based on proven, world-class highest values of individual and
Together with NEOM and Air
technology, the facility will be a collective materials can be recovered,
Products, ACWA Power is to develop
cornerstone in NEOM’s strategy to thereby saving material production,
a world-scale green hydrogen
become a major player in the global resource cost and energy.
production facility in the Kingdom
hydrogen market.
of Saudi Arabia.
The project is scheduled to be
onstream in 2025.
88
For all new assets, we commission ACWA Power is committed to
independent consultants to operating with minimal
conduct Environmental and Social environmental risk and impact,
Impact Assessments (ESIAs) during not only to safeguard the health
the feasibility assessment, and safety of our workforce and
development and acquisition communities, but also to reduce
phases to ensure minimal our impact on the environment.
environmental and social impact.
Management of environmental
Waste Generated in 2021 Reused/Recycled Disposed
impact and risk
Hazardous waste (tonne) 246 2,435 ACWA Power is committed to
Fly ash (tonne) 5,529 9,030 operating with minimal
environmental risk and impact, not
Non-hazardous waste (tonne) 110 6,133
only to safeguard the health and
Impact of spills on environment No major impact safety of our workforce and
Number of spills 9 communities, but also to reduce our
impact on the environment. We
Quantity of spillage (m )3
5.85 actively prioritise efficiency across
our operations to ensure that any
environmental impact and risk is
managed responsibly. As a testament
Waste Generated in 2021
to this, environmental issues are
the responsibility of the Board or
Reused/Recycled Disposed at managerial level.
In 2021, we developed an
Environmental and Social
Management System manual, with
guidelines on the key environmental
and social aspects, to ensure
consistency across all ACWA Power
projects. This initiative supports our
aim to ensure that our Environmental
& Social Management Systems
(ESMS) are standardised and aligned
Hazardous waste (tonne) 246 Hazardous waste (tonne) 2,435
to give prospective lenders and
Fly ash (tonne) 5,529 Fly ash (tonne) 9,030
Non-hazardous waste (tonne) 110 Non-hazardous waste (tonne) 6,133
regulators the assurance that
project-level sructures are sound
and systematic.
Environmental and Social Impact

Assessments (ESIA)
For all new assets, we commission
independent consultants to conduct
Environmental and Social Impact
Assessments (ESIA) during the
feasibility assessment, development
and acquisition phases to ensure
minimal environmental and social
impact. ESIAs identify and assess
potential environmental impact as an
after effect of the project’s construction
and ongoing operational activities.
Shuqaiq IWPP, Saudi Arabia

We are the first power and water

company in the region to achieve
this PEP Standard, a globally-
recognised award presented to
organisations demonstrating
excellence in their procurement
and supply chain activities.
Actionable mitigation and Compliance with these standards Achievement of the CIPS
management measures are is regularly monitored and Procurement Excellence
implemented based on ESIAs to supervised by independent Programme (PEP) Award
avoid or minimise environmental environmental consultants. In 2021, ACWA Power partnered
impact. Our ESIA scope includes with the Chartered Institute of
air quality; marine water; sediment Sustainable procurement Procurement & Supply (CIPS) on the
and ecology; waste management; We consider the environmental, Procurement Excellence Programme
soil and groundwater; terrestrial social and economic consequences to enhance and develop our
ecology; noise; traffic; cultural of our procurement practices and raw procurement governance and to
heritage; community health; safety material sourcing. Our Procurement align with the CIPS Global Standard.
& security; workers’ conditions; and Policy and the supporting procedures
occupational health and safety. set out how the procurement process We underwent a 12-month
operates, its application standards assessment and evaluation to
Since 2010, ACWA Power has determine if our procurement and
and clarifies the roles and
implemented an Environmental supply practices were up to global
responsibilities of those involved
Management System (EMS) that excellence standards, particularly
in procurement.
meets the requirements of the ISO following the pandemic, which had
14001:2015 standard, which has In addition, the Policy extends to any significantly impacted supply chains
been certified to the OHSAS 18001 third-party organisations spending around the globe. The accreditation
standard, an occupational health and ACWA Power funds, ensuring that awarded to ACWA Power was a
safety standard designed to enable any organisations with which we stamp of approval on supplier
organisations to control risks and collaborate, such as contractors, also diversity, supplier relationship
improve operational health and consider their environmental, social management, risk mitigation and
safety performance. and economic impact in their sustainable procurement.
procurement practices.
The 12-month evaluation was split into four phases:
Phase 1 Phase 2 Phase 3 Phase 4

