SUSTAINABILITYREPORT 2023
BOROUGEChampioning A Sustainable Tomorrow

Our Journey

Our Journey

2015

2017

Borouge Innovation
Centre inauguration in
Abu Dhabi

1998

FOUNDED
Borouge embarked ona unique journey that
led to a successful trackrecord of growth andexecution

2005

Polyolefin productionin Abu Dhabi expands
to 600,000 t/y

2007

Launch of the‘Water for the World’initiative with Borealis

Anteo™ globallylaunched with Borealis

2019

Winning the gold categoryof the Sheikh Khalifa
Excellence Award (SKEA)
for the second time

2013

2021

Received shareholders’approval to proceedwith the final investment
decision for Borouge
4 and commences start upof PP5

Borouge achieves
RC 14001 certification

Increasing
production capacityof the Compounding
Manufacturing
Plant in Shanghai to
90,000 t/y

WATER

for theWORLD.net

Borouge 4
pre-FEED initiatedInitiation of FEED stage for
Borouge 4

Borouge officially adds
recyclates to its portfolio

2023

Borouge achieves its
highest production level of
4.9 million tonnes and sales
volume of 5 million tonnes.
Borouge Value
Enhancement Program
delivers a $607 million
positive impact in FY2023,
surpassing both its initialand revised targets of $400
million and $500 million
respectively.
Borouge 4 projectsurpasses 50% completion
Receives the UAE Energy
Management ISO 50001
Award from the UAE
Ministry of Energy andInfrastructure
Borouge performs in the
top quintile in the Chemical
Industry in the S&P Global
Corporate Sustainability
Assessment (CSA)

2001

Polyolefin productioncommences in Abu Dhabi
with 450,000 t/y

2006

Borouge signs the
Responsible Care® RC
Global Charter

Borouge co-founds theGulf Petrochemicals andChemicals Association

2010

Compounding Manufacturing
Plant in Shanghai starts
producing 50,000 t/y

2014

Polyolefin productionin Abu Dhabi expands to
4.5 million t/y2016

Borouge achieves OHSAS
18001 certification

2018

Celebrating the
groundbreaking of PP5
unit in Ruwais to growpolypropylene capacity to
2.24 million t/y

XLPE productioncommencesin Abu Dhabi

Polyolefin productionin Abu Dhabi expands
to 2 million t/y2020

Establishing new marketingcompanyin Egypt

Producing a special
polypropylene grade
to make face masks

2022

Borouge successfully
starts up the fifth
polypropylene unit in
Al Ruwais Industrial
City, UAE

Recognised by Forbes
Global 2000 and ranked
among the world’s largest
companies
Borouge announces its Net
Zero commitment by 2045

Borouge becomes listedon the ADX, making it thelargest-ever listing in Abu
Dhabi history and the largestever petrochemicals IPO in
the Middle East

Winning the Gold category of
the Sheikh Khalifa ExcellenceAward (SKEA)

2

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

3

CEO Statement

CEOStatement
The year marked a significant milestone
as the UAE proudly embraced 2023
as its Year of Sustainability and theworld convened at COP28 in Dubai. In
parallel, we etched our own milestone
at Borouge - 25 years of service to
our customers, built on a foundationof environmental stewardship andresponsible growth. As we reflect on thesignificant events that shaped 2023, it iswith great pride that I present Borouge’s
Annual Sustainability Report.
Hazeem Sultan Al Suwaidi,
Chief Executive Officer

4

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

5

CEO Statement

CEO Statement
Building on our dedication to sustainability,
I am excited to share that Borouge boldly set a
Net Zero emissions aspiration by 2045, chartinga sustainable course to responsibly manage
our impact and contribute to a decarbonised
future. With this report, we share the results andimpact of our various accomplishments to date.
In line with our devotion to transparency andaccountability, we expanded our sustainability
reporting practices beyond the Global Reporting
Initiative (GRI), the United Nations Sustainable
Development Goals (UN SDGs), and the Abu
Dhabi Stock Exchange (ADX) ESG requirements.
This year, we are aligning our report with IFRS- SASB Standards and Task Force on Climaterelated Financial Disclosure (TCFD) ensuring
our stakeholders have a holistic view of oursustainability journey.
Reflecting a year of progress and successes,
our report reflects our dedication to sustainable
development, and transparent disclosure of
our impact by presenting the major milestones
achieved in 2023. Connecting our commitment
to sustainability with tangible actions, we
implemented a variety of initiatives, such as
the Al Ruwais Environmental Sustainability
Programme (RESP).
This pivotal programme has enhanced ourenvironmental performance, and we are proudof achieving a 25% reduction in GHG intensity
ahead of the 2030 target.
In 2023, we advanced our circular economy
efforts, and I would like to highlight thedevelopment of mono-material PE recyclable
packaging using Machine-Direction Oriented(MDO) technology. With this innovative
approach, we address the challenge of nonrecyclable laminated flexible packaging.
Through the production of fully recyclable
packaging using 100% Borealis Borstar® andincorporating Anteo™ formulations technology,
we contributed to the progressive developmentof recyclable packaging, demonstrating
our commitment to sustainable solutions.
Additionally, we increased the number ofstrategic partnerships with recycling companies
and expanded our product portfolio ofsustainable solutions that are fully recyclable.

6

Today, Borouge has established morethan 18 recycling partners across Borouge
territories, marking an important milestone in
our ambitions towards circularity.
On the social front, we acknowledge ourpeople as our most valuable asset. This isevident in our values, which are underpinnedby an unwavering focus on achieving 100%
HSE. In 2023, we celebrated our annual
Safety Day, highlighting our collective
journey towards safety leadership.
Our 100% HSE commitment is coupled with
our ongoing efforts to create an empoweringand inclusive workplace that mirrors thediversity of the communities we serve.
In line with SDG 5, Borouge continues tochampion gender balance, acknowledging
the significance of diversity and inclusion
within our workforce.
In 2023, we established long-term targets
for gender balance, aiming to achieve a 20%
representation of females in our workforce
by 2030, reinforcing our dedication tocultivating an inclusive workplace that offers
equal opportunities for all. Moreover, ourcommitment to effective Human Capital
strategies, policies, and initiatives has
earned us the Human Capital ExcellenceAwards in both 2022 and 2023.
We are honoured to receive seven awards,
including “Employer of the Year” and thecoveted “Grand Prize- Overall HR ExcellenceAward.” This accolade is a testament to ourunwavering dedication to our talented team.

Over the past 25 years,
Borouge has built a legacy of
supporting local communities
through diverse CSR initiatives
and partnerships, with a focus
on the environment, scienceeducation, access to waterand sanitation, and employee
volunteerism.

Borouge Sustainability Report 2023

For instance, our Borouge without Borders
employee volunteering programme emphasises
collaboration and community engagement. We
recently introduced the Sustainability Champions
Programme to further promote sustainability
throughout the organisation, and our Champions
are strategically located in three key areas: Abu
Dhabi, Al Ruwais Industrial City, China, andSingapore. With their steadfast support, we wereable to successfully advance our sustainability
and CSR agenda.
We demonstrated and delivered robust operating
and financial performance in 2023, leveraging ourcompetitive advantage.
Our sales volumes have grown, and we remainedcommitted to innovation to expand our market
share and product portfolio. We are pleased toannounce our ambitious Value Enhancement
Programme achieved a positive impact of $607
million in 2023, surpassing both its initial target
of $400 million and the later revised target of$500 million. Furthermore, the Borouge 4 project,
one of the UAE’s largest industrial projects, hasachieved 50% completion.
This project is significant to both Borouge andthe development of the UAE’s industrial sector.
Upon completion, it will enhance our production
capacity, as well as our product portfolio,
through the implementation of the latest Borealis
Borstar® technology and establish our facilities
at Al Ruwais Industrial City as the world’s largest
single-site polyolefin complex.
As we share these achievements, we
acknowledge that sustainability is a journey,
not a destination. We will continue to innovate,collaborate, and lead positive change in
the industry. I extend my gratitude to ourstakeholders, partners, employees, customers,
and the communities we serve.
Your unwavering support and collaboration havebeen instrumental in advancing Borouge on oursustainability journey. Together, we have achieved
significant milestones, and your steadfast support
has been the driving force behind our successes.

Hazeem Sultan Al Suwaidi,
Chief Executive Officer

Borouge Sustainability Report 2023

7

VP Statement

VP
Statement
I am delighted to showcase Borouge’s
significant sustainability accomplishments
throughout the UAE Year of Sustainability
in our 2023 Annual Sustainability Report.
As the Vice President of Sustainability,
I am proud to lead our efforts tocontinue integrating sustainability into
our operations and culture, steering
Borouge towards a future that is not only
environmentally and socially responsible,
but also economically viable.

Maitha Al Marashi,
VP Sustainability

8

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

9

CEO Statement

VP Statement
Drawing from our history of
consistently enhancing our
performance, we remain dedicatedto the welfare of society and theconservation of the environment,
all while safeguarding the interestsof our stakeholders. In alignment
with the UAE’s Net Zero aspirations,Borouge proudly announced our Net
Zero by 2045 ambition.
This unwavering commitment signifies our activerole in tackling the climate crisis, driving tangible
change, and contributing meaningfully to theglobal effort.
We are honoured to secure first place in the UAE
Energy Management ISO 50001 Award, bestowed
by the UAE Ministry of Energy and Infrastructure, inrecognition of our outstanding energy performanceand robust Energy Management System.
Additionally, this year, a pivotal achievement inour sustainability efforts was reached by our
Compounding Manufacturing Plant (CMP) in China,
by becoming our first “green” powered facility.
The installation of a rooftop distributed
photovoltaic station is set to reduce our CO2
emissions by up to 1,256Mt/year.
Throughout the years, Borouge has been fostering
a culture of circular economy.
We actively engage in initiatives such as ourpartnership with RECAPP which aims to drive
circular economy initiatives with innovative
recycling solutions. Through this collaborative
effort, we were able to contribute to fostering
a culture of environmental responsibility andcommunity engagement towards a more circular
economy.

This programme complements our series ofcommunity-centric initiatives and reinforces ourdedication to making a positive impact, such as
the Polymers on the Move (POTM) programme.
POTM is a bespoke chemistry and polymersoriented curriculum focusing on educating theyounger generation about the importance ofrecycling, and the significance of a circular
economy. In 2023, we achieved the highest
impact in the history of POTM which reachedmore than 7,200 students.

Our commitment to sustainability
is unwavering, and we
acknowledge the challenges
ahead. However, we are resilient
and will continue to invest inoperational improvements andsustainable initiatives.

We highly value the input of our stakeholders
and actively seek to incorporate their feedback
into all our endeavours. Borouge is devoted toaccelerating excellence and shaping a brighter, moresustainable future. Your support and collaboration
are essential as we persist in pushing boundaries,
and we sincerely thank our stakeholders for their
ongoing partnership and shared commitment tosustainability.

Maitha Al Marashi,
VP Sustainability

In the upcoming year, we plan to enhance our
Scope 3 emissions accounting, providing amore comprehensive overview of our carbon
footprint. Borouge’s dedication to sustainability
is evident in our performance in the S&P Global
ESG index.

The Company performed in
the top quintile in the Chemical
Industry in the S&P Global
Corporate Sustainability
Assessment (CSA). We remain
steadfast in enhancing our ESG
performance and score, witha commitment to addressing
challenges and demonstrating
resilience in the face of adversity.

Our latest CSR initiative, “Food for Taught,” aims
to engage the local communities, especially theyounger generation, to raise awareness of theimportance of technology and using our innovative
polymer solutions in ensuring food security for thegrowing world population.

10

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

11

Contents
Our Journey ����������������������������������������������������������������������������������������������������������������������������������2
CEO Statement ����������������������������������������������������������������������������������������������������������������������������4
VP Statement ��������������������������������������������������������������������������������������������������������������������������������8
About this Report ����������������������������������������������������������������������������������������������������������������������18
Our Company ����������������������������������������������������������������������������������������������������������������������18
Our Vision, Mission & Values ����������������������������������������������������������������������������������������������20
Our Operations ��������������������������������������������������������������������������������������������������������������������22
Borouge 2030 Strategy��������������������������������������������������������������������������������������������������������28
Sustainability at Borouge ����������������������������������������������������������������������������������������������������32
Our Solutions ����������������������������������������������������������������������������������������������������������������������38
Stakeholder Engagement & Materiality Assessment ����������������������������������������������������������40
Materiality Assessment Approach ��������������������������������������������������������������������������������������42
Alignment to National Mandates ����������������������������������������������������������������������������������������44
Environment ��������������������������������������������������������������������������������������������������������������������������������46
Climate Leadership & Resilience ����������������������������������������������������������������������������������������48
Water Stewardship ��������������������������������������������������������������������������������������������������������������58
Optimising Materials ������������������������������������������������������������������������������������������������������������62
Circular Economy ����������������������������������������������������������������������������������������������������������������62
Waste Management ������������������������������������������������������������������������������������������������������������68
Environmental Operations and Compliance ����������������������������������������������������������������������72
Social��������������������������������������������������������������������������������������������������������������������������������������������74
Diversity and Inclusion ��������������������������������������������������������������������������������������������������������76
Our Workforce����������������������������������������������������������������������������������������������������������������������88
Learning and Development ������������������������������������������������������������������������������������������������95
Health and Safety ����������������������������������������������������������������������������������������������������������������97
Human Rights��������������������������������������������������������������������������������������������������������������������102
Corporate Social Responsibility (CSR)������������������������������������������������������������������������������103
Economic ����������������������������������������������������������������������������������������������������������������������������������108
Economic Performance������������������������������������������������������������������������������������������������������109
Enhancing Innovation ��������������������������������������������������������������������������������������������������������112
Tax��������������������������������������������������������������������������������������������������������������������������������������120
Overview of Borouge’s Governance����������������������������������������������������������������������������������122
Borouge Corporate Business Process Model ������������������������������������������������������������������126
Ethics & Compliance ��������������������������������������������������������������������������������������������������������128
Risk Management ������������������������������������������������������������������������������������������������������������142
Supply Chain Management ��������������������������������������������������������������������������������������������� 145
Quality Management ������������������������������������������������������������������������������������������������������� 150
Policy Engagement ������������������������������������������������������������������������������������������������������������������140
Audit and Assurance ��������������������������������������������������������������������������������������������������������140
Risk Management ������������������������������������������������������������������������������������������������������������142
Quality Management ��������������������������������������������������������������������������������������������������������150
Borouge Corporate Business Process Model ������������������������������������������������������������������126
Ethics & Compliance ��������������������������������������������������������������������������������������������������������128
Appendix 1: Membership of the Association ������������������������������������������������������������������������154
Appendix 2: Awards and Recognition ������������������������������������������������������������������������������������155
Appendix 3: Certifications ������������������������������������������������������������������������������������������������������156
Appendix 4: Conferences ��������������������������������������������������������������������������������������������������������156
Appendix 5: GRI Index ��������������������������������������������������������������������������������������������������������������157
Appendix 6: ADX Index ������������������������������������������������������������������������������������������������������������163
Appendix 7: SASB Index ����������������������������������������������������������������������������������������������������������164
Appendix 8: TCFD Index ����������������������������������������������������������������������������������������������������������165
Appendix 9: Independent Assurance Letter ��������������������������������������������������������������������������166

12

Borouge Sustainability Report 2023

About Borouge

About this Report
Welcome to Borouge’s 2023 Annual Sustainability Report.
This report highlights the successes and learnings we acquired on
our sustainability journey throughout 2023, and provides insight
into our sustainability goals, initiatives, progress, and impacts, while
also offering a glimpse into our future plans. Moreover, it delves into
the integration of sustainability within Borouge’s operations and the
management approach to address the material topics that impact
our business and our stakeholders.
This report showcases how Borouge, as a company, creates value for our stakeholders and how
our unwavering commitment to sustainability principles contributes to our long-term success.

Reporting Boundary
This report presents data collected from 1 January and 31 December 2023, focusing on oursustainability performance and initiatives related to the material topics. Information and datafrom previous years are included to enhance the comparability of our year-on-year performanceon ESG parameters.
The boundary of this report covers sustainability data for Borouge PLC located in the United ArabEmirates (UAE) and in Singapore, covering the entities over which we have operational control
Unless specified, data pertaining to subsidiaries, clients, external contractors, and suppliers are
not included. Any statement with a different boundary or scope of reporting is explicitly noted.

14

Borouge Sustainability Report 2023

About Borouge

Reporting Frameworks

Reporting AssuranceThis report was prepared with reference to the GRI Sustainability Reporting Standards 2021 (GRI
Standards). As a public joint stock company listed on the Abu Dhabi Securities Exchange (ADX),
Borouge’s Sustainability Report is also aligned with the ADX ESG Disclosure Guidelines.

The information presented in this report regarding key material topics has been externallyand independently assured by a third party using ISAE 3000 standards. The detailed assurance
statement can be found on page 166. Moreover, the data presented in this report has undergoneinternal validation, including multiple rounds of review by the Sustainability Report project team,internal subject matter experts, and senior management.

The report is also mapped with elements from key sustainability reporting standards and frameworks
such as the Sustainability Accounting Standards Board (SASB) for the Chemical Sector, the Task Forceon Climate-Related Financial Disclosure (TCFD), and United Nations Sustainable Development Goals(UN SDGs) (see appendix page 157 at the end of this report for full details). We thoroughly explore therelevance of sustainability reporting standards and frameworks for their alignment and contribution to
improving our sustainability reporting practices.

Feedback and Contact Details
Thank you for your interest in Borouge’s Sustainability Report. We value your feedback
and welcome your comments, suggestions, and questions regarding this report. For feedback
and queries on this report, you may email sustainability@borouge.com

Reporting Principles
To achieve high-quality sustainability reporting, we applied the following GRI reporting principles.

16

Accuracy

Balance

ClarityComparability

CompletenessSustainability
context

Timeliness

Verifiability

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

17

About Borouge

Our Company
Borouge is a strategic partnership between Abu Dhabi National Oil
Company (ADNOC) in the UAE and Borealis in Austria. Borouge consists
primarily of two operating entities; a production company primarily
responsible for polyolefin production, headquartered in Abu Dhabi(ADP), and a sales and marketing company primarily responsible for themarketing, sales, and distribution of products to customers around theglobe, headquartered in Singapore (PTE).

A strategic partnership with supportive shareholders – Legal Structure below:

LEGAL STRUCTURE
Free Float

Borouge is a leading petrochemical company that provides creative polyolefin solutions
for a wide range of industries. Our portfolio of products comprises polyethylene and polypropylene(the two most common forms of polymer) which are used for a variety of consumer andinfrastructure applications.
Borouge PLC (Borouge) was incorporated on 3 June 2022 in the jurisdiction of Abu Dhabi Global
Market (ADGM) for the purpose of serving as the holding company for ADP and PTE and waslisted on ADX. ADNOC and Borealis remain committed as strategic and long-term shareholders,
and together we have grown to become one of the world’s leading providers of innovative anddifferentiated polyolefin solutions.

10%
Abu Dhabi National
Oil Company(ADNOC)

Borealis Middle
East Holding(BMEH)

54%

36%
Borouge PLC (ADGM entity)

Established in

1998

Employs over

3,030
employees

15.25%

Nationalities

50

100%

Abu Dhabi Polymers
Company

84.75%
Borouge Pte Ltd
(PTE)

(ADP)

18

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

19

About Borouge

Vision, Mission, & Values
Our Vision
The recognised leader in creative
polyolefin solutions that have a positive
impact on society today and tomorrow.

Our Mission
Value creation through people andinnovation.

Our Values
At Borouge, we are one family
working together in making Borougea greater place for us and generations
to come, through living and breathing
our five values of progressive,
collaborative, responsible, respectfuland efficient.

20

Borouge Sustainability Report 2023

About Borouge

Our Operations
We continue to grow by expanding our production capacity, striving for excellence, providing
differentiated products to our customers, and pursuing a circular approach.
As we grow our operations, we intend to explore sustainable circular economy solutions
and initiatives to deliver a positive impact on society.
We export our advanced and high-quality products to customers around the world.
Our coordinated global sales and marketing organisation is supported by strong distribution
and logistics capabilities, allowing us to reach customers globally while maximising returns.

Our International Presence
Compounding
Plant
Shanghai (China)

Borouge Plant
Al Ruways
Industrial City
(UAE)

Application
CentreShanghai (China)

Beijing

Seoul
Tokyo

Shanghai
Cairo

Marketing HQSingapore

Guangzhou
Al Ruways

New Delhi

Abu Dhabi
MumbaiBangkok

Ho Chi Minh City

Singapore

Innovation
CentreAbu Dhabi (UAE)

JakartaBorouge HQ
Abu Dhabi

Head Office: ADP

Head Office: PTE

Petrochemical Complex

Innovation Centre

Sales, Marketing, Representative Offices

Compounding Plant

With Borouge’s innovation and sustainability initiatives anchoring end-to-end production andmarketing activities, Borouge is poised to remain an agile player and a responsible corporate
citizen in the constantly evolving market landscape.

22

Borouge Sustainability Report 2023

About Borouge

Plastic
converter
Polyolefin
producer

We plan to achieve 6.4 million tonnes of polyolefin production capacity by 2025, a 14-fold increasein overall capacity since our first production. In recent years, the notion of a circular economy
has gained traction, with many companies looking to operate in a way that goes beyond merely
minimizing waste. Contrary to the linear process of taking materials, manufacturing products,
and eventually discarding them as waste, a circular economy encompasses a broader spectrum ofsustainable practices. At its core, a circular economy aims to optimize resource usage throughout
the entire value chain. This entails shifting away from the linear “take-make-dispose” model
towards one that emphasizes circularity and resource efficiency. Key elements such as design for
ecoefficiency, design for recycling, reuse, and recycling play pivotal roles in achieving this goal.

Filler/PackerManufacturing

Recycler

Brand
owner

Recovery

Circular Design

Borouge is committed towards operating a sustainable business with solutions that makea positive impact today and tomorrow. We will continue to share more on our Circular Economy
Solutions (CES) efforts, and how they will support in accelerating Borouge’s growth as we workto achieve our circularity ambitions.

Transport

Energyrecovery

As a leading petrochemical company, it is in our interest to be at the forefront of the transformationof the industry and we are invested in strategic actions towards the acceleration of a circular
economy. These include focusing on our innovation and design for recyclability capabilities,
and recycled polyolefin through strategic partnerships, and advocacy initiatives. With impending
legislations implemented across the globe, ESG pledges made by corporations and brand owners,
and increasing consumer awareness, are driving us to integrate sustainability into every aspectof our business.

Retailer

Annual manufacturing capacities of the Al Ruways Industrial City
operations (in tonnes)

Usage
Waste
collectors
and sorters

Cracker 1

Consumer

Polyethylene
2.2 million
Cross-linked Polyethylene
80,000EthaneADNOC Gas
Processing

Cracker 2

REUSE

Low Density Polyethylene
350,000
Olefins Conversion Unit
750,000

5 Million Polyolefins

Cracker 3

Borouge started production in 2001 with 450,000 tonnes per year.
By 2010, we had tripled our annual production capacity to 2 million
tonnes. Subsequently, in 2015, we further increased our annual
capacity to 4.5 million tonnes, and our production capacity reached
5 million tonnes in 2023.

24

Borouge Sustainability Report 2023

Propylene
ADNOC
Refining

Borouge Sustainability Report 2023

Polypropylene
1.7 million

Polypropylene
480,000

25

About Borouge

Success story - Beyond Borouge 4: Cracker Revamp
Pre-FEED Completion
We are pleased to announce the successful completion of the Ethylene Unit 2 (EU2) 16% capacity
expansion project Pre-FEED activity. The expansion of the EU2 unit supports our ambitious 2030
growth strategy, which aims to significantly enhance long-term revenue potential, in support ofsustainable and profitable growth. The revamp will increase our ethylene production capacity from2028 onwards by 229 KTA which will increase the total annual polyolefins production capacity
through downstream expansion.
Various rigorous Value Improvement Practises (VIP) workshops were conducted involving different
stakeholders to optimise cost, energy, and CO2 emission without compromising on 100% HSE.
The Key highlights are:26•

Overall increase in Ethylene production by 229 KTA of Ethylene•

CO2 emission intensity reduction by 8.7%•

CAPEX Savings opportunities identified for further evaluation•

Completion of the Pre-FEED activity lower than the Pre-FEED Budget by more than 20%

Borouge Sustainability Report 2023

About Borouge

Borouge 2030 Strategy
By implementing this strategy, we continue to expand our capabilities and strengthen
our market position. We also believe that in achieving our growth, we will lead the developmentof the UAE petrochemical sector and be recognised for innovative solutions.

Borouge 2030 (B2030) Strategy is built on three strategic themes:

Excellence, Identity, and Growth.
Growing portfolio ofdifferentiating solutions
Growing circular
economy solutions

To date, the B2030 Strategy has delivered the desired results, as
demonstrated in the following.
Our key highlights around the three main themes of the B2030 Strategy are:Value accretive capacity
expansion projects

GrowthIdentity
Strong and cohesive
identity and culture

Excellence

2023 Highlights

HSE and Operational
Excellence•

Achieved a low TRIR of 0.10 remained below average
between 2020 - 2023•

Zero Process safety Tier-1/2 incidents•

HSE Cultural Transformation achieved its objectives
for 2023•

Held a total of 429 HSE trainings for employees andcontractors and achieved a total of 25,450 HSE training
man-hours.

•

400+ leadership site engagement tours, 190+ leadershipgroup engagements, 3800+ Behavioural based safety
trainings completed.

•

1000+ filed patents and 600+ granted patentfor new solutions

Innovation Excellence•

8 new PE & PP grades commercialised in 2023

Commercial Excellence•

Value Enhancement Programme has delivered a $607
million positive impact in 2023

Identity

2023 Highlights

Strong and Cohesive
Identity and Culture•

Enabled potential savings of more than $100,000 and 130t
CO2eq, through the launch of the Sustainability channel
as part of Borouge-out-of-the-box.

