QATAR GAS TRANSPORT COMPANY LTD. “NAKILAT” QPSCENVIRONMENTAL
SOCIAL AND GOVERNANCE
ESG REPORT

2
0
2
2

IN THE NAME OF ALLAH
THE MERCIFUL AND THE GRACIOUS

His Highness
Sheikh Tamim Bin Hamad Al Thani

His Highness
Sheikh Hamad Bin Khalifa Al Thani

Amir of the State of Qatar

Father Amir

CONTENT

NAKILAT ESG REPORT 2022

1. INTRODUCTION

5. SOCIAL

1.1 Environmental, Social and Governance (ESG) Report01

5.1 Health, Safety and Wellbeing

55

1.2 Message from the CEO03

5.2 Human Capital and Employee Relations

73

5.3 Diversity and Inclusion

83

5.4 Responsible Procurement and Supply Chain

85

5.5 Community Engagement89

2. BUSINESS OVERVIEW
2.1 About Nakilat

05

2.2 Financial Performance Summary09

3. APPROACH TO ESG MANAGEMENT
3.1 ESG Strategy and Statement10

3.2 ESG Governance11

3.3 Stakeholder Management

13

3.4 Materiality Assessment

15

3.5 External ESG Commitments and Partnerships

19

4. ENVIRONMENT

6. GOVERNANCE
6.1 Corporate Governance, Compliance and Ethics

92

6.2 Anti-Bribery, Anti-Corruption and Fair Competition

96

6.3 Risk and Crisis Management98

6.4 Information Security and Data Privacy

104

6.5 Tax Transparency

105

7. ASSURANCE REPORT
7.1 Independent Limited Assurance Report106

4.1 Environmental Management and Compliance22

4.2 Climate Change and Emissions to Air

33

8. APPENDIX: ESG REPORTING FRAMEWORKS AND DATA

4.3 Energy Efficiency and Water Consumption

39

8.1 ESG Data Summary

109

4.4 Ocean Health and Biodiversity

46

8.2 Global Reporting Initiative (GRI) Content Index

121

4.5 Waste Management and Ship Recycling50

8.3 United Nations Global Compact (UNGC)

128

8.4 Sustainability Accounting Standards Board (SASB)

129

8.5 Vessel AER/EEOI Data138

8.6 List of Abbreviations and Definitions141

1. INTRODUCTIONNAKILAT ESG REPORT 2022

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

Reporting Period

Currency

This 2022 ESG Report covers Nakilat’s most ESG topics fromJanuary 1st, to December 31st, 2022, in line with the financial
reporting period. The ESG Report intends to inform Nakilat’s
stakeholders of the implemented management approach for key
corporate ESG elements, challenges and trends, as well as the
progress against our ESG strategy and goals throughout the year of2022. The 2021 ESG Report was published in January 2022.

and Verification (MRV) of CO2 emissions; and the International
Maritime Organization’s (IMO) Data Collection System (DCS) on
fuel consumption. This year’s report does not entail any significant
changes in the reporting scope (topic boundaries) compared toour previous ESG Report 2021. The list of material topics has
been updated as per the GRI Universal Standards 2021 (GRI sector
standards for Oil and Gas sector 2021).

Reporting Standards

Scope and Boundaries

This report has been prepared in accordance with the GRI Standards
for the period from January 1st 2022 to December 31st 2022, indexedon page 121. As a testament to our commitment to proactive
transparency, we have also taken into our consideration otherinternationally recognized external frameworks and standards,
including Sustainability Accounting Standards Board (SASB), UN
Global Compact (UNGC), and Sustainable Development Goals(SDGs). Furthermore, we disclose Greenhouse Gas (GHG) emissions
data based on the GHG Protocol Corporate Accounting andReporting Standard; the European Union (EU) Monitoring, Reporting

Our reporting principles are based on those set out in the GRI
Standards and the report boundaries apply to all Nakilat group
entities, unless stated otherwise. In 2022, Nakilat’s shipping
segment represented more than 90% of Nakilat’s revenues. In
addition, Nakilat’s fleet internationally operates (load and discharge)at different countries’ terminals in Europe, Asia, and North America,
among others.

All financial data within this ESG Report is shown in Qatari Riyals (QAR), unless stated otherwise.

External Assurance
Our external auditor KPMG provided an independent limited assurance under ISAE 3000 (Revised) on the preparation of this ESG Report inaccordance with the GRI Standards. Furthermore, EY provided independent third-party assurance on Financial Statements and Corporate
Governance Report for the year 2022. Nakilat’s ESG Committee, composed of Nakilat executives, endorsed Nakilat’s ESG Report to receive
external assurance.

Feedback
We welcome feedback on this report and any aspect of our ESG performance.
Mr. Fotios Zeritis,
Head of Investor Relations & ESG Reporting, fzeritis@nakilat.com
Mr. Rabie Baijou,
ESG & Investor Relations Senior Officer, rbaijou@nakilat.com

Qatar Gas Transport Company Ltd. (Nakilat)
Nakilat Headquarters
Shoumoukh Towers B, C Ring Road
PO Box 22271
Doha, State of Qatar
Tel: +974 4496 8811
Fax: +974 4448 3111

12

1.2 MESSAGE FROM THE CEO

NAKILAT ESG REPORT 2022

WE BELIEVE THAT BY
WORKING TOGETHER, WE CAN
CREATE A MORESUSTAINABLE AND
EQUITABLE WORLD FOR
GENERATIONS TO COME

Despite an unprecedentedly high-interest rate environment,tightening monetary policy, and geopolitical uncertainty, Nakilat
continues to meet the growing clean energy transportation demand
responsibly, by balancing the environmental, social and governanceaspects of sustainability, steered by addressing climate-relatedrisks, excellence in health and safety environment, solid
governance, and ethical business practices. As a recognition of thecompany’s commitment to effectively manage its health and safety
risks, we were awarded, consecutively for the fih time, the Swordof Honor Award by the British Safety Council, which represents the
pinnacle of achievement in the world of health and safety
management. Winning the award for five consecutive years shows
consistency in maintaining HSE standards in line with industry bestpractices. All these efforts come as part of Nakilat’s drive to
become a global maritime sustainability leader and to make apositive impact on the world.

that sustainability is a journey, and we are committed tocontinuously improving our practices and performance. We believethat by working together, we can create a more sustainable andequitable world for generations to come.
We look forward to many more milestones in the sustainablegrowth of our company.

Nakilat’s Board of Directors and senior management believe thattransparency and accountability are critical to achieving our ESG
goals, and this report is a demonstration of our commitment toboth. Our ESG Report is more than just a document - it is areflection of our values and a roadmap for our future. We recognize

Eng. Abdullah Al-Sulaiti
Chief Executive Officer

On behalf of Nakilat, I am pleased to present Nakilat’s 2022 Environmental, Social, and Governance (ESG) Report, whichhighlights our commitment to sustainability and responsible business practices.
At our company, we understand that sustainable practices as ESG
actions are not just a moral imperative, but a business necessity, as
we recognize our significant role in promoting responsible
environmental stewardship throughout the maritime value chain.
Since the company’s inception, Nakilat’s Board of Directors andsenior management have been committed to continuously
providing the required and expected transparency to meet its
stakeholders’ long-term expectations, as we have been producing
our sustainability reporting since 2014.
This year’s report is a testament to our progress towards
sustainability approach to address ESG’s prominent issues forsustainable operations, including elements related to climatechange, social responsibility, supply chain management, as well as
cybersecurity, and good governance. For determining our material
topics for ESG Report 2022, we have extensively consulted a wide
range of stakeholders, recognizing that their unique insights
provide valuable and continuous contribution to Nakilat in thisregard. The identified material topics are not solely based oninternal considerations but also aligns with our stakeholders’perspectives and interests. Such consultative approach fortifies ourcommitment to transparency, accountability, and sustainability.
3

ESG matters continue to pave the way for us and have been
embedded in our commitment to deliver clean energy to the worldconsistently, reliably, and sustainably. In all these years, Nakilat has
been consistently compliant with the policies and regulations of theInternational Maritime Organization (IMO) and we will continue tobe compliant with IMO’s revised regulations including its ambition
for greenhouse gas (GHG) emissions to reduce shipping’s total
annual GHG emissions. All these IMO industry decarbonization
measures will ensure GHG emission reductions in the short,medium, and long-term.
Our focus is on the sustainable development of Nakilat’s fleet
beyond 2030, which contributes towards the realization of Qatar
National Vision 2030.
We intend to continue investing in the most technologicallyadvanced ships, industry pilot projects, and partnerships that havethe potential to enable further decarbonization of our energy
transportation.

42. BUSINESS OVERVIEW

NAKILAT ESG REPORT 2022

74

NSQL

vessels

operated vessels

69* LNG

25 LNG

4 LPG

4 LPG

1 FSRU

1 FSRU

carriers

carriers

carriers

carriers*includes 1 newbuild

ONE OF THE WORLD’SLARGEST GAS FLEET

•
•
•
•

Technologically Advanced
Environmentally Sound
Cost Efﬁcient
Majority on Long-Term Charter Agreements

2.1 About Nakilat
Established in 2004, Nakilat is a shipping and maritime company
based in the State of Qatar. A global leader in energy transportation,
Nakilat owns one of the world’s largest Liquefied Natural Gas (LNG)
shipping fleet, consisting of 69 LNG carriers, 4 LPG carriers and one
floating storage regasification unit (FSRU), providing the essential
transportation link in Qatar’s LNG supply chain. Through its wholly
owned subsidiary, Nakilat Shipping Qatar Limited (NSQL), thecompany manages 25 LNG carriers, as well as owns, manages andoperates one (FSRU and four Very Large LPG carriers (VLGCs).
In addition to its core shipping activities, Nakilat operates theErhama Bin Jaber Al Jalahma Shipyard in Ras Laffan Industrial
City, providing comprehensive ship repair and offshore fabrication
services through N-KOM and Qatar Fabrication Company (QFAB).
It also provides shipping agency services through Nakilat Agency

Company (NAC) at all Qatari ports and terminals, as well as
towage and other marine support services through its joint
venture NSW. The company’s Vessel Support Unit (VSU) offers
chandlery, storage, and logistics services for vessels operatingin Qatari waters.

Markets and Customers Served
Nakilat’s headquarters is in Doha, Qatar, while transportation
services are offered in various locations internationally.
Nakilat’s LNG vessels have loaded in 26 countries anddischarged in 26 countries in more than 95 terminals in 2022.
Our customers are predominantly LNG producers and majorinternational energy companies.