Diagnostics, carrying Process improvement, Implementation and Final award submission,
out a targeted analysis creating and modifying organisational assessment by CIPS
of the procurement current procurement development, focused reviewers and
function through policies, strategies, on communicating, independent verifiers to
conducting semi- procedures, processes training and embedding confirm that ACWA
structured stakeholder and supporting all new policies and Power’s procurement
interviews. documentation to procedures. meets the CIPS Standard
develop complete Procurement Excellence.
documentation.
90
Since 2019, ACWA Power has
partnered with KAUST to pursue
goal-oriented research aimed at
achieving further cost efficiencies
in producing desalinated water
and generating solar power.
We are the first power and water Cooperation with King Abdullah The MRA provides the necessary
company in the region to achieve this University of Science and foundation for the long-term
PEP Standard, a globally recognised Technology (KAUST) research, development and
award presented to organisations Since 2019, ACWA Power has innovation by the ACWA Power and
demonstrating excellence in their partnered with KAUST to pursue goal- KAUST partnership. The Centre aims
procurement and supply chain oriented research aimed at achieving to accelerate the adoption of
activities. The award drives regular further cost efficiencies in producing emerging technologies by providing a
improvements and value across desalinated water and generating platform for testing water treatment
supply chains and highlights solar power. In 2021, a Master processes – ultimately aimed at
procurement’s role as a fundamental Research Agreement (MRA) between developing best-in-industry plant
component of an organisation’s ACWA Power and KAUST was signed optimisation tools – and pursuing
strategy and growth. to officially launch the ACWA Power goal-oriented research on
Centre of Excellence for Desalination sustainability and cost efficiencies
Green technology and innovation and Solar Power (KAPCOE). in desalination.
We continued to prioritise green
Under this collaboration, the first
technology and innovation as key to
pilot plants to improve the
unlocking growth.
desalination process are already up
and running, while a solar PV pilot
plant is under construction.
As part of its remit, the Centre will

In 2021, our green technology accomplishments included: also explore new cutting-edge
technologies, such as world-
class plant optimisation tools,
Leading the consortium In the UAE, the world’s
biofouling, sensor development and
to power The Red Sea largest CSP plant and
evaluation, and processes to reduce
Project with 100 percent lowest tariff.
carbon footprint. The Centre will
renewable energy.
further prioritise research in water
quality monitoring and system
performance modelling.
World's largest RO plant Largest PV plant in Saudi
and lowest desalinated Arabia and one of the While creating synergies through
water tariff in Saudi Arabia. world’s largest single- KAUST's theoretical knowledge and
contracted PV plants. ACWA Power's market expertise, the
Centre will also invite other strategic
industry partners to participate in
the future.
World’s lowest PV tariff in Largest wind farm in central
Saudi Arabia, breaking our Asia, in Uzbekistan.
own record set in 2020.
Early mover in Green

Hydrogen; Saudi Arabia
project to be powered by
~4GW of renewable energy.

Creating shared value for our people and communities

ACWA Power is committed to creating a safe work
environment which supports the growth of every
one of our employees.
Protecting and growing our people Full-Time Employees 2019 2020 2021
In 2021, safety remained our highest Men 2,748 3,334 3,672
priority, as we sought new ways to
Women 167 204 248
instil a safe, secure, healthy and
environmentally-friendly workplace. % of women in total workforce 5.70 5.70 6
Some of our milestones include Total 2,915 3,538 3,920
crossing 50 million safe manhours
worked without an LTI (Lost Time Managers and Directors 2019 2020 2021
Injury) and zero LTI recorded for the
Men 306 338 827
first time in BU O&M history.
Women 44 56 76
We also continued to ensure the % of managerial or director-level
well-being of our people and to positions filled by women 13 14 8
support their growth. In 2021, we Total 350 394 903
updated and harmonised several HR
policies to improve performance,
ensure consistency and follow best Full-Time Employees
practice. The exercise was also
designed to improve our people 2021
management processes, including
2020
talent acquisition, performance
management, learning and 2019
development, and renumeration. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Men
The policies updated included our
Women
Paid Time Off Policy, End of Service
Policy, International Mobility Policy,
Talent Acquisition Policy and Managers and Directors
Workplace Policy. We will incorporate 2021
these into an employee friendly
handbook, which will share the ‘One 2020
ACWA Power’ vision, during the
coming year. 2019
0 200 400 600 800 1,000
Despite our best efforts in upholding Men
such high standards, however, it is Women
with great sorrow that we must bear
the loss of two lives in separate
accidents on our construction sites.
These tragedies affected the entire
ACWA Power family and are still
keenly felt.
There will never be any alternative to