Corporate Citizenshipand ESG Commitment•

Borouge announced a Net Zero emissions ambition
by 2045.

•

Established long-term targets for gender balance, aiming
to achieve a 20% representation of females in our
workforce by 2030 from 15.2% female workforce in 2023.

•

All-time record of community outreach, with more than
11,000 people in our communities positively impacted byour bespoke CSR programme.

Corporate clitizenshipand ESG commitment

Excellence

Borouge branding

HSE and operational excellenceInnovation excellence
Commercial excellence

The B2030 Strategy comprises a series of initiatives to consolidate and optimise the business
operations of Borouge. The strategy works to ensure the continued growth of Borouge, through the
pursuit of excellence and a common Borouge identity.

Maintain “differentiatedat scale” as the key positioningof Borouge

Explore offering recyclates
as part of our product portfolio
B2030
STRATEGY
Pursue excellence anddrive margin efforts acrossthe value chain.

28

Continue growing ourcapacity and, leveraging
our market growth.

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

29

About Borouge

30

Identity

2023 Highlights

Borouge Branding•

Growing portfolio of advanced polyolefins virgin products
for easy-to-recycle mono-material solutions.

•

Collaboration across the entire value chain to develop
innovative designs for 100% recyclable applications.

•

Becoming the preferred partner for major global brandowners for using recyclate content in their applications
and designs.

Growth2023 Highlights

Growing Portfolio
of Differentiating
Solutions•

Growth in differentiated sustainable applications such
as High Voltage Cross linked polyethylene (XLPE) cable.
XLPE insulation volume was doubled in 2023 vs. 2022
(33kt sold in 2023)

Growing Circular
Economy Solutions•

More than 18 recycling partners across Borouge territories
a 50% increase from 2022.

•

Sold 59.6 kt circular economy solutions (design forrecycling and recyclate products), valued at a $20.5
million sales margin. Avoiding leakages of 174,000 tonnesof polyolefins waste to the environment and estimatedsavings of 150,000t CO2eq.

Value Accretive
Capacity Expansion
Projects•

The Borouge 4 project, one of the UAE’s largest industrial
projects, has surpassed 50% milestone completion.

Borouge Sustainability Report 2023

About Borouge

Sustainability at Borouge
We are committed to the wellbeing of society and the preservation of the environment while addressing
the economic expectations of our shareholders.

In line with the three pillars of sustainability, we commit to:

We are a leading provider of sustainable, innovative and value creating polyolefin solutions and we
conduct our business within the framework of our values, vision, and mission, and in accordance withapplicable laws, regulations, and industry standards. We focus on the performance, profitability andefficiency of our operations and enhance the contribution and development of our people, while actively
contributing to meeting the United Nations Sustainable Development Goals (SDGs).

•

Pursuing a goal of no harm to people and society•

Contributing to solutions that deliver a positive and sustainable impact on people’s lives•

Promoting the health and welfare of our people and the communities where we operate

We are committed to exploring and driving opportunities towards
a circular economy.

• uilding diverse and multicultural human capabilities and creating opportunities
B
for individual growth•

Fostering mutually beneficial partnerships and social initiatives within the industry and society

As a signatory of the Chemical Industry’s Responsible Care® Global Charter, we apply best practices andpursue continual improvement. Our three pillars of sustainability•

Respecting and conforming to relevant social, cultural, legal, and ethical aspects of society

PeopleSocialresponsibility

People: Social Responsibility

Planet: Environmental Stewardship• ddressing global challenges, such as climate change, water, food, energy, healthcare,A
and waste, with innovative solutions•

Minimising discharges, waste, and emissions, safeguarding biodiversity, enhancing energy
performance, and optimising the use of natural resources• nsuring that energy performance improvements are considered throughout the durationEof the intended lifecycle of our assets•

Optimising the positive health, safety, environmental, energy and societal impacts of ourpolymers throughout their lifecycle

Profit: Economic Growth

Sustainability

ProfitEconomic
growth32

PlanetEnvironmental
stewardshipBorouge Sustainability Report 2023•

Maximising shareholder return throughout the value chain•

Enhancing the reputation of Borouge and the image of the polymer industry•

 nsuring that the design, operational and technical integrity of our assets are sustainedEthroughout their lifecycle•

 trengthening organisational resilience through the application of effective risk management,S
security and emergency preparedness, and business continuity practices•

 dvancing the development of local downstream industries, and scienceAand engineering capabilities•

Optimising responsible global procurement and supply chain opportunities

Borouge Sustainability Report 2023

33

About Borouge

Al Ruways Environmental
Sustainability Programme (RESP)
Signalling our commitment to mitigate ourenvironmental impact, our 2025 Al Ruwais
Environmental Sustainability Programme (RESP)
has yielded positive results over the past years.
Through the implementation of RESP, we canachieve significant optimisation, particularly
through reducing emissions, waste generation,water, and energy consumption. Our RESP
performance achievements are detailed in theEnvironment chapter.

Contributing to a Circular
EconomyBorouge continues to explore and drive
opportunities toward a circular economy.
As a responsible petrochemical company,
we believe that achieving a zero-waste circular
economy requires concerted actions bygovernments, industry, consumers, and society.
We strongly advocate the reuse of plastic
products and the recycling of post-consumer
plastic waste into second generation products.

At Borouge, we continue to provide and further
develop solutions that are fully recyclable. We
have achieved our ambition to add recyclates
as part of our product portfolio.
We are developing new ways to reduce material
use, enhance the durability of products,
promote new designs that enable reuse andrecycling, and encourage the use of recyclates
where possible across our value chain.
We remain committed to exploring and driving
opportunities towards a circular economy.

Recycling Partnerships –establishing more than 18
recycling partners acrossBorouge territories.
Establishing recycling partnerships underlines
Borouge’s ongoing commitment to the circular
economy.
These partnerships reflect our commitment
to making a positive impact on society by being
able to offer recycled products, complementing
our efforts to support customers, andcollaborating with value chain partners to
produce sustainably and efficiently.
Borouge has set internal targets to cater tothe increasing demand from the industry forsustainable solutions that are fully recyclable.
To this end, we are designing and developing
consumer and infrastructure solutions in the
Borouge Innovation Centre in Abu Dhabi.
Borouge is also working to develop a robust
eco-system to drive and advocate forsustainable recycling capabilities.
The partnerships allow Borouge to expand
our offering of recycled products to meet theincreasing demand for sustainable polyolefin
solutions that are fully recyclable.
The mechanically recycled polyolefins, sourced
through these partnerships, are put throughBorouge’s stringent trials and qualificationsin the Packaging Centre of Excellence in Abu
Dhabi to ensure suitability and compatibility forvarious applications.

Our HDPE Solutions Solar Tracker Bearings

34

Borouge Sustainability Report 2023

Global Recycle Standard
Certification
The Global Recycle Standard (GRS) certification
for trading was issued to Borouge for ourrole as a distributor of mechanically recycled
polyolefins. GRS is an international, voluntary,
full-product standard that sets requirements
for third-party certification of recycled content
and chain of custody. It also verifies responsible
social and environmental processing
requirements and chemical restrictions.
GRS aims to provide consumers, both brandowners and end users, with a tool to makeinformed decisions about recycled products.
Other objectives of the GRS include reducing
the harmful impact of production on people
and the environment, providing assurance that
products are processed more sustainably, anddriving higher percentages of recycled content
in products.
The GRS certification solidifies Borouge’s
stance towards providing sustainable polymer
solutions, providing assurance to our customers
on the authenticity and quality of our recycled
polyolefins through an auditable process in therecycling distribution business.

Borouge has the Global Recycled
Standard (GRS) certification
for trading due to our role asa distributor of mechanicallyrecycled polyolefins for Borouge
Pte and Borouge Shanghai S&M.

Our Commitment to Circularity•

Borouge supports the UN Environment
Assembly resolution to end plastic pollution(UNEA-5.2).

•

Plastic products can contribute to achieving
the UN SDGs when they are sustainably
produced, used, and recovered in a circular
economy.

Borouge is focused on achieving the ambitionsof UNEA-5.2 through the following activities andspecific targets.
Durable Products•

Keeping 2021 as our baseline, increasing
the capacity for durable products by 1mt/yby 2030 as part of our commitment madeduring IPO in 2022

Recycled Content•

Develop unique virgin solutions to enable
incorporation of high content of PCR (Post
Consumer Recyclate) in consumer solutions
and significantly grow the recyclatebusiness through partnerships and own
growth initiatives

Product Recyclability•

Increasing innovations in product design
with fully recyclable mono-material solutions
enabled by our sustainable packaging
solutionsEliminate Leakage

Borouge Sustainability Report 2023•

Operations Clean Sweep – signed a pledge
to prioritise achieving zero pellets, flake,
and powder loss.

•

Project STOP - a frontline action group to
develop circular and sustainable waste
management models in Southeast Asia
where there is a high leakage rate. Project
STOP was co-founded by our shareholder,
Borealis and we served as a funding partner
during its initial phase.

37About Borouge
Mobility

Our Solutions

Our mobility innovations support the transition toElectric Vehicles (EVs) and make any vehicle lighter,safer, and more efficient.
Beyond materials, our true focus is moving people
and the industry forward, in a sustainable way.

Green Transportation
Strong and lightweight materials that
improve vehicle fuel efficiency andreduce CO2 emissions, whilst enabling
the development of EVs.

We offer a range of industry solutions that deliver a positive and sustainable impact on people’s
lives. We provide value-creating polymer solutions for the infrastructure, energy, agriculture,mobility, healthcare, and advanced packaging industries.
In addition, we launched an initiative to deliver electrification solutions that will address global
megatrends and the energy transition. Our innovative polymer solutions contribute to addressing
global challenges such as climate change, food waste, and scarcity, access to fresh water, energy
transition, healthcare support, and waste management. We employ Borealis’ most advanced
proprietary technologies to provide creative solutions for a wide range of industries and customers
around the world, in an effective and environmentally sound manner.

OUR SOLOUTIONSADDRESSING GLOBAL CHALLENGES THROUGH
OUR PRODUCT PORTFOLIO

Advanced Packaging
Consistency, long shelf life and material advantages
are proven benefits of our packaging solution portfolio.
We also work to ensure that products arrive freshand tasty, contributing to reducing food waste andimproving overall food availability. The fully recyclable
mono-material solutions provided by Borouge enablecircularity and support a waste-free environment.

Food Safety and Protection
Enhanced food protection and safety
across the value chain.

EnergyThe World is experiencing unprecedented growthin the energy sector driven by electrification andenergy transition. Cross country and cross continent
land and subsea cables are more common.
Our energy solutions are used in numerous highprofile projects around the world. Our latest entry
into the High Voltage submarine cable segment
supports our electrification objectives by ensuring
reliable energy transportation from renewable power
generation sources such as offshore wind farms.

Driving Renewable and Reliable
Energy Access:Meeting the world’s increasing
demands for smart living by enabling
access to sustainable energy sourcesand efficient power transmission.

When we deliver our agriculture solutions, we think
about more than a greenhouse. We solve challenges
for farmers and their growing businesses, and thecommunities they feed. We are working with many
value chain stakeholders including universities, R&D
companies, government agencies and progressivecommercial farmers to promote our innovative
solutions that contribute towards food sustainability.
Our agriculture solutions are used to protect andgrow crops under optimal conditions all year round,
contributing to healthier and increased crop yields.

Infrastructure
Our infrastructure solutions are used in manydifferent industries, including water/gas distribution
and transmission, sanitation, plumbing and heating,industrial, and energy, ensuring the health and safetyof communities worldwide.
Reliable and durable pipe solutions are vital in helping
to significantly reduce non-revenue water, save energy,
and better serve communities and industries in the
future thus enhancing sustainability. Furthermore,they are used to transport and distribute clean waterand gas through safer, longer lasting, and more
efficient pipe networks with lower CO2 emissions
over their lifetime.

38

Agriculture
Sustainable Food Supply
Improving crop yield for enhanced
food security and greater economic
self-sufficiency of farming
communities.

Clean Water Distribution
and Sanitation
Access to clean drinking waterand sanitation with sustainable pipematerials, ensuring safe, durable,
and efficient access to our mostvital resource.

Healthcare
Our healthcare solutions meet the strictest global
regulations, and are enabling peace of mind for thehealthcare industry who use our solutions daily tosave, enhance and protect lives every day.

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

Safe Medical Devices
Improved healthcare with a newgeneration of materials for safer,more convenient, and affordable
medical equipment.

39About Borouge

Stakeholder Engagement& Materiality Assessment
At Borouge, we recognise the significance of our diverse stakeholder community, comprisingcustomers, employees, partners, shareholders, and the broader community. We understand thatmeaningful engagement with our stakeholders is essential for driving transparency, fosteringcollaboration, and achieving sustainable value creation.
Our commitment to stakeholder engagement is unwavering. We actively seek feedback, listen toconcerns, and collaborate with our stakeholders to understand their needs and expectations. By
maintaining open lines of communication and fostering mutual trust, we aim to build strong andlasting relationships with all our valued stakeholders.

Stakeholders GroupHow do we Engage?

Employees- Internal communications(intranet, newsletters,
emails, Microsoft Teams,
and Yammer)- Townhalls-E mployee Engagement
SurveyThrough continuous dialogue and collaboration, we strive to ensure that our business decisions
and actions align with the interests of our stakeholders while also contributing positively to society
and the environment.

Stakeholders GroupHow do we Engage?

How often we
Engage?

Shareholders-E arnings presentations
and press releases-Q uarterly investor
earnings calls-A d-hoc press releases
on key achievements
and announcements-R egular meetingsand conferences with
Investor Relations andsenior management-A nnual General
Meetings- Non-deal roadshows- Corporate website-A d-hoc press releases
on key achievements
and announcements as
and when required-M eetings andconferences take place
on an ongoing basis
throughout the year-N
 on-deal roadshows
take place after eachquarterly reporting
cycle and are alsoorganised on an adhoc basis as required

How do wecreate value forstakeholders-E nsure shareholders
are updated on
the latest businessperformance, plansand outlook-C orporate and department
events and activities-M eetings with LineManagers for performanceappraisals

Suppliers andContractors-R egular customer
visits or contacts bySales and Marketing
employees, either inperson or virtually-E mployees also record
customer data via
Salesforce (customised
Customer RelationshipManagement) platform

40-O
 ngoing two-way
communication
maintained (feedback
provided to and from
customers)-C ustomers arecontinually updated
on new productinnovations- Industry

events and talks-S creening andassessments-J oint projects- Internal communications(intranet, newsletters,
emails, Microsoft Teams,
and Yammer) as and whenrequired-T ownhalls every quarter-Employee Engagement
Survey every year
-Corporate and department
events and activities as
and when required

How do wecreate value forstakeholders-A ccess to senior
management through inperson and virtual events-P ersonal and professional
development through onthe-job and instructor-led
trainings-P rovide a sense of
belonging and inclusivity-Meetings with LineManagers for performanceappraisals twice a year
Ongoing two-way
communication maintained
throughout the tendering
process until the award
stage

Sustainable long-term
relationships
and partnerships- Ongoing initiatives-P rovide employment
opportunities-A ll communications
shared with suppliers
through a system called‘Borouge Ariba’ interms of technical andcommercial clarifications
and contract awarding-E nable open
communication andtransparency withshareholders- Return
on investment-P hysical meetings or
virtual meetings- Strong dividend payout

Communities-P ublic events, roadshows
and activities in the local
communities and schools-C orporate website-C orporate website
updates as and whenrequired

Customers-S ite visits

How often we
Engage?

-P rovide access to basic
sanitation (e.g., Water for
the World project)-E ducation and knowledgetransfer for local
communities-E nhance knowledgeof customers’
requirements byplacing their needs
at the centre of allactivities-P rovide a seamlesscustomer experiencejourney by improving
processes, efficiency,
and response time tocustomers

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

41

About Borouge

Materiality Assessment
Approach
We follow the GRI 3: Material Topics 2021 approach for conducting
our materiality assessment.
This framework entails assessing the significance of identified impacts based on various criteria:•

The significance of an actual positive/negative impact is determined by the severity of the impact.

•

The significance of a potential positive/negative impact is determined by the severity and likelihoodof the impact.

GRI defines material topics as those that “represent the organisation’s most significant impacts on theeconomy, environment, and people, including impacts on their human rights.” In 2023, we conducteda materiality refresh exercise to assess the ongoing relevance of last year’s topics and identify any
updates necessary. Throughout this process, we continued to consider our stakeholders and theirconcerns, expectations, and requirements in all our business processes, activities, decision-making
processes, and long-term sustainability approach.
The key stakeholders considered for the materiality assessment include our shareholders, customers,
employees, suppliers and contractors, government institutions, environmental NGOs, industry
associations and brand owners, academic institutions, media, and the communities in which we operate.
We conducted both internal and external assessments with the support of relevant stakeholders, senior
management, sector experts, and business relationships.

Our List of Material Topics
Following the materiality refresh exercise, we have identified two new topics (Climate Change and CSR)
to complement the 14 topics identified as the most material to our business last year. These topics havebeen organised into three core priority areas: Environment, Social, and Governance. This report provides
our disclosure and progress against these identified material topics, as listed below:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

42

Greenhouse Gas Emissions
Business Ethics and Governance
Water Consumption
Recycling and Circular Economy
Environmental Compliance
Product Stewardship
Human Rights and Worker Protection
Energy Optimisation and Management
Product Quality and Safety
Employee Health, Safety and Hygiene
Business Continuity
Process Safety
Waste Management
Diversity and Inclusion
Climate Change
Corporate Social Responsibility

Borouge Sustainability Report 2023

About Borouge

Alignment to National
Mandates
We are aligned with various national frameworks and mandates.
Our alignment extends to a diverse array of frameworks and mandates, some of which are outlined below.
•

UAE Year of Sustainability•

Abu Dhabi Economic Vision (2030)•

Environment Vision 2030•

‘We the UAE 2031’ vision•

The Fifty-Year Charter•

National Strategy for Advanced Innovation•

The National Employment Strategy 2031•

UAE Net Zero 2050•

UAE Centennial 2071•

The UAE’s Fourth Industrial Revolution (4IR) Strategy•

UAE Energy Strategy 2050•

The National Framework for Sustainable Development•••

The UAE’s Green Agenda – 2030
National Climate Change Plan of the UAE 2017–2050
COP28 – The UAE Consensus

Borouge’s Commitment to the Sustainable Development Goals
The United Nation Sustainable Development Goals (UN SDGs) are a universal call to action for all sectors
to work towards achieving peace and prosperity for humanity and the planet, both now and in the future.
We are dedicated to aligning our sustainability efforts with the global goals.
To prioritise the SDGs, we analysed our activities, considering both the positive and negative impacts of
our operations on people and the environment. We also factor in business drivers and our material topics.
As leaders in innovative polyolefin solutions, we aim to expedite the achievement of these goals andmaximise our positive economic, social, and environmental impact.

44

Borouge Sustainability Report 2023

Environment

PlanetEnvironmental Stewardship
At Borouge, environmental stewardship is not just a responsibility; it is an integral part of oursustainable growth strategy. As a leading petrochemical company, we recognise the pivotal role
we play in creating positive change and shaping the future of our planet.
We have a profound responsibility to manage and mitigate our environmental impact across all
aspects of our operations. We focus on the following material topics and SDGs that are most
relevant to our business. We foster a culture of environmental responsibility among our employees,
engage with stakeholders to promote sustainable practices, and continuously improve ourenvironmental management systems.

Priority: Infrastructure Development
and Environment Sustainability

GRI
300

46

Borouge Sustainability Report 2023

•
•
•
•
•
•
•

Climate Change
GHG Emissions
Water Consumption
Recycling and Circular Economy
Environmental Compliance
Energy Optimisation and Management
Waste Management

•
•
•
•
•
•
•

Energy Intensity (GJ/Output Tonne) = 17.6
Greenhouse gas emissions (Tonnes CO2 equivalent (000)) = 4,786
GHG Emission Intensity (Tonnes CO2 equivalent/Tonne) = 0.948
Waste disposed (Thousand Tonnes) = 6.4
Water withdrawn (m3 (000,000)) = 1605.56
Hydrocarbon flaring (m3 (000)) = 45,366
Environmental expenditure ($ (000)) = 14,149

•
•
•
•
•
•

GRI 301: Materials 2016
GRI 302: Energy 2016
GRI 303: Water and Effluents 2018
GRI 304: Biodiversity 2016
GRI 305: Emissions 2016
GRI 306: Waste 2020

•
•
•
•
•
•
•
•

E1. GHG Emission
E2. Emissions Intensity
E3. Energy Usage
E4. Energy Intensity
E5. Energy Mix
E6. Water Usage
E7. Environmental Operations
E10. Climate Risk Mitigation

•
•
•
•
•

GHG Emissions
Air Quality
Energy Management
Water and Wastewater Management
Hazardous Waste Management

Borouge Sustainability Report 2023

47

Environment

Climate Leadership & Resilience
At Borouge, we view climate action as an opportunity to reshape ourindustry and forge a more sustainable future for generations to come.
Recognising the significant threat posed by climate change to our operations, customers,
and the broader supply chain ecosystem, we have embedded climate change considerations into
our core business strategy, ensuring that sustainability remains a top priority in ourdecision-making processes. The UAE has emerged as a leader in addressing climate change,
exemplified by its Net Zero by 2050 Strategic Initiative. In alignment with these national goals,
we are committed to mitigating the risks associated with climate change and integrating climatechange considerations into our ongoing business planning. We actively work to reduce the intensityof emissions from our operations and deliver solutions that advance a low-carbon economy.
Borouge reports monthly on emissions, hazardous waste disposal and energy management.
Moreover, the imports of feedstocks are included in the GHG emissions calculations.
As a result, we accomplished the following compared to the 2018 baseline:•

The energy intensity was reduced by 28%•

GHG intensity emissions from scope 1 and scope 2 were reducedby 29% and 31%, respectively

Embracing Decarbonisation – Borouge Net Zero 2045 Ambition
Borouge has started its long-term decarbonisation journey in 2018-2019, through the launch of our
Ruwais Environmental Sustainability Programme (RESP). RESP outlined specific targets for Scope
1 and Scope 2 emissions to be achieved by 2025. We observed remarkable progress within a shorttime, largely attributed to our comprehensive energy efficiency initiatives.
By mid-2022, as Borouge transitioned into a publicly listed company, we announced a new goalof reducing emission intensity by 25% by 2030. Remarkably, we surpassed this target aheadof schedule in 2023. However, the challenge now lies in maintaining this level of progress. As agrowing company, there is considerable effort required in the upcoming years to consolidate andbuild upon our achievements. Nevertheless, the imperative to decarbonise our operations andmitigate the impact of GHG emissions has never been more urgent. Therefore, in alignment with the
UAE’s Net Zero by 2050 Strategic Initiative, Borouge proudly unveiled our ambition to achieve net
zero emissions by 2045. We are committed to exploring innovative technologies and opportunities
beyond energy efficiency to further decarbonise our operations. This resolute commitment
underscores our proactive stance in addressing the climate crisis and playing a meaningful part inaddressing this global challenge.

Al Ruwais Environmental Sustainability Programme
Our Al Ruwais Environmental Sustainability Programme (RESP) supports our commitment
to mitigating our environmental impact and yielding positive results. The implementation of RESP
has enabled us to accomplish.
Compared to the 2018 baseline we managed to:2025 Targets
2023 Performance48

Increase water
efficiency by 25%

Reduce energy
intensity by 28%

Reduce scope 1
GHG emissions
intensity by 22%

Reduce scope 2
GHG emissions
intensity by 19%

24%

28%

29%

31%

Borouge Sustainability Report 2023

Environment

Scope 1 GHG Emissions (Tonnes CO2 Equivalent)

Furthermore, the recorded non GHG emission intensity was 0.001089 tonnes / tonnes
throughput. Borouge remains committed to advancing our sustainability efforts, and as partof this commitment, we recognise the importance of addressing and accurately accounting for
Scope 3 emissions – the indirect emissions associated with our value chain.

3,331,743

2023
2022

In 2023, we have initiated comprehensive measures to enhance our carbon accounting
practices and provide a more thorough assessment of our Scope 3 emissions. Moving forward,
we will continue to strengthen these initiatives with a focus on transparency, collaboration,and continuous improvement.

3,199, 644
3,076, 665
3,204,201

GHG Emission Intensity (Tonnes CO2 Equivalent/Tonne)

3,077,736*

0.948

3,373,159

0.996

3,333,054

1.07

Scope 2 GHG Emissions (Tonnes CO2 Equivalent)
2023

1.30

1,454,713

2022

1.39

1,564,192

1.52
1.65

2,669,397*

1,510,364
Level Type

CO2 Reduction
Potential KT

OCU (Olefin Conversion Unit) - Advanced Process Control implementations

Energy Efficiency

14,700Optimization of Steam to B2 (Borouge 2) Flare

Energy Efficiency

13,846

Reduce load of KC 503 (propane refrigeration compressor)

Energy Efficiency

2,708

Steam reduction in Jacket water circuit for Loop reac-torsof PP (Polypropylene) plants

Energy Efficiency

3,818

Flaring reduction from PP (Polypropylene) Membrane Unit inlet stream

Flare Reduction

1,455

OCU (Olefin Conversion Unit) - Flare sweep gas replacement with Nitrogen

Flare Reduction

2,137

Optimization of B1 (Borouge 1) Flare Purge Gas

Flare Reduction

6,297

Optimization of B2 (Borouge 2) flare purge gas

Flare Reduction

46,235Initiative

Emission Species /Tonnes CO2 Equivalent

2017

2018*

2019

2020

2021

2022

2023

Carbon Dioxide (CO2)3,203,475

3,308,520

2,965,384

3,117,796

3,002,124

3,122,861

3,296,225

Methane (CH4)79,99352,07369,03848,821

49,41850,346

31,292

Nitrous Oxide (N2O)

23,2104,061

23,492

25,23823,34024,5093,190

Hydrofluorocarbons

10,996

8,505

7,586

4,521

1,782

1,927

1,035

3,317,674

3,373,159

3,065,501

3,196,376

3,069,848

3,199,644

3,331,743

Total

Total

91,196*During this reporting cycle, 2018 performance was assured by a third party and values were recalculated in alignment with the IPCC Fifth Assessment Report,
2014 (AR5). For data around 2017, 2019-2022 these values will be updated in line with the changes in emission factors and global warming potential in the nextreporting cycle.