Customer Engagement
Nakilat’s market dominance directly stems from our unwaveringcommitment to customer centricity. Creating value for ourcustomers is at the center of our operations, enabling us to makesignificant contributions to every aspect of the maritime services.
Our strategic formula hinges in maintaining close customer
engagement to continually enhance our brand’s value. With the helpof an annual customer satisfaction survey, we gather feedback from
Nakilat’s strategic and priority customers. This survey includes
elements to capture our customers’ insight into our commercial
operations, responsiveness to their needs, flexibility in meeting
their market requirements, and our ability to provide proactive
solutions to the customers’ challenges. This enables Nakilat torecalibrate, striving for perpetual improvements while identifying
and monitoring our customers’ expectations and needs; hence,
providing them with high-quality services and products.
Our customers enjoy the flexibility to engage in open, direct, andseamless communication with their respective stakeholders
or counterparts within Nakilat. For instance, customers candirectly communicate with Nakilat’s operations team(s) for vessel

764

10%

26

95

LNG Cargos
Shipped in 2022

Countries
Delivered to5

operational matters, associated with specific voyages or the charter.
Broadly and formally, the current typical channel of communicationand escalations is Nakilat’s commercial department. Nevertheless,
we are currently exploring the adoption of a formal management
approach to customer engagements and managing customer
relationships. The anticipated enhancements in customer
engagement would enable Nakilat to gain a deeper level of insight
into the market forces, emerging technologies, risks and otherfactors affecting customer expectations and needs.
Nakilat is committed to offering exceptional customer service, andthis approach involves delivering effective and reasonable solutions
to their grievances. Historically, Nakilat’s customer grievances havebeen addressed in a structured manner, with the establishment ofan appropriate baseline honoring the mutually agreed contractual
terms, and a further investigation into any concerns. Customer
grievances are handled by qualified and experienced teams andescalated to appropriate levels of management as needed.

58+ million MT

Global LNG Shipping
Capacity (appx.)*

Ports of Call
Worldwide

Volume of LNG
Shipped in 2022

Note:
*Global LNG Shipping Capacity: this calculation
excludes FSRUs

6

2. BUSINESS OVERVIEW (continued)

Setting the Purpose, Values and Strategy
An annual off-site meeting is convened involving the CEO and the Senior Management Team (SMT) to review Nakilat’s strategy and todeliberate on potential internal and external opportunities and business risks. Preceding to the meeting, internal and external informationis collected from employees across various levels, departments and key customers. The outcomes of the off-site meeting are documented
and presented to the entire organization. These results constitute of a pivotal component of the strategy update and the new businessdevelopment plan.

NAKILAT ESG REPORT 2022

Values•Integrity: Honesty with sound moral
principles

We are honest with others and ourselves. We meet the highest ethical standards inall business dealings. We accept responsibility and hold ourselves accountable forour work and our actions. Our leaders encourage this virtue within the workforce byfostering an open dialogue on all issues among all employees. At Nakilat, we regard
and reward employees for demonstrating integrity.

•

Respect: Value other’s diversity andperspective

We respect and support each other, and we strive to earn the complete trust of ourcolleagues and partners. We are committed to maintaining an environment of trust,built upon honesty, ethical behavior, respect, and candor.

Safety: Incident and injury free

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

•

Encouragement: Be motivated andmotivate people around you

We encourage and value the uniqueness of individuals and the varied perspectives andtalents they provide. Nakilat’s most powerful asset for achieving its mission successis a multidisciplinary team of diverse, competent individuals across the organization.
Our approach to teamwork is based on the philosophy that each team member brings
unique experiences and important expertise to the organization.

•

Passion: Strong commitment towards
continuous improvement

We are committed to excellence and are passionate about achieving results thatexceed expectations. To achieve the highest standards in safe energy transportation,
Nakilat is committed to nurturing an organizational culture in which individuals makevaluable use of their time, talent, and opportunities to pursue excellence.

•

7

Definition8

Total Income

G&A Employees Costs*

Paid Dividends

Social and Sports Fund Contribution

2017

2017

0.08

2017

0.55

2017

0.02

2018
2018 0.08
3.64
2.2
FINANCIALPERFORMANCE SUMMARY

2018

0.55

2018

0.02

(billion QAR)

2019

(billion QAR)

3.62

3.88

DirectValue Generated and Distributed
4.02
2020Economic(billion QAR)

2019

0.08

2019

0.55

2019

0.03

2020

0.06

2020

0.61

2020

0.03

2021

0.03

2022

0.04

The consolidated financial statements of the Group have been prepared in accordance with the International Financial Reporting Standards
2021 0.67
2021 4.14
2021 0.07(IFRS) issued by the International Accounting Standards Board (IASB) and in compliance with Qatar Commercial Law No. 11 of 2015, whose
certainwere subsequently amended by Law No. 82022
of 2021,0.07
as applicable.
4.40
2022provisions
2022 0.72

Operating
Costs
G&A
G&A
Employees
Employees
Costs*
Costs*Paid
Paid
Dividends
Dividends

SocialSocialandandSportsSportsFund
FundContribution
Contribution

0.080.08 0.70
20172017201720172017 0.550.55

20172017 0.020.02

201820182018
0.080.08 0.68

20182018 0.550.55

20182018 0.020.02

0.080.08 0.70
201920192019

20192019 0.550.55

20192019 0.030.03

0.060.06 0.73
2020
20202020

2020
2020 0.610.61

2020
2020 0.030.03

0.070.07 0.75
2021
20212021

2021
2021 0.670.67

2021
2021 0.030.03

0.070.07 0.76
2022
20222022

2022
2022 0.720.72

2022
2022 0.040.04(billion(billion(billion
QAR)
QAR) QAR)(million QAR)

(billion(billion
QAR)
QAR)(million(million
QAR)
QAR)

3. APPROACH TO ESG MANAGEMENT
3.1 ESG Strategy and Statement

Our Environmental, Social and Governance (ESG) strategy consists of within our company and across our value chain. Our commitment tothese strategic focus areas is formalized through our ESG statement.

ESG Statement

Economic Impacts and Supply Chain:

As a company with one of the world’s largest gas
fleet delivering clean energy globally, Nakilat iscontinuously committed to the Qatar National
Vision 2030, which serves as a transformativeroadmap for Qatar, harmonizing economic growthwith the sustainable management of its humanand natural resources, thus propelling the nation
towards a prosperous future. This vision constitutes
a beacon that guides economic, social, human andenvironmental development of the country in the
coming decades, so that it is inclusive and beneficial
for the citizens and residents of Qatar in various
aspects of their lives.

•

Improve and sustain our financial position tomaintain the shared value with all the economies
we serve, including the State of Qatar•

Ensure responsible sourcing of goods andservices and prohibit any kind of human rights orenvironmental infringement in our supply chain

G&A Employees
Costs*Costs*
G&A Employees

Paid Dividends
Paid Dividends

Codeof Business Ethics and Conduct, and Safety,
SocialSocialand Sports
Fund FundContribution
and Sports
Contribution

3.62
2017 2017

3.62

0.08
2017 2017

0.08

0.55
2017 2017

0.55

0.02
2017 20170.02

2018 2018
3.64

3.64

2018 2018
0.08

0.08

2018 2018
0.55

0.55

2018 2018
0.02

0.02

Safety, Health and Environment:

3.88
2019 2019

3.88

0.08
2019 20190.08

2019 2019
0.55

0.55

2019 2019
0.03

0.03

•

4.02
2020 2020

4.02

0.06
2020 2020

0.06

0.61
2020 2020

0.61

0.03
2020 2020

0.03

Ensure the health and safety of all our
employees, prevent occupational injuries, andensure employees’ well-being

4.14
2021 2021

4.14

0.07
2021 2021

0.07

0.67
2021 2021

0.67

0.03
2021 2021

0.03

•

4.40
2022 2022

4.40

0.07
2022 2022

0.07

0.72
2022 2022

0.72

0.04
2022 2022

0.04

Adopt measures to minimize environmental
impacts of our operations including energy, GHG
emissions, waste, and biodiversity(billion QAR)
(billion QAR)

* G&A Employees Costs includes cost items directly related tothe employee’s job function, such as training.

OperatingCostsCosts
Operating(billion QAR)
(billion QAR)
0.70
2017 2017

0.70

2018 2018
0.68

0.68

2019 2019
0.70

0.70

0.73
2020 2020

0.73

0.75
2021 2021

0.75

0.76
2022 2022

0.76

9(billion QAR)
(billion QAR)

Employees:•

Ensure career development, training, life-longlearning, and employability•

Provide an excellent workplace, which includes
promoting social welfare, respecting ofergonomics and caring for employee’s wellbeing andreducing stress

In line with Nakilat’s Vision and Mission statements,

Total Total
IncomeIncome(billion QAR)
(billion QAR)NAKILAT ESG REPORT 2022

(million (million
QAR) QAR)

Health, Environment and Quality (SHEQ) policy, our
ESG commitments cover all areas of operations,
including:Governance, Ethics and Compliance:•

Operate ethically by maintaining the highest
levels of fairness, integrity, transparency andaccountability in all markets where we operate•

Prevent any kind of misconduct including fraud,
conflict of interest, anti-corruption, or anticompetition

Responsible and sustainable business practices are integral to our long-term success and our dedication to ESG principles. Our businessstrategy revolves around this commitment, and we strive to continually enhance our performance in these domains. We firmly believe thatby prioritizing ESG, we do not only secure our own prosperity but also contribute to the wellbeing of the communities we serve.

103.2 ESG GOVERNANCE

NAKILAT ESG REPORT 2022

Nakilat’s ESG Committee has the following key responsibilities:•

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

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

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

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

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

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

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

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

ESG Organogram
By emphasizing transparency, ethical conduct, and responsible
leadership, we aim to foster a culture of sustainability and resiliencethroughout our business. Below we provide a comprehensive overview of how we uphold and integrate ESG considerations into ourdecision-making processes, organizational structure, and accountability frameworks.

ESG Committee Charter
The ESG Committee comprises of Nakilat’s Executives. The
committee provides regular updates to the Board of Directors, whoholds overall accountability for all ESG-related matters across theGroup.
The ESG Committee meets regularly and at least twice a year
and is responsible for maintaining oversight of the company’s
strategies, policies and risks related to environment, social andgovernance topics. This encompasses all these topics identified ashaving a material impact on the business such as climate change,
GHG emissions, energy consumption, health and safety, humancapital, human rights, good corporate governance, and community
engagement.

Board of Directors

Social, and Governance) and are responsible for the day-to-day
management of Nakilat’s ESG reporting, data collection andconsolidation. The ESG Task Force reports to the ESG Committee
and meets regularly to drive continuous improvement in the
management of Nakilat’s ESG performance. Further, the ESG Task
Force also engages in discussions on the prevalent global andnational ESG developments, disclosure requirements, and theirimpacts on Nakilat.
In 2021, Nakilat established the ‘Environmental Working Group’(EWG) to further extend support to the ESG Committee, inthe capacity of a subject matter expert for Nakilat’s material
environmental topics. The EWG was established to provide
relevant environmental information and recommendations to
the ESG Committee, including policies, strategies, initiatives,
measurements, and monitoring of actions to enhance theenvironmental component of Nakilat’s ESG performance. Nakilat
seeks excellence in all areas across the organization by pushing
the boundaries to explore opportunities beyond the compliancerequirements with the aim of reducing the environmental impact inline with the Paris Agreement, IMO GHG strategy and Qatar Vision
2030.