achieving zero casualties other than
to strive for excellence in safety.
This is the mission that motivates
us every single day.
92
60
In 2021, we updated and
%
harmonised several HR policies
to improve performance,
ensure consistency and follow
Our commitment to supporting
best practice.
local workforces was reflected
in our employment of 2,369 local
employees, representing 60 percent
of the total workforce.
Employment Local Nationals 2019 2020 2021

In 2021, our workforce consisted of Men 1,496 2,041 2,222
3,920 employees in the 12 countries
where we operate, with female Women 86 110 147
employees comprising 6 percent of Total number of nationals 1,582 2,151 2,369
the total. In 2021, 8 percent of % of total employees that are local nationals 54 61 60
manager and director-level roles
were occupied by female employees.
Local Directors/Managers 2019 2020 2021
We initiated the development of Men 86 117 285
a clear localisation strategy and
Women 16 22 30
remain dedicated to achieving our
Saudisation targets in the Kingdom, Total 102 139 315
as well as other localisation targets % of total Directors/Managers that are local 29 35 35
in our countries of operation.
Our commitment to supporting
local workforces was reflected in Local Nationals
our employment of 2,369 local
employees, representing 60 percent 2021
of the total workforce.
2020
The company has worked on
2019
strengthening its schemes to attract,
0 500 1,000 1,500 2,000 2,500
retain and develop careers to
Men
address the expectations of new
Women
hires and to build a high-performance
workplace and culture.
Local Directors/Managers
2021
2020
2019
0 50 100 150 200 250 300 350
Men
Women

Another vital objective in building

gender equality is to create
development opportunities for
women. In 2021, we launched
Women’s Initiative for Networking
and Global Solutions (WINGS).
Diversity and inclusion Performance management We completed Talent Reviews for 54

To achieve our goals for energy In performance management, we N-2s and their organisations, and we
transition, we rely on a range of have started the shift from identified successors for critical and
talent that reflects the diverse conventional, rating-based pivotal roles in Corporate and
nature of how and where we operate. assessment to a talent management Projects, prioritising localisation,
To enable us to better serve the framework which aims to fuel diversity and inclusion.
communities where we have a performance and yield insights on
presence, our aim is to create an talent. We encourage regular Assessment and personal
inclusive culture in which employees conversations between employees development for the Management
have a sense of belonging and and line managers and ensure that Committee and N-2s: All
feel valued. set goals are reviewed periodically. Management Committee (MC)
While formal performance members completed their individual
Another vital objective in building evaluations take place at year end, assessment. Based on their
gender equality is to create the guidance, support and development areas, Individual
development opportunities for development of people is ongoing. Development Plans with specific
women. In 2021, we launched business requirements built in were
Women’s Initiative for Networking Talent reviews and succession drawn up and formalised.
and Global Solutions (WINGS) – an planning for the Management
initiative focusing on sustainable Committee, Executive Managing A similar exercise involved 124 N-2s,
female empowerment and inclusion, Officers and Plant General including 39 EMOs and 31 PGMs, to
while simultaneously ensuring Managers: We established an Annual prepare them for future career moves.
that female leaders are given Talent Review and Succession
opportunities to progress in the planning process for the Management
Company. Additionally, an all-women Committee (MC), N-2s and the rest
forum reviews feedback from surveys of the organisation. In partnership
to drive and implement three top with a global consultant, we
priorities: workplace, benefits and successfully identified successors
career growth. for our main leadership roles, based
on their future readiness.
In 2021, we developed a framework for diversity and inclusion by categorising our approach into four strategic areas:
Workplace Talent force Localisation Gender equality