50

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

51

Environment

Energy Efficiency

Energy Consumption (Million GJ)

We recognise the critical role energy optimisation
plays in minimising our environmental footprint,
reducing operational costs, and enhancing ourlong-term competitiveness. In 2023, we received
the UAE Energy Management ISO 50001 Award
from the UAE Ministry of Energy and Infrastructure.
The award honours companies that improvetheir energy performance using the global ISO
50001 energy management system standard andcomes in recognition of Borouge’s robust Energy
Management System.

2022

9.34

2021

9.83

2019

8.77

*2018

8.83

2017

8.84

The roadmap is projected to reduce CO2 emissions by 600,000
tonnes of CO2e annually by 2030 upon full implementationof identified initiatives.
The roadmap consists of eight stages spanning from 2018 to 2030, each stage encompasses
a series of energy optimisation initiatives ranging from zero-cost quick wins to low-cost processmodifications and large-scale design changes aimed at continuously enhancing the energy
efficiency of our process plants.
The years from 2018 to 2023 have primarily focused on implementing quick wins and relatively
simple process modifications, while the subsequent period from 2024 to 2030 is dedicated toplanning, budgeting, and executing major projects, synchronised with the respective plants’turnaround schedule when such projects are typically implemented.

Total Consumed Energy in MnGJ
Tail Gas

Liquid Fuels

Electricity

81.21
84.63
79.24

10.04

2020

Within Borouge, we have energy management targets that form the cornerstone of ourcommitment to sustainability. Our Energy Roadmap for 2030 guides our actions which provides
a comprehensive blueprint aligning our efforts to achieve our energy reduction goals.

Natural gas

10.34

2023

0

20

Indirect Energy

83.75
77.45
79.62
79.44
40

60

80

Direct Energy

Energy Intensity of Operations (GJ/Tonne)
17.6

2023
2022

18.95

2021

19.36
20.13

2020
Liquid Fuel, 4.2, 5%

2019Electricity, 10.34, 11%

100

21.61
24.34

2018

25.02

2017
Natural gas,
34.9, 38%

0

5

10

15

20

25

30

Tail Gas,
42.1, 46%

*During this reporting cycle, 2018 performance was assured by a third party and values were recalculated. For data around 2017, 2019-2022 these values will be
updated in line with the changes in the next reporting cycle.

52

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

53

Environment

Success Story - Borouge’s CMP
in China is now our first “green”
powered facility

Aiming for Zero Continuous Flaring
Borouge’s commitment to zero continuous flaring by 2030 reflects our unwavering dedication
to sustainable practices and underscores our mission to optimise our processes for a cleaner,more efficient future.

Advancing Borouge’s progress towards
a greener and more sustainable business,
Borouge’s Compounding Manufacturing Plant(CMP) in China has successfully installed its own
rooftop distributed photovoltaic station that will
potentially provide 1.2 million kilowatt-hours(kWh) per year, and significantly reduce our CO2
emissions by up to 1,256Mt/year.

By minimising flaring, we not only reduce our environmental impact but also enhance ouroperational efficiency and economic performance. Reduced flaring leads to increased productyield, more efficient conversion of feedstock, and lower CO2 emissions to the atmosphere.
These benefits contribute to our overall sustainability goals and strengthen our position as a leader
in the petrochemical industry.

As our first “green” powered facility, thismilestone marks our commitment towards our
Sustainability and ESG goals, and delivers costsavings of up to $50,000 annually for Borouge.

As we continue our journey towards zero continuous flaring, we remain committed to innovation,
collaboration, and continuous improvement. We are actively exploring emerging technologies
to further reduce our flaring and contribute to a more sustainable development for the
petrochemical industry.

Success Story – Borouge Energy
management action plan 2023
delivers 100 kt/yr CO2 reduction.

Total Volume of Flared Hydrocarbon (m3)2023

As part of the ISO 50001 Energy management
system Borouge had developed and implemented
the 2023 Energy action plan consisting of about
50 initiatives cumulatively delivered 100 kt/yr
CO2 reduction. Borouge has improved its energy
intensity by optimising its operations.

2022
2021
2020

A y-o-y decrease of 7.4% in energy intensity
has been possible through efficient business
operations and propylene imports which benefit
the energy intensity profile of Borouge.

2019
2018*
2017

45,366,217
51,974,688
44,362,970
50,770,709
82,718,367
80,636,830
102,300,284*During this reporting cycle, 2018 performance was assured by a third party and values were recalculated. For data around 2017, 2019-2022 these values will be
updated in line with the changes in the next reporting cycle.

54

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

55

Environment

Air Quality

Promoting Biodiversity Conservation and Nature Preservation

Our emissions efforts are not limited to carbon dioxide, Borouge also recognises the importanceof measuring and limiting other emissions that affect air quality.

As a responsible global organisation, we are dedicated to conserving biodiversity in thecommunities we operate in and the environment around our operations. With unwavering
dedication, we ensure that all our operations comply with local environmental laws and regulations.

We monitor non-GHG emissions in accordance with the ADNOC Group standard. By prioritising the
reduction of these emissions, we aim not only to meet but surpass industry standards, ensuringthat the air we share remains pristine for our communities and beyond.

Our Al Ruwais Industrial City production facility is nestled within a region of exceptional
biodiversity, standing as a testament to the delicate balance between industry and nature.
It is located on the shores of the Arabian Gulf and close to the eight Desert Islands of the Al Dhafra
Region of Abu Dhabi, which are home to an incredible range of fauna and marine life.

Other Air Emissions (tonnes)

We acknowledge our responsibility to respect and contribute positively to this unique ecosystem.

Other Air Emissions(tonnes)

2017

2018

2019

2020

2021

2022

2023

NOx

4,133

4,225

3,991

4,360

4,151

4305

4,240

SOx

436

389

382

403

379

415

403

VOC

547

505

496

427

418

430

413

PM

393

463

412

464

430

448

426

ODS (kg of CFC-11
Equivalent)

55

50

19.5

21.7

11.98

18

16

To evaluate the potential biodiversity impact of our activities, we conduct Environmental Impact
Assessments (EIAs) for all new projects, modifications, and retrofits. The EIAs provide
a comprehensive understanding of the potential risks to biodiversity and inform the developmentof mitigation measures to minimise or eliminate these risks.

In 2023, Borouge carried out a five-year review of its various EIAs.
Conservation of biodiversity is an integral part of these reviews.
These reviews help us identify gaps and potential threats from ouroperations to biodiversity.
Furthermore, we conducted an Environmental Impact Identification (ENVID) to assess potential
environmental impacts resulting from our operations on the existing environment. Several
hazards were identified and reviewed for their impacts, and the necessary mitigations have been
implemented and listed. The majority of impacts fell within the “Low” to “Medium” range. There
were no Major Accidents to the Environment (MATTE) identified as there were no “High-Medium”,
or “High” impacts identified.

56

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

57

Environment

Water Stewardship
The UAE and its neighbouring countries in the Middle East and North
Africa (MENA) region persist as some of the most water-stressednations globally, as evident from UN’s new Global Stocktake report,thus water is a key topic for Borouge.
We recognise that water is a shared resource, and we have a responsibility to use it efficiently andresponsibly to minimise our impact on the environment and safeguard water resources for future
generations.
Water Recycling and Reuse
We understand the challenges posed in operating in a water stressed region, therefore, theBorouge 4 project has implemented innovative solutions to address environmental concerns while
meeting operational needs. One such initiative involves the efficient recycling and reuse of water
through advanced wastewater treatment technologies.

We installed two Reverse Osmosis units for wastewater treatment
at the Borouge 4 project site.

Total Volume of Water Recycled/Reused (m3)2023

154,032
368,1322022*
190,5892021
181,6562020
2019

194,505
171,72920182017

164,031This state-of-the-art infrastructure ensures that wastewater is treated to the highest standards,
rendering it suitable for reuse. As a result, approximately 56,348 m3 of water was recycled andrepurposed for construction activities, effectively mitigating the need for freshwater intake.
Total volume of water withdrawn (m3)
Total volume of water
withdrawn (million m3)
Seawater
Municipal water

2017

2018

2019

2020

2021

2022

2023

1,683.29

1,659.02

1,644.85

1,738.88

1,617.13

1,723.55

1,600.00

5.78

5.76

5.61

5.42

5.55

5.46

5.47

We are committed to continuous improvement in our water management practices. We will continue
to explore innovative water-saving technologies, enhance our water reuse and recycling efforts,and strengthen our collaboration with local communities.
In 2023, 97,684 m3 of water was reused for irrigation purposes.
As water is intricately woven into our cooling and manufacturing processes, Borouge pledges
an unwavering commitment to the conscientious use of this precious resource.
Due to the abundance of seawater attributed to our geographic location, seawater represented majorityof the total water used. Seawater is handled in a closed-loop system so that almost all the seawater
withdrawn for cooling purposes is returned to the sea. It is discharged to the sea after undergoing strict
procedures to ensure discharged water undergoes treatment to ensure compliance with the regulatory
requirements. In 2023, out of our total water withdrawal of 1605.56 million m3, 0.15 million m3 wasrecycled/reused, while 1601.98 million m3 was cooling water discharged to sea. This marked a 3.55%
decrease from our 2018 baseline of 1660.95 million m3 of cooling water discharged to sea.
Finally, our total water consumption for the year 2023 amounted to 3.43 million m3. These figuresdemonstrate our efforts to increase water use efficiency.

58

Borouge Sustainability Report 2023

*There was a high demand for recycled/reused water in 2022 caused by the Borouge 4 site preparation work.

Borouge Sustainability Report 2023

59

Environment

Success Story
Success Story - Preserving Our Pristine Oceans: Borouge Joins
Operation Clean Sweep®
During World Oceans Day, we announced the signing of Operation Clean Sweep® (OCS),
a global programme designed to prevent pellet, flake, and powder loss to the environment.
This reinforces our commitment to protecting and restoring our shared ocean and contributing
to a stable climate.
By joining forces with OCS, Borouge pledges to adopt comprehensive measures to prevent pellet
loss from our facilities and throughout our supply chain.
The implementation of OCS has been divided into five stages. The first two stages have beensuccessfully completed. The first stage required commitment to make a zero pellet, flake, andpowder loss a priority, which was exemplified by Borouge’s signing of the pledge. Subsequently,
in the second stage, we assessed our company’s situation and needs, successfully completingassessments across all sites.
Currently, we are progressing through the third and fourth stages of the implementation process.
These stages involve making necessary upgrades to facilities and equipment as deemed
appropriate and raising employee awareness while creating a culture of accountability.
This programme will help us achieve the following:

Advance Borouge’s overall sustainability
efforts and reinforces its position
as a Responsible Care® Company.

Key milestone in Borouge’s roadmap
for furthering sustainable manufacturing
and operations.

Build on the existing Zero Pellet Loss
Programme which equips Borouge’s
employees with deeper knowledge,
systems, and processes.

60

Borouge Sustainability Report 2023

Environment

Optimising Materials
Efficient utilisation of raw materials is crucial to minimising our impact
and driving cost-effective solutions.

We are actively engaged in developing advanced mono-material
designs that will simplify the recycling of post-consumer packaging.

To this end, we assess the effects of the materials used in the manufacturing of our products
and packaging. We follow processes to monitor and control material loss throughout ouroperations. We have undertaken a series of measures to integrate sustainable materials within ourdaily operations.

While a significant portion of our efforts is dedicated to reducing our carbon footprint by either
lowering product weight or optimising cycle times to minimise manufacturing and transportationenergy consumption, all our product innovations are designed to maximise the inherent benefitsof polymers, particularly leveraging the value of Borealis’ Borstar® technology.

By doing so, we not only ensure responsible material use but also contribute to the broader goalof fostering sustainability across our value chain.

Borouge’s House of Circularity

An integral aspect of our materials management approach is the conscious choice to source
materials locally. This helps significantly reduce the embedded energy and carbon footprint
associated with our raw materials, packaging, and the overall consumption of fuel related
to shipping and long-distance road transport of products.

Borogue’s
Innovative and Sustainable
Circular Solutions

Type and quantity ofmaterials consumed

2017

2018

2019

2020

2021

2022

2023

Ethane4,109,827

4,263,189

3,993,741

4,407,729

4,117,928

4,475,779

4,505,598

Propane100,469

106,836

151,492

221,774

156,655

75,25896,802

Chemical, additiveand catalysts

76,213

79,215

81,23980,787

103,502113,311

113,344

Fuel gas

701,166

601,394

589,012663,576

682,074735,000

622,672

Nitrogen426,150

476,586

562,099559,794

576, 219

548,699562,262

Total

5,413,825

5,527,220

5,377,583

5,933,660

5,060,159

5,948,047

5,900,678

Circular Economy
Borouge aligns with the UAE Circular Economy Policy 2021–2031, recognising the imperative
to shift from a linear economy to a regenerative circular economy. This alignment resonateswith SDG 12, breaking the traditional linkages between economic growth and environmental
degradation. The UAE Circular Economy Policy serves as a comprehensive framework, outlining
the country’s commitment to sustainable governance and optimal natural resource utilisation.

PURPOSE

Type and quantity of materials consumed (tonnes)
Design for Recyclability

Virgin PO Innovations
to optimise recyclates
deficiencies

PCR/PIR recyclates andcompounds

Polyolefins based on
renewable feedstock

PP and PE mono-material
soultions

Borstar® PE and PP

Mechanically recycled
soultions

Bornewables� sustainablepolyolefins

Promotes ease of recycling
and circular efficiency

Enhances performance
to load higher
recylate content

Uses of PCR and PIR
waste fractions in a broad
range of applications

For carbon dioxide (CO2)
footprint reduction

House of Circularity demonstrates Borouge’s dedication to circular economy which incorporates
sustainable practices throughout the entire product lifecycle, from design and manufacturing to
end-of-life disposal.

Our unwavering commitment to sustainability is reflected in our focus on durable products, withsome of our products having a lifespan of over 50 years. We continuously develop and provide fully
recyclable solutions, and we have successfully incorporated recyclates into our product portfolio.
We are constantly exploring new avenues to reduce material consumption, extend productdurability, promote designs that facilitate reuse and recycling, and increase the adoption ofrecyclates across our value chain.

62

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

63

Environment

Borouge Introduces Cutting-Edge Solutions, Driving Sustainable
Growth in High-Growth Markets
We launched a range of new infrastructure and advanced packaging solutions aimed at meetingthe soaring demand across high-growth markets. These pioneering solutions underscore Borouge’s
steadfast commitment to advancing the circular economy while supporting local manufacturers in
the UAE to bolster the competitiveness of ‘Made in UAE’ exports.
Borouge’s launch of eight new grades caters to the burgeoning demand in the infrastructure,energy, mobility and advanced packaging sectors across the Middle East, Africa, and Asia Pacific.
As the demand for premium and sustainable polyolefin solutions that are fully recyclable continues
to surge, Borouge remains at the forefront of innovation. The newly introduced solutions not only
cater to the evolving needs of modern communities, but also promote sustainable production
processes, enhancing energy efficiency, and reducing carbon footprint. Borouge’s unwaveringcommitment to commercial excellence through innovation ensures our continued pursuit of new
avenues for growth.

Borouge’s latest infrastructure solution, PP-R product RA150E, setsa new benchmark in water piping applications worldwide. Engineeredusing advanced Borealis Borstar® nucleation technology, this solution
offers unparalleled, long-term pressure performance, lower energy
consumption during processing and is fully recyclable.
As part of Borouge’s sustainable advanced packaging portfolio, four new PE and PP grades havebeen introduced, designed with recyclability in mind. These solutions, including PE product FB5600
and PP product HG365FB, cater to increasing market demands for high barrier properties andenhanced hygiene benefits while ensuring full recyclability and reducing carbon footprint.
Borouge’s commitment to supporting local manufacturers is evident with the introduction of
HG365FB, a versatile PP solution tailored for carpet manufacturers in the UAE. By providing unique
PP materials, Borouge enhances the competitiveness of ‘Made in UAE’ solutions while ensuring
superior safety standards and extending the lifespan of end-use products. Our latest range ofinnovative solutions not only addresses market demands but also underscores our dedication tosustainability, innovation, and supporting local economies.

64

Borouge Sustainability Report 2024
2023

Environment

Success Story: Recyclable Packaging - Empowering Sustainability
through Design
Packaging plays a pivotal role in preserving food and extending shelf life. However, traditional
flexible packaging often poses challenges in recycling, particularly multi-material structures thatare difficult to separate and recycle. As the push for sustainability grows stronger, achieving
recyclability in packaging becomes increasingly crucial to fostering a circular economy.
Conventional recycling systems struggle to process such complex packaging such as multimaterial structures, leading to a need for more easy to recycle, clean mono-material alternatives.
Borouge, in collaboration with value chain partners, has pioneered a ground-breaking solution:a fully recyclable, mono-material packaging with high oxygen barrier performance. In collaboration
with our value chain partners, we have created a revolutionary mono- material packaging solutionthat provides the advantages of:

The introduction of the Machine-Direction Oriented (MDO)
based PE mono-material pouch system marks a significant milestone
in sustainable packaging innovation to improve packaging features,
like stiffness, optics, and heat resistance. Borouge has introduced
unique polymer solutions to support this new MDO technology inenabling new easy to recycle packaging structures.
Not only does it combat food degradation and waste, but its mono-material design also supports
the transition towards a circular economy. We aim to continue leading the way in driving
sustainable solutions by addressing critical challenges in packaging recyclability.

Success Story: Circular Heavy Duty Shipping Sacks with Lower
Carbon Footprint
We are pleased to announce the certification by TÜV Rheinland Greater China on our latest closedloop solution for Heavy Duty Shipping Sacks (HDSS).
This certification assesses a product’s entire lifecycle, validating the reduction of carbon emissions,with reliability and transparency. The certification awarded further solidifies our pledge to continue
to innovate and collaborate with value chain partners to progress in developing sustainable
solutions that incorporate recycled polyolefins.
The carbon footprint assessment was conducted based on cradle to grave model for closed-loop
HDSS with 30% recyclates compared to standard HDSS bags, made out of 100 % virgin polymers.

66

Borouge Sustainability Report 2023

Environment

Waste Management
Acknowledging the environmental impact of industrial and municipal waste, we continuously refine
our waste management practices, identifying innovative solutions to elevate our performance.
At Borouge, we adopted a waste management programme rooted in the principles of Reduce,
Reuse, and Recycle.

Success Story – Tadweer Partnership
Borouge signed a partnership with Tadweer - Abu Dhabi Waste Management Company to explore
recycling opportunities in Abu Dhabi. Together, we are looking at innovative ways of sorting andrecycling of polymers, driving sustainability and making a positive impact on society.
This collaboration reinforces our commitment to the wellbeing of society and the environment
in the UAE.

Waste Disposed (Thousand Tonnes)

This partnership will enable:
2.6

2023
2022

2.7

2021

2.7
2.6

2020

2.7

2.2

2019

3.9
4.1

Best practices in polymer
collection and recycling in
the UAE

3.2

2.6

01

2.7
2.7

2018
2.0

2017
0.0
Non-hazardous

1.0

02
Establishes businessdevelopment and benchmarking
frameworks to unlock business
opportunities through potential
joint investments in brown andgreenfield assets.

03

Reinforces commitment
to drive circularity for azero-waste environment.

2.6

2.0

3.0

4.0

Hazardous

Community Engagement and AwarenessIn addition to our product development initiatives, Borouge actively participates in campaigns
that raise awareness about the circular economy and promote community engagement.
Project STOP, Borouge funded the initial phase of Project STOP, a strategic partnership between
Borealis and SYSTEMIQ, founders of Project STOP.
Project STOP establishes new solutions and models that can be rapidly scaled up by creating
circular waste systems that increase the value generated from waste, while creating new jobs
and other social and economic benefits for the communities.
The project has three key objectives: to achieve zero leakage of waste into the environment,
increase resource efficiency and recycle more polymers, as well as create benefits for
local communities.
For further information, visit www.stopoceanplastics.com

68

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

69

Environment

Borouge RECAPP Partnership2023 - A Moving Step
Toward Circularity

RECAPP Sustainable Report - 2023
Environmental Impact

69,120 Trees Planted

1,718 Tons
of CO2 reduced

Borouge and RECAPP continue to promote a circular economy andrenew their partnership, reinforcing the joint commitment to innovative
recycling solutions and reducing environmental impact.

8.6 Million Hoursof Computer Consumption

20.7 Million Hoursof TV Consumption

14.6 Million km
of Driving a 4x4

2.2 Million Hours
of AC Consumption

Thanks to your environmental
consciousness, you have saved
the C02 equivalent of

RECAPP is a trustworthy and effortless solution for the collection of recyclables that raises
awareness and creates a sense of community for a more sustainable lifestyle.
It is the first digital solution in the UAE region that gives users the power to control their eco
footprint through environmentally responsible waste disposal and collection service. RECAPP’s
dedication to fostering a circular economy is aligned with the UAE’s ambitious sustainability goals
for 2030, aiming to divert 75% of the waste produced in the country from landfills.
RECAPP is also a societal incentive programme rewarding the recycling efforts of its users
by offering a range of sustainable discounts and vouchers with social and economic impacts.
Global Recycling Day Celebration: Borouge commemorated Global Recycling Day in partnershipwith RECAPP, emphasising their shared commitment to driving circular economy initiatives.
Through strategic partnerships, Borouge remains steadfast in our commitment to providing fully
recyclable solutions, fostering a culture of sustainability within the UAE.

Borouge Specific Impact Contribution

World Clean Up Day Workshop: Borouge employees participated in a workshop conductedby RECAPP, shedding light on the importance of waste segregation and recycling.

•

6,000 collections done•

72 tonnes of CO2 reduced•

37.6 tonnes collected

This collaborative effort further strengthens Borouge’s advocacy for sustainable practices.
Recyclable Collections Campaign: Borouge and RECAPP organised recyclable collections
campaigns for Al Ruwais Industrial City employees and their families, further amplifying
the impact of recycling efforts.
Through collaborative endeavours with RECAPP, Borouge continues to champion sustainability,
fostering a culture of environmental responsibility and community engagement towards a morecircular economy.

Advocacy Programme - Borouge’s support facilitated door-to-door collections resulted in:

Trend from 2022 to 2023
RECAPP Report 2023 Growth
1st January

registered users

new users

679 tons

883 tons(since beginning of the project)collected

14 tons

7 tons percollected/week

week

2,250

750 collections

households visited per week70

Borouge Sustainability Report 2023

33,543

Borouge Sustainability Report 2023

per week

79,860registered users

1,562 tons
21 tons

collected per week

3,000

households visited per week

GROWTH (compared to previous year)

46,36231st December

+72%

+129%

+50%

+33%

71

Environment

Environmental Operations
and Compliance
The foundation of our environmental commitment lies in unwavering compliance withall applicable environmental laws, regulations, standards, and other legal requirementsof the countries in which we operate.
We go beyond mere compliance, proactively seeking out opportunities to surpass regulatory
requirements and set industry benchmarks for environmental excellence. To ingrain environmental
sustainability in our operations, we foster a culture of sustainability through robust education,
training, and awareness programmes. By equipping our employees with the knowledge and tools
to integrate sustainability into their daily activities, we ensure that every facet of Borouge operates
with an environmentally conscious perspective.
Borouge possesses industry-leading certifications and embraces best practice environmental
management methods to foster sustainability in our product offering:

ISO 50001: 2018 – Energy Management System

ISO 50001:2018 allows us to manage our energy performance more effectively andachieve a higher level of continual improvement. By implementing ISO 50001 certificationin energy management, we have ensured that energy efficiency is built into the fabric ofour business and operations.

Environmental Impact Assessment (EIA)

The impact of our activities is evaluated through the Environmental Impact Assessment(EIA) process for new projects, modifications, and retrofitting.

ISO 14064 International Standard for GHG Emissions*

The ISO 14064 International Standard for GHG Emissions provides a structured
framework for measuring, reporting, and verifying our GHG emissions and removals.

ISO 14001:2015 – Environmental Management System

The Environment Management System helps manage potential environmental
impacts, fulfil compliance obligations, and identify opportunities for improvement.

*ISO 14064 certification is only applicable to China CMP.

RC 14001® – Responsible Care Technical Specifications

The latest RC 14001®:2015 broadens the scope of the Environmental Management
System standard (ISO 14001:2015), the Occupational Health and Safety Management
System standard (ISO 45001:2018) and the Energy Management System standard (ISO
50001:2018) to cover the following key codes:
•
•
•
•
•
•

72

Community awareness and emergency response
Distribution
Product stewardship
Security
Health and safety
Environmental protection

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

73

SocialPeopleSocial Responsibility
At the heart of Borouge’s commitment to sustainability lies a profound dedication to nurturing notjust our planet, but the people and communities that we call home. We follow a holistic approachby embracing diversity as a source of strength, fostering an environment where individuals fromall backgrounds and experiences feel valued and heard. We diligently cultivate a culture of healthand safety, ensuring our employees work in a secure and protected environment, free from harm.