ESG Committee

Environmental
Working GroupESG Task Force

Environment TeamSocial Team

Governance TeamThe Committee is supported by the ESG Task Force composed ofsenior employees who represent each ESG pillar (Environment,

1112

3.3 STAKEHOLDER MANAGEMENTNAKILAT ESG REPORT 2022

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

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

STAKEHOLDER GROUPENGAGEMENT PLATFORM ACTIVITIESWHO THEY ARE•Business Partners andJoint Venture Companies

Regular forums and meetings withbusiness partners•

Close contact with charterers is maintained throughregular meetings and participation in key industry events•

Periodic audits

Customers

Major charterers(local and international companies)•

Close contact with charterers is maintained through regular quarterly meetings and a customer satisfaction survey
twice per year

Employees

Pillars of the organisation
200+ employees at Nakilat and 1100+ total crew•

Annual employee forum, regular surveys and questionnaires

Suppliers and Service
Providers

Vendors and businesses whom we procure goods orservices from 200+ suppliers•

Timely updates on business requirements, with an emphasis on procurement from the local market•

Nakilat is a Qatari listed company that owns,
operates and manages LNG/LPG vessels, provides
shipping and marine-related services to a range ofparticipants within the Qatari hydrocarbon sector,
and serves international customers•

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

Implement various initiatives aimed at contributing to the society at large (corporate social responsibility)

Investors

13

Leading shipping and maritime companies from aroundthe world who collaborate with Nakilat to meet our
growth strategy

Any person or other entity who commits capital with the
expectation of receiving financial returns

Government and Regulatory
Authorities

Policy makers

Local Community

Communities within the area of our operations•

Nakilat strives to protect the interests of investors
by way of following corporate governance andkeeps them informed about its financial state ofaffairs by publishing quarterly and annual financial
reports on the Qatar Exchange and issuing annual
governance report143.4 MATERIALITY ASSESSMENT

NAKILAT ESG REPORT 2022

The Process of Nakilat’s Materiality Assessment:
Materiality assessment is a critical process for our organization
to identify and prioritize the most prominent ESG issues
relevant to our business operations, stakeholders, and overallsustainability strategy.
Nakilat undertakes a periodic evidence-based review of its
material on ESG topics in accordance with the GRI Standards.
This entails industry analysis, peer benchmarking, external
stakeholder surveys, and internal validation by the ESG
Committee.
In 2022, as part of the identification of key ESG risks andopportunities, we conducted a high-level overview of ouractivities and business relationships, the sustainability context,
and an overview of our stakeholders, which provided us
with information for identifying actual and potential impacts,
if any. To help identify material ESG impacts, we engage
through various methods and processes transparently andthrough open communication channels every two years across
our activities and business relationships with internal andexternal stakeholders, including groups and individuals. These
stakeholder groups include shareholders, investors, suppliers,
joint ventures partners, charterers, ship classification societies,
employees, ESG specialists and ESG rating agencies, among
others. Through this stakeholder dialogue, we assess and map
the relevance of ESG topics that impact our business and thewider society.
We employ various methods to gather inputs from stakeholders.
We conduct surveys to collect information, enabling us togain a broad understanding of their priorities. We also engage
discussions to delve deeper into market experiences andexpectations. These interactive sessions allow us to capture thenuances and complexities of their viewpoints.
Throughout the consultation process, we listen attentively, valuing
every voice and opinion. We seek to understand the unique15

perspectives and interests of each stakeholder group, appreciatingthat their input will enrich our decision-making and shape our
future actions.
By extensively consulting our stakeholders, we ensure that theprocess of determining material topics is not a unilateral exercise
but a collaborative effort. The most significant ESG topics for our
stakeholders form the basis for the development of Nakilat’s ESG
Report, and subsequently, respective disclosures of the material
topics. The prioritization also helps inform the evolution of Nakilat’s
ESG strategy and level of ambition for certain topics.
In 2022, based on the results from the assessment process,twelve material topics were prioritized and generated Nakilat’s
ESG materiality matrix, plotting the company’s priority topics
against stakeholder importance, and the significance of impact
on Nakilat’s business. This prioritization followed the assessmentof GRI’s sector standards (Oil and Gas Sector 2021), the GRI’s
topic standards, industry benchmarking, analysis of selectedinternational ESG rating agencies and assessment of stakeholder
surveys. The materiality matrix forms the basis for reporting anddisclosure of the organization’s sustainability approach, providing
a clear and transparent overview of the company’s sustainability
risks, opportunities, and performance.
Nakilat’s ESG materiality assessment process below illustrates how
we identify, engage, and take action surrounding the key identified
material topics of greatest interest to our stakeholders regarding
Nakilat’s environmental, social, and governance performance. In
addition, Nakilat has internally tested and reviewed its selectionof material topics against the topics in the applicable GRI Sector
Standards for Oil and Gas Sector 2021.

Identification and benchmarking

Assessment and stakeholder engagement

Following the use of GRI’s sector
standards and considering topics andimpacts described in the GRI sector
standards (Oil and Gas Sector 2021),
benchmarking was then conductedencompassing shipping industry peers
across sector leaders to further identify
relevant ESG topics and best practices.
We utilize industry recognized external
ESG rating assessments to assist thisprocess.

We engaged with internal and external
stakeholders through surveys and engaging
sessions to assess identified ESG topics.

Categories of the material issues:
1. Environment
2. Human rights
3. Human resources and labor practices
4. Corporate governance, complianceand risk management
5. Social and community relations

Examples of external and internal
stakeholder groups•

Investors•

Shareholders•

Ship Classification Societies•

Suppliers•

JV Partners•

Charterers•

Brokers•

Financial Institutions•

Insurers and P&I Club•

Flag State•

C-Suite Executives•

ESG Committee•

ESG Task Force•

Middle-Management•

Employees

Prioritization and determining
material topics
The identified ESG material topics
are tested and prioritized based on
their importance to stakeholders
and Nakilat’s business. Nakilat’s ESG
Committee and ESG Task Force haveoverseen the process, reviewed andapproved the material topics.

16

3.4 MATERIALITY ASSESSMENT (continued)

NAKILAT ESG REPORT 2022

NAKILAT’S ESG MATERIAL TOPICS:

Social•Occupational health and safety•

Employment practices•

Responsible procurement and supply chain•

Diversity and inclusion•

Local communities

HIGH
EnergyEfficiency andResource Use
Risk and Crisis
Management
Anti-Bribery andanti-corruption

Nakilat’s Material
ESG Topics

Governance

Stakeholder RelevanceOccupational
Health and Safety

GHG and
Air Emissions
Corporate
Governance andCompliance

MEDIUM

Biodiversity andOcean Health

Information Security /Cyber Privacy
Employment
Practices

Responsible Procurement
and Supply Chain• Corporate governance andcompliance

Diversity andInclusion• Anti-bribery and anti-corruption• Risk and crisis management• Information security/cybersecurity

Local Communities

Environment• Energy efficiency andresource use• GHG and air emissions• Biodiversity and ocean
health17

LOW

MEDIUM

HIGH

Significance of Impact

18

3.5 EXTERNAL ESG COMMITMENT AND PARTNERSHIPNAKILAT ESG REPORT 2022

International and National Frameworks
The State of Qatar has placed an emphasis on environmental protection and sustainable development, with all of the country’s
stakeholders committed to achieving the objectives of Qatar National Vision (QNV) 2030 and the United Nations’ Sustainable
Development Goals. At Nakilat, we are committed to the objectives of Qatar National Vision 2030 and the United Nations’ Sustainable
Development Goals, which is underscored by the fact that we have closely aligned and developed our corporate and ESG strategies toreflect and achieve these objectives.

Qatar National Vision (QNV) 2030
Launched in October 2008 by the General Secretariat for Development Planning in the State of Qatar, QNV 2030 is a development plan aimed
to transform Qatar into an advanced society capable of achieving sustainable development by 2030. To aid with its implementation, QNV is
supported by the National Development Strategy, which is set every 5 years. QNV 2030 consists of four interconnected pillars:

PILLARS OF THE QATAR NATIONAL VISION 2030

Economic Development
Development of a competitiveand diversified economy capableof meeting the needs of, andsecuring a high standard of living
for, all its people both for thepresent and for the future

Environmental Development
Management of the environment
such that there is harmony
between economic growth,social development andenvironmental protection

Human Development
Development of all its
people to enable themto sustain a prosperous
society

United Nations Sustainable Development Goals (UN SDGs)

Crew Welfare

The UN Sustainable Development Goals (SDGs) are the overarchingframework for sustainability, with 17 goals and 169 targets to beachieved by 2030. The SDGs seek to coordinate efforts to reduce
inequality, combat climate change, end all forms of poverty,
and promote sustainable economic growth. The objectives are
general and apply to all industries. While our sustainability efforts
contributed to most 17 SDGs, at Nakilat, we prioritize the SDGs thatare most in line with our corporate objectives and ESG strategy.
We consider the risks and possibilities that our business face,
our worldwide impact and the importance of our stakeholders’interests.

The success of an organization relies on the people who form
its foundation, as they play a vital role in achieving operational
excellence. Seafarers’ welfare remains one of the company’s
highest priorities. We have implemented practical steps andinitiatives toward solutions that aim to achieve work-life balance
for all of our seafarers by introducing additional junior engineers,
cadetship programs, and several other measures that support
an improved lifestyle onboard, combined with enhancementof cybersecurity, to further cement our seafarers’ protection
from malicious attacks. During the fleet officers' meetings, themanagement pledged to continue the company’s efforts in operatingtransparency and responsibly leading the way toward sustainablegrowth across our operations, which will positively impact ourpeople, community and environment while creating value for our
stakeholders and shareholders.

The International Maritime Organization (IMO) is a specializedorganization of the United Nations tasked with ensuring the safety
and security of ships as well as mitigating ship-related marine
and atmospheric pollution. The activities of the IMO directly aid inachieving the UN Sustainable Development Goals.