Create a work We aim to attract, Develop local talent in Build equitable
environment where all recruit, promote and our home and overseas representation across
employees experience retain the best talent markets with a view to all levels, positions
a clear sense of and maintain diversity representing the diverse and geographies,
belonging. at all levels and areas communities we serve. using gender equality
of our organisation. programmes and
goal setting.
94
While formal performance evaluations take
place at year end, the guidance, support and
development of people is ongoing.
To enable us to better
serve the communities
where we have a presence,
our aim is to create an
inclusive culture in which
employees have a sense of
belonging and feel valued.
To achieve our goals for

energy transition, we rely on
a range of talent that reflects
the diverse nature of how and
where we operate.
We completed Talent
Reviews for 54 N-2s and
their organisations, and we
identified successors for
critical and pivotal roles in
Corporate and Projects,
prioritising localisation,
diversity and inclusion.

13
%
In 2021, the use of our LinkedIn
based Learning programme
increased by 13 percent.
Training and development E-learning with LinkedIn Developing the next generation
Employee development is essential and Mishkaty of leaders
in meeting the needs of a high- We provide all employees with With our industry evolving rapidly,
performance driven culture. To e-learning solutions and will the need to develop the next
achieve this, we offer employees a further develop this initiative over generation of leaders is more
wide range of learning and the next couple of years, including important than ever. We strive to
development opportunities, which collaboration with third-parties identify future leaders early in their
include online learning resources and and the development of an careers and to create the right
interactive learning experiences internal curriculum. opportunities for them to acquire
designed to increase personal and expertise and experience. We run
professional effectiveness. Our partnership with LinkedIn multiple initiatives simultaneously
Learning has laid the foundations for for this purpose, including one of
Our partnership with LinkedIn digital learning and enables us to run our most successful programmes
provides us with more than 15,000+ several development programmes at in partnership with PwC’s Academy,
digital learning resources on different levels of the organisation, to facilitate the Leadership
numerous topics, including business from C-level to young managers. In Development Programme (LDP),
and leadership skills, operations 2021, the use of our LinkedIn-based from which 16 participants graduated
management, financial management Learning programme increased by in 2021.
and compliance training and tools. 13 percent. More than 90 employees
Mishkaty, our O&M Learning undertook 39 external courses, or The new EMO Accelerator
Management System Platform, offers online learning modules, achieving a programme, in collaboration with
more than 1,600 learning resources cumulative 22,507 learning hours. HULT EF Corporate Education, is a
covering technical, HSSE and two-year bespoke programme for
behavioral topics. In response to the changing developing business and leadership
workplace, we transformed our in- skills. From more than 200
Lastly, we focus on developing the person development training into nominations, we selected 15
next generation of leaders through interactive virtual learning candidates following a rigorous
the Leadership Development experiences. We increased the selection process to participate.
Programme (LDP) and the Executive number of bespoke courses by 50
Managing Officer (EMO) Accelerator, percent more than 2020.
a new programme designed to
ready high calibre in-house talent Through Mishkaty, our Business
for leadership roles at project Unit O&M learning management
company level. system, users accessed performance
management upskilling sessions
and technical competence
assurance programmes, achieving a
cumulative 11,656 learning hours
during the year.
96
50
%
We increased the number of
bespoke courses by 50 percent
more than 2020.
Health & safety and

employee well-being
The health, safety and well-being
of our people, partners and
communities is ACWA Power’s
chief priority.
Supporting our People’s well-being