Priority: Social and Human
Resources Development

We uphold strict ethical standards, ensuring fair treatment and dignified working conditions
throughout our value chain. We contribute to and invest in our community in order to createshared value and vibrant environments where everyone can thrive.

GRI
400

74

Borouge Sustainability Report 2023

•
•
•
•
•

Diversity and inclusion
Employee health, safety, and hygiene
Process safety
Human rights and worker protection
Corporate Social Responsibility

•
•
•
•
•
•

Total number of employees = 3,034
Gender balance (female %) = 15.2%
Number of UAE Nationals = 1357
Training hours (000) = 48,153
Occupational safety (TRI) frequency = 0.10
Process safety incidents (Rate Tier 1 and Tier 2) = 0

•
•
•
•
•
•
•
•
•
•
•

GRI 401: Employment 2016
GRI 402: Labor/Management Relations 2016
GRI 403: Occupational Health and Safety 2018
GRI 404: Training and Education 2016
GRI 405: Diversity and Equal Opportunity 2016
GRI 406: Non-discrimination 2016
GRI 408: Child Labor 2016
GRI 409: Forced or Compulsory Labor 2016
GRI 410: Security Practices 2016
GRI 413: Local Communities 2016
GRI 416: Customer Health and Safety 2016

•
•
•
•
•
•
•
•
•
•
•

S2. Gender Pay Ratio
S3. Employee Turnover
S4. Gender Diversity
S5. Temporary Worker Ratio
S6. Non-Discrimination
S7. Injury Rate
S8. Global Health and Safety
S9. Child and Forced Labor
S10. Human Rights
S11. Nationalisation
S12. Community Investment••

Human Rights and Community Relations
Employee Health and Safety

Borouge Sustainability Report 2023

75

SocialDiversity and Inclusion
Our commitment to diversity and inclusion is a continuous
journey, we are proud of our progress, with a diverse workforceof 3,034 employees from over 50 countries. We adhere
to employment laws in our various locations during our processof recruiting the best minds.
We strive to develop an inclusive culture, diversifying our workforce, and providing equal careerdevelopment opportunities, irrespective of gender, ethnicity, or culture. We do not tolerate
discrimination and actively recruit from diverse pools, offering fair opportunities for all qualified
individuals to contribute to our success. In 2023, no incidents of discrimination were reported
within Borouge.
We believe in creating a workforce that reflects the world we operate in. Today, our diverse andexceptional talent pool is a testament to the strength and growth of our business over the past
25 years, showcasing Borouge as an employer of choice. We believe in attracting, engaging,developing, and retaining a diverse, inclusive, and dedicated workforce across our global
operations. The varied backgrounds, experiences, and viewpoints of our employees are crucial
for driving innovation within the company.
We cultivate an inclusive culture where everyone feels valued, respected, and empowered
to contribute their unique talents. We are proud to promote a diverse and inclusive working
environment where talented individuals can thrive. As part of our commitment to society andour nation, we continuously seek to improve our recruitment strategies to foster inclusivity andwelcome people of determination into our vibrant Borouge family. We continue to enhance
Our policies and processes every year and are up to date with the requirements.
Borouge attracts, engages, develops, and retains a diverse and inclusive workforce. Employees
from different backgrounds, experiences, and viewpoints are critical to advancing innovationin our business. In line with the UAE’s goal of promoting gender balance, we strive to develop
high-potential female employees. We are guided by ADNOC’s 2030 strategy focusing on People,
Profitability, and Sustainability, which includes empowering women, driving gender diversity, andpromoting inclusivity.
At the end of 2023, our workforce comprised 15.2% of female employees, with women in 18.7%
of management roles. As part of our Diversity and Inclusion commitments, we will continue
to attract and consider more internal female candidates. The Borouge Female Talent Platform,
was created for our talented female colleagues to share aspirational messages with the whole
Company, reinforcing our focus on advancing unity, and promoting wellbeing and happiness.
Many of our female employees participated in the UAE-JAPAN Women Friendship Committee at
Al Ruwais. The event was attended by H.E. Dr. Maitha Al Shamsi, Minister of State; Mrs Fatema
Al Nuaimi, ADNOC Executive Vice President, Downstream Business Management and AGBC
Chairperson; and Dr. Ghuwaya Al Neyadi, AGBC Deputy Chairperson.
The event’s brainstorming sessions and roundtable discussions focused on gender balance,
women’s empowerment, community development, sustainability, climate change, COP28,
and the UAE’s investments in clean energy.

Total number of employees by gender, age, and employment type
2018

2019

2020

2021

2022

2023

Total number of females

425

460

462

484

490

463

Total number of males

2588

2646

2648

2641

2632

2571

Total

3013

3106

3110

3125

3122

3034

Total number of employees by age group
Total number of employees in the age group of 18-30

754

747

714

664

606

512

Total number of employees in the age group of 31-50

2017

2080

2086

2093

2107

2059

Total number of employees in the age group of 50+

242

279

310

368

409

463

Total number of employees by employment type
Total number of full-time employees

3013

3106

3110

3125

3122

3034

Percentage of full-time employees

100%

100%

100%

100%

100%

100%

Total number of part-time employees

0

0

0

0

0

0

Percentage of part-time employees

0%

0%

0%

0%

0%

0%

Employee Category by Gender
Total number of females

Total number of males

Executive and Senior Management939

Middle Management

101

362

Staff

353

2170

Employees by Nationality
2023
UAE Nationals

1357

Asians

1453

Other Arabs

97

Others127

We also celebrated International Women’s Day to acknowledge the resilience,commitment, and dedication of the women in our Borouge family. This year’s theme was#BreakTheBias, highlighting the need for collaboration between genders to createa healthy working environment.

76

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

77SocialThe modelling and simulation not only assisted in reaching our sustainability goals, but madeit possible to determine the best process in a cost and time efficient way while reducing theimpact on the environment (by producing fewer prototypes).
Women at Borouge have excelled in various fields, including their careers, sports, andparticipation in international forums. In terms of sports, one of our employees won first placeacross the ADNOC Group in the Fishing Competition held in December 2023.

Gender Balance

At Borouge, we are committed to the UAE’s National Strategy
for Empowerment of Women and its goal to support and promote
gender equality.

Additionally, female engineers represented Borouge at industry forums, such as the Youth Forumof the Gulf Petrochemical & Chemical Association (GPCA) Annual Forum in Doha, Qatar, where
they actively participated and shared their insights. Furthermore, the highlight of 2023 was theinternational recognition received when one of our female employees was selected as a UAE
delegate to the United Nations 67th Commission on the Status of Women (CSW67).
Moreover, to further enhance gender balance initiatives, Borouge’s Gender Balance efforts haveconsistently been recognised, with nominations in multiple categories each year at the ADNOC
Gender Balance Awards.

Embracing diversity and inclusion is essential to drive our people to do their best and contributewith great ideas to deliver and build on our legacy of success. Based on this, in 2017 Borouge
started our first Gender Balance Committee. The Gender Balance Committee is currently in its
third membership cycle, with a mandate to support Borouge leadership with policy, plan,and strategy that addresses gender balance requirements in our male dominant industry.

“Embracing gender equality, women
empowerment and diversity is not just aboutticking boxes! It is about unlocking the fullpotential of every individual within Borouge,
fostering an environment where everyone feels
valued, included, and empowered to thrive.” -Borouge has committed in the fourth quarter of 2023 to close the gender balance gap byincreasing the number of competent females to 20% by 2030 and 30% in leadership positions.
As of the end of 2023, our total workforce comprises of 15.3% female employees and 84.7%
male employees. Currently, 18.7% of our leadership positions are held by female leaders.

Dr. Aisha AlHashmi, Manager,
MAS LabTo understand the needs of our female employees, a survey was conducted in 2023, revealing
significant insights. While 5% expressed the need for more engagement, 25% recommended
changes in policy, and the majority, constituting 70%, emphasised the importance of facility
improvements. In response, we focused on addressing the needs highlighted by the largest
respondent segments and work is still ongoing.
Over the past year, we have made substantial strides in various areas. Policy changes include
introducing flexible morning and afternoon hours for female mothers and advocating for 24/7
female security at critical access points. As for Infrastructure improvements, Borouge initiatedbreak rooms in the site buildings at Ruwais and provided external lunch facilities for female
employees. There were also improvements made in the Abu Dhabi Borouge Head Office suchas setting up a female prayer room with an ablution facility.

“My victory is not only a celebration of myindividual success but also a testament to the
support and encouragement provided to me by
Borouge. Borouge fosters an environment where
women are empowered to excel in diverse
fields, including sports. Such competitions
highlight the importance of recognising andcelebrating the accomplishments of womenin our community and serve as inspiration forothers to pursue their passions.” -Further infrastructure improvements are underway in Al Ruwais Industrial City, Innovation
Centre, and Abu Dhabi Head Office. In terms of engagement, females receive equal treatment
to men and actively participate in various roles. In 2023, we witnessed the first female-led
turnaround at Al Ruwais Industrial City, setting a significant example.
Female employees have also been entrusted with managing key projects such as Borouge
4, PP5, and shutdowns related to Borouge’s specialty polymer plants, including Low Density
Polyethylene (LDPE) and cross-linked polyethylene (XLPE) improvements. Additionally, female
engineers have made valuable contributions, including quality-driven initiatives such as leading
reliability efforts for PP & PE Rotary feeders using the Six Sigma Green Belt methodology.
Creative solutions, like substituting in-house C6+ products for lube oil hexene in our Butene
Plant, have led to cost savings through improved continuous variable control (CVC).

Noura Bin Saad Engineer, Mechanical
Maintenance (Polyethylene)

We also had a female researcher at the Innovation centre who set up modelling and simulationthat examined and evaluated various scenarios prior to implementing them in real life to
Borouge’s existing grades.

78

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

79Social“It was truly an honour to take part in the‘Empowering Youth for a Sustainable Future’workshop at the second edition of the GPCA
Youth Forum, held as part of the 17th annual
GPCA Forum in Doha, Qatar. We emphasized the
major role of youth for a lasting positive impact
on the environment and society. Moreover, we
discussed the green skills, knowledge, abilities,
values, and attitudes needed to develop andsupport a sustainable future.” -Afraa Al Hajeri Engineer,
Mechanical Maintenance

332

Number of female employees

350

355

330

484

300
250

50
0

90

353

490

463

500
480
460
440

430

425

150
100

368

462

460

200

372

352

104

101

97

87

112

101

420
400

8

8

8

9

8

10

9

2017

2018

2019

2020

2021

2022

2023

Executive & Senior Managment

Middle Managment

Staff

Total Number of female employees

400

380

Total

Gender balance total earnings (female to male %)

80

2017

2018

2019

2020

2021

2022

2023

Executive & Senior
Management

126

93

86

89

92

75

80

Middle Management

117

115

98

99

98

112

100

Staff

104

127

119

117

117

117

126

Borouge Sustainability Report 2023

SocialMeet our remarkable women leaders at Borouge

We empower and develop female leaders, who contribute not only
to Borouge’s growth but also to our sustainable development.
In 2023, our first UAE national female engineer, Amina Hassan Alhosani, was appointed Project
Lead for the Borouge 2 Turnaround project. Not only did she join the accelerated learning path
opportunity, as part of the Maintenance function’s contribution to the Accelerate for Growth
Programme, but she played a significant role in the successful completion of major milestones
and demonstrated great leadership skills while collaborating with her colleagues. This is one of
the examples of the diverse and talented women who have set the bar for excellenceat Borouge.

As of 2023, we successfully met our Emiratisation targets, with our
total Emirati workforce reaching 1,357 employees.
The total number of the full-time Emirati employees as of December 2023 is 1294, while 63 UAE
national trainees are under training with Borouge.

2023

1,357

2022

1,393

2021

1,405

2020

1,364

2019

1,331

2018

1,250
1,241

2017
1150

1200

1250

1300

1350

1400

1450

Total Emirati Employees

Our dedicated Talent Management and Youth Development teams equip local graduates with thenecessary skills and tools to thrive in Borouge’s dynamic environment. With ongoing expansions
and new market ventures, we anticipate creating even more rewarding and challenging roles
for Emiratis, fostering international collaborations and exposure to advanced technologies.

Most pledges received for gender equality in the workplace
campaign in 24 hours

We have dedicated Recruitment and On-Boarding, Talent Management, and UAE Nationals
Integration teams who oversee the employment and development of Emiratis, all of which
are being led and managed by Emiratis.

The most pledges received for gender equality in the workplace campaign in 24 hours
is 7,444 which was achieved by ADNOC and Aurora50. This initiative underscores ourcommitment to promoting diversity, inclusivity, and equal opportunities for all and waslaunched during Aurora50’s two-day Inclusion Summit 2023 - hosted by ADNOC.

As a result, our Talent Management, Recruitment and On-Boarding Systems are benchmarked
against other ADNOC Group companies and oil and gas companies in the Middle East.

Emiratisation

In alignment with national targets for Emiratisation, Borouge
is steadfast in developing and nurturing UAE national talents.

Additionally, we have a well-established, state-of-the-art Technical Training Centre (TTC)in Al Ruwais Industrial City, where the company prioritises recruiting and training Emirati talents.
We are proud to say that Borouge is the most preferred company among Emiratis within the
ADNOC Group of companies as well as an Employer of Choice in UAE. The company’s global
presence and partnerships offer Emiratis opportunities for international exposure and training,providing a significant advantage over other oil and gas companies in the UAE.

Over 25 years, Borouge has prioritised the employment and development of Emiratis, our approach
focuses on increasing the number of Emirati employees in our workforce by creating dynamic andspecialised departments that drive the performance of local graduates from schools, colleges, anduniversities through planned development programmes.

82

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

83SocialYouth Empowerment

Support foundation technical training for operators and technicians.

We recognise the invaluable contribution of our young talents, acknowledging their passion,
innovation, and ideas as central to our goal of creating a sustainable future. Our commitment liesin providing them with opportunities to be integral contributors to our diverse workforce.
By engaging and empowering the qualities and potential of our young talents, we aim to cultivate
today’s youth into future scientists and engineers, reinforcing Borouge’s standing as a responsible
corporate citizen.

Borouge takes pride in supporting the expansion of knowledge
and skills within the industry, contributing to a more innovative andcreative future.

35
total operators andtechnicians got integrated
under YDP

25

23

total operators andtechnicians got integrated
under the ATAFGP Contract

ATA Students joinedand completed OJT level 1
foundation training

Through our initiatives and comprehensive programmes, we empower and equip the next
generation with essential skills and knowledge, ensuring they are well-prepared to thriveand excel in the evolving landscape of tomorrow.
In 2023, we continued to develop the potential of our young Entry Point to become Integrated
and to take responsibility for their function specially.

Borouge Talent Management Department successfully launchedseveral programs:
Youth Development Programme (YDP) / (ADNOC Group ATA Graduate Program (ATAFGP) / ATA
On Job Training (ATA OJT) Program.

Internship Excellence

Our internship programme was recognised by universities and
ADNOC has adopted it as a benchmark for all its companies.
We work closely with universities to offer students valuableinternship opportunities to learn and gain industry exposure.
This journey continues to shine with the completion of the seventh batch of interns by the Youth
Development Department (YDD). The programme was supported by strong commitment andcollaboration between YDD and local subject matter experts, with support from our leadershipWith a duration of 8 weeks, an internship programme was conducted for 103 interns. Interns
from different universities and majors united under one programme to gain insights into ourvalue chain through engagement tours at Al Ruwais Industrial City, Khalifa Port, and theInnovation Centre supplementing their education and enhancing their advanced skills andproblem-solving abilities.
The well-structured and step-by-step explanation of Borouge’s value chain was key to theprogramme’s success. Additionally, dedicated time for self-study allowed the interns with thebi-weekly assignments to boost their understanding. Interns learned facts about polyolefin
solutions, and we are confident that they will serve as ambassadors and educate people
in their communities and correct the misconceptions about polymers.
The programme concluded with a graduation ceremony celebrating the seventh internshipbatch’s achievements and success.

84

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

85

SocialCollaboration with Nanyang Business School
In collaboration with Nanyang Business School, Borouge engaged MBA participants in a study
project on waste management in Singapore and Indonesia. Over three months, students worked
with Borouge’s Circular Economy Solutions and Centre of Excellence teams, exploring ways
to address plastic waste in the region.

University Collaborations
Students from Khalifa University of Science and Technology and Nanyang Technological University
Singapore - Centre of Excellence International Trading (CEIT) Undergraduate International Trading
Programme- visited Borouge’s Innovation Centre in Abu Dhabi for an engaging learning journey.
This opportunity provided invaluable insights into the principlesof the polyolefin value chain, preparing them for their future careers in the field.

GPCA Youth Forum
Borouge participated in the Annual GPCA Forum in Doha, Qatar, sponsoring the Youth Zone under
the theme “Empowering Youth for a Sustainable Future.” The GPCA Youth Café session facilitateda unique speed mentorship experience, connecting young professionals with industry leaders.
The session connected 200+ attendees young professionals with industry leaders for a uniquecoaching and networking experience.
Borouge’s CEO, Hazeem Sultan Al Suwaidi, shared insights during a panel discussion, emphasising
the strategic role of human capital in shaping a sustainable future for the chemical industry.
Mechanical Maintenance Engineers from Borouge engaged with youth in a workshop focusedon self-development, encouraging reflection and growth.

86

Borouge Sustainability Report 2023

SocialOur Workforce

Culture Renovation Program

At Borouge, our greatest asset is our people, and we believe thatinvesting in our people means we invest in our future.

Borouge values the organisational culture as a fundamental aspectthat shapes the way we collaborate and achieve our ambitious
business targets.

Our extraordinary Borouge family comprises of a mosaic of talent, diversity, and dedicationof 3034 employees from 55 countries. This year, their dedication fuelled Borouge’s remarkableachievements, with key milestones reaching and surpassing company goals.
The success stories achieved in 2023 would not be possible without the commitment and hard
work of every member of our Borouge family. Our commitment to empowering and continuallydeveloping our people remains resolute as we pave the way for a future defined by excellence.

Employee Engagement
Our focus is on fostering an environment where every employee feels engaged, valued, andsupported. Throughout 2023, we pursued various initiatives to strengthen employee engagement.
From volunteering programmes, celebratory events, and internal competitions, we believe
in providing diverse opportunities for our employees to participate and achieve a senseof belonging and purpose.
We are building a vibrant community where every voice matters. Communication is a key
component to us, and we utilise a range of channels, including face-to-face and town hall meetings
and regular engagement updates from the senior management, to ensure effective engagement
so that everyone feels informed and connected.
Based on the result of the last engagement survey, we identified five priority dimensions where
we need to focus more, these are:•Career Opportunities•

Job Security•

Learning & Development•

Survey Effectiveness•

Executive Leadership.

This ultimately leads to creating a high-performance and accountable culture, deeply rooted in ourvalues and behaviours.
Last year, Borouge started conducting several workshops involving executive leaders and middle
managers to enable a better understanding and insight into the areas that require our attention todrive a thriving culture that promotes people’s wellbeing, open communication, transparency, andcollaboration.
We have identified themes through a culture and engagement action plan that would support thisprogramme such as, enhancing the employee experience, more engagement through performanceexcellence and empowering people’s capabilities.
As such, we are demonstrating the importance of empowering employees, more leadershipvisibility, and learning and development.
This year, we are expecting to accomplish several deliverables as identified in the 2024 Culture &Engagement KPIs. The targets included the implementation of the identified action plan, effective
communication, employee recognition and culture toolkit.
Borouge ADP is planning to build on the momentum of the achieved level of engagement andenhance it further, several activities will be implemented during 2024 by a dedicated task force
sponsored by the PLC leaders in collaboration with functional leads and culture influencers todrive effective implementation to deliver this programme.

As a result, a total of 113 actions were identified to support the engagement of employees
at the functional level.
The 2023 Employee Engagement Survey was temporarily replaced by the Employee Transformation
Survey which covered a wider scope that included ADNOC’s strategy, culture, values, sponsorship,
and internal communication.
The transformation survey asked questions related to employee experience and survey
effectiveness. Borouge achieved a 75% participation rate which shows the employees’
enthusiasm to be part of the survey.

88

Borouge Sustainability Report 2023

Borouge Sustainability Report 2024
2023

89

SocialAttracting and Retaining the Best Talent

Supporting our Employees

As part of our continuous journey towards a performance-driven
culture, we are committed to attracting and retaining top talents.

At Borouge, we prioritise the wellbeing and development of our employees by offering a fair,
objective, and transparent compensation and benefits system. Our comprehensive benefits
package includes medical coverage, housing, life insurance, disability and invalidity coverage,
parental leave, health club membership, and pension schemes for UAE Nationals.

In the year 2023, we proudly welcomed 88 new employees across various departments,
strategically reinforcing our workforce to align with our expansion plans. Notably, our attrition rateof 5.8% for the year, below the global average, stands as a testament to our robust employer brandand the strength of our commitment to talent retention.
As we move forward, we remain steadfast in our commitment to nurturing a thriving workforce thatpropels Borouge towards an even brighter future.

Employees
joining

By gender

By agegroup

By job
level

2017

2018

2019

2020

2021

2022

2023

Male

97

177

178

113

103

104

74

Female

32

37

54

34

48

29

14

<30 years

70

129

130

52

51

40

34

30-50 years

54

80

94

88

90

80

37

>50 years

5

5

8

7

10

13

17

Executive& Senior
Management

7

7

2

3

4

4

4

MiddleManagement

15

12

39

23

20

24

10

Staff

107

195

191

121

127

105

74

129

214

232

147

151

133

180

Male

358

308

118

113

109

113

137

Female

58

42

21

30

24

23

39

<30 years

42

62

37

7

8

16

27

30-50 years

288

243

83

93

97

82

113

>50 years

86

45

19

43

31

38

36

Executive& Senior
Management

10

13

3

10

7

12

7

MiddleManagement

53

51

29

35

32

31

52

Staff

353

286

107

98

97

93

117

416

350

139

143

136

136

176

Total
Employees
leaving

By gender

By agegroup

By job
level

Total

90

Borouge Sustainability Report 2023

As part of the ADNOC Group of companies, Borouge extends highly
competitive financial compensation packages and a diverse rangeof additional benefits to our employees.

1
Medical careand health life
insurance for
employees
and eligible
dependents.

2
Access tostate-ofthe-art gym
facilities andwellnessmemberships,
includingfitness andbeach club
facilities.

6
Housing
allowance,
which can berequested as
an upfront
interest
free loan if
eligible.

7
UAE National
employees
are entitled
to retirement
pension as
per the Abu
Dhabi law.

Borouge Sustainability Report 2023

3
Government
standard
maternity
leaves, anddouble thenational
standard for
nursing hours,
until the childreaches 18
months of age.

8
Non-UAE
National
employees
are entitled to
End of Service
Benefits andrepatriation,
after one year,
accordingto length ofservice.

4Childeducational
assistancefor eligible
employeeswith children
attendingaccredited
schools in
the UAE.

9
Additional
benefits
for retiring
employees,
includingretraining
opportunities
for thoseintendingto continue
working.

5Interest-free
car purchaseloan for eligible
employees.

10
Severance
pay basedon years ofservice alongwith assistancesuch astraining andcounsellingwhentransitioning to
not working.

91SocialWe offer our employees extended maternity leaves, childcare assistance, and educational
support as Borouge promotes and advocates a healthy work-life balance. Our commitment
to a gender-sensitive and flexible work environment is reflected in our programmes and policies.
Moreover, our flexible work arrangements and career development programmes ensure a smoothtransition back to work. In 2023, 30 female and 136 male employees availed parental leave,of which 100% and 100% of employees respectively returned to work.
This demonstrates our dedication to promoting a healthy work-life balance.

Parental leave 2023
Total number of
employees that tookparental leave in the year
preceding the reporting
periodNumber of employees
who returned to work afterparental leave ended

Total number of females
who are entitled forparental leave - maternity

Total number of males
who are entitled forparental leave - paternity

166

166

30

136

Total number of females
who took parental leave maternity

Total number of males
who took parental leave paternity

Total number of females
who returned to workin the reporting period
after their parental leave maternity ended

Total number of males
who returned to workin the reporting period
after their parental leave paternity ended

30

136

30

136

Return to work rate
(females)Return to work rate
(males)Retention rate
(females)Retention rate (males)

100% 100% 100% 100%
Fostering Employee Performance
Our integrated Talent and Competency Framework is based on global best practices to identify
and cultivate talent, allowing individuals to reach their highest potential in their respective fields.
We engage and support employees through tailored evaluation, discussions, planning,and development activities that align with their aspirations, current competencies, performance levels,and potentials. We offer diverse opportunities, including on-the-job coaching and mentoring, worldclass training courses, international assignments, and secondments with Borouge businesses andprojects abroad to continuously prioritise employee development.
These initiatives have resulted in cultivating a high-performing, innovative, competent,
and motivated workforce within Borouge. Our Employee Performance Management system plays
a crucial role in recognising and developing employees. This system serves as a powerful engine
to translate business plans into action, fostering improved performance and increased engagement
through meaningful dialogue, feedback, and coaching.
It works to strike a balance between the company’s business needs and employees’ desires for job
satisfaction, rewards, personal and career development, and progression. In addition, the performance
management process aids in identifying appropriate training to address skills gaps and enhancing
employee performance. Our commitment to personalised growth yielded impressive resultsin 2023, 2,552 employees received performance-based bonuses, contributing to enhanced employee
engagement and motivation.