19

Social Development
Development of a just andcaring society based on highmoral standards, and capableof playing a significant rolein global partnerships fordevelopment

External Initiatives and Membership Organizations

External Awards

The International Seafarers’ Welfare and Assistance
Network (ISWAN)

British Safety Council’s Occupational Health and Safety

ISWAN is a membership organization that promotes and supports
the welfare of seafarers worldwide. It has a 24-hour, multilingual
helpline called ‘Seafarer Help’ which has been provided to Nakilat’s
seafarers as a direct welfare service that can support mental healthonboard. ISWAN also provides routine health information that
we share with the vessels to make seafarers aware of the issues
affecting them and the support they can receive if required. Nakilat’s
wholly owned subsidiary, Nakilat Shipping Qatar Limited (NSQL),
has been an active member of ISWAN since 2018.

Society of Gas as a Marine Fuel (SGMF)
Nakilat is a founding member of the SGMF, a nongovernmental
international organization (NGO) established a decade ago topromote safety and industry best practices in the use of gas as amarine fuel. The Society is the definitive information resource forindustry. It has consultative status with the International Maritime
Organization (IMO) and is the definitive information resource forindustry. Nakilat’s Chief Operating Officer, Mr. Samir Bailouni,
is the President of SGMF. The UK-based SGMF is the leadinginternational body for the use and adoption of gasses as fuel forshipping and associated supply infrastructure. Furthermore, thesociety is governed by a representative Board and driven by threeprincipal committees: Technical, Environmental, and APAC. The
SGMF has several working groups at any one-time solving issues
and producing outputs such as formal publications and technicalguidance notices for the industry. In 2022, SGMF published several
new guidelines to improve the safety of LNG-fueled ships. The
guidelines are intended to assist in greater standardization of crew
competency and vessel design.

The Society of International Gas Tanker and Terminal Operators (SIGTTO)
SIGTTO is an international organization established for the exchangeof safety and technical information and experience, between
industry members involving gas tankers and terminals, to enhance
the safety and operational reliability of gas tankers and terminals.
Nakilat has been a member since 2007.

Nakilat has been awarded ‘Sword of Honour’ by the British Safety
Council, UK for the fifth consecutive year. By receiving this award
for five consecutive years, Nakilat has demonstrated that its safety
standards have been continually improving and thus maintained at
par with the global standard of excellence.
Nakilat has consistently maintained its commitment towards,
health, safety, and general welfare of staff members andcontractors throughout these years, despite many challenges, with
COVID-19 being a prominent challenge. Nakilat adopted robust
health and safety measures during the pandemic, which lasted
for close to 3 years, without lowering its guard toward personnel
safety. The ‘Injury and Incident Free’ initiative has always been a
prominent fixture in all HSE endeavors of the company for the past
few years, to instill a culture of zero injuries or damage. A few ofthese endeavors included in-house and external training programs,
HSE campaigns in coordination with external ministerial bodies of
Qatar, welfare measures during the pandemic, and motivational
spot award schemes to encourage staff to become IIF.
In 2022, Nakilat’s JV partner, N-KOM, achieved a 5-Star rating in the
British Safety Council’s Occupational Health and Safety Audit in itsvery first attempt. Subsequently, owing to its consistent efforts in
implementing and maintaining high standards in health, safety andwellbeing of its workforce, N-KOM was also awarded the British
Safety Council’s ‘Sword of Honor’.

British Safety Council’s Environmental Sustainability
Nakilat has achieved a five-star grade in its first attempt from Five
Star Environmental Audit conducted by the British Safety Council in
December 2022.
The company underwent a detailed, quantified, and objective
evaluation of our environmental management system. The audit
measured our performance against several of key best practiceindicators and achieved the highest available rating.
The British Safety Council’s Five Star Environmental Audit provides
organisations with a worldwide benchmark of their environmental
management systems against the current best practices to enable
continual improvement. The audit specification was revised in 2021
to recognize the importance of an integrated approach toward
environmental sustainability and its links to other management
disciplines within an organisation in this respect.

20

3.5 EXTERNAL ESG COMMITMENT AND PARTNERSHIP (continued)

Voluntary Green Awards Program1

International Standards

Nakilat LNG vessels, that make regular calls to NW (Northwest)
Europe, are recipients of the Green Award, a voluntary program thatsymbolizes surpassing industry standards in terms of safety, quality
and environmental performance, and acts as a quality mark whichbrings benefits to its holders. The program is endorsed by ports,shipping organizations and maritime service providers that want tosupport and enhance the environmental and safety performance ofships and to promote the highest quality standards.

Nakilat holds certification in the following Integrated Management
System (IMS) standards with Lloyds Register:Seatrade Maritime Awards
Nakilat’s Global series vessel was one of the top 3 finalists
nominated for ‘Ship of the Year’ at the Seatrade Maritime Awards in
London.

Annual Qatarization Crystal Award•

2021 - Annual Qatarization Crystal Award for ‘Support for
Learning and Development at the Energy Sector’s 2021 Strategic
Qatarization Plan awarded in June 2022•

2020 - Annual Qatarization Crystal Award for ‘Supporting
Qatarization’ at the Energy Sector’s 2020 Strategic Qatarization
Plan awarded in July 2021•

2018 - Annual Qatarization Crystal Award for ‘Supporting
Training and Development’ at the Energy and Industry Sector’s
2018 Annual Qatarization awarded in May 2019•

ISO 9001:2015 (Quality Management)•

ISO 14001:2015 (Environmental Management) and•ISO 45001:2018 (Occupational Health and Safety)

This integrated approach empowers us to ensure the highest levelof international quality standards, enhancing customer satisfaction,
confidence, occupational health and safety focusing on hazard
identification, risk assessment including control measures toprevent incidents, protect workers’ wellbeing and environmental
management throughout its operations. This framework
enables Nakilat to consistently deliver reliable and efficient LNG
transportation services while continuously improving its operational
efficiency and effectiveness.
The integration of these three standards into Nakilat’s management
system ensures a cohesive and comprehensive approach toquality, health, safety, wellbeing and environmental management.
It enables us to optimize its processes, reduce duplication ofefforts, and foster a culture of continuous improvement across theorganization.
Through our established integrated management system, Nakilat
demonstrates its commitment to operational excellence, employee
wellbeing, and environmental sustainability, positioning itself as aleader in the LNG shipping industry.
Additionally, Nakilat holds also certifications for ISO 27001:2013(Information Security Management) and ISO 22301:2019 (BusinessContinuity Management).

4. ENVIRONMENT

4.1 Environmental Management andCompliance
Environmental management and compliance are vital aspects ofsustainable business operations, demanding immediate attention
from all stakeholders. They entail implementing strategies andbest practices aimed at reducing the environmental impact ofNakilat’s overall business activities. Due to its global LNG shipping
operations, Nakilat is subject to an extensive array of regulations
and requirements related to environmental management. Guided byrobust risk management practices and corporate policies, Nakilat
undertakes a multitude of measures to safeguard the environment
and ensures compliance with international standards and internal
governance mechanisms. In alignment with Qatar National Vision
2030 and the United Nations Sustainable Development Goals,
Nakilat has developed proactive environmental commitments
striving towards a sustainable future.
Nakilat actively contributes to the development of industry bestpractices and adheres to the following practices as a minimum:
Responsible waste management and disposal both on-land andships (off-shore)https://www.greenaward.org/sea-shipping/certificate-holders-ships/list-of-certificate-holders/

1

21

•

Comprehensive policies and procedures to prevent oil spills
and effectively manage them with minimum impact•

Prompt reporting of incidents, followed by thoroughinvestigations and lessons learnt•

Proactive maintenance of equipment on vessels and within
shipyards•

Regular updates of environmental management system inline with Nakilat’s vision, local and international rules andregulations•

Ongoing training for shore and vessel staff•

Strict compliance with local and international pollution
prevention regulations•

Active engagement in sustainable initiatives organised byexternal stakeholders

NAKILAT ESG REPORT 2022

The SHEQ Policy was developed keeping Nakilat’s vision and corevalues as a foundation and incorporating all applicable elementsof ISO 9001, ISO 14001 and ISO 45001. Nakilat is committed
to a continuous improvement of the safety of our people, ourcustomers, the communities, and the environment in which we
operate. This policy applies equally to all employees whether
temporary, permanent, office or site based, as well as service
providers, clients, visitors, and company representatives.
The policy also considers the environmental impact of Nakilat’s
operations and ensures the highest standards of quality aredelivered across the business in all JVs and projects. The policy
is approved and formalized by the CEO and is accessible to all
employees through the Nakilat SharePoint. This policy is reviewed
annually by the senior management and is revised as necessary
to reflect changing operational conditions, new technologies,
regulations and legislation.
In December 2022, Nakilat’s environmental commitments, approvedby the CEO, were officially released. These commitments establish
Nakilat’s dedication to minimizing its environmental footprint andfostering sustainable practices throughout the organization. They
encompass a range of objectives, including reducing greenhousegas emissions, enhancing energy efficiency, implementing effective
waste and water management strategies, promoting awareness,
and actively supporting Qatar’s National Climate Change Action
Plan 2030. Additionally, Nakilat aligns itself with the International
Maritime Organization’s revised greenhouse gas reduction strategy
as per Marine Environment Protection Committee (MEPC 80), 3-7
July 2023.
Cooperation and efforts of all employees is essential for achieving
these commitments. Nakilat therefore requires its entire workforce
to integrate sustainable practices into existing processes and dailywork.
As part of its environmental commitments, Nakilat has directed
its efforts to achieve significant milestones in the development of acarbon footprint calculation and long-term reduction strategy. This
strategy includes a comprehensive, long-term action plan until 2030
that encompasses all operational functions within Nakilat.

Environmental Management at Nakilat is guided by our SHEQ
policy which defines the company’s commitment towards ‘Qualityof Services’, ‘Health and Safety at Workplace’ and ‘Environmental
Protection’.
224.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued)

NAKILAT ESG REPORT 2022

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

Corporate Policies

Level 1

Level 2
Departmental Policies and Procedures

Manuals, Work Instructions,Handbooks, Plans, Protocols
and Guidelines“ACTIONS FOR A SUSTAINABLE WORLD”

Level 3

Level 4

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

Circulars, Memos and Letters

As a responsible corporate citizen, Nakilat recognizes the importance of giving back to society andprotecting the environment by:Forms, Templates
and Records

1. Ensuring compliance with local and international environmental laws, regulations, andstandards, and implementing best practices to improve environmental performance
2. Identifying and adopting responsible practices to manage the environmental
performance of operating activities, including greenhouse gas emissions, energy
management, waste management, water management, and biodiversity, with anenhanced focus on protected areas

Level 5

3. Working towards minimizing the use of pollutants that have a negative impact on ouroperating environment

Nakilat has established and maintains procedures to discern the environmental aspects of its activities, products, and services, those that it
can control and those that it can influence, to determine those which have or may have a significant impact on the environment, considering
the life cycle perspective.

4. Setting objectives with clear targets to protect the global environment and biodiversity

The procedure to identify the significant environmental impacts considers the following points:

5. Providing clear roles and procedures to drive efficient utilization of resources, energy
saving, material recycling and reducing waste generation•

Changes, including planned or new developments, and new or modified activities, products, or services.