In 2021, we gave our corporate
employees the flexibility to work from
home and in their home countries,
but we made digital collaboration
tools available to maintain efficiency
and productivity.
To enable people to manage changes

to the way they lived and worked, we
hosted more than 30 webinars with
external experts on a range of issues,
including mental health, fitness and
stress management. Our global Ibri 2 PV IPP, Oman
emergency assistance programme,
in collaboration with ISOS, provided
24/7 confidential medical and travel
support service to our people and Ensuring standardisation and Crossing 50 million safe manhours
their families. alignment of HSSE management without an LTI (Lost time Injury) for
across all ACWA Power projects the first time in our history
We have built wellness into our
In our quest for an excellent safety ACWA Power crossed 50 million safe
revised HR policies and included
record, we introduced a Construction manhours without an LTI (Lost time
wellness and occupational health in
Project HSSE Management System Injury) for the first time in its history,
our medical insurance benefits.
Manual to ensure standardisation with more than 30,000 workers
Survey results showed 96 percent of
and alignment of HSSE management involved at our 64 assets
respondents were satisfied with
across all ACWA Power construction (construction and operational sites)
the support received and 99 percent
projects. This document is intended across our global operations.
were aware of pandemic-related
to provide guidance at construction
safety protocols.
projects to ensure an effective,
standard approach to HSSE
performance management over the
project’s complete life cycle.

A survey of views summarised our

employees’ understanding and experience
of safety culture and will enable ACWA
Power to make targeted improvements to
achieve safety excellence.
Achieving zero LTI in BU O&M Carrying out a Safety Culture The data acquired during the due
Additionally, we achieved zero LTI in Maturity Assessment diligence will be used to design the
BU O&M, a strong indication of a safe To further enhance HSSE management, ACWA Power Welfare Management
workplace. This was achieved by we commissioned a third-party to System for the development of
ensuring engagement with routine conduct a Safety Culture Maturity future projects.
safety walkthroughs, high-level safety Assessment throughout the
committee meetings, digital tools organisation, including stakeholders Enhancing Process Safety
and best processes and systems. on our construction projects. This is Maturity in 2021
the first exercise we have conducted A process safety management (PSM)
The overall LTI rate decreased to to understand opinion on HSSE system identifies potential hazards
0.01 from 0.03, and incident rates management and the current in day-to-day operations and puts
decreased to 0.05 from 0.12, organisational culture. The measures in place to prevent major
compared to 2020. This was achieved Assessment will highlight good incidents occurring. To build greater
by adopting industry best practice, practices that we can build on, as well awareness of process safety, and to
advanced monitoring tools like as areas for focus and improvement. ensure its effective implementation,
Synergi Life, compliance assurance we developed a process safety video
programmes (such as OHSE and We also conducted a ‘Safety Climate and delivered training to O&M
process safety audits), sharing of Maturity Survey’ in BU O&M, using the projects on PSM.
lessons learned and ongoing HSSE UK's Health & Safety Laboratory (HSL)
training and development. online Safety Climate Tool (SCT) to
measure workforce attitudes to HSSE
Two incidents resulted in the tragic and how it is perceived. A survey of
loss of two people at our under- views summarised our employees’
construction projects. These fatalities understanding and experience of
were unfortunate and unacceptable safety culture and will enable ACWA
low points of 2021. As a result, we Power to make targeted improvements
have engaged an independent third to achieve safety excellence.
party to conduct a rigorous,
360-degree review of our health & Welfare Management
safety procedures, practices and
ACWA Power engaged a third-party
systems at our construction projects.
to design and implement a due
We have also engaged a third-party
diligence process to assess welfare
to design and implement a due
management at construction projects.
diligence process for assessing
This was established as a pilot
worker welfare management at
programme in Taweelah and Um Al
construction projects.
Quwain and covered a comprehensive
Safety remains our highest priority. assessment of welfare management,
including labour rights and well-
being, compliance with local
regulations and other project-specific
requirements, internationally
approved standards and/or good
practices (e.g. IFC standards).
98
0.01

The overall LTI rate decreased
to 0.01 from 0.03, and incident
rates decreased to 0.05 from
0.12, compared to 2020.
104
mn
Total number of operational and
ACWA Power Total (Operational + Construction)
Hours worked
Lost Time Incidents (LTIs)
Unit
Total
Total
2021
104 million
2
construction hours worked. - LTI – employees Total 0
- LTI – contractors Total 2
- LTI rate Average rate 0.01
Recordable incidents rate (TRI) Total 26
Recordable incidents rate (TRI) Average rate 0.05
0
Fatality Total 2