92

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

93

SocialLearning and Development

Performance appraisals by gender
2017

2018

2019

2020

2021

2022

2023

Male

2,357

2,527

2,373

2,522

2,483

2,488

2,489

Female

397

409

434

441

467

463

440

% of employees who
received a formal
performance appraisal
and review

87%

97%

90%

97%

99%

95%

95%

Celebrating Multiple Accolades
Borouge won the ‘HR Asia Best Companies to Work for in Asia Awards’ – the sixth consecutive win
for Singapore and the fourth consecutive win for China respectively. Borouge was one of the 41
winning companies in Singapore amongst 332 participants. Borouge was also one of the four gold
winners, awarded to companies that won for five or more consecutive years.
For the China edition, Borouge was among the 49 companies to win out of a total of 285
companies. In addition, Borouge won ‘The HR Asia Most Caring Company Award’ in China –a new award category this year that recognises organisations that demonstrated exceptional carefor their employees.
These awards are a testament to Borouge’s efforts to engage its employees and robust humancapital practices. This achievement would not have been possible without our employees’
hard work and dedication.
Furthermore, Borouge was named the grand champion of the Human Resources ExcellenceAwards for two years in a row. Our strategies and practices in the human capital space enabled thecompany to receive seven awards including the “Employer of the Year” and the coveted “Grand
Prize-Overall HR Excellence Award”.
We are honoured to receive 9 awards at the Employee Experience Awards, a testament to thecontinuous support from our employees and the dedication of our leaders.

94

Borouge Sustainability Report 2023

We continue to invest in our people, nurturing their growth and equipping them with the necessary
tools to navigate challenges and seize opportunities. Staying ahead of the curve requires an unwaveringcommitment to learning and development.
There are multiple development opportunities available for Borouge employees, including theinternal talent mobility programme, the technical career progression programme, and other learningand development opportunities. Our approach to learning encompasses a variety of internal and external
opportunities, including:
࢚
࢚
࢚
࢚
࢚

eLearning
On-the-job training (OJT)Classroom sessions
Coaching and mentoring
Specialised bespoke development initiatives

In 2023, we dedicated over 48,150 hours of training, emphasising our commitment to establishingand maintaining a performance-driven, engaged workforce.
Borouge provides internal and external training opportunities such as eLearning, on-the-job training,classroom training, learning from others (coaching and mentoring), and specialized bespoke.
Using ADNOC’s Learning Management System (LMS), we have provided our people with select eLearning
opportunities based on their individual needs and interests. Some of the eLearning offered included
management; Health, Safety and Environment; leadership; technical; role-related; and interpersonal skills.
Moreover, our employees had access to various commercial training opportunities, fostering a high levelof commercial acumen.
The training programme covered essential topics such as sustainability, circular economies,
petrochemicals, and Net Zero, empowering our workforce with the knowledge and tools needed to stayahead in these critical areas.
The Borouge Talent ECO System Programmes are initiatives designed to cultivate and develop a poolof talented individuals. With the Talent ECO System, we offered 7 leadership learning programmes
to 428 participants, ensuring a comprehensive approach to talent development.
This ongoing investment in training, growth opportunities, and performance excellence recognitionis crucial, demanding constant innovation to align with the evolving talent landscape and the dynamic
nature of talent acquisition and retention. By investing in our employees, we invest in Borouge’s future,building a high-performing workforce equipped for tomorrow’s challenges. We introduced our certified
and professional coaches at Borouge to help employees tap into their potential, unlock creativity andproductivity, and create positive change geared towards extraordinary results.
࢚In-house Training:࢚Borouge technical academy 2023 with 31 sessions 28 by Microsoft Teams and 3 visuals.

࢚Microsoft Power BI 2 sessions.

࢚

Microsoft Office Application 2 sessions.

࢚

Borouge Lean Six Sigma Program 6 sessions by Microsoft Teams.

࢚

i5 Project Management Methodology 5 sessions by Microsoft Teams.

࢚

Job Evaluation Invitation 2 sessions by Microsoft Teams.

Borouge Sustainability Report 2023

95

SocialHealth and Safety

Borouge’s efforts to foster learning and development opportunities

We adhere to the robust Health, Safety, and Environment (HSE) Policy and Sustainability Policy, which
instils a 100% HSE culture within every member of the Borouge family.

Distributed Control System (DCS) Training Programme

Our policies empower each employee to be a Safety Leader, encouraging proactive intervention in
the face of risks. We promote a zero-harm culture across the whole value chain as a responsible carecompany. Our top priority is providing a safe and healthy working environment for all in line with our‘No harm to people and assets’ target.

Potential panel operators (Tier 1 and Tier 2) attended the first customised handson Distributed Control System (DCS) system training, utilising our existing Borouge
Operator Training Simulator (OTS) platform. Since its start in 2018, the DCS training
programme has been successfully and consistently improving over the years. At theend of the 4 sessions, 43 panel operators from all functions successfully completed
the programme.

To achieve this, we established focal points and committees across the organisation,
creating regular forums to communicate essential HSE topics. We promote a strong HSE culture,collaborating with all employees and contractors to realise our ultimate aim of achieving
100% HSE and beyond.

Number of hours and cost of training delivered to employees
2017

2018

2019

2020

2021

2022

2023

Male

400,744508,718

310,069

192,020282,204

95,38846,070Female11,432

16,904

16,141

13,22929,812

2,947

2,083

Executive & Senior
Management

7,038

1,231

1,331

831

2,885

121

1,468

MiddleManagement

31,48832,511

24,852

23,751

39,142

2,060

4,037

Staff

373,650

491,880

300,027

180,667

269,989

96,15442,648

Total number of training hours

412,176525,622

326,210205,249

312,016

98,335

48,153

Cost bygender(USD)

Male

395,866

1,140,817

2,644,935

1,147,270

1,429,346

732,730

78,208

Female98,967472,547

508,235

373,994

305,948

20,1003,536

Executive & Senior
Management

47,00949,91760,87525,12656,754

106,630

2,493

MiddleManagement

210,304

1,066,661

793,661

552,878

512,446

380,672

6,854

Staff

237,520496,786

2,298,634

943,260

1,166,093

265,528

72,397494,833

1,613,36

3,153,170

1,521,264

1,735,294

752,830

81,744

Hours bygender

By joblevel

Cost by job
level (USD)

Total cost of training (USD)

To enhance awareness among our workforce, contractors, and stakeholders affected by our activities,
our mandatory training matrix includes comprehensive HSE induction and environmental awarenessmodules, among other relevant topics. In 2023, we successfully implemented 25,450 man hours of
training for 4125 participants, engaging both employees and contractors. The estimated cost savings,
directly as a result of these trainings, was approximately AED 1 million.

In 2023 we cascaded the Falcon state of Mind

Culture of Care Programme

100%HSEI am accountable
for sustaining
a 100% HSE
culture

ility
ab
nt

Acc
ou

e
ar

C

I care for myself
and look after mycolleagues

Culture96

Borouge Sustainability Report 2023

nit
ion

Borouge Sustainability Report 2023

us
t

og
Rec

I recognize andreward safe
behaviorof Caretr
En

I build trust
through open
communicationand timely
feedback

97

SocialHealth and safety performance data

Hours
WorkedLTI

TRI

Occupational
Illness

Fatalities

2017

2018

2019

2020

2021

2022

2023

Company

6,719,297

6,276,290

6,251,497

6,393,703

6,369,364

6,801,383

6,702,556

Contractor

9,889,062

10,167,075

14,597,755

19,393,685

13,540,500

14,266,629

41,392,603

Total

16,608,359

16,443,366

20,849,252

25,787,388

19,909,864

21,068,012

48,095,159

Company

0

1

1

2

1

1

1

Contractor

0

0

1

1

1

3

3

Total

0

1

2

3

2

4

4

Company

1

2

1

2

3

2

1

Contractor

3

0

5

3

2

3

4

Total

4

2

6

5

5

5

5

Company

0

0

0

0

0

1

0

Contractor

0

0

0

0

0

0

0

Total

0

0

0

0

0

1

0

Company

0

0

0

0

0

0

0

Contractor

0

0

0

0

1

0

0

Total

0

0

0

0

1

0

0

0

0.06

0.10

0.12

0.10

0.189

0.08

0.24

0.12

0.29

0.19

0.25

0.237

0.10

LTI Frequency
TRIR

Data Points*2023
Number of Transport Incidents

0

Process Safety Incidents Count (PSIC)

2

Process Safety Incident Severity Rate (PSISR)

0*Data is for 2023 only, as this is the first year of reporting in accordance with the SASB requirement.

As part of our focus on HSE Culture Transformation, Borouge has a dedicated HSE Recognition
Platform, where our goals are to:
•
•
•
•

98

Recognise employees for demonstrating 100% HSE
Encourage leaders, peers, and partners to celebrate HSE recognition moments
Inspire teams to energise the workforce
Promote behaviour-based safety through recognition and engagement

Borouge Sustainability Report 2023

SocialHSE Highlights
In 2023, HSE performance was remarkable with outstanding results on many of the indicators
which were set to monitor HSE performance and improve HSE culture. Below are some of thehighlights of 2023 HSE performance:࢚

TRI rate of 0.10 against target 0.20, shows Significantly Exceed Target࢚

Zero Process safety Tier-1/2 incidents reported in 2023.

࢚

HSE Cultural Transformation achieved its objectives for 2023 through good performance due totimely deliverables/milestone achievements.

Process Safety and Asset Integrity
Owing to our commitment to prevent major process safety incidents, we closely adhere to theprinciples of Asset Integrity Management and devote the necessary resources to implement theseprinciples throughout the organisation.
The Borouge Asset Integrity Process Safety is a systematic approach for identifying, evaluating
and controlling significant process hazards and risks.
This is primarily to prevent the loss of primary containment of hazardous substances and therelease of stored energy which could result in fires, explosions, or other serious consequences.
The management system also contributes to optimise business processes concerning HSE
requirements, the operational environment and business sustainability.

࢚All contractor onboarding actions, and Business Continuity/Crisis Management deliverables
were submitted on time.

࢚Over 35,000 safety observations were recorded in 2023, exceeding our target. Criticalobservations were addressed via themed engagements and campaigns.

࢚

855 direct hire employees received HSE recognition certificates and vouchers, reinforcing oursafety culture.

࢚

E-WMS compliance improved, achieving 88% exceeding the set target for 2023.

࢚

Initiated the HSE Excellence Journey with terms of reference and performance measures for allseven pillars.

To sustain all the barriers of process safety, the following critical tasks were implemented
and accomplished in 2023:

࢚

B1/B2 Health, Safety and Environmental Impact Assessment (HSEIA) studies were completed.

࢚

Achieved 100% in periodic medical examinations of employees and contractors in Al Ruwais
Industrial City.

•

The launch of the HSE Excellence Journey aimed to excel in the area of Asset Integrity Process
Safety (AIPS) by focusing on all its elements through the formation of focused groups andsetting clear milestones.

࢚

IVMS implementation for baseline contractors reached 100%, enhancing vehicle-related safety.

•

Major emphasis was placed on leading indicators for AIPS Transformation.

࢚Successful monitoring of all 31 stacks in B1/2/3 plants for stack emissions.

࢚

Implementation of fugitive emission monitoring, initiated at the EU3 plant under the ADNOC
framework agreement.

Below are some highlights in the following areas:

We have a Process Safety Network platform between Borouge and our peers, including Borealis,to provide a venue to exchange best practices. We regularly perform risk assessments based on
the established Qualitative and Quantitative Risk Assessment Methodology. Subsequently, theidentified high-risk activities are brought to an acceptable level (ALARP) through implementing
practical controls and mitigation measures.

Health, Safety and Environmental Impact Assessment (HSEIA)•The 5 yearly revalidation for the B1/B2/B3 project is in progress to obtain regulatory compliancefrom ADNOC.

•

B1 and B2 HSEIA Dossier was submitted to ADNOC for approval and to acquire Statementof Fitness.

HSE Critical Equipment and Systems (HSECES)•HSECES Technical Integrity Verification (TIV) audit was done by a third party and field
verification of HSECES tags as per ADNOC standards was conducted.

•

HSECES performance standard review is under progress for all the applicable categories.

Operating Integrity

100

Borouge Sustainability Report 2023•

Development of a Safe Operating Limit (SOL) excursion monitoring tool is in process.

•Implementation of Downgraded Situation in OneERP is in process.

Borouge Sustainability Report 2023

101SocialHuman Rights
At Borouge, we safeguard human rights across our operations
and supply chain to ensure the wellbeing and dignity of all thoseworking for us. As a company with a global reach and operations
in numerous countries, we adhere to all the laws and regulations
applicable to our operations.

Corporate Social Responsibility (CSR)

We understand that meaningful engagement and investment in thecommunity contribute to our sustainable development.

As a responsible organisation, Borouge seeks to promote the highest standards of ethics andhuman rights wherever we operate. Therefore, our approach aims to prevent human rights
violations, and we do not condone any abuse of these rights.
All principal risks, including those related to human rights, are identified through our risk
management process, and managed comprehensively and sustainably through our ERM practices
across the company. We conduct proactive assessments of potential human rights issues,encompassing evaluations of 100% of our own operations, as well as those of our contractors
and Tier I suppliers. This is part of our Workers Protection Standard, which serves to ensure humanrights assessment within our operations.
Moreover, we have an anonymous reporting system in place called Takallam (which means“to speak” in Arabic). Takallam is managed by an independent third party to ensure complete
confidentiality and effective reporting within Borouge. It provides a platform for employees to shareconfidential grievances, including those related to unethical practices, like reporting human rights
violations, without the fear of retaliation.

At Borouge, our CSR activities reflect our mission, vision, values, and strategy which are an
integral part of our identity. Furthermore, our CSR initiatives are fuelled by our employees’ passion
and dedication to making a difference in the communities we call home.

During 2023, a total of 11,811 individuals were positively impacted by
CSR activities with the support of our Sustainability Champions.
We continue to collaborate with communities and employees to strengthen our relationships,
accountability, and reputation. We have a strong history of supporting our local communities
and fostering long-term and mutually beneficial partnerships and social initiatives.

Our strategic community investments and sponsorships amounted
to over AED 300,000 in 2023.
Our CSR initiatives focus on areas relevant to our business objectives, reflecting our dedication
to building strong relationships, and ensuring accountability.

During the reporting period, there were zero grievance reports related to human rights in ouroperations, including those carried out by our suppliers. To supplement our approach, we
continued to ensure 100% employee participation in human rights training, equipping themwith the knowledge to identify and address potential issues.

Training on human rights

102

2017

2018

2019

2020

2021

2022

2023

Total number of hours

1,067

1,553

1,555

1562.5

1,067

1,561

1,517

Number of employees trained

2,135

3,106

3,110

3125

2,135

3,122

3,034

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

103SocialBorouge Without Borders

Environment
Our environmental awareness initiatives cover a wide area, initiating and delivering campaigns in
multiple countries to:•••

Encourage the responsible disposal of waste
Educate the public to reduce, reuse, and recycle waste
Promote the benefits and value of polymers

Borouge participates in community awareness campaigns and engages with youth by organising
youth circles, roadshows and competitions in schools and universities. These activities aim to
inspire the future generation to understand the principles of sustainability and the benefits andvalue of polymers. We also engage with the community to educate and further raise awarenessaround sustainable waste disposal and segregation.

Science Education Polymers on the Move (POTM)
POTM instils positive behavioural change by educating the younger generation about responsible
plastic use, recycling, and the significance of a circular economy. In 2023, more than 7,200
students and teachers in both the Middle East and Asia were reached with the assistance ofBorouge Sustainability Champions.
•

14 sessions were conducted in various locations across Asia, including China, Vietnam,
Singapore, Indonesia, and India, resulting in positive impacts.

•

In the UAE, 14 sessions were held with the support of Sustainability Champions,as detailed below:• 12 sessions were conducted for students ranging from grade 5 to 11 across different
schools in both Abu Dhabi and the Al Dhafra region. This included a session for 80 teachers
from GEMS Winchester School, impacting a total of 1,883 students and teachers.
• 2 sessions were conducted at the Borouge Innovation Centre, one of which was dedicatedto Borouge employees’ children, impacting 69 individuals.

Employee volunteerism is one of the cornerstones of a successful CSR strategy. In 2016, on
International Volunteer Day, we launched our global initiative, “Borouge without Borders” which
provides our employees with a unique opportunity to volunteer for two days per year towards aworthy cause. Since launching the initiative in 2016, we have organised visits in Abu Dhabi, Al
Ruwais Industrial City, Shanghai, Indonesia, and Singapore making a positive impact and givingback to society.
In 2023, Borouge employees dedicated more than 100 volunteering man hours to volunteering,making meaningful contributions to local community programmes and education projects. As aresult, 1,829 individuals benefited positively from these efforts.
During this time, Borouge volunteers engaged with various locations such as:
Zayed Higher Organization for People of Determination: Borouge collaborated with the centre on
two visits in 2023. The first visit involved a trip to the Zayed Agriculture Centre, where Borougevolunteers engaged with trainees from the Agricultural Rehabilitation Unit in Abu Dhabi, impacting a
total of 76 individuals. The second visit saw Borouge’s Finance team visiting the main centre of the
Zayed Higher Organization for People of Determination, interacting with trainees in their workshops
and distributing gifts.
Emirates Red Crescent (ERC): We partnered with ERC to organise an educational session fororphans at the Borouge Innovation Centre in Abu Dhabi. During this session, scientists andresearchers delivered an in-depth presentation on the value and responsible use of polymers, which
included a facility tour and interactive simulations. Additionally, we participated in the “Bridges ofGoodness” campaign to aid those affected in the Syrian Arab Republic and the Turkish Republic,
and the Tarahum for Gaza campaign.
Borouge employees across all UAE locations participated by donating essential materials such as
food parcels, general health parcels, personal care items, water, blankets, and sleeping bags. The
cumulative impact from both campaigns reached 1,528 individuals.
Seniors’ Happiness Centre in Dubai: Borouge volunteers celebrated International Volunteer Day
with 50 senior members of the society, engaging with them throughout the day and concluding witha shared meal.

• 2 science education programmes for universities were conducted at the Innovation Centre,
involving 81 students from Nanyang Technological University and Khalifa University, and ledby the Innovation Centre team.

Water For the WorldFor billions of people, water and sanitation are pressing and immediate challenges. Since 2007,
Borouge together with Borealis, proactively contribute to addressing this global challenge throughour Water for the World initiative and our local water-related projects. To maximise its benefits,
Water for the World works in partnership with NGOs and the private sector, including partners andcustomers of Borouge and Borealis, local communities and other value chain partners,
to implement these projects across the world, including India, Pakistan, Nepal, China, Ethiopia,
and Kenya.
Our local water-related projects:
•
•
•

104

Improving access to clean water and modern sanitation
Fostering knowledge, building partnerships, and delivering sustainable polymer solutions
Raising awareness in communities and across the value chain for the preservation

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

105

SocialMeasuring social impact and social value delivered through our initiatives is part of ourcommitment to continuously improving our social engagement and investment in the communities
we operate in.

ENVIRONMENT

Social Value
168
Volunterring
Man-Hours

Social Impact
2,691
PeopleImpacted

SCIENCEEDUCATION

Social Value
30
Volunterring
Man-Hours

Social Impact
7,291
PeopleImpacted

Volunterring
Man-Hours

Social Impact
1,829
PeopleImpacted

The 19th edition of the Liwa Date Festival was held in Liwa, Al Dhafra Region.
It was sponsored by ADNOC and organised by the Cultural Programmes and Heritage Festivals
Committee – Abu Dhabi and the Abu Dhabi Heritage Club.

BOROUGUE WITHOUT
BOARDERS

Social Value
214

Liwa Dates Festival

TOTAL

Social Value
412
Volunterring
Man-Hours

Social Impact
11,811
PeopleImpacted*Social impact is measured by the number of people who have directly benefitted whereas the social value is measured
by the total number of man-hours volunteered by our employees.

The festival served as a platform for Borouge to showcase its sustainability and environmental
initiatives. Our Sustainability Champions demonstrated how Borouge enables everyday life andprioritises CSR – including community engagements – as part of its wider sustainability strategy.
Al Ruwais Industrial City HSE Forum
We had the opportunity to participate in the Al Ruwais Industrial City HSE Community Forum todemonstrate sustainable practices adopted by Al Ruwais Industrial City among its community andstakeholders. The event commenced with opening remarks followed by an exhibition tour, during
which visitors were welcomed to the Borouge stand.
Throughout the day, the sustainability team and champions actively engaged with the community,
discussing the benefits of plastic, its role in everyday life, the economic growth resulting from its
significant usage, and how plastics are managed, reused, and recycled to ensure continued growth.
Environmental Festival at Al Ghazali School
Borouge participated in the environmental festival at Al Ghazali School, underscoring ourcommitment to sustainability and raising awareness among youth and the community. We engaged
with students, providing valuable information about plastics and polymers, detailing the value ofplastic, plastic waste, and potential solutions.

Community Engagement
Food For Taught
Food for Taught is an educational initiative designed to enlighten the younger generation aboutsustainable farming practices.

Moreover, students enjoyed a slime experiment, demonstrating how to make plastic fromhousehold materials.

Leveraging our innovative solutions and with the support of our partners, we unveiled two mini
greenhouses at Canossian School - a special education institution for students diagnosed withhearing loss in Singapore. In this pilot programme, students can explore sustainable farming
and enhance their understanding of recycling.
Borouge without Borders volunteers in Singapore was involved in the installation of the greenhouse
film, seeding, monitoring, recording the growth, development of the crop and harvesting of thecrop. Borouge aims to inspire the younger generation on food security and the importanceof sustainable agricultural practices with our innovative solutions.
As part of the Food for Taught CSR programme, we collaborated with Christopher Leow,a renowned urban farmer in Singapore, to organise an agriculture workshop for the students
at Canossian School, focused on advocating the importance of food security, sustainability, andrecycling. The workshop introduced a fresh perspective, fostering an understanding of composting
and urban farming as sustainable practices contributing to food system regeneration andenvironmental preservation.

106

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

107

GrowthProfit

GRI
200

Economic Growth

We have emerged as one of the world’s leading providers of innovativeand differentiated polyolefin solutions.
We boast a diverse regional presence across the MENA region, Europe, and Asia and are
strategically positioned to meet the demands of global markets, leveraging strong distribution
and logistics capabilities, and we are committed to excellence, innovation, and sustainability
in our operations. As we continuously enhance our production capacity and provide differentiatedproducts, our commitment extends beyond growth – we are dedicated to adopting a sustainable
and circular approach. Exploring sustainable circular economy solutions, we aim to make a positive
impact on society, aligning our economic endeavours with a vision for lasting environmental
and social benefits.

•
•
•
•
•
•
•

GRI 201: Economic Performance 2016
GRI 202: Market Presence 2016
GRI 203: Indirect Economic Impacts 2016
GRI 204: Procurement Practices 2016
GRI 205: Anti-corruption 2016
GRI 206: Anti-competitive Behaviour 2016
GRI 207: Tax 2019

•
•
•
•
•
•
•
•
•
•

E8. Environmental OversightE9. Environmental OversightE10. Climate Risk Mitigation
S1. CEO Pay Ratio
G1. Board Diversity
G2. Board Independence
G3. Incentivized Pay
G4. Supplier Code of Conduct
G5. Ethics and Prevention of Corruption
G6. Data Privacy••

Management of the Legal & Regulatory Environment
Critical Incident Risk Management

Economic Performance
Borouge’s 2023 financial performance showcases robust results and resilience amid challenging
global conditions conditions. With a net profit of $1 billion achieved in a very difficult market
environment, we attribute our resilience and success to strategic initiatives, including the ambitious
Value Enhancement Programme delivered in 2023.
The Value Enhancement Programme was designed to:Priority: Social and Human
Resources Development

108

•
•
•

Business Ethics and Governance
Product Stewardship
Product Quality and Safety

•
•
•
•
•
•
•

Production Capacity = 5 million tonnes
Revenue = $5,791 million
Net profit= $1 billion
New Product Sales = $73 million
Complaints (Per (000) tonnes sold) = 0.0175
Total polyolefin sales volumes = 5 million tonnes
Value Enhancement Program (2023) = $607 million positive impact࢚

Reinforce our robust financial position࢚Mitigate the challenging market environment࢚Support Borouge 2030 growth strategy

The Value Enhancement Programme delivered positive
cost efficiency and revenue optimisation

Borouge Sustainability Report 2023

Achieved for 2023

607m

Revised Target for 2023

500m

Initial Target for 2023

400m

Borouge Sustainability Report 2023

109

GrowthOur Value Enhancement Programme, one of the industry’s mostambitious, has positioned Borouge as a leader, mitigating challenges
in the market environment.

࢚

Revenue: $5,791 million

࢚Sales Volume: 5,116 kt thereof 5,000kt Polyolefins࢚

Net Profit: $1,001 million

Therefore, we set a new target of $500 million to navigate the current market conditions
successfully. The ambitious programme achieved a positive impact of $607 million, surpassing both
its initial 2023 target of $400 million and the later revised target of $500 million.

࢚Efficiencies and revenue optimisation (Value Enhancement Program 2023): $607 million࢚

Adjusted EBITDA: $ 2,171 million. Borouge delivered a healthy EBITDA margin of 40%,up 6 percentage points compared to the previous year, owing to the Company’s improved
operational efficiencies and cost optimisation strategies࢚Cash Conversion 88%

The final dividend of$1.3 billion

Borouge Achieves Global Recognition in Forbes Global 2000

Borouge proudly secures a position among the world’s
largest companies, as we were prominently featured in theprestigious Forbes Global 2000 list.

marks the completion ofa strong financial year.
In line with our dedication to shareholder value, a final dividend of$650 million (2nd instalment related to FY 2023) will be distributed in
2024, concluding a $1.3 billion in dividend distribution for FY2023.
These financial results highlight Borouge’s agility, strong cash generation capabilities, and resilient
operations, enabling us to deliver exceptional shareholder returns. Amidst a subdued global
landscape, our dedication to innovation, cost management, and strategic growth has fuelled
success, emphasising our commitment to creating sustained shareholder value.