6. Raising awareness of environmental issues among employees, customers, joint
venture partners and the community•

Both normal and abnormal conditions, including potential emergency situations.

Furthermore, the procedure to identify the significant environmental impacts considers, where applicable:

7. Monitoring and reporting our progress in continuously improving environmental
performance, aiming to be an industry leader in environmental protection•

Air emissions

8. Collaborating with stakeholders on environmental issues•

Water pollution•

Waste management•

Contamination of land•

Impact on communities•

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

Other local environmental issues

9. Supporting Qatar National Climate Change Action plan 2030

Eng. Abdullah Al-Sulaiti
Chief Executive Officer

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

23

24

4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued)
Nakilat’s SHEQ Management System and Integrated

NAKILAT ESG REPORT 2022

SHEQ Committee Meeting

Management System (IMS)
Within the Nakilat IMS, Nakilat has also established, documented,
implemented, and maintained a SHEQ management system
which is continually improved for its effectiveness in accordancewith the requirements of ISO 9001:2015, ISO 14001:2015 and ISO
45001:2018. This is achieved through the following measures:•

Identifying the process necessary for SHEQ and applying themto all relevant areas and situations within the organization.

•

Determining of the sequence and interaction of thefundamental SHEQ processes within each department.

•

Determining and applying criteria and methods for effective
operation and control of these processes. Nakilat ensures thatboth the operation and control of these processes are effectiveby monitoring, measuring, and having performance indicatorsin place.

•

Ensuring the availability of resources and informationnecessary to support the operations and monitoring of theseprocesses.

•

Assigning responsibilities and authorities for these processes.

•

Implementing actions required to achieve planned results andcontinuously improve these processes.

•

Identifying Nakilat’s business risks and opportunities toenhance business performance.

•

Improving the processes and the SHEQ management system.

The scope of Nakilat’s Integrated Management System is to‘manage, operate, and provide corporate services and due diligence
for a fleet of gas and related products’ vessels, company joint
ventures, agency and vessel support’. All Nakilat employees andcontractors are responsible for complying with the requirementsof the IMS. This is communicated effectively through the following
channels to ensure effective implementation:•

SHEQ Committee meetings•

Departmental meetings•

SHEQ induction•

Toolbox talks•

SHEQ policy and procedures communications

Training and mass toolbox talks are conducted at least once every
quarter and covering topics such as waste management, control ofsubstances hazardous to health, safety data sheets, reduce/reuse/recycle, environmental aspects and impact analysis, and others.
This also includes risk assessment, risk management, and risk
communication.

Nakilat’s SHEQ performance is enabled and guided by the use of aneffective Integrated Management System (IMS) that incorporates
Quality Management System (QMS), Environment (EMS), andOccupational Health and Safety (OHS) Management Systems, inconformance with the respective internationally certified standards(ISO 9001:2015, ISO 14001:2015, ISO 45001). In accordance withthese policies and regulations, each group company sets its
compliance management items to be observed by its businessdivisions and sites.

25

26

4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued)

NAKILAT ESG REPORT 2022

Auditing
An annual management review of the IMS is conducted every first quarter of the financial year. Further, Nakilat’s Corporate SHEQ
department conducts annual internal and external audits of Nakilat’s IMS, in conjunction with the International Safety Management (ISM)
code. While the annual internal audit of the IMS is conducted and verified by the Chief SHEQ Officer, the external audits are conducted by
an external agency Lloyd’s Register. Additionally, the group companies (N-KOM, QFAB and NSW independently) manage their own annualinternal and external audit regime in line with IMS.

environmental, occupational health and safety importance of the operations concerned, changes affecting the company and the results ofprevious audits.

Environmental Compliance•

The responsibilities and requirements for planning and conducting audits, reporting results and retaining associated records

Management Approach•

The determination of audit criteria, scope, frequency and methods.

Environmental sustainability stands as a fundamental pillar of Nakilat’s business model and corporate strategy. Our approach is long-term– reflecting our long-term commitment – and we steer environmental sustainability through our decision-making processes and acrossour global operations. Environmental compliance is a material topic for our operations across all regions. However, regulations largely vary
between regions and countries. Nakilat delegates the responsibility for environmental compliance to all operating joint venture entities. They
all have to sustain a management system according to ISO 14001, which includes legal compliance and a compliance assurance mechanismwith internal and external controls.

The audit findings are documented and promptly communicated to all relevant parties in a timely manner to facilitate prompt correction,corrective/preventive actions, and to enable verification of their effectiveness.

During management review, each joint venture entity assures that no compliance failures have occurred, or fines have been incurred, and isverified periodically. Nakilat perceives this approach as effective in view of the absence of the receipt of a summons, citations or legal action
related to environmental non-compliance against any of its joint ventures or subsidiaries.

Compliance
Nakilat adopts a proactive approach to all compliance-related matters. With respect to environmental matters, Nakilat’s OHS andenvironment procedures and statutory, regulatory and other OHS and environmental requirements register are the guiding procedural
documents, enabling Nakilat to remain compliant with the applicable laws, rules, and regulations. The following legal and otherrequirements are applicable to Nakilat:

Internal audits are meticulously planned to ensure that all SHEQ processes are audited minimum once a year. These internal audits are
conducted by qualified internal auditors, independent of the process being audited. Audit procedures are established, implemented, andmaintained, that address:

Environmental Laws and Regulations
No relevant fines and no non-monetary sanctions have been imposed on Nakilat due to non-compliance with environmental laws andregulations in this and previous reporting years. Nakilat strives for full legal and regulatory compliance, which are the foundation of its
business. Therefore, all subsidiaries are ISO certified and have a process in place to help them understand regulatory requirements andchanges. Those subsidiaries uphold certified management systems according to ISO 9001 (Quality), ISO 14001 (Environment), and OHSAS
45001 (Health and Safety).
ISO 14001 mandates companies to follow up on new legislation and implement legal requirements accordingly. Subsidiaries are audited
by legal and internal audit for compliance. Each joint venture is obliged to strictly adhere to applicable legislation and to supervise thesubsidiary accordingly. Each year, they have to verify the level of compliance in their company together with their management teams andconfirm it through a global reporting system (the compliance confirmation).

KPIs

•

International Maritime Organization (IMO) Conventions

Environmental Compliance•

Qatar Environment Protection Law

Noncompliance with environmental laws and regulations•

Ras Laffan Port Information and Regulation Guide•

Mesaieed Port Information and Regulations

Significant fines and non-monetary sanctions for non-compliancewith environmental laws and/or regulation•

Ras Laffan City (RLC) Health, Safety and Environment Requirements•

Environmental Regulations for Ras Laffan Industrial City (RLIC)•Classification Societies•

United States Coast Guard (USCG)•

European Maritime Safety Agency (EMSA)

Nakilat has developed necessary mechanisms, such as, ISO certified management systems and related procedures, for identifying andaccessing statutory, regulatory, and other applicable HSE and related requirements.

2020

2021

2022

Scope

0

0

0

Nakilat Group

Regulations
Nakilat Shipping Qatar Limited (NSQL) provides safe, competitive, and reliable shipping services, to meet the needs of its customers
while minimizing the impact on the environment. As a socially responsible company, Nakilat adheres to all local, regional or international
environmental regulations as applicable.

IMO and UN SDGs
Nakilat complies with all IMO regulations and conventions, listed hereunder. Hence, we have established adequate controls mandated by
IMO. Further, we have established the linkages between the organization’s technical assistance work and the UN SDGs with the help of the
IMO SDG brochure.

Nakilat has identified the sources through which EMS/OHS, legal and other requirements are identified and regularly liaises with industry
subject matter experts to keep abreast with amendments to the existing acts/rules or the introduction of new legislation.
Aligned with its commitments to adhere to all applicable regulatory and other OHS requirements, Nakilat has a procedure for internal audit
which defines the SHEQ internal audit process and ensures that:•

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

•

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

•

The SHEQ management system has been effectively implemented and maintained.

The audit and verification programs are planned, established, implemented, and maintained by Nakilat taking into consideration the quality,27

28

4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE (continued)

NAKILAT ESG REPORT 2022

Overview of IMO regulations mapped against the United National Sustainable Development Goals (UN SDGs)
Category

Control in Place

International Convention / Regulation

Sea Area

GHG Emissions

EEDI (Energy Efficiency Design Index)

MARPOL Annex VI

Open Sea

EEXI (Energy Efficiency Existing Ship
Index)MARPOL Annex VI

Open Sea

CII (Carbon Intensity Index)

MARPOL Annex VI

All Areas

DCS (IMO Data Collection System)

MARPOL Annex VI (Fuel Oil Data Collection)

All Areas

MRV (EU Monitoring, Reporting andVerification)

Regulation (EU) 2015/757

Open Sea and in PortSEEMP (Ship Energy Efficiency
Management Plan)MARPOL Annex VI

NOx (Nitrogen oxides)

MARPOL Annex VI

Air Emissions

Biodiversity

Verification

29•

Navigation and passage planning to minimize environmental risks•

Oil pollution emergency response plan•

Cargo handling and management•

Energy efficiency management•

Ballast water management•

Emission reporting to regulatory authorities (IMO DCS and EU
MRV)•Bunkering procedures•

Emergency preparedness•

Incident reporting and management•

Reporting of environmental non-conformances•

SHEQ policy•

Operation environmental management plan

Open Sea (max 0.5%
Sulphur)•

Waste management plan•

Material safety data sheets

Objectives and Targets

SECA

SOPEP (Shipboard Oil Pollution
Emergency Plan)‘MARPOL (Maritime Pollution) Convention Annex I - Prevention of Pollution by OIL’

Open Sea

Ballast Water

Ballast Water Management System (BWMS)
CodeOpen Sea

Sewage Treatment

MARPOL (Maritime Pollution) Convention Annex IV - Prevention of Pollution by Sewage
from Ships

All Areas

MARPOL (Maritime Pollution) Convention Annex V - Prevention of Pollution by Garbage
from Ships

All Areas

Hull FoulingInternational Convention on the Control ofHarmful Anti-fouling Systems on Ships (AFS),
2001

Open Sea

Ship Recycling

The Hong Kong International Convention for the
Safe and Environmentally Sound Recycling ofShips, 2009

- Hong Kong International Convention for the
Safe and Environmentally Sound Recycling ofShips, 2009 SR/CONF/45 (HKC)

Garbage management

The plans incorporated within the shore joint ventures include, but is not limited to:

MARPOL Annex VI

IHM (Inventory of Hazardous Material)•

ECA

PM (particulate matter)- Regulation (EU) No. 1257/2013 of theEuropean Parliament and of the Council of 20
November 2013 on Ship Recycling (EU SRR)

These plans are incorporated within the Safety Management System and encompass the following environmental facets:

SECA (max 0.1%
Sulphur)

MARPOL Annex VI

Recycling

In compliance with the previously-mentioned regulations, Nakilat has established the following environmental plans and procedures toenable robust management of the company’s shipping activities.