Operational Projects
Hours worked Total 13 million

Average LTI rates across LTI – total Total 0
Operational Projects.
LTI – employees Total 0
LTI – contractors Total 0
LTI rate Average rate 0
Recordable incidents Total 12
Recordable incidents rate Average rate 0.18
0.01
Fatality Total 0

Construction Projects
Hours worked Total 91 million

Average LTI rates across LTI – total Total 2
Construction Projects.
LTI – employees Total 0
LTI – contractors Total 2
LTI rate Average rate 0.01
Recordable incidents Total 14
Recordable incidents rate Average rate 0.03
Fatality Total 2
Health and Safety Compliance
Percentage of operations for which health and

safety impacts are assessed Total 100%
Incidents of non-compliance with national/global health
and safety regulations resulting in a fine or penalty Total Zero

Contributing to our communities

ACWA Power contributes to the communities in which it
operates by encouraging and developing local service providers,
suppliers and the local workforce to stimulate national talent
and assist in developing solutions that contribute to energy
transition initiatives in those countries.
ACWA Power has

always considered
itself to be an integral
member of the
communities in which
it operates.
Amplifying the Kingdom’s next In 2021, a judging panel of senior We channel resources to CSR
generation of innovators leaders from ACWA Power and our initiatives wherever we operate –
We continue to support the immense flagship institute, The Higher Institute whether mandated by the terms
potential of Saudi youth to originate for Water and Power Technologies of our agreements or not – and
progressive and sustainable ideas. (HIWPT), selected three of the most encourage our business units
To highlight the efforts of the next innovative ideas for 90 days of operating in diverse geographies
generation of innovators, ‘The Power incubation and development support, to factor CSR considerations into
is Within You’ is an initiative which following an extensive screening and their operations. When launching
includes an incubation programme selection process of online entries CSR initiatives, due consideration is
designed to help develop winning and virtual presentations from given to the diversity of regional
ideas, using a dedicated training and shortlisted applicants. cultures, values and customs. In
mentoring process. 2021, most of our CSR support was
Driving community impact allocated to supporting various social
The programme empowers youth in ACWA Power has always considered and environmental initiatives in the
the Kingdom to create, ideate and itself to be an integral member of the Kingdom of Saudi Arabia, Morocco
innovate three specific categories communities in which it operates. and South Africa.
in the power and water sectors. We prioritise community engagement
It is inspired by ACWA Power’s and address the most pressing issues
commitment to playing a major our communities face with relevant
role in achieving the renewable CSR programnes. We are fully
energy goals set out in Vision 2030 committed to community development,
and its successful track record of social responsibility and supporting
utilising cutting-edge technology to sustainable livelihoods.
transform operations.
100
16.5 SAR We continue to support the

immense potential of Saudi
mn youth to originate progressive
and sustainable ideas.
In 2021, our total CSR
contribution amounted to over
SAR 16.5 million and supported
a range of initiatives.
In 2021, our total CSR contribution amounted to over We channel resources to CSR
SAR 16.5 million and supported a range of initiatives: initiatives wherever we operate
– whether mandated by the terms
Types of initiatives % of total CSR spending in 2021 of our agreements or not – and
Education 15 encourage our business units
operating in diverse geographies
Health 5
to factor CSR considerations into
Agriculture 5 their operations.
Infrastructure 16
Environmental and social initiatives 53
People of determination 3
Other CSR activities 3
Our regions of operation % of total CSR spending in 2021 In 2021, most of our CSR support
was allocated to supporting various
Red Sea 50
social and environmental initiatives
Gulf 5 in the Kingdom of Saudi Arabia,
Middle East and Asia 4 Morocco and South Africa.
Africa 41
Types of initiatives (%) Our regions of operation (%)
Education 15 Red Sea 50

Health 5 Gulf 5
Agriculture 5 Middle East and Asia 4
Infrastructure 16 Africa 41
Environmental and social initiatives 53
People of determination 3
Other CSR activities 3