This recognition is a testament to Borouge’s robust standing both locally andinternationally.
Forbes Global 2000 is a renowned ranking system and acknowledges companies basedon key metrics such as sales, profits, assets, and market value.
Borouge’s inclusion in this esteemed list underlines our financial strength and market
influence. This significant achievement coincides with the 20th anniversary of the Global
2000, marking two decades of providing a comprehensive overview of the largest publiccompanies worldwide.

Borouge delivered strong 2023 results with achieving the highest ever production and sales
volumes - demonstrating strong year-on-year growth in sales volumes driving healthy
revenue growth.

110

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

111

GrowthEnhancing Innovation
Technology and Innovation are at the core of Borouge’s businesssuccess. With more than 20% of annual sales volume coming fromnew products and 1100+ active patent cases, we prioritise innovationand long-term differentiation.
Our product portfolio enables our customers to have tailored solutions that suit their industrial
requirements and add value to their processes.
We engage with value chain partners and customers in our innovation process for new productdevelopment. Through this collaboration, we strive to anticipate future market trends anddevelop solutions that address the industry’s needs and bring value to society. New concepts arecontinuously being identified and developed at the Innovation Centres’ laboratories before being
scaled up to the pilot and commercial plants, where test runs are performed, and the produced
polymers are trialled in collaboration with our customers.
These trials ensure the desired quality and suitability of our new products in the customers’
production lines before the commercial launch. This innovation process brings together our
technological benefits, innovation capabilities, and value-chain engagement to ensure that
we continuously develop differentiated value-add solutions. We have dedicated budgets for
Research and Development (R&D) and aim to maintain our investments in our portfolio
of products to maintain our competitive edge.

Innovation at Borouge112࢚

25 polymer research laboratories࢚

100 scientists, researchers, and engineers

࢚

40% UAE Nationals

࢚>1,100 filed patent cases

࢚>700 granted patents for new products࢚>20% of our annual sales volume are new products developed at the Borouge
Innovation Centre࢚

8 new products launched in 2023

࢚59,606 t Circular Economy Solutions (CES) total sales (53,259 t SPS AND 5,957 t recyclate)

Borouge Sustainability Report 2023

GrowthApplication Centre, Shanghai

Innovation Centres

Borouge Innovation centres are located at two sites, the Innovation
Centre in Abu Dhabi, and the Application Centre in Shanghai.
Innovation Centre, Abu Dhabi

Our Application Centre in Shanghai provides testing support and advanced compounds for the
automotive industry in the Asia North region.
The facility focuses on developing the best compounded resins to create a variety of vehicle
mobility parts, including bumpers, door panels, and dashboard consoles.

This Borouge Innovation Centre in Abu Dhabi contributes toward making Borouge the leading
provider of polyolefin solutions in the Middle East, Africa, and Asia.
It serves as a hub of innovation in the field of polymer development and application technology.
This state-of-the-art facility serves as a focal point for innovation in the field of polymer andapplication development and application technology. It includes extensive laboratory andapplication development resources, supporting the unique capability of Borouge in providing
expertise in polymer analysis, processing, and application testing.

Stenungsund, Sweden
Porvoo, FinlandThis centre collaborates regularly with Borealis’ European Innovation
Centres to bring the best innovation to the region.

Linz, Austria

Shanghai, China

With a focus on R&D, our scientists, researchers, engineers, and lab technicians join forces todesign novel materials and use advanced technologies, equipment, and testing machines acrossthe laboratory to ensure our products provide the best value to our customers.

Abu Dhabi, UAE

In 2023, we organised various workshops at the centre. Visitors included academic institutions,
universities, and other organisations to raise awareness of the importance of polyolefins andpolymer science, and empower future talent in this growing field.
Our activities include visits from institutional partners, joint-collaborations with universities,
conference participations, value chain engagements and customer visits across all countries.

Borouge Innovation Centre

114

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

Borouge Shanghai Applicaton Centre

Borealis Innovation Centre

115

GrowthWorld Creativity and Innovation Day

Institutional Investors visits to the Borouge Innovation Centre

We celebrated World Creativity and Innovation Day at Borouge. We are proud to create
value through people and innovation by developing differentiated sustainable solutions thatenable everyday life. With the advanced Borealis Borstar® technology, we ensure 80% ofdifferentiated production volumes, delivering premium, tailor-made solutions to our customers
and value chain partners.

Jan-Martin Nufer, Chief Financial Officer, Dr. Apostolos Krallis, VP, Innovation Centre, andSamar Khan, VP, Investor Relations at Borouge, hosted several visits from institutional
investors including Fidelity, JP Morgan and HSBC on 27 September and 22 November
2023 at the Innovation Centre. During those visits, we had the opportunity to showcase ourtechnologies, capabilities, and innovations in our core application areas.
Our discussions mainly focused on how Borouge is delivering differentiated and sustainablepolyolefin solutions that are fully recyclable in a rapidly evolving global landscape.
The investors were introduced to the unique features of the Borealis Borstar® technology
based on which we can deliver solutions with enhanced processability, reduced energy
consumption during conversion and improved mechanical properties which are contributing
to a longer product lifecycle. They were impressed by our energy and infrastructure solutions
where our technologies and innovations have enabled the production of HV submarine
cables, large diameter pipes and solutions for the oil and gas industries.

Borouge Innovation Centre Supports the General Authorityof Islamic Affairs in Establishing Their Innovation Process
We are delighted to share our experience in Borouge Innovation Centre with UAE authorities
as part of our responsibilities towards the In-country value contribution. We were pleased
to host the Innovation Committee of the General Authority of Islamic Affairs and share ourknowledge and experience on how to establish an effective and efficient innovation process.
The discussion was focused on how to customise the process for a service providingorganisation.

As part of the tour, we showcased our advanced packaging solutions based on the BNT
technology, exhibiting low energy consumption during processing and high throughput
during production, The investors also expressed interest in our R&D activities of our circular
economy solutions that are used to make easily recyclable packaging and consumer
products. Most notably, the hosts highlighted the integral role of new products in driving
Borouge’s profitability and underlining the significant increase in the new products’ sales
margin since 2019.

Having a well-established and aligned innovation process with the available competencies
and capabilities at the Borouge Innovation Centre is a key success factor and can be used
as a good example in the UAE. This collaborative effort reflects our commitment
to knowledge-sharing and building a culture of innovation excellence in the UAE. Borougeremains dedicated to supporting local authorities in their innovation journey, ensuring
a brighter and more innovative future for the nation.

116

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

117

Growth

Borouge Innovation Centre showcased the“House of Circularity” at the UAE Climate Tech ForumAt the UAE Climate Tech Forum, we demonstrated our dedication to embracing the circular
economy and minimising our environmental footprint. During the event, Borouge’s Innovation
Manager at the Packaging Centre of Excellence, Massimiliano Carlomagno, discussed our‘House of Circularity’ initiative that demonstrates Borouge’s dedication to a circular economy,
incorporating sustainable practices throughout the entire product lifecycle from design andmanufacturing to end-of-life disposal.
Our sustainable packaging solutions- that are fully recyclable, developed throughcollaboration between the Innovation Centre, Regional Teams and Value Chain partners werealso showcased in the Borouge booth, including Design for Recycling (DfR) solutions as wellas products containing post-consumer recycled (PCR) material.

ADNOC Technical Academy visits the Borouge Innovation Centre
We were pleased to host a delegation from ADNOC Technical Academy (ATA), comprisingof members of management and trainees, to showcase Borouge processes, products,
and activities in the Innovation Centre and to evaluate opportunities for collaboration.
ATA trainees were introduced to Borouge’s innovative technologies and products and mostimportantly circular economy and sustainability, in a year when the UAE is hosted COP28.
The training and development of young talents in the UAE is one of the main responsibilitiesof the Borouge Innovation Centre.

118

Borouge Sustainability Report 2023

GrowthFurther to the above, Borouge takes further action on the below;

Tax

Borouge recognises the importance of tax accountability
and transparency.
Borouge is committed to best tax governance practices to manage the ongoing performance andtax affairs throughout the regions in which Borouge operates.
The guiding principles to achieve this mission are set out below:
Compliance with Tax Laws
࢚

We endeavour to comply with all relevant tax laws and regulations.

࢚

We undertake tax planning to optimise tax efficiency and ensure that they are alignedwith the commercial and economic activities for the Group.

Relationship with Tax Authorities࢚

We maintain an open and cooperative relationship with tax authorities of jurisdictions
in which Borouge operates.

࢚We perform regular reviews and self-assessments of our tax filing positions and arecommitted to making accurate and timely disclosures to tax authorities of jurisdictions
in which Borouge operates.

1.	 Regulatory and Compliance - Borouge complies with all regulatory requirements imposedin the jurisdictions it operates in. Borouge files tax returns on time, pays taxes due and attend
to tax authorities’ requests in a timely and professional manner.

2.	 Tax Strategy and Planning - The Tax department monitors and captures all changes in tax
rules and regulations, conducts a review of new and existing business models and key projectsof Borouge.
3.	 Tax dispute and controversy - In event of an unresolved or potential tax dispute,Borouge will initiate proactive discussion with the authorities to seek an amicable resolutionof the dispute/exposure to minimise the tax exposure. Unless absolutely necessary,
Borouge will obtain Management Board’s approval to pursue tax litigation path to resolve
the matter with the competent tax authority.
Borouge will also, in the ordinary course of business, seek to explore any available relief and/or
incentives to legitimately reduce its costs. However, precedence is given to business strategy
over tax strategy.

Governance Structure for Managing Tax Risks
We have a formal governance structure for tax risk management where roles and responsibilities
are clearly defined:120

࢚The Management Board is apprised of Borouge’s overall tax governance strategy.

࢚

The CEO, CFO and/or appointed delegate are responsible for overseeing Borouge’s tax affairs,
including producing timely, accurate and complete tax returns and paying all taxes due.

࢚We maintain a sound system of risk management and internal controls to identify,
assess and manage tax risks and ensure accurate tax reporting.

࢚

Our internal tax team is competent in managing tax compliance, and where necessary,
we would engage external tax advisors to seek their advice or clarification on complex issues.

࢚

Any significant tax issues exceeding the reporting threshold will be escalated to theManagement Board.

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

121

GrowthOverview of Borouge’s
Governance
The Board of Directors consists of 10 members, all of whom are Non-Executive Directors
and six of whom are independent Directors:

Chairperson:
H.E. Dr. Sultan Ahmed Al Jaber

The Board of Directors has adopted a Group Management and Governance Policy which includes
various principles applicable to the management of the Borouge Group and the make-upof the Board, including that there must be at least one female director, the manner of exerciseof Borouge’s rights as a shareholder in PTE and the exercise of Borouge’s rights to appoint, remove
and replace seven of the directors of PTE. Borouge’s articles of association further require thateach director serves a three-year term, after which a director may be elected to a successive termor terms.

Board Diversity

Thomas
Gangl

KhaledSalmeen

Omar Abdulla Salem
Obaid Al Nuaimi

Abdulaziz
AlhajriVice Chairperson

Director

Director

Director

We are actively seeking opportunities to increase female representation on our Board. Borouge’sGroup Management and Governance Policy specifies that there must be at least one female
director. We plan to continue to increase our efforts to empower and develop female leaders who
not only contribute to the growth of the organisation, but also to the nation’s development.
Currently, there are two female BOD members, therefore Borouge is in compliance with SCA
Corporate Governance Rules which require one female member of the Board. To learn more
about our governance structure, please refer to the Governance Report Section in our 2023
Annual Report.

Board Committees
The Board has established three permanent committees – an Audit Committee, a Nomination
and Remuneration Committee, and an Executive Committee. In line with the Articles of Association,
the Board may set up additional committees as required. To ensure independence, the Chairpersonof the Board of Directors does not become a member of either the Audit Committee or the
Nomination and Remuneration Committee. Further details on this can be found in the
Borouge’s Annual Report.

KhaledAl ZaabiTasnimAhnaish**Mark
Tonkens

Philippe René M.
Roodhooft

Director

Director

Director

Director

Thomas Michael
Boesen*Daniela
Vlad

Director

Director*Ms. Daniela Vlad was appointed as a Director to the Board of Directors on 6 June 2023.
**Mr. Mark Tonkens resigned from his position as a Director of the Board of Directors effective 31 May 2023.

122

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

123

GrowthAudit Committee
The Audit Committee assists the Board in discharging its responsibilities relating to financial
reporting, external and internal audits and controls, including reviewing and monitoring the integrityof our financial statements, reviewing and monitoring the extent of the non audit work undertaken
by external auditors, advising on the appointment of external auditors, overseeing the relationshipwith our external auditors, reviewing the effectiveness of the external audit process, and reviewing
the effectiveness of our internal control review function.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee assists the Board in setting and overseeing thenomination and remuneration policies in respect of the Board, any committees of the Board andsenior management.
In such capacity, it is responsible for evaluating certain matters relating to Borouge’s executive
management, evaluating the balance of skills, knowledge, and experience of the Boardand committees of the Board and, in particular, monitoring the independent status of the
independent Directors.
Executive Committee
The Executive Committee assists the Board in discharging its responsibilities, including
in relation to the Company’s commercial performance.
The Board has delegated to the Executive Committee approval of related party transactions;however, certain related party transactions will not require such approval. Along with related party
transactions, various other decisions are reserved for the Executive Committee, including theapproval, amendment, or termination of Group policies relating to finance, budget
and business planning, procurement, investment, and business continuity.
The Executive Committee also receives information and reports relating to the business andoperations of the Group. All members of the Executive Committee are required to comply with theGroup’s information sharing protocol which sets out guidelines on matters relating to the sharing
of non-public confidential information and insider trading.
The Executive Committee ToR requires that the committee must comprise 5 members.
The Executive Committee meets once a month.

124

Borouge Sustainability Report 2023

Growth

Borouge Corporate
Business Process Model
At Borouge, we believe that strong governance is essential forachieving sustainable growth and delivering long-term value to all
stakeholders.

Our commitment to sustainability is reflected in our sustainability policy, which is showcased
through visible leadership and effective communication.

We created a proactive culture of sustainability performance,
supported by transparent monitoring and reporting systems,
and continuous investment in our people, innovation, and assets.

Our Quality House integrated framework underpins this commitment. The following Borougeprocess house highlights the ownership, responsibilities, and accountabilities as well as theinterconnectivity of key business elements in the organisation.
We are motivated by our sustainability targets to deliver the best value to all our stakeholders while
protecting our natural resources.

Sustainability Committee

SHAREHOLDERS

Our Sustainability Committee is a cross functional group dedicated to driving our commitment
to ESG values while integrating sustainability and circular economy principles. With a focus ontransparency and collaboration, we strive to ensure responsible actions and cultivate a legacyof lasting, positive impact at Borouge. The committee is sponsored by the CEO and is chairedby the VP of Sustainability, with the Sustainability Manager serving as the secretary. Moreover, thecommittee’s membership is diverse, including VPs from various functions within the organization.
It is important to note that both the VP of Sustainability and HSE report directly to the CEO,emphasising the importance of this topic to our organization.

MANAGEMENT & CONTROL PROCESSESSTRATEGY & PLANNING

GOVERNANCE

HEALTH, SAFETY & ENVIRONMENTCOMPLIANCEQUALITY MANAGEMENTPERFORMANCE MANAGEMENTCORE PROCESSPRODUCEINNOVATION & DEVELOPMENT
CLEFINS BUSINESS PROCESSPOLYPROPYLENEMARKETING

PACKAGING

SALES

WAREHOUSE MANAGEMENTCUSTOMER MANAGEMENT

DISTRIBUTIONPLOYETHYLENE

CLEFINS BUSINESS PROCESSCUSTOMERPRODUCE

CORE PROCESSCUSTOMER

CORE PROCESSPRODUCE

CORE PROCESSPRODUCTION SERVICESFINANCIAL SERVICES

ADMINISTRATION SERVICESPROCUREMENTCOMMUNICATIONSUPPORT PROCESSES

Borouge Excellence Day - Accelerating Excellence
We organised Borouge Excellence Day which garnered an impressive turnout of over 780
employees. This event showcased the unwavering commitment, dedication, and talent which
propel Borouge toward a future defined by excellence and continual achievements.

Borouge employees shared ongoing initiatives and contributions to achieving excellenceand securing a sustainable future, highlighting the collective effort of pushing boundaries.
A key focus was on excellence in sustainability, with recognition for contributions from Borougecolleagues presenting innovative sustainability ideas under the Accelerate for Growth Programme.
The event also marked the launch of the sustainability pillar of Borouge’s Out of the Box
Programme, encouraging active employee participation.
Employees were motivated to engage in the initiative, where they had the opportunity to share theirsustainability ideas by accessing the sustainability page on Borouge Out of the Box.

SUSTAINABILITY

126

The Sustainability Committee plays a crucial role in setting objectives, targets, and KPIs andfunctions as the governing body for Carbon Management and Circular Economy initiatives.
Additionally, it oversees the implementation of Corporate Social Risk Management (SRM) standards
and requirements, serving as the SRM team. Furthermore, working groups reporting to the
Sustainability Committee are established to execute strategies and ad-hoc initiatives outlined by
the Committee. These groups cover essential topics such as decarbonisation, circular economy,
diversity and inclusion, welfare, and ESG rating and reporting.

The event featured speeches from special guests and subject matter experts.

INFORMATION TECHNOLOGY MANAGEMENTHUMAN RESOURCES MANAGEMENT

We engage with all of our stakeholders and encourage them to commit to us. Furthermore,as part of our regular board meetings, sustainability issues are discussed to ensure that we focus
on business sustainability as an organisation.

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

127

Growth

Ethics & Compliance
Driven by the highest levels of the Company, our Board of Directors,
CEO, executive management, and senior leadership set the tone
from the top and provide their strong commitment to ensuring
Borouge maintains and promotes ethically responsible leadership andBorouge operates with the highest level of ethical standards in ourdaily operations.
Our Borouge Ethics & Compliance Team is entrusted to drive the Ethics & Compliance programme,
provides oversight, risk management, written policies and procedures, education and training,communication, disciplinary actions, monitoring, reporting, and detection of deficiencies of allCompliance related risks.

Borouge Ethics & Compliance Framework
The Borouge Ethics & Compliance Framework is centred on the Borouge Code of Conduct and ourCore Values. This framework provides a comprehensive and robust approach to ensure that our
Ethics and Compliance Programme based on The Committee of Sponsoring Organizations of theTreadway Commission (COSO) internal control integrated framework and is aligned with the highest
level of international standards (e.g., the seven elements of an effective Compliance programme),
and in compliance with the latest regulatory requirements.

Borouge Ethics and Compliance Overview

Tone from the Top
Borouge Code of Conduct & Third-Party Code of Conduct
Borouge Ethics & Compliance Policies, Procedures & Guidelines
Support to Group Companies, Committees & All Functions
Anti-Bribery,
Corruption &Fraud

Whistleblowing

Anti-Bribery,
Corruption & Fraud

Compliance Investigations

Integrity Risk
Platforms
Screening
Review

Ethics &Compliance
Committee

Key Business
Party Reviews

Gifts &
Entertainment(G&E) Review

Takallam

Sanctions &Export Controls
ComplianceInternal Controls
Over Financial
Reporting/Internal
Controls Framework

Data Privacy& Protections

InsiderManagement &Insider Dealing

Enhanced
Due-Diligence
Projects

Sanctions
Exposure
Mitigation

Entity Level
Controls Risk
Assessment

Data Privacy& Protection Risk
Assessment& Notice

Insider Dealing
Review & Approval

Anti-Money
Laundering (3rdParty Payment
Reviews)

SanctionsMonitoring

Entity Level
Controls Reporting& Attestation

Data Transfer
Agreement

Insider
Registration &Disclosure

Third Party
Risk Management

Communications, Training & Awareness Workshops
Ad-hoc Advisory

Borouge Ethics and Compliance Training and Awareness Topics

Decting Issues& Corrective
Actions

Disciplinary
Guidelines &Actions

Governance,
Oversight &CultureBorouge Codeof Conduct /Core Values

Reporting &Whistleblowing
Machanism

nce
rna
ve
Go

Mo
nit
or
ing

Risk
Assessment

Borouge
Code of
Conduction

Data Privacy &Personal Data
Protection

Anti Money
Laundering

Conflict ofInterest

Ethics &ComplianceInduction

Fraud
Risks

Insider
Information

Sanctions
RecusalWrittenStandards

Communications

Monitoring& Continuous
Improvement

Anti Bribery& Corruption

Gifts &
Entertainment

Sanctions &Export Control

Training &Awareness

Implementation

128

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

129

GrowthBelow are the key areas of our 2023 programme managed under Borouge

Borouge Code of Conduct

We are committed to operating our business with the highest ethicalstandards and practices. Ethics and our Borouge values are kneaded
tightly into the principles by which we operate.
Borouge Ethics and Compliance Team is responsible for the implementation and oversight of our
Borouge Code of Conduct, which guides our business, requiring ethical behaviour and integrity ineverything we do. It is the foundation of all ethics and compliance policies and, fundamentally the
Code outlines the ethical standards expected of everyone wherever we do business.
For third parties, we have a Third-Party Code of Conduct which serves a similar purpose for thoseexternal to Borouge.

Borouge Ethics and Compliance Key Risk Areas/ Activities
Aligned with our Ethics and Compliance framework, the Borouge Ethics and Compliance (E&C)
function monitors key risks associated with our dynamic business environmentand global trends to adapt and stay relevant with evolving and emerging risk areas.

Anti-Bribery,
Corruption (ABAC)
Ensuring to comply with allapplicable ABAC laws andregulations in each jurisdiction
we operate in is of utmost
importance to Borouge.

Anti-Money
Lundering & Counter
Terroist Financing
Ensuring we got to the farthest
extent to combat money
laundering and terrorist financing
schemes.

This ensures that our programme is adequately designed and adapted to our business andoperational needs.
Whistleblowing,
Investigation &Ethics & Compliance
Committee
Maintaining confidentiality,
discretion and professionalism inmanaging whistleblowing matters
is paramount to maintaning
trust of our employees and third
parties.

Conflicts ofInterest
Ensuring we conduct businessin a conflict free manner is ofutmost imoortance to Borouge.

Gifts &
Entertainment
Ensuring conflict free
practices related to giftingand entertainment practices
is essential to ethical businessconduct for Borouge.

Third-Party Risk
Management

Data Privacy &Protection

Ensuring we have a robust andeffective way to manage who we
do business with and which third
parties represent us in utmost
importance to Borouge.

Maintaining employee and third
parties trust in how we manageand process data as well as
ensuring compliance with dataprotection laws in each of thecountries where we operate in isof utmost importance to Borouge.

Inside Information
Management &Insider Dealing

Governance Risk &Compliance (GRC)
Function

Ensuring we comply with capital
markets and securities regulations
related to inside informationand insider dealing is of utmost
importance to Borouge.

Ensuring we maintain high levelsof governance and security to
the Borouge Crown Jewels is ofutmost importance to Borogue.

Sanctions & Export
Controls
Ensuring we comply with allapplicable and evolving sanctions
and export controls regulations
in all jurisdictions where we
operate is of utmost importanceto Borouge.

Internal Controls
Over Financial
Reporting & Internal
Controls Framework
Periodically assessing, mitigating
and reporting on the design andeffectiveness of internal controls
in the Borouge environment.

Anti-Bribery & Corruption (ABAC)
As part of Anti-Bribery and Anti-Corruption (ABAC) monitoring activities, Borouge Ethics andCompliance Team utilises data analytics tools to assess corruption exposure using historicaltransactions on a rolling three-year basis covering the entire organisation.
Red flags are raised on any unusual or suspicious activity to the Ethics and Compliance Team
who conduct detailed analysis and investigate any suspicious ABAC transactions.

130

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

131

Growth

Conflict of Interest (COI)
The Borouge Conflict of Interest Policy sets out our requirements regarding the avoidance andmanagement of conflicts of interest that may arise because of activities outside of employment
with Borouge, including the avoidance of situations that appear to be a conflict of interest.
As part of the declaration process, the Borouge Ethics and Compliance Team has implemented
a mandatory online Conflict of Interest declaration process, where every employee is required
to declare the existence of any conflict of interest on an annual basis.
The Borouge Ethics and Compliance Team reviews and clears each conflict of interest submitted
and the employee’s line management is informed. The review process includes a detailed analysisof the potential conflict, and detailed documentation on the rationale for clearing, mitigating orother actions required as part of the conclusion.

Gifts & Entertainment
The Borouge Gift and Entertainment Policy details the acceptable practices, monetary limits withcorresponding approvals/ declaration requirements and reporting violations related to Gifts &Entertainment activities.
As part of Borouge Ethics and Compliance Team’s Gift and Entertainment monitoring and control
reviews, Borouge maintains a Gift and Entertainment register where all employees are required todeclare any gift and/or entertainment given or accepted.
Borouge Ethics and Compliance Team performs periodic reviews on the register with the expense
reports independently obtained from Finance to ensure that the nature and amount of these gift
and entertainment expenses are aligned with our Borouge policy and the declared value on the Giftand Entertainment register.

Anti-Money Laundering (AML) & Counter Terrorist Financing
The Borouge Ethics and Compliance Team has implemented a robust AML Complianceprogramme as mainly below:132

࢚

The Head of Ethics, Compliance & Risk is the Money Laundering Reporting Officer(MRLO) for Borouge.

࢚The Implementation of the Anti-Money Laundering Policy sets out our approach to ensurethat we comply with all applicable laws and regulations to prevent money launderingand terrorist financing.

࢚Implementation of appropriate processes to conduct due diligence on all third parties.

࢚

Implementation of strong controls in the accounts receivable process and procedures.