All AreasSOx (Sulphur oxides)

Garbage Management

Plans and Procedures

Nakilat establishes SMART (Specific, Measurable, Achievable, Relevant and Time-Bound) objectives across all levels within the organization,
which are derived from the company’s annual business plan and strategic corporate objectives, and ensures it is within the framework of
SHEQ Policy. Based on these strategic objectives, the Fleet department sets specific targets and/or key performance indicators (KPIs).
These KPIs are systematically monitored through ‘AMOS’ application. A comprehensive monthly review is carried out for the entire fleet andthen shared through NSQL fleet scorecard with all the managed vessels. Additionally, a monthly performance benchmark is also carried out
among all the JV partners. During scheduled bi-annual management review the fleet scorecard is also reviewed, with new targets then set
for the subsequent year.

Performance and Environmental Targets 2022-2023:
CATEGORY

KPI*

2022

2023 TARGET

LPG – 8.4

LPG <7.5

DSME QMAX – 8.2

DSME QMAX <9.5

DSME QFLEX – 8.9

DSME QFLEX <9.5

HHI QFLEX – 10.2

HHI QFLEX <9.5

SHI QFLEX – 10.1

SHI QFLEX <9.5

SHI QMAX - 9.0

SHI QMAX <9.5

GLOBAL – 8.5

GLOBAL <7.5

Garbage Reduction

5%

5%

Oil Spill to Water00

Number of Environmental Incidents00Annual Efficiency Ratio (AER)
All Areas

All Areas

Regulatory Surveys (Annual, Periodical,
Intermediate, Renewal 5 Yearly)

IMO and Flag State requirements (SOLAS, LSA,
FSS, IGC, MARPOL, ISM, ISPS, COLREG)

All Areas

Classification Surveys (Annual,Intermediate, Renewal 5 Yearly)

Classification Societies (ABS, BV, DNV, LR) and
IACS (International Association of Classification
Societies) Requirements

All Areas

Ship Inspection Report Program (SIRE)

Oil Companies International Marine Forum(OCIMF) Requirement

All Areas

ENVIRONMENT*See appendix for KPI definitions30

4.1 ENVIRONMENTAL MANAGEMENT AND COMPLIANCE

NAKILAT ESG REPORT 2022

Nakilat’s Focus Areas on Environmental Management Include:
To ensure adherence to applicable international standards, all the vessels managed by Nakilat Shipping Qatar Limited (NSQL) comply withinternational environmental standards, our strategic approach on reducing the environmental impact of our ongoing operations.
Building on our ISO 14001 and IMO guidelines, we have identified the following environmental focus areas to enable us to stay focused on
Nakilat’s material environmental impacts:•

Energy efficiency – Optimizing energy consumption and sourcing environmentally friendly materials responsibly•

Water management - Responsible and prudent water consumption•

Waste reduction – Increasing practices to diminish generated waste and minimize disposal•

Greenhouse gas emissions - Sustainable development in the shipping industry by supporting IMO’s efforts to reduce ship emissions,contributing to climate change

Concerning Nakilat’s non-shipping segment, various programs areundertaken to support the initiatives on the environment, such as
monitoring of environmental parameters, reductions in electricity
consumption and plastic usage, water conservation, digitization ofrecords, beach cleaning, tree planting, and minimizing office paper
usage. In addition, waste segregation and disposal are carried out inan environmentally friendly manner and Nakilat enforces the “3R’s”
waste hierarchy principles of ‘Reduce, Reuse and Recycle’ whilehandling its waste.

The aforementioned focus areas were approved by Nakilat’s management in agreement with all Nakilat interest entities, i.e., key
stakeholders.

The comprehensive SHEQ manual maintained at Nakilat
meticulously encompasses all of the above elements in detail.
Nakilat maintains documented information on all environmental
impacts and considers significant impacts when developing
management plans and setting its environmental objectives.

An environmental report is generated by all Nakilat interest vessels for monitoring and measuring information to support the performanceof Nakilat environmental management. The report is structured as a minimum to:In pursuit of environmental excellence, Nakilat consistently
maintains communication and constructive relation with internal•

Provide status of environmental management programs designed to fulfil environmental objectives and targets•

Provide status of performance indicators as related to targeted timeframes•

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

As for Nakilat shore entities, environmental data is regularly compiled and monitored through established mechanisms and environmental
reporting is performed during management review meetings.
Nakilat undertakes planned inspections of its premises on a regular basis and as necessary. Line supervisors and managers or nominatedpersons conduct regular checks at work sites to monitor the implementation and effectiveness of key operational procedures. Regularinspections facilitate dialogue between the supervisor/manager and the work group (outsourced company/contractor, if any) and enable
the sharing of best practices. In addition, internal audits and annual ISO 14001 audits are also used for monitoring and measurementof processes. The output of these audits/inspections are taken for management reviews, corrective/preventive action, review of risk
assessments and analysis of data.

and external stakeholders for the identification of statutory,
regulatory, and voluntary guidance related to Nakilat environmental
aspects.
Nakilat management, employees and contractors are committed
to the protection of the environment. We provide appropriate andsufficient resources, including training to comply with legal andother requirements in order to achieve set environmental targets
and objectives.
Periodic audits and reviews of the environmental management
system are carried out to identify opportunities for improvement of
the system and environmental performance.
Nakilat cares about Health and Safety, Environment and Quality
and conveys a strong message of its commitment throughfollowing.

C

A

R

E

S

Comply with applicable
Health and Safety,
Environmental
regulations, andstatutory requirements

Achieve SHEQ
objectives and targets

Reduce pollution;
prevent personal
exposures to healthand safety hazards andprevent injury

Educate our staff,
contractors, and thecommunity

Strive for continual
improvement

Environmental Aspects and Effects
Nakilat has established effective procedures, such as Nakilat OHS and Environment policy and procedure that enable us in identifying
the environmental aspects of relevance to our business activities, products, and services. By employing these procedures, it guides us incontrolling and determining the best practices for the environment, considering a life cycle perspective.
The aspects (interaction with the environment) and impacts (any change to the environment) of Nakilat’s core business activities areassessed and appropriate operational controls are established to introduce any opportunity for improvement. To ensure the effective
implementation of the Nakilat OHS and environment policy and procedure, monitoring processes are in place to check and measure theefficiency of our controls. The company communicates the identified significant environmental aspects among the various levels andfunctions of the company, as required.
Within Nakilat’s shipping and fleet division, the key environmental aspects identified that require specific monitoring to enable evaluation ofenvironmental performance are:31•

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

Fuel consumption, energy efficiency and associated GHG emissions•

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

Waste disposal: solid, liquid, special and hazardous32

4.2 CLIMATE CHANGE AND EMISSIONS TO AIR

NAKILAT ESG REPORT 2022

Management Approach and Progress
Nakilat is committed to sustainable development within the shipping industry and supports IMO’s efforts to reduce ship emissions. Our
efforts are concentrated on optimizing the fuel efficiency of the fleet, where our largest carbon dioxide (CO2) emissions occur. This isachieved through detailed attention to engine/boiler performance, hull/propeller fouling, speed policy, and schedule optimization.

2.

Reduction of the total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008*;
and3.

Reduction of the total annual GHG emissions from international shipping by at least 70%, striving for 80%, by 2040, compared to 2008*.

*Note: As indicated, IMO emissions’ reduction targets are not intended for individual ships nor for individual companies and will betranslated into specific targets for different shipping segments through new specific guidelines after more work at the IMO.

KPIs (Shipping)
Climate Change and Emissions to Air

Greenhouse Gases and their Global Warming Potential

Greenhouse Gas (GHG) emissions

Nakilat has successfully completed the transition to zero Ozone Depletion Potential (ODP) in 2020. All refrigeration systems using
refrigerant HCFC R22 have been upgraded to use R410A which is classed as a zero ODP refrigerant. However, Nakilat’s newbuild vessels
have onboard systems that use HFCs, such as R407C, R410A, R417A and R134A (HFCs), which despite being zero-ozone depleting, still haveglobal warming potential (GWP) of around 1,300-1,600 (CO2 GWP = 1). R404A has a very high GWP of 3,260 and is not acceptable to Class
for EP notation. Currently, there are no restrictions on equipment or use of the above-mentioned refrigerants.

Gross direct (Scope 1) GHG emissions (TCO2)3
GHG emissions intensity (TCO2/Nm)
4

Organization-specific metric chosen to calculate theintensity ratio: Total Sailing Distance5 (Nautical Mile
[Nm])

Nakilat aims to minimize any losses from the systems by continuous monitoring. The vessels are reporting their refrigerant inventory
monthly. Any losses are considered as a loss of primary containment (LOPC) triggering an internal deficiency report. Each deficiency
requires an investigation, corrective, and preventive measures to be satisfactorily closed. There has been only one leakage case reported
from a vessel in 2022.

2020

2021

2022

5,564,216

5,353,949

5,812,436

1.26

1.12

1.06

5,493,714

6,579,066

7,378,156

Scope

2

Shipping

Nitrogen oxides (NOx), sulfur oxides (SOx), CH4 and other significant air emissions (tons)
NOx

138,610

128,659

138,404

SOx

15,961

13,942

14,767

Particulate matter

11,975

10,897

11,688Sulphur Oxides (SOx) and Low Sulphur Fuels

CH4 (GRI 11-1- ref. Note 1)

466

433

466

The main changes to MARPOL Annex VI have brought a progressive reduction in SOx emissions from ships, with the global sulphur cap
reduced initially to 3.5%, effective from 1 January 2012; then progressively to 0.50%, effective from January 2020. The limits applicable in
Sulphur Emission Control Areas (SECA) were reduced to 1.00%, from 1 July 2010, then further reduced to 0.10%, effective from 1 January
2015 onward.

Despite the increase in gross direct (Scope 1) GHG emissions within the shipping segment from 2021 to 2022, stemming from the increasein the level of shipping activities, the GHG emissions intensity decreased in 2022 compared to 2021.

Refrigerant
Refrigerant Consumption

2021

2022

6,692 Kg

7,754 Kg

All vessels in Nakilat’s fleet adhere the new sulphur caps using compliant low-sulphur fuels, as mandated by IMO sulphur 2020 regulations.
To comply with these new global sulphur caps set under the regulations, the transition to low-sulphur fuels posed certain risks arising fromstrict regulatory requirements, as identified below:

This data represents our entire shipping fleet (wholly owned and Joint venture). Our reported GHG emissions data are based on the GHG
Protocol, European Union (EU) Monitoring, Reporting and Verification (MRV) of CO2 emissions, and IMO Data Collection System (DCS) on fuelconsumption.
Note 1: Total CH4 emission data (as per above table) under SCOPE-1 are regarded as from fuel combustion process on ships.