Some of our key CSR initiatives in 2021 included:
Supporting the development Supporting local development of Supporting local development

of Saudi technicians the Al Madinah AlMunawara region through agriculture
Kingdom of Saudi Arabia, RAWEC Kingdom of Saudi Arabia, Ouarzazate, Morocco
Al Madinah AlMunawara region
The programme’s main objective The almond plantation initiative in
is to develop the skills and Namaa AlMunawara, the Ouarzazate has rehabilitated and
employability of Saudi youth. We implementation arm for Waqf treated more than 120,000 trees
provided training to five Saudi Al Munawara (Al Munawara since 2015 and helped local farmers
students, who were then hired by Endowment), enables sustainable by doubling production and boosting
the Emad Ba Wazier construction socio-economic development in the sales. Treatment of the trees was
company, which supplies young Al Madinah AlMunawara region by carried out by the plot owners, who
Saudi technicians to the market. supporting small and medium were equipped, trained and paid to
enterprises (SMEs), which are work their own plantations.
considered to be one of the most
vibrant and important sectors in the The initiative is typical of
Kingdom because they generate work ACWA Power’s long-term and
opportunities and drive the economy. sustainable approach:
Namaa Al Munawara’s initiatives • Farmers are hired to work their

include the Industrial City initiative for own land
supporting retail sales; another for • Long-term income for farmers
supporting Madinah-made products; • An automated almond crushing
manufacturing and creativity labs unit has been built and handed
– comprising fully integrated over to the local union
workplaces dedicated to the women • ACWA Power financed a working
of Madinah – for nurturing women’s capital facility so the union can buy
employment and creative almonds from the farmers
capabilities; and the One-Stop Shop,
which provides the various
governmental and consultancy
services that entrepreneurs may
need under one roof.
102

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CORPORATE REVIEW continued

RISK MANAGEMENT continued

Main Risk Areas Key Risks Mitigants

ACWA Power Company Integrated Annual Report 2021 63

This review provides a snapshot of our 2021

Launching Women’s Initiative

Khalladi Wind IPP, Morocco

Improving ESG data New strategy for localisation

Continuous improvement Centre of Excellence launched

Sustainability at 66 Enabling the low- 80 Contributing to our 100

Embodying corporate 70 Creating shared value 92

ACWA Power Company Integrated Annual Report 2021 65

Sustainability at ACWA Power

In 2021, we made progress on the following:

In setting our medium- to We initiated a We continue to work In working towards

Energy transition Water and waste

• Competitive behaviour ESG Framework

ACWA Power Company Integrated Annual Report 2021 67

Our highest-ranking sustainability officer is the

With 64 projects across 12

NOORo III CSP IPP, Morocco

ACWA Power Company Integrated Annual Report 2021 69

Our corporate governance approach

Our corporate governance Supported by a robust framework

The new Board of Directors have also

Our Board of Directors Energy Water

ACWA Power Company Integrated Annual Report 2021 71

ACWA Power promotes alignment

The Board Risk Management

ACWA Power Company Integrated Annual Report 2021 73

Detailed information on the One of the most important

Accounting: The 2021 Board of Completion % Completion % for

Our corporate behaviour

Our compliance approach

ACWA Power has accomplished high

• Highest standards of ethics and

The Compliance Management

Our Code of Conduct

The Company has implemented a

ACWA Power Company Integrated Annual Report 2021 75

ACWA Power has accomplished high standards of

With business regulations In view of our global expansion,

ACWA Power Company Integrated Annual Report 2021 77

Since ESG strategy is integral to the Company’s

ACWA Power Company Integrated Annual Report 2021 79

Enabling the low-carbon transition

Our commitment to tackling climate

CO2 emissions (TMT) – Scope 1

ACWA Power’s footprint is based

ACWA Power Company Integrated Annual Report 2021 81

In 2021, we continued to lead the transition

In 2021, the total (Scope 1 and 2)

calculated the CO2 intensity figure

desalination as well as of thermal

The introduction of coal drove much

CO2 intensity of gross electricity generation

CO2 emission intensity of ACWA Power’s equity share of the portfolio

2019 2020 2021

• Competitive behaviour ESG Framework

• Highest standards of ethics and

CO2 emissions (TMT) – Scope 1

Workplace Talent force Localisation Gender equality

Education 15 Red Sea 50

Namaa Al Munawara’s initiatives • Farmers are hired to work their