࢚Conduct extensive training of our sales teams to ensure they work with our customers
to avoid cash payments of any kind.

࢚

Review and eliminate all cash transactions with third parties.

࢚Conduct data analytics testing on all transactions over the last three years on a rolling basis
to analyse and monitor against AML related activities.

࢚Conduct monitoring and reporting suspicious activities whenever deemed appropriate.

࢚Roll out of communication and training.

Borouge Sustainability Report 2023

GrowthThird-Party Risk Management

Sanctions & Export Controls

Borouge is committed to conducting business ethically, lawfully, and with the highest levels
of integrity when engaging with various third parties, including, but not limited to, customers,
suppliers, contractors, logistics vendors, and legal and advisory firms as a part of Borouge’s
global value chain.
Third-Party Risk Programme
As such, the Ethics & Compliance team has implemented the following key initiatives and controls
to manage our third-party risks:

Borouge Sanctions & Export Controls Policy and Sanctions Recusal Policy set out the commitment
to complying with all applicable sanctions, appropriately managing sanctions risk, and prohibitingtransactions designed or intended to evade applicable sanctions.
To manage sanctions risk exposure and ensure compliance, Borouge Ethics and Compliance Team
implemented a robust Compliance programme that includes controls and processes to mitigate therisk of dealing with sanctioned parties. sanctioned individual or entity.

i.

Integrity Due-Diligence

Borouge Ethics and Compliance Team also conducted a risk review of our equipment sourced andlocated in UAE, China, and Singapore to check for potential dual use status. The results of thereview reported zero equipment of dual use nature, giving us further assurance of our continuing
compliance with export controls regulations.

ii.

Enhanced Due- Diligence

As part of Sanctions & Export Controls Awareness, the Borouge Ethics and Compliance Teamiii. Key Business Partners (Distributor/Agent) Compliance Review
iv. Borouge Third Party Code of Conduct, Awareness & Monitoring
For further details, please visit the full 2023 Borouge Ethics & Compliance Report on
www.borouge.com

࢚Conducts training for our employees on Sanctions & Export Controls.

࢚Conducts Sanctions Recusal training for our foreign nationals from jurisdictions with highsanctions regulations on Sanctions Recusal Policy.

࢚Engages and trains our senior management and our operational staff on Export Controls risks
and how to identify, classify and mitigate such risks in daily operational work.

Internal Controls over Financial Reportingand Internal Controls Framework
Borouge has an Internal Controls Financial Reporting Framework Procedure that sets out the
principles, approach, defined process roles and responsibilities under the supervision of executive
management to provide assurance on the reliability of financial reporting in the following:࢚Entity Level Controls,࢚Process Level Controls, and࢚

IT General Controls

The Borouge Ethics and Compliance Team oversees the monitoring of internal controls evaluations
for the Entity Level Controls process.

134

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

135

GrowthData Privacy & Protection

Whistleblowing, Investigation and Ethics & Compliance
Committee (ECC)

Borouge Ethics and Compliance Team has establisheda Personal Data Protection Policy which clearly defines
the practices for implementation of privacy obligations.

Borouge Ethics and Compliance Team has implemented a Whistleblowing Policy that encourages
our employees to report concerns about unethical behaviour in connection with our businessby assuring confidentiality and protecting good faith whistleblowers from retaliation.

In addition, a robust enterprise-wide core Global Data Privacy and Protection Compliance
Programme was also implemented.

Takallam, an anonymous Reporting and Whistleblowing Helpline available on the Borouge website,
is run by an independent third party, on behalf of Borouge.

Some of the key features and controls of Borouge Ethics and Compliance Data Privacy Programme
include the following:

The cases are then routed to the Borouge Ethics and Compliance Team which coordinates thewhistleblowing process with the Borouge Ethics and Compliance Committee (ECC). There wasa total of 15 Takallam cases reported in 2023; of which the majority were HR grievances related(10 cases), the remaining cases were resolved and are currently being monitored.

࢚Privacy Assessments are conducted in concert with Information Technology
to mitigate exposure arising from data privacy risks.

࢚

Privacy clauses embedded by revised clauses in employment contracts, contract templateswith business partners/vendors setting out the legal obligations required of our business
partners to comply with data protection laws.

࢚

Implementation of Data Transfer Agreements.

࢚Implementation of Data Protection Notices and Consents.

࢚Implementation of a Data Breach Management Process has also been developed
to address data breach violations.

The Borouge Ethics and Compliance Team is also part of the ECC. The ECC will assess eachreport in accordance with the investigation process to determine whether an investigation may
be required. Borouge Ethics and Compliance Team has also established a Compliance Investigation
Policy. The Policy and supporting procedures set out Borouge’s approach to investigations
relating to alleged ethical misconduct of
A. ethical business practices

B. integrity in our interactions and arrangements with third parties

The Data Privacy Programme fully adheres to the ADGM Data Protection Framework and also
addresses the requirements of the applicable jurisdictions where Borouge is required to comply.
This commitment to data privacy has yielded the following outcomes:
2023
Total number of complaints received concerning breaches of customer privacy

0

Total number of identified leaks, thefts, or losses of customer data.

0

C. applicable laws, regulations, policies, and procedures relating to ethical businesspractices and integrity.

Insider Information Management and Insider Dealing
The Borouge Ethics & Compliance Team has implemented an Inside Information and Insider
Dealing Policy in accordance with regulatory requirements, which specifies that all employees
who are in possession of Borouge inside information (and are known as “Insiders”) and theirconnected parties need to fully comply with insider trading rules. Communicating any material
non-public information to anyone not deemed to be an Insider is strictly prohibited until suchinformation is publicly disclosed by Borouge through appropriate channels.
In addition to the Inside Information and Insider Dealing Policy, Borouge also requires all Insiders
to be registered and sign as Insiders in the ADX as a Borouge Insider, sign an Insider undertaking
form, which sets forth the obligations and responsibilities required to comply with the Insider
Dealing Policy to ensure that all Insiders go to the farthest extent to protect Borouge’s inside
information. The Insider register is maintained by the Borouge Head, Ethics, Compliance & Risk
and the Borouge Ethics and Compliance team and is updated on a weekly basis.
The Borouge Ethics and Compliance Team established a Borouge Insider Committee and supports
in the trading requests of Borouge Insiders and their connected parties.
All Insiders and their connected parties are required to obtain clearance from the Borouge Insider
Committee to deal in Borouge’s securities before proceeding to transact and must provide
verification post transaction. Insiders must attest and certify that they are not acting on inside
information prior to dealing in the shares of Borouge and commit to all requirements of the Borouge
Inside Information and Insider Dealing Policy.

136

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

137

GrowthGovernance Risk & Compliance (GRC) Function

The Borouge Ethics & Compliance Team also includes our
Governance, Risk and Compliance (GRC) function, which
is a function that currently controls our SAP access management
and security for Borouge.
The SAP GRC access management framework provides a formal methodology and governancemodel for managing controlled access distribution to users on Borouge’s SAP systems, alignedwith the company’s enterprise-wide business objectives and strategy.
Key activities for the GRC team include conducting quarterly, periodic user access and risk
reviews, SAP access role design and certification, SAP access risks and controls designand certification, continuous access risk monitoring and remediation and ongoing GRC training
clinics and workshops to raise the awareness level of the criticality of accurate accessand security controls.

138

Borouge Sustainability Report 2023

Policy Engagement

Audit and Assurance
The Audit and Assurance Function (A&AF) is an independent functionthat provides Internal Audit Services with an overall objective to assist
the Company in accomplishing its objectives
by bringing a systematic, disciplined approach to evaluate andimprove the effectiveness of Risk Management, Internal Controls andGovernance processes.

The model is designed to (or “intends to”) provide in-depth coverage of the audit scope throughthe six focused areas including Strategic, Financial, IT, Operation, Standard & Regulatory
Compliance and Monitoring & Reporting.

It is guided by a philosophy of adding value to improve the company’s operations. To attain its
objectives, the Audit and Assurance Function has full, free, and unrestricted access to all of theCompany’s records, documents, information systems, properties and personnel according to theauthority granted by the Audit Committee.
The Audit and Assurance Function must comply with rules issued by Abu Dhabi Accountability
Authority (ADAA) and apply the International Professional Practice Framework (IPPF) issued by
The Institute of Internal Auditors (IIA).

Extended Assurance
To adapt to the changing business climate and continue
to deliver required assurance to the Board, Borouge Audit
and Assurance Function has adopted the “Extended
Assurance Model” with the following objectives:140࢚

Efficient and effective utilisation of resources.

࢚

Integrated audit planning and execution
to achieve synergy.

࢚Boost efficiency and value-add to the organisationby aligning methodologies,

࢚

Avoiding scope overlap.

࢚

Pay special attention and focus on emerging risks.

࢚

Minimise disturbance to business withoutcompromising scope.

࢚

Achieve savings and value add as a resultof enhanced efficiency.

The model also includes the following three pillars as part of ADNOC++ to make the Borougestronger, more resilient, and more efficient to fit for the future.
࢚People࢚

Profitability

࢚Sustainability

The model places significant focus on these pillars as it addresses key aspects like human rights,
working and living conditions, ethics, environment, product stewardship, energy, security of assets
and people and governance, as well as focusing on recommendations to enhance profitability.
A&AF applies this model in the Audit Methodology, planning, execution, and reporting.
The Audit and Assurance Function also facilitates external ISO/ RC® audits and assists/performs
specialised audits upon request from the management to provide reasonable assurance on theconformity of Borouge to specific requirements such as:࢚Integrated Management System (ISO 9001 / ISO 45001 / RC® 14001)

࢚Energy Management System (ISO 50001)

࢚࢚

Gap assessment reviews in view of applicable management system standards

࢚

Borouge Workers Protection Standards.

࢚࢚

Borouge Sustainability Report 2023

Quality Management System for Automotive Industries (IATF 16949)

Customer audits against responsible sourcing requirements

Conducting reviews arising from unethical acts and behaviour.

Borouge Sustainability Report 2023

141

Policy Engagement

Risk Management
Risk Management is an integral component of Borouge’s commitment
to delivering value to customers, employees, and key stakeholders.
Our robust risk management framework serves as a structured methodology for conducting
comprehensive risk assessments and categorisation.
This systematic approach empowers our management to make informed decisions and formulate
appropriate mitigation plans, ensuring the proactive identification and management of risks acrossthe entire organisation. By integrating risk management practices into our operational strategies,
we strive to enhance resilience, protect our stakeholders’ interests, and uphold the high standards
expected from Borouge.

Risk Culture
Borouge manages a strong risk culture mindset that addresses and assesses risk
with a direct impact on our financial performance, market share, reputation, people safety,
and strategic ambitions.

࢚
࢚

࢚
࢚
࢚

࢚

Establishing the Context: Defining the parameters for risk management, encompassing both
external and internal environments, shareholder expectations, and organisational structure.

Risk Identification: Determining where, when, why and how risk events can arise that may
prevent, delay, or enhance Borouge’s achievement or the function’s objectives as well as theimplementation of strategies.
Risk Analysis: Understanding the causes, consequences, and likelihood of risk events,
assessing existing controls’ adequacy and effectiveness.

Risk Bowtie: Using diagrammatic representation to analyse risk pathways, identify controls,
and integrate risk management into business continuity.

Risk Evaluation: Deciding which risks require future controls and to assign priorities to theseaction plans. This is based on the outcome of the risk analysis, as well as the established risk
appetite and tolerance set by the management.

Risk Treatment: Appropriate risk treatment may be required based on the results of the risk
analysis, evaluation of current controls, and the risk appetite and tolerance set by management.

Risk Assessment Methodology
We follow a holistic risk assessment and risk profiling process ensuring a consistent identification
and analysis, with guidance from best practices and standards, Borouge objectives, and businessplans. All risks including climate related risks are reviewed periodically with the involvementof management and relevant subject matter experts.

ReduceReducelikelihood
likelihood(prevent)
ReduceTerminate

ImpactReduceImpact(mitigate)

Terminateactivityactivity
torisk
avoidrisk
toavoid(mitigate)

Risk
Risk
Take onmore
Takemoreonrisks
toto exploit
risksexploit
opportunity
opportunity

Transfer ititTransfer

Accept itit
Accept142

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

143

Policy Engagement

Enterprise Risk Management

Business Continuity

Enterprise Risk Management (ERM) is embedded throughout
the organisation to ensure that Borouge effectively manages all risks
in order to meet our short-term and long-term business and growthobjectives.

In today’s rapidly evolving and dynamic business environment, improving crisis and business
continuity readiness and embedding an agile risk and resilience culture across the organisation
is key to effectively managing threats to the business environment.

ERM adopts an integrated and proactive approach towards addressing various risks andunforeseen business interruptions.
We actively embed risk management practices and awareness throughout the organisation,and this includes addressing ESG/climate risks. This proactive approach enables us to stay aheadof potential challenges, fostering a culture of resilience and adaptability across the entire Borougecommunity. During the year, all principal risks including climate related risks are identified aligned
and integrated with our business strategies and objectives, ensuring holistic aspects of risks(internal & external) are managed in a sustainable manner through our strong ERM governancepractices across the company.
To learn more about Borouge Principal Risks, please refer to the Borouge2023 Annual Report.
Physical Risks Scenario Analysis
Borouge has recently undertaken a physical climate risk study for our main operationin Al Ruwais Industrial City. The study was mainly on physical risk in the short, medium, and longterm that covered scenario analysis of a 2oC increase. However, financial impact analysis was
only conducted for flooding and wind related risks as these perils represent a potential cause ofphysical damage to buildings and equipment. The study resulted in identifying the following impact
on Borouge operations.
࢚

An increase in temperature could affect the use of seawater for cooling.

࢚

Increasing levels of humidity will affect the health and well-being of site operatives.

࢚

Finally, the most impact would come from Coastal flooding due to the proximityof the site to the shore.

The Borouge business continuity committee is responsible for developing business continuity
plans to increase preparedness and resilience. At Borouge, we are empowered to tackle business
continuity risks by proactively identifying, assessing, and mitigating critical risks.
Our focus lies in ensuring continuity in business operations and protecting our people, brandimage, reputation, and assets. During 2023 Business Continuity Team performed a self-assessment
and internal audit for the entire business continuity management process to highlight business
continuity plan weaknesses and provided improvement actions plan and guidance to revise andupgrade recovery strategies plan to protect Borouge priorities against future threats
and disruptions.

Supply Chain Management
At Borouge, we strive to operate sustainably throughout the supply chain and believethat by working closely with our suppliers, we can collectively create a positive impact.
We are continuously exploring ways to collaborate and further improve standards to set
new benchmarks.
Our global presence in the market has expanded as we experience further growth in emerging
markets. We cooperate with the governments of the countries we operate in to support our growthand global trade. We aspire to achieve our responsible global procurement targets and maximise
all supply chain opportunities.
For third-party partners, ethical expectations align with those set for our employees, as outlined
in our Third Party Code of Conduct. We believe in upholding high standards and ethical practices
throughout our supply chain, reinforcing our commitment to responsible and sustainablebusiness practices.

Climate Risk Mitigation
As part of our climate resilience efforts, we conducted a climate risk assessment and resiliencestudy, leveraging climate change modelling and in-depth analysis of our infrastructure’s resilience.
These initiatives provide insights into potential physical risks, including extreme weather eventsand regulatory changes.
To further enhance our understanding of climate-related risks, we engaged external experts
to conduct pilot studies at our sites, utilising advanced climate modelling and physical surveys.
This comprehensive approach enables us to identify specific climate risks, assess their potential
financial impacts, and develop targeted mitigation strategies. By mapping, modelling, surveying,
and reporting on climate risks and resilience measures, we aim to bolster our resilience
to climate-related challenges and ensure business continuity.
In conclusion, our comprehensive approach to climate leadership and resilience underscores
our commitment to sustainability, resilience, and responsible stewardship of the environment.
By implementing best practices and leveraging advanced tools and methodologies, we arepositioning ourselves for a resilient and sustainable future.

144

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

145

Policy Engagement

Successful kick-off of Quintiq marks a key milestone in Borouge’s
Digitalisation Strategy
We reached a significant milestone in our ambitious Borouge 2030 Digitalisation Strategy with thesuccessful kick-off of Quintiq, the latest Supply Chain digital solutions.

The suppliers and sub-suppliers are expected to conduct their business ethically and to protect therights and wellbeing of their workers by complying firstly with local and national laws and then withthe requirements of the Borouge Workers Protection Standard.
The requirements of the standard are based on international best practices, standards andconventions and specifically relate to the following:This implementation represents a strategic move to enhance our service experience for ourcustomers, positioning us as a leader in the industry. The kick-off event saw the active participationof 65 employees from our Supply Chain team, demonstrating their readiness and commitment
to ensuring the success of Quintiq at Borouge.

࢚Forced Labour࢚Child Labour

To facilitate a seamless transition, a dedicated change management team is in place.

࢚

Discrimination

This team is focused on providing comprehensive training, preparing employees, and addressing
any queries that may arise, ensuring a smooth and successful journey with Quintiq.

࢚Working Hours

࢚

Remuneration

࢚

Freedom of Association

࢚Harassment

࢚Ethics࢚Communication

࢚

Conflict Minerals and Indigenous People

This achievement reflects Borouge’s commitment to innovation and efficiency in line with our
digitalisation strategy.

Supplier Assessment and Development
Borouge is committed to conducting business ethically, lawfully, and with the highest levels
of integrity when engaging with various third parties, including, but not limited to, customers,
suppliers, contractors, logistics vendors, legal and advisory firms as a partof Borouge’s global value chain.
Thus, we implemented the Borouge Third Party Code of Conduct, which sets out the minimum
standards for ethical business practices that we expect from any third party working with Borouge.
These basic rules and standards are necessary to conduct Borouge business in an ethical andcompliant manner and in accordance with Borouge’s values. Every third party engaged by Borouge
receives a copy of the Borouge Third Party Code of Conduct, and we request their confirmation ofcommitment to the principles outlined in the document. Furthermore, they are required to comply
with all applicable labour laws and related laws and regulations.
Additionally, our Workers Protection Standard aims to protect workers throughout the supply chain
and ensure suppliers comply with international standards related to the workers’ welfare. We work
closely with all our suppliers to ensure they conduct their business responsibly.

Our Workers Protection Standard requirements are incorporated into all our manpower-related
contracts to protect the rights and wellbeing of the employees of our suppliers and sub-suppliers.
Our suppliers are evaluated from the beginning of the tendering process to contract award andprovision of services.
We communicate the standard to the workers, provide training to our Borouge contract
administrators to ensure compliance and perform audits and provide recommendations where
necessary.
We also have a dedicated contractors’ welfare hotline programme to raise and improve any welfare
issues that may arise. We promote open communication with our partners, urging them to reportany potential violations of laws, regulations, policies, or our Code.
We utilise the Quality Assessment System (SQAS),a system that evaluates the quality, safety,
security, and environmental performance of logistics service providers in a unified manner of single
standardised assessments.
The system aims to assure petrochemical companies that logistics operations are carried out
in safe and high-quality ways while protecting the employees, the public, and the environment.
All logistics providers of transportation services via trucks of Borouge in the GCC region
are obliged to register and comply with the SQAS.
2023

146

Borouge Sustainability Report 2023

Percentage of new suppliers that were screened using environmental criteria.

100%

Percentage of new suppliers that were screened using social criteria.

100%

Borouge Sustainability Report 2023

147

Policy Engagement

Supporting Local Procurement

We are focused on bolstering local suppliers’ involvement in our value
chain. This is evident through our streamlined procurement processes
and simplified contract formalities.
In 2023, we further strengthened our In-Country Value (ICV) efforts by increasing the utilisationof locally produced and manufactured goods.

71.60% ICV spend in 2023

Percentage of the procurement
budget spent on local
suppliers (AED)

2019

2020

2021

2022

2023

68.96%

74.64%

93.60%

87.73%

75.02%

Borouge and Tawazun Collaboration: Kinana Box
Borouge collaborated with Tawazun Industrial Park (TIP) to produce the first ‘Made in UAE’“Kinana” an industrial packaging box made of Borouge’s fully recyclable materials.
This collaboration is in line with Borouge’s continuous support of the ’Make It in the Emirates‘
initiative. Tawazun used Borouge’s materials to make the ammunition boxes at their own
manufacturing facilities in the UAE.
Borouge’s PP Block BE961MO grade has been approved for Tawazun’s Kinana boxes.
This reflects the credibility and durability of Borouge’s innovative polymers which have beencreated using the most advanced technologies that meet the international military standards.
Borouge at Make It in the Emirates Forum
Borouge participated in the Make It in the Emirates Forum, a gathering of major industrial
companies and enablers from across the UAE, focusing on procurement plans and investment
opportunities. We showcased our latest innovative and sustainable solutions, emphasising ourcommitment to shaping the future of the polyolefin industry.
Our participation at the Make It in the Emirates Forum highlighted Borouge’s unwaveringcommitment to a circular economy through the ‘House of Circularity’ initiative. This initiative waspresented to underscore our dedication to sustainable practices and environmental responsibility.
As part of the exhibition, we also showcased a large-diameter thick-walled pipe sample
produced by our value chain partner and made using Borouge solutions. This display exemplified
our collaborative efforts in contributing to world-scale infrastructure projects, reinforcing ourcommitment to the economic growth of the UAE. Borouge continues to be at the forefrontof innovation, and sustainability, and actively shaping a brighter, more sustainable tomorrow

148

Borouge Sustainability Report 2023

Policy Engagement

Quality Management
Quality is at the heart of everything we do at Borouge.
Our commitment to quality consists of building successful businesses to achieve the maximum
benefits for all our stakeholders, which is supported by the Borouge Quality Policy.
Through continuous improvement, we enhance our operations’ performance, efficiency, profitability,and human capital development. Furthermore, the Integrated Management System at Borouge iscertified to ISO 9001:2015 Quality Management Systems and the Compound Manufacturing Plant
at Shanghai is certified to the Quality Management System standard for the automotive industry– International Automotive Task Force (IATF) 16949 and ISO/IEC 17025, which is the international
standard for testing and calibration laboratories.

To ensure customer satisfaction, we conduct a survey every two years to measure customer
satisfaction and gather customer feedback. This approach allows us to align more closely withcustomer expectations regarding product quality and delivery timelines.
We recognise that continuous improvement is imperative to maintaining our position as one of theleading petrochemical companies. We developed our uniquely designed approach for problemsolving and project management excellence, the i5 Approach. This approach helps us deliver our
projects on time and within budget while meeting our client’s expectations in terms of quality.
We apply the i5 Approach for all projects exceeding an external cost of $50,000 or 40 man-days.

We review and evaluate our performance against ambitious targets, customer requirements,
relevant industry standards and regulatory requirements to ensure the achievement of our strategic
goals. At Borouge, we strive to achieve a culture of continuous improvement through process
knowledge and management monitoring, ensuring that risks and control measures are effectively
managed. In 2023, we completed 3 quality audits; 1 external audit, 1 internal audit in labs, and 1
audit was conducted with the product development team.

World Quality Day
On the 14th of November, we celebrated World Quality Day to reinforce our commitment
to invest in innovation to strengthen our competitive advantage and improve the quality
and sustainability of our products.

Customer Satisfaction and Continuous Improvement
Customer satisfaction is a fundamental area to guarantee the resilience of our business in thisdynamic and fast-changing market.
At Borouge, we actively value listening to the needs and concerns of our customers to continuously
add value and foster strong long-term working relationships. We utilise the Customer Feedback
Closure Questionnaires (CFCQ) that we regularly send out upon resolution of customer complaints
to measure our customer satisfaction and identify potential areas of improvement.

Complaints received per(000) Tonnes sold

150

2017

2018

2019

2020

2021

2022

2023

0.060

0.030

0.029

0.022

0.019

0.012

0.016

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

151

Policy Engagement

Borouge Industry Solutions: Electrification
We launched our Electrification webpage, a key milestone in our strategy to align with global
megatrends such as the energy transition.
The Electrification webpage serves as a dynamic platform where Borouge extends invitations
to potential partners for collaboration and co-creation. Through this new webpage, Borougeseeks to engage with like-minded partners throughout the value chain to co-develop cutting-edge
electrification solutions, accelerating our shared electrification ambitions.
The webpage offers a wealth of information on Borouge’s electrification initiatives and solutions,This strategic move positions Borouge as a leader in the electrification sector, and we encourage
exploration of our product webpage for details on High Durability, Low Friction HDPE Solar Tracker
Bearings. Embracing electrification allows us to strengthen partnerships and contribute significantly
to progress in this sector.

Our Solutions used in Lithium-Ion Battery Components

152

Borouge Sustainability Report 2023

Appendix

Appendix 1

Appendix 2

Membership of the Association

Awards and Recognition

Borouge participates in several high-level trade bodies relating to petrochemical operations,plastics advocacy, and local and international trade.

•

HR Asia Best Companies to Work for in Asia Awards•

The HR Asia Most Caring Company Award•UAE Energy Management ISO 50001 Award•

The Gulf Petrochemicals and Chemicals Association (GPCA)•

Singapore Chemical Industry Council (SCIC)•

Responsible Care Global Charter•

International Council of Chemical Associations (ICCA)•

The PE100+ Association

•

•

•
•
•
•
•
•

Association of International Chemical Manufacturers (AICM)•

Singapore Plastic Industry Association (SPIA)•

Environment Agency of Abu Dhabi

•

SCOR

•

World Trade Organization (WTO)•

World Plastics Council•

International Standards Organisation (ISO)Overall HR Excellence Awards 2023 Singapore Winner
Employer of the Year – Gold
Excellence in In-House Talent Pipeline Strategy – Silver
Excellence in Talent Acquisition – Gold
Excellence in the Use of HR Tech – Silver
Excellence in Total Rewards Strategy – Gold
Excellence in Workforce Mobility – Gold•

Employee Experience Awards 2023 – Singapore•

The Overall Leadership Award•••

Best Executive Coaching Programme – Silver

Best Rewards and Recognition Programme – Silver

Best Holistic Leadership Development Strategy – Gold•

Best Management Training Programme – Silver•

Best Succession Planning Strategy – Gold•

Best Learning and Development Programme – Silver•

Best Remote Learning Initiative – Gold•

Best In-House Career Website – Silver

Appendix 3
Certifications
•
•
•
•
•
•
•

ISO 14001:2015 – Environmental Management System

RC 14001® – Responsible Care Technical Specifications
ISO 50001: 2018 – Energy Management System

ISO 9001 & IATF 16949 – Quality Management Systems
ISO 27001 – Information Security Management System

ISO 45001 – Occupational Health and Safety Management System
ISO 14064 International Standard for GHG Emissions*

Note: *ISO 14064 certification is only applicable to China CMP.