1.

Risk of fuel supply shortage due to new IMO fuel sulphur caps

2.

Compatibility issues of new low sulphur (LS) fuels

The calculation of these data uses conversion factors from the following standards: IPCC 2006 / ENTEC / CORINAIR / MEPC 686 and ISO
conversion factors for Lower Calorific Value (LCV) indicated below: LCV MGO= 42.7GJ/T, LCV HFO= 40.6GJ/T, LCV Fuel Gas= 50.0GJ/T. The
GHG accounting and disclosure is based on equity share.

3.

Combustion/operational issues of new low sulphur (LS) fuels

KPIs (Non-Shipping)

To manage the risks identified as a result of a change to SOx emissions regulatory requirements, the organization has taken the following
steps to reduce the impact of the subject regulations on its operations:1.

An independent study was carried out by Lloyd’s Register across the fleet to assess market availability, compatibility issues andoperational issues related to new low sulphur fuel. The study highlighted the challenges of compatibility between fuels of different
origins and production from different processes. Nevertheless, the proposed operational mitigation measures were found to be robust
to address any compatibility issue that might arise. Our operational procedures have been amended to reflect Lloyd’s study findings andrecommendations.

2.

A local supply agreement for low sulphur fuels has been secured in collaboration with our main charterer.

3.

The possibility of carrying modifications on existing fuel storage, transfer and treatment systems was assessed.

Nitrogen Oxides (NOx)Nakilat complies with IMO Marpol Annex VI regulation 13 NOx requirement on all new ships built after 1 January 2000 (Part of EP notation).
All our vessels built after this date must have an Engine International Air Pollution Prevention (EIAPP) Certificate or International Air
Pollution Prevention (IAPP) Certificate. Measurements have been done on board Nakilat vessels to enable calculations to be made of theNOx emissions per vessel. In the reporting year, there were no significant VOC emissions across our shipping fleet.

Climate Change and Emissions to Air

2020

2021

2022

Scope

20,83422,93524,872

Non-shippingGreenhouse Gas (GHG) emissions
Gross direct (Scope 1) GHG emissions (TCO2)6

The rise in gross direct (Scope 1) GHG emissions between 2021 and 2022 in the non-shipping segment is primarily attributed to theincreased level of business activities at QFAB.
Note: This data represents emissions from fuel used by our non-vessel Joint ventures including fuel used for business purposes bycorporate office. The majority of non-shipping fuel is used by tugs for harbour operations and so the calculation of these data uses
conversion factors for MDO from the following standards: IPCC 2006**This is only non-shipping data under scope 1. Types of fuels included within figures: Diesel (Density-0.8213) and LPG (Conversion Factor-MJ to KG:
1 MJ = 0.02 kg of LPG).

Nakilat Shipping Fleet Annual Efficiency Ratio (AER) and Energy Efficiency Operational Indicator (EEOI)2

We support the IMO’s revised Green House Gas Strategy 2023 in its overall level of ambition of reaching net-zero emissions by 2050 or
earlier as possible and on following checkpoints:
1.

33

Reduction in carbon intensity (CO2 emissions per transport work), as an average across international shipping, by at least 40% by2030, compared to 2008*.
Nakilat is already reporting carbon intensity metrics, AER and EEOI, for its operated fleet.

It is to be noted that GHG emissions data for the mentioned years have been restated following availability of missing quantity.

Shipping data is declared only under scope 1 as all GHG emissions are produced by the vessels when generating their own energy to sustain their respective operation.
Only CO2 is included in this calculation. Declaration is based on equity share.

34

For ships: Emissions Intensity = Total Emissions / Total Sailing Distance. Equity share doesn’t apply to intensity.

5

Total Sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed.

6

Non-Shipping data shown separately under scope 1.

34

4.2 CLIMATE CHANGE AND EMISSIONS TO AIR (continued)

NAKILAT ESG REPORT 2022

N-KOM Ambient Air Quality Monitoring

2. Waste Heat Recovery Systems Installation with Alfa Laval

To ensure that emissions to the ambient air remain within statutory limits as provided and monitored by Qatar Ministry of Environment andClimate Change, through regular monitoring, N-KOM tracks and ensures that its operations produce minimal pollutants as demonstrated
in the data provided below. In 2022, Nakilat has successfully managed to keep emission values for NOx, SOx, PM2.5 and PM10 well within
limits prescribed by Qatar’s Ministry of Environment and Climate Change (MOECC) with the help of initiatives, detailed in the 2022 objectives
and targets table below.

N-KOM initiated Technical and Business-to-Business engagements with Alfa Laval on Waste Heat Recovery Systems (WHRS) installation on
LNG vessels.
The discussions have progressed towards the development of an MoU that is targeted to be signed in 2023.

In 2021, we also commenced disclosing Carbon Monoxide (CO), Volatile Organic Compounds (VOC) and aromatic hydrocarbons for N-KOM.
Nakilat aims to achieve air emissions reductions and remain well below the prescribed limits by Qatar’s Ministry of Environment and Climate
Change (MOECC).
This reporting year, we shall also begin disclosure on carbon monoxide (CO), volatile organic compounds (VOC) and aromatic hydrocarbons
for N-KOM. Nakilat aims to achieve air emissions reductions and remain well below the prescribed limits by Qatar’s Ministry of Environment
and Climate Change (MOECC).
Emissions to Air

2020

2021

2022

MME Limits7

Scope

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

8NOx

20.75 ug/m3

27.00 ug/m3

30.00 ug/m3

150 ug/m3

SOx

12.50 ug/m

3

324.75 ug/m

3

24.00 ug/m

365 ug/m3

Particulate matter (PM2.5)

22.75 ug/m3

18.25 ug/m3

25.00 ug/m3

35 ug/m3

Particulate matter (PM10)

72.75 ug/m3

77.00 ug/m3

95.00 ug/m3

150 ug/m3

COn/a

423.5 ug/m

3

3

467.25 ug/m

10,000 ug/m

VOC

n/a

11.75 ug/m

3

3

11.00 ug/m

160 ug/m3

Aromatic hydrocarbons

n/a

8.54 ug/m3

7.00 ug/m3

160 ug/m3

Non-shipping
3

Note: N-KOM data only. The source of NOx, SOx, PM, CO, VOC and aromatic hydrocarbon are due to air emissions from the shipyard’s
operations. Monitoring requirements and the respective limits are prescribed by the Qatar Ministry of Environment and Climate Change(MOECC).
In 2022, Nakilat Shipyard, N-KOM enhanced its in-house capabilities to deliver Sustainable Shipping Solutions and Services as per the below:

Compliance with Carbon Intensity Indicator (CII) & Energy Efficiency Existing Ship Index (EEXI) in 2 Ways:

3. 3D Cadmatic Modelling Software for Marine and Offshore Projects
N-KOM’s acquisition of the Cadmatic 3D modelling software package enabled us to enhance our in-house engineering capabilities andprovide value-added turnkey solutions for marine and offshore projects.
N-KOM has successfully used the Cadmatic software to complete several BWTS upgrades and cooler replacements for LNG carriers, cargosystem piping for an FSO conversion, a fresh water- cooling system upgrade, and an air lubrication system layout feasibility study to meet
EEXI regulations.

1. Air Lubrication Systems Installation with Silverstream Technologies
A memorandum of understanding (MoU) was signed with Silverstream Technologies (UK) in the field of Air Lubrication Systems (ALS)
installation on LNG vessels.
This MoU strengthens N-KOM’s regional capacity in sustainable green shipping solutions. The MoU was signed during Posidonia 2022.

4. Ballast Water Treatment System (BWTS) after Sales Service Station
N-KOM has established partnerships with major global BWTS vendors for after-sales and project support to meet EEXI regulations.

Ministry of Environment and Climate Change (MOECC).

7

Each parameter is averaged for the year 2020.

8

35

36

4.2 CLIMATE CHANGE AND EMISSIONS TO AIR

NAKILAT ESG REPORT 2022

2022 Objectives and Targets (N-KOM):
EMP* Risk Focus Area

Objective

Target/KPI

Negative Environmental Impact Mitigation Measures

Emissions to air

To ensure control
measures are inplace to mitigate
risks associatedwith emissions
to air.

To ensure that
air emissions
from the yard
are within thelegislative limits
and implement
mitigation
measures if
results are above
regulatory limits.

(a) Air pollutants- Activities which produce air pollutants are controlled via enclosed
chambers, extraction systems and filtration. Examples: blasting
chamber, fume hoods and extraction fan- Machinery and equipment which produce air pollutants areserviced and maintained on a stipulated basis as per government
regulations/OEM guidelines(b) Spray painting at open locations - performed underencapsulation of canvas cover(c) Grit blasting outside the docks - performed either underencapsulation or using wet grit blasting medium(d) Ambient air quality - monitoring is done by 3rd party contractor(e) Quarterly environmental monitoring report - monitoring
requirements and the respective limits are prescribed by the Ministryof Environment and Climate Change (MOECC) and stated in theConsent to Operate (CTO) license granted to the shipyard

Nsw Environmental Objectives and Target -2022
Objective/Ambition*Environmental Management Plan

Emissions of Ozone-Depleting Substances (ODS) - Exclusive to N-KOM

TargetMeasures

1. Reduce fuelconsumption by 2%

1. Installing GPS tracker/monitoring system to control vehicle movement
2. Advance planning of tasks for efficient and economic logistics arrangement

N-KOM neither produces, imports, nor exports any ODS. The details of all refrigerant products procured in 2020 and up to date in 2022 aretabulated below. Ozone Depleting Substances are Refrigerants used in the Yard HVAC systems.

3. Crew arrival and departure on selective days during the week - reducing transport
requirements

These substances are regularly monitored during preventive and corrective maintenance.

4. Reducing vessels’ standby/slow steaming time

No Material Description

Tank Size (s)Quantity Purchased/ Under Order

Y2020 Total
Quantities

Y2021 Total
Quantities

Y2022 Total
Quantities

13.6KG

210 CYL

120 CYL

130 CYL

70 CYL1

R-22 (Chlorodifluoromethane)2

R-22 (Chlorodifluoromethane (Halocarbon 22))
– CHCLF2

3

R-134A (Tetrafluoroethene), Norflurane, HFC134a-P, Refrigerant Gas R134a, HFC134a,
HFC134a-P, F134a, Dymel®134a/P.