154

Borouge Sustainability Report 2023

Borouge Sustainability Report 2023

155

Appendix

Appendix 4

Appendix 5

Conferences•

ArabPlast Dubai 2023•

17th GPCA Annual Forum•

GPCA Youth Forum•

6th China International Import Expo (CIIE)•GRI Index

STATEMENT OF USE

Borouge has reported in accordance with the GRI Standards for the period between January 2023 and December 2023.

GRI 1 USEDGRI 1: Foundation 2021

ADIPEC Exhibition and Conference 2023

GRI STANDARD/OTHER SOURCESDISCLOSURE

PAGE

•

2023 Shanghai Cooperation Organisation (SCO) International Investment and Trade Expo•

Make it in the Emirates ForumGENERAL DISCLOSURES•International Conference on Chemicals and Petrochemicals B20

2-1 Organizational details

18-22

•

Gulf Petrochemicals and Chemicals Association (GPCA) Supply Chain Conference•

12th edition of GPCA Plastics Conference•

CHINAPLAS 2023•

Society of Petroleum Engineers International Conference•

PlastIndia 2023

2-5 External assurance•

ADNOC Onshore Sustainability Forum

2-6 Activities, value chain and other business relationships•

UAE Climate Tech

2-7 Employees

77•

Annual Meeting of the ISO/TC 138

2-8 Workers who are not employees

77

2-2 Entities included in the organization’s sustainability reporting
2-3 Reporting period, frequency and contact point

14
14-17
During this reporting cycle, 2018baseline was assured by a third
party and values were recalculated
in alignment with the IPCC Fifth
Assessment Report, 2014 (AR5).

2-4 Restatements of information

2-9 Governance structure and composition

168
18-25,
145-148

122-123

2-10 Nomination and selection of the highest governance body124

2-11 Chair of the highest governance body122

2-12 R ole of the highest governance body in overseeing themanagement of impacts

1272-13 Delegation of responsibility for managing impacts

1272-14 R ole of the highest governance bodyin sustainability reporting17

2-15 Conflicts of interest

132

2-16 Communication of critical concerns

126-127

2-17 Collective knowledge of the highest governance body2023 Governance Report2-18 E valuation of the performance of the highest
governance body124

2-19 Remuneration policies

124

2-20 Process to determine remuneration

124
Data is not public due toconfidentiality constraints.

2-21 Annual total compensation ratio

Note: Anteo™ is a trademark of the Borealis AG.
Borstar® is a registered trademark of the Borealis AG.
Operation Clean Sweep® is a registered trademark owned by The Plastics Industry Association(PLASTICS) and the American Chemistry Council (ACC).
Responsible Care® is a registered trademark of the American Chemistry Council (ACC).

156

Borouge Sustainability Report 2023

2-22 Statement on sustainable development strategy

4-11

2-23 Policy commitments

32-33

2-24 Embedding policy commitments

32-33

2-25 Processes to remediate negative impacts

137

Borouge Sustainability Report 2023

COMMENTS

157

Appendix

GRI STANDARD/OTHER SOURCESDISCLOSURE

PAGECOMMENTS

GENERAL DISCLOSURESGRI STANDARD/OTHER SOURCES

137

2-28 Membership associations
2-29 Approach to stakeholder engagement

GRI 3: Material Topics 2021
Borouge complies with all relevant laws
and regulations

2-27 Compliance with laws and regulations
154

GRI 207: Tax 201940-41
Zero employees are covered bycollective bargaining agreements

2-30 Collective bargaining agreements
MATERIAL TOPICS
3-1 Process to determine material topics

42

MATERIALS

3-2 List of material topics

42

GRI 3: Material Topics 2021

ECONOMIC PERFORMANCEGRI 3: M aterial Topics 2021

3-3 Management of material topics

108-111

GRI 201: E
 conomic
Performance 2016

201-1 Direct economic value generated and distributed

108-111201-2 F inancial implications and other risks and opportunities
due to climate change

144201-3 Defined benefit plan obligations and other retirement plans

91

GRI 301: Materials 2016

GRI 3: Material Topics 2021

MARKET PRESENCE
3-3 Management of material topics

82-83

202-2 P
 roportion of senior management hired fromthe local community

122-123

GRI 302: Energy 2016

INDIRECT ECONOMIC IMPACTS
3-3 Management of material topics

103-107203-1 Infrastructure investments and services supported

38-29

203-2 Significant indirect economic impacts

112-118

GRI 3: M aterial Topics 2021

3-3 Management of material topic

GRI 204: P rocurement
Practices 2016

204-1 Proportion of spending on local suppliers

GRI 3: Material Topics 2021

GRI 303: W ater & Effluents2018

145-148
148

ANTI-CORRUPTIONGRI 205:Anti-corruption 2016

3-3 Management of material topics

205-3 Confirmed incidents of corruption and actions taken

GRI 303: W ater & Effluents
2018

128-131
All operations are assessed for risks
related to corruption.

205-1 Operations assessed for risks related to corruption
205-2 C ommunication and training about anti-corruption
policies and procedures

GRI 206: A nti-competitive
Behaviour 2016

158

120-121207-2 Tax governance, control, and risk management120-121207-3 S takeholder engagement and managementof concerns related to tax

120-121207-4 Country-by-country reporting

120-121

3-3 Management of material topics

62

301-1 Materials used by weight or volume62

301-2 Recycled input materials used

62-66

301-3 Reclaimed products and their packaging materials

62-66

3-3 Management of material topics

52-54

302-1 Energy consumption within the organization

52-54

302-2 Energy consumption outside of the organization

52-54

302-3 Energy intensity

52-54

302-4 Reduction of energy consumption

52-54

302-5 R eductions in energy requirements of products
and services

52-54

3-3 Management of material topics

58-60

303-1 Interactions with water as a shared resource

58-60

303-2 Management of water discharge-related impacts

58-60

303-3 Water withdrawal

58-60

303-4 Water discharge

58-60

303-5 Water consumption

58-60

3-3 Management of material topics

48-56

EMISSIONSGRI 3: Material Topics 2021

128-131Zero

ANTI-COMPETITIVE BEHAVIOUR
GRI 3: Material Topics 2021

207-1 Approach to tax

WATER & EFFLUENTS

PROCUREMENT PRACTICESGRI 3: M aterial Topics 2021

120-121

ENERGY

Borouge did not receive any assistancefrom the government.

201-4 Financial assistance received from the government

GRI 203: Indirect Economic
Impacts 2016

3-3 Management of material topics

COMMENTSENVIRONMENTAL PERFORMANCEGRI 3: M aterial Topics 2021

GRI 3: M aterial Topics 2021

PAGE

TAX
2-26 Mechanisms for seeking advice and raising concerns

GRI 3: M aterial Topics 2021

DISCLOSURE

3-3 Management of material topics

There were no legal actions pending orcompleted during the reporting period
regarding anticompetitive behavior.

206-1 L egal actions for anticompetitive behaviour, anti-trust,and monopoly practices

There were no legal actions pending orcompleted during the reporting period
regarding anticompetitive behavior.

Borouge Sustainability Report 2023

GRI 305: Emissions 2016305-1 Direct (Scope 1) GHG emissions

50

305-2 Energy indirect (Scope 2) GHG emissions

50

305-3 Other indirect (Scope 3) GHG emissions

50

305-4 GHG emissions intensity

51

305-5 Reduction of GHG emissions

51

Borouge Sustainability Report 2023

159

Appendix

GRI STANDARD/OTHER SOURCESDISCLOSURE
305-6 Emissions of ozone-depleting substances (ODS)

GRI 305: Emissions 2016305-7 N itrogen oxides (NOx), sulfur oxides (SOx),
and other significant air emissions

PAGE

COMMENTSGRI STANDARD/OTHER SOURCES56
GRI 403: O ccupational Healthand Safety 2018

56

WASTE
GRI 3: Material Topics 2021

GRI 306: Waste 2020

3-3 Management of material topics

68-71

306-1 Waste generation and significant waste-related impacts

68-71

306-2 Management of significant waste-related impacts

68-71

GRI 3: Material Topics 2021

Information unavailable / incomplete.
We do not have a mechanism in place
to accurately measure the waste
generated.

306-4 Waste diverted from disposal

Information unavailable / incomplete.
We do not have a mechanism in place toaccurately measure the waste diverted
from disposal.
68-71

GRI 308: S upplierEnvironmental
Assessment 2016

3-3 Management of material topics

145-148308-1 N ew suppliers that were screened using
environmental criteria147

308-2 N egative environmental impacts in the supply chain
and actions taken

147

3-3 Management of material topics

88-94

403-10 Work-related ill health97-101

3-3 Management of material topics

95-96

404-1 Average hours of training per year per employee

95-96

404-2 P
 rograms for upgrading employee skills and transition
assistance programs

95-96

404-3 P
 ercentage of employees receiving regular performanceand career development reviews

95-96

DIVERSITY & EQUAL OPPORTUNITYGRI 3: Material Topics 2021

3-3 Management of material topics

76-86

405-1 Diversity of governance bodies and employees

122-123405-2 Ratio of basic salary and remuneration of women to men

80

GRI 3: Material Topics 2021

3-3 Management of material topics

76

GRI 406: N
 on-discrimination
2016406-1 Incidents of discrimination and corrective actions taken

76

GRI 3: Material Topics 2021

3-3 Management of material topics

147

GRI 408: Child Labor 2016408-1 O perations and suppliers at significant risk for incidents
of child labor

401-2 B
 enefits provided to full-time employees that are notprovided to temporary or parttime employees

91

GRI 3: Material Topics 2021

3-3 Management of material topics

401-3 Parental leave

93

GRI 409: F orced orCompulsory
Labor 2016409-1 O perations and suppliers at significant risk for incidents
of forced or compulsory labor

3-3 Management of material topics

GRI 402: L abor/Management
Relations 2016402-1 Minimum notice periods regarding operational changes

Borouge provides 30 days minimum
notice period.

97-101403-2 H azard identification, risk assessment, and incident
investigation

97-101

GRI 3: Material Topics 2021

3-3 Management of material topics

GRI 410: S ecurity Practices
2016

410-1S
 ecurity personnel trained in human rights policies
or procedure

97-101

403-4 W orker participation, consultation, and communication
on occupational health and safety

97-101

403-5 Worker training on occupational health and safety

97-101403-6 Promotion of worker health97-101403-7 P revention and mitigation of occupational health and safety
impacts directly linked by business relationships

97-101

Zero

102
All our security personnel are trained inhuman rights policies or procedures.

LOCAL COMMUNITIESGRI 3: Material Topics 2021

403-3 Occupational health services

147

SECURITY PRACTICES

88-94

403-1 Occupational health and safety management system

Zero

FORCED OR COMPULSORY LABOROCCUPATIONAL HEALTH & SAFETY

160

97-101

90

GRI 3: Material Topics 2021

GRI 403: O ccupational Healthand Safety 2018403-9 Work-related injuries

401-1 New employee hires and employee turnover

LABOR/MANAGEMENT RELATIONSGRI 3: Material Topics 2021

97-101

CHILD LABOREMPLOYMENTGRI 401: Employment 2016403-8 W orkers covered by an occupational healthand safety management system

COMMENTS

NON-DISCRIMINATIONSOCIAL PERFORMANCEGRI 3: Material Topics 2021

GRI 404: T raining and
Education 2016

GRI 405: D iversity and Equal
Opportunity 2016

SUPPLIER ENVIRONMENTAL ASSESSMENTGRI 3: Material Topics 2021

PAGE

TRAINING & EDUCATION

306-3 Waste generated

306-5 Waste directed to disposal

DISCLOSURE

GRI 413: L ocal Communities
2016

3-3 Management of material topics

103-107413-1 O perations with local community engagement, impact
assessments, and development programs

103-107413-2 O perations with significant actual and potential negative
impacts on local communities

103-107

SUPPLIER SOCIAL ASSESSMENT

Borouge Sustainability Report 2023

GRI 3: Material Topics 2021

3-3 Management of material topics

GRI 414: S upplier Social
Assessment 2016414-1 New suppliers that were screened using social criteria

Borouge Sustainability Report 2023

145-148
147

161

Appendix

Appendix 6
GRI STANDARD/OTHER SOURCESDISCLOSURE

PAGE

CUSTOMER HEALTH AND SAFETY
GRI 3: Material Topics 2021

3-3 Management of material topics

GRI 416: C ustomer Healthand Safety 2016416-1 A ssessment of the health and safety impacts of productand service categories

ADX Index

COMMENTSADX GUIDELINES

150-151

E1. GHG Emissions

All new suppliers are screened usingsocial criteria

E2. Emissions Intensity

CUSTOMER PRIVACYGRI 3: Material Topics 2021

3-3 Management of material topics

DISCLOSURE

136
Environment

E4. Energy Intensity

53

E5. Energy Mix

52

E6. Water Usage

47

E7. Environmental Operations

32-33, 72-73

E8. Environmental Oversight

127

E9. Environmental Oversight127

E10. Climate Risk Mitigation

90

90
76-82

S6. Non-Discrimination

S8. Global Health and Safety
S9. Child & Forced Labor*Not applicable (no part time poitions
within Borouge)
769897-101
147

S10. Human Rights

102

S11. Nationalism

82-83

S12. Community Investment

103

G1. Board Diversity
G2. Board Independence
G3. Incentivized Pay
G4. Supplier Code of Conduct

Borouge Sustainability Report 2023

80

S4. Gender Diversity

S7. Injury Rate

Borouge Sustainability Report 2023

*Data is not public due to confidentiality
constraints

S3. Employee Turnover

S5. Temporary Worker Ratio

162

51
52-53

S2. Gender Pay Ratio

Governance50

E3. Energy Usage

S1. CEO Pay Ratio

Social

PAGE NUMBER(S), LINK,
AND/OR DIRECT ANSWER

G5. Ethics & Prevention of Corruption

122-123123
122-124
145
128-138

G6. Data Privacy

136

G7. Sustainability Reporting

14-17

G8. Disclosure Practices

14-17

G9. External Assurance

168

163

Appendix

Appendix 7
SASB Index
TOPIC

Greenhouse Gas
Emissions

ACCOUNTING METRIC

RT-CH-110a.1

Gross global Scope 1 emissions, percentage
covered under emissions-limiting regulations.

50

RT-CH-110a.2

Discussion of long-term and short-term strategy
or plan to manage Scope 1 emissions, emissions
reduction targets, and an analysis
of performance against those targets.

48

56

Air Quality

RT-CH-120a.1

Energy Management

RT-CH-130a.1(1) Total energy consumed,(2) percentage grid electricity,(3) percentage renewable,(4) total self-generated energy

RT-CH-140a.1(1) Total water withdrawn,(2) T otal water consumed, percentage
of each in regions with High or Extremely HighBaseline Water Stress

58

RT-CH-140a.2

Number of incidents of non-compliance associatedwith water quality permits, standards, and regulations.

Zero

RT-CH-140a.3

Description of water management risks
and discussion of strategies and practices
to mitigate those risks.

58-60

Hazardous Waste
Management

RT-CH-150a.1

Amount of hazardous waste generated, percentage
recycled.

Hazardous waste generated andrecycled is currently not recorded.
However, amount of hazardous waste
disposed is reflected on page 68.

Community Relations

RT-CH-210a.1

Discussion of engagement processes
to manage risks and opportunities associated with
community interests.

41

RT-CH-320a.1

1) T otal recordable incident rate (TRIR) and (2) fatality
rate for (a) direct employees and (b) contract
employees.

98

RT-CH-320a.2

Description of efforts to assess, monitor, and reduce
exposure of employees and contract workers to longterm (chronic) health risks.

97-101

Workforce Health & Safety

Product Design for
Use-phase Efficiency

RT-CH-410a.1

Revenue from products designed
for use-phase resource efficiency iscurrently not recorded. However, weoffer a range of industry solutions
that deliver a positive and sustainable
impact as reflected on page 38-39.
Borouge has a dedicated productstewardship team responsible to lookafter the Globally Harmonized Systemof Classification and Labelling ofChemicals (GHS) standards.

RT-CH-410b.2

Discussion of strategy to(1) Manage chemicals of concern and(2) Developalternatives with reduced human and/or
environmental impact.

142

RT-CH-410c.1

Percentage of products by revenue
that contain genetically modified
organisms (GMOs).

N/A

Safety & Environmental
Stewardship of Chemicals

CODE

ACCOUNTING METRICManagement of the Legal& Regulatory Environment

RT-CH-530a.1

Discussion of corporate positions related to government
regulations and/or policy proposals that addressenvironmental and social factors affecting the industry.

32-33

RT-CH-540a.1

Process Safety Incidents Count (PSIC),
Process Safety Total Incident Rate (PSTIR),
and Process Safety Incident Severity Rate (PSISR).

98

RT-CH-540a.2

Number of transport incidents

98

52-53

(1) P
 ercentage of products that contain Globally
Harmonized System of Classification and Labellingof Chemicals (GHS) Category 1 and 2 Health andEnvironmental Hazardous Substances,(2) P ercentage of such products that have undergonea hazard assessment.

RT-CH-410b.1

Genetically Modified
Organisms

Revenue from products designed for use-phaseresource efficiency.

PAGE NUMBER(S), LINK,
AND/OR DIRECT ANSWERTOPIC

Operational Safety,
Emergency Preparedness& Response

Air emissions of the following pollutants:(1) NOX (excluding N2O),(2) SOX,(3) volatile organic compounds (VOCs), and(4) hazardous air pollutants (HAPs)

Water Management

164

PAGE NUMBER(S), LINK,
AND/OR DIRECT ANSWER

CODE

Borouge Sustainability Report 2023

Appendix 8
TCFD Index
PAGE NUMBER(S), LINK,
AND/OR DIRECT ANSWER#

RECOMMENDATIONS

1Describe the board’s oversight of climate-related risks and opportunities.

127

2

Describe management’s role in assessing and managing climate-related risks
and opportunities.

128

3

Describe the climate-related risks and opportunities the company has identified over the short, medium,and long term.

144

4

Describe the impact of climate-related risks and opportunities on the company’s businesses, strategy,
and financial planning.

144

5

Describe the resilience of the company’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.

144

6

Describe the company’s processes for identifying and assessing climate-related risks.

142-144

7

Describe the company’s processes for managing climate-related risks.

142-144

8

Describe how processes for identifying, assessing, and managing climate-related risks
are integrated into the company’s overall risk management.

142-1449Disclose the metrics used by the company to assess climate- related risks and opportunities
in line with its strategy and risk management process.

142-144

10Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions,and the related risks.

48-51

11

Describe the targets used by the company to manage climate-related risks and opportunities
and performance against targets.

48

Borouge Sustainability Report 2023

165

Appendix

Appendix 9
Independent Assurance Letter• Emissions 2016: 305-1, 305-2 with baseline year 2018) includes
flaring.
• Waste 2020: 306-5

Independent Limited Assurance Statement to Abu Dhabi Polymers Co. Ltd. on Their
Sustainability Report 2023•

To the Management of Abu Dhabi Polymers Co. Ltd.,
United Arab Emirates (UAE)•Introduction
Intertek Global Ltd., Abu Dhabi ("Intertek") was engaged by Abu Dhabi Polymers Co. Ltd. (“Borouge”) to provide an
independent limited assurance on its Sustainability Report for 2023 ('the Report'). The Report is prepared by Borouge
based on Global Reporting Initiative (GRI) Standards 'in-accordance’ option for sustainability reporting. The
assurance was performed in accordance with the requirements of International Federation of Accountants' (IFAC)
International Standard on Assurance Engagement (ISAE) 3000 (Revised), Assurance Engagements Other than Audits
or Reviews of Historical Financial Information.
Objective
The objectives of this limited assurance exercise were, by review of objective evidence, to confirm whether any
evidence existed that the sustainability related disclosures, as declared in the Report, were not accurate, complete,consistent, transparent, and free of material error or omission in accordance with the criteria outlined below.
Intended Users
This Assurance Statement is intended to be a part of the Borouge’s Annual Sustainability Report 2023.

Intertek’s responsibility, as agreed with the management of Borouge, is to provide assurance and express an opinion
on the Assurance Statement based on our verification following the assurance scope and criteria given below.
Intertek does not accept or assume any responsibility for any other purpose or to any other person or organization.
This document represents Intertek’s independent and balanced opinion on the content and accuracy of theinformation and data held within the report.
Assurance Scope
The Assurance has been provided for selected sustainability performance disclosures presented by Borouge in theReport. The reporting boundary included data and information for the period 1st January 2023 to 31st December 2023
along with 2018 as baseline year for the operations in United Arab Emirates and Singapore in accordance with GRI
Standards 2021. Our Scope of assurance included verification of data and information on selected disclosures
reported as summarized below:

Sustainability Report for 2023| Limited Assurance Statement

166

International Standard on Assurance Engagements (ISAE) 3000 (revised) for ‘Assurance Engagements otherthan Audits or Reviews of Historical Financial Information’.
International Standard on Assurance Engagements (ISAE) 3410 for ‘Assurance Engagements on Greenhouse
Gas Statement.

A limited assurance engagement comprises of limited depth of evidence gathering including inquiry and analyticalprocedures and limited sampling as per professional judgement of assurance provider.
A materiality level of 10% was applied. Assessment of compliance and materiality was undertaken against the statedcalculation methodology and criteria.
Methodology
Intertek performed assurance work using risk-based approach to obtain the information, explanations and evidence
that was considered necessary to provide a limited level of assurance. The assurance was conducted by desk review
with regard to the reporting and supporting records for the fiscal year 2023. Data and information supporting theStatement were historical in nature and proven by evidence. Our assurance task was planned and carried out during
Jan-Mar 2024. The assessment included the following:•

Responsibilities
The management of Borouge is solely responsible for development the Report and its presentation. Management isalso responsible for the design, implementation, and maintenance of internal controls relevant to the preparationof the Report so that it is free from material misstatement, whether due to fraud or error.

Topic Specific Disclosures
Environmental Disclosures• Energy 2016: 302-1, 302-3 (with baseline year 2018)• Water and Effluents 2018: 303-3, 303-4, 303-5(with baseline year 2018)

Assurance Criteria
Intertek conducted the assurance work in accordance with requirements of 'Limited Assurance' procedures as per
the following standards:

•
•
•
•
•
•

Assessment of the Report, that it was prepared in accordance with the Sustainability Reporting Standards ofthe Global Reporting Initiative.
Review of processes and systems used to gather and consolidate data.
Examined and reviewed documents, data, and other information made available digitally.
Conducted virtual interviews with key personnel responsible for data management.
Assessment of appropriateness of various assumptions, estimations, and thresholds used by Borouge fordata analysis.
Review of sustainability disclosures on sample basis for the duration from 1st January 2023 to 31st December
2023 along with 2018 baseline year data was carried out remotely through virtual interactions.
Appropriate documentary evidence was obtained to support our conclusions on the information and data
reviewed.

Conclusions
Intertek reviewed selected sustainability disclosures provided by Borouge in the Report for the reporting period from
1st January 2023 to 31st December 2023 along with baseline year 2018 data. Based on the data and information
provided by Borouge, Intertek concludes with limited assurance that there is no evidence that the sustainability dataand information presented in the Report is not accurate, complete, consistent, transparent, materially correct, andthus is a fair representation of sustainability disclosures in line with the identified material topics and is in accordancewith the sustainability reporting standards of the GRI Standards to the best of our knowledge.

Social Disclosures• Occupational Health and Safety 2018: 403-9

Page 1 of 3

Borouge Sustainability Report 2023

Sustainability Report for 2023| Limited Assurance Statement

Borouge Sustainability Report 2023

Page 2 of 3167

Intertek’s Competence and IndependenceIntertek is a global provider of assurance services with a presence in more than 100 countries employing
approximately 43,000 people. The Intertek assurance team included competent sustainability assurance
professionals, who were not involved in the collection and collation of any data except for this Assurance Opinion.
Intertek maintains complete impartiality towards any people interviewed.

For Intertek

Myvizhi Somasundaram, Verifier
Technical Manager-Sustainability
Intertek

Elizabeth Mielbrecht, Reviewer
Project Director
Intertek

26th March 2024

No member of the verification team (stated above) has a business relationship with Abu Dhabi Polymers Co. Ltd (Borouge), its Directors or Managers beyond
that is required of this assignment. No form of bribe has been accepted before, throughout and after performing the verification. The verification team has notbeen intimidated to agree to do this work, change and/or alter the results of the verification. The verification team has not participated in any form of nepotism,self-dealing and/or tampering. If any concerns or conflicts were identified, appropriate mitigation measures were put in place, documented and presented withthe final report. The process followed during the verification is based on the principles of impartiality, evidence, fair presentation and documentation. The
documentation received and reviewed supports the conclusion reached and stated in this opinion.

Sustainability Report for 2023| Limited Assurance Statement

168

Page 3 of 3

Borouge Sustainability Report 2023

borouge.com