13.6KG

4

R-404A (Pentafluoro ethane (HFC-125)
1,1,1-Trifluoroethane (HFC- 143a)
1,1,1,2-Tetrafluoroethane (HFC- 134a)

10.9KG

5

R-407C (Difluoromethane (HFC-32) Pentafluoro
ethane (HFC-125)
1,1,1,2-Tetrafluoroethane (HFC-134a)

13.0KG

R-410A (Difluoromethane) (Pentafluoro ethane)

11.0KG

6

5. Avoid aggressive maneuvering while on operation
6. Vessels to use economical steaming while demobilizing
7. Coordinated with QatarEnergy for additional shore power installations for vessels
while alongside
8. Use public transportation.

150 CYL

40 CYL105 CYL
180 CYL

90 CYL

30 CYL

50 CYL110 CYL

72 CYL

8 CYL

50 CYL80 CYL

195 CYL

10 CYL

25 CYL
45 CYL

Nakilat Shipyard, N-KOM Enhanced its Range of In-House Capabilities, Solutions and Services

To ensure thatenvironmental
aspects of activities
and services from thecompany are controlled
and mitigated so that
there is no potential ofadverse impact on theenvironment

9. Monitor preventive maintenance schedule will increase fuel economy
2. Reduce fuelconsumption by 2%

1. Make use of LED lights
2. Run AC at room temperature and reduce cooling outside office hours
3. Switch off lights, electrical appliances outside the office hours
4. Unplug the cable from the socket when not in use
5. Utilizing renewable energy

3. Reduce waste/
garbage generation
by 2%

1. Eliminate the single-use plastic water bottle
2. Eliminate the single-use plastic utensils

1. Stern Tube Seals Supply, Repair and Propulsion Solutions with Aegir Marine

3. Eliminate the use of paper cups

N-KOM established a partnership with Aegir Marine LLC for stern tube seals supply and repair during Posidonia 2022. The partnershipenhances N-KOM’s capability of offering cost-effective and reliable after-sales solutions for ship propulsion systems.

4. Improving staff knowledge and skills through competence, training andawareness
5. Bring a refill bottle
6. Purchase products with simple or little packaging such as reusable over singleuse packaging to deliver provision on board
7. Avoid toilet paper and use water instead
8. Print as little as necessary37

38

4.3 ENERGY EFFICIENCY AND WATER CONSUMPTIONNAKILAT ESG REPORT 2022

Fleet Digitalization
Innovations in technology have the potential to make sailing safer and more efficient. The rapid and dynamic growth of technologies andinnovations and their different applications in recent years is creating more opportunities for adaptation to systems onboard vessels.
Digitalization in this context is about making the vessels and the systems onboard more efficient. Fleet digitalization enhances vessel
performance through effective monitoring and timely evaluation and is therefore of a strategic importance to Nakilat, our partners andcustomers.
It allows us to continuously improve our service efficiency to achieve operational excellence. In addition, automation of processes onboard,
allows the crew to operate the vessel in a safer and more efficient manner and eventually reduces the reporting's workload.
The current and future complex maritime regulatory frameworks incentivized Nakilat to expand the scope of our own digitalization
programs to incorporate high- frequency data acquisition and machine learning. These tools are expected to offer detailed insights on the
ship's operational profile for crew , shore operators and to our customers.

Energy Efficiency
Management Approach and Progress
In line with Nakilat’s general business principles, we continually look for ways to reduce the environmental impact of our operations,products, and services. All managed ships are operated in the most energy-efficient and safe manner possible.
We have effective procedures, such as Energy Efficiency Policy and Procedure that enable us in identifying the environmental aspects ofrelevance to our business activities, products, and services. These procedures guide us in controlling and determining the best practices forthe environment, considering a life cycle perspective.
The aspects (interaction with the environment) and impacts (any change to the environment) of Nakilat’s core business activities areassessed and appropriate operational controls are established to introduce any opportunity for improvement. To ensure the effective
implementation of policy and procedure, monitoring processes are in place to check and measure the efficiency of our controls. The
environmental goals and targets are set by the management and monitored/reviewed regularly. The company communicates the identified
significant environmental aspects among the various levels and functions of the company, as required.

Ship Energy Efficiency Management Plan (SEEMP)

Joint Development Project CO2 Capture Onboard LNG Vessels
In 2021, Nakilat engaged in a collaboration with a major LNG shipping company, a major classification society and a leading Korean shipyard
to work on the next generation of carbon capture systems and further contribute to the classification society rules for LNG vessels funnel
emissions treatment.
This joint development project (JDP) had the following initial outcomes in 2022:- The Approval in Principle of the CO2 absorption technology on board LNG carriers by the Classification society partner.
- A preliminary retrofit impact study on machinery arrangements was performed for a conventional size LNG carrier.
- The benefit on the carbon emissions intensity per transport work was evaluated against current regulations and against potential future
strengthened regulations.

Propeller Super-Polish and Edge Modification•

Voyage management in close cooperation with charterers

Our twin-engine, twin-propeller LNG vessels were delivered with coated propellers which faced the same fouling issue similar to the hull
whilst in operations. In 2012, an independent study was conducted to determine the root cause of premature overloading of the engines
in slight sea conditions, as additional fuel consumption had been observed to achieve the vessels’ design revolutions per minute (rpm).
After due diligence and consultation with the original makers and industry experts, a decision was made to trim the propellers, remove
the propeller coating and super-polish the surfaces to further improve vessel performance. Upon recommendation, vessels underwent
propellers blade edges modification to ‘lighten’ the propellers, a process also known as increasing LRM (Light Running Margin). Adequate
LRM indicates better propeller performance. These refits ensure that our vessels operate more efficiently with lower fuel consumption
to achieve the design speed. For some vessels, this was accomplished while the vessel was in service through utilization of certified
underwater diving companies. Meanwhile, for other vessels, this has been carried out during their routine dry docking.

•

Cargo conditioning management

Accommodation Block Heat Insulation•

Trim optimization•

Weather routing•

Engine power limitation (EPL)

The company started a pilot project in 2022 to implement reflective coating on the monkey island to reduce the temperature within theaccommodation and reduce air conditioning/heating energy consumption. The project was successful and reflective coating will be applied
across the fleet and included as a standard requirement in the new sea stock contract.

Each vessel, maintains and complies with a SEEMP. SEEMPs are developed as ship-specific plans by Nakilat, which seeks to improve
every ship’s energy efficiency by following the steps of planning, implementation, monitoring, self-evaluation and improvement. These
components play a critical role in the continuous cycle of improvements that lead to effective ship energy management.
Fleet energy targets are set during the scheduled annual management review. Depending on vessel type, trade pattern and each vessel’soperational profile, a set of measures are adopted to meet the set KPIs. Some of the operational energy efficiency measures implemented
for Nakilat’s fleet are:Environmentally Friendly and Higher Performance Hull Coating Systems
As a result of a continuous advanced voyage performance analysis of an upgraded coating system trialed over five years on one ship, thehull fouling was found to be very limited, resulting in only 1.5% speed loss over five-year period without hull cleaning. All Nakilat’s LNG
vessels’ hulls have been coated with this upgraded coating system since 2012.

Enhanced and Integrated Hull Performance Monitoring
Nakilat’s intend to integrate hull performance monitoring regime in line with the ISO 19030: Ships and Marine Technology standard
on performance monitoring. Existing onboard performance monitoring equipment was first upgraded to ensure timely recording andforwarding of data to shore at established intervals for selected performance parameters. Shore analysts produce either monthly or pervoyage performance monitoring reports primarily focusing on emissions related performance. Guided by the performance reporting, thevessels’ hull scrubbing, and propellers polish can then be decided and documented. An average hull clean and propellers polish intervals
were established and implemented using the most advanced ocean-friendly remotely operated vehicle (ROV) system as soon as theperformance deteriorated to a predetermined set point.

39

Insights from upgraded digitalization will allow rapid assessments of new technologies trialed on board our vessels, which in turn will help
informed decision making for deployment fleet wide of the technologies providing the best improvements. The digitalization project has
also a component for predictive maintenance that will be rolled out for GAS compressors initially, and if this pilot experience proves to be
successful, it will be then extended to other key machinery and equipment on board.

LED Lights Installation
The company is gradually replacing all lights in the engine rooms, accommodation and deck with LED lights.

N-KOM: Power Demand Protocols
There are maximum demand level requirements agreed upon and set within the Bulk Supply Agreements for Power from the national
government supplier, Kahramaa. In 2022, N-KOM exceeded the maximum demand level by 1.05 MW in 1 month due to project loadrequirement. This is a significant improvement over 2021 where N-KOM exceeded the maximum demand level by an average 3.4 MW for
7 out of 12 months. The requisite management control protocols have been initiated to ensure Nakilat’s high consumption/demand assets
such as the two dry docks and the floating dock are not operated simultaneously, as it would result in overconsumption.

40

4.3 ENERGY EFFICIENCY AND WATER CONSUMPTION (continued)

NAKILAT ESG REPORT 2022

KPIs (Shipping)

KPIs (Non-Shipping)12 13

Energy

2020

2021

2022

Scope

Energy

2020

2021

2022

Energy consumption

Electricity consumption

Total fuel consumption within theorganization from non-renewablesources (GJ)9Total electricity consumption (kWh) Corporate

935,517

1,169,485

1,067,695

74,015,625

Total electricity consumption (kWh) N-KOM

63,400,000

69,400,000

72,830,000

Total fuel consumption within
the organization from renewablesources (GJ)

Total electricity consumption (kWh) QFAB

7,460,000

6,505,700

8,173,611

000Total electricity consumption (kWh) NSW

n/a1,956,150

2,260,278

71,795,517

79,030,635

84,331,584

74,015,625

73,694,908

80,204,392

Total electricity consumption (GJ) Corporate

3,368

4,210

3,844

Total electricity consumption (GJ) N-KOM

228,240

249,840

262,188

Total electricity consumption (GJ) QFAB

26,85623,41829,425

Total electricity consumption (GJ) NSW

n/a

7,042

8,137

258,464

284,510

303,594

Total fuel consumption (GJ) Corporate

734

329

190

Total fuel consumption (GJ) N-KOM

37,33943,14755,190Total fuel consumption (GJ) QFAB

393

333

5,297

Total fuel consumption (GJ) NSW

287,742

315,385

327,182

TOTAL FUEL CONSUMPTION (GJ) Corporate, N-KOM, QFAB, NSW

326,208

359,194

387,859

Total energy consumption (GJ) Corporate

4,102

4,539

4,034

Total energy consumption (GJ) N-KOM

265,579

292,987

317,378

Total energy consumption (GJ) QFAB

27,24923,751

34,722

Total energy consumption (GJ) NSW

287,742

322,428

335,319

TOTAL ENERGY CONSUMPTION (GJ) Corporate, N-KOM, QFAB, NSW

584,672

643,705

691,453

16.6

16.5

16.1

250

275

250

204.3

225.4

200.1

1,300

1,300

1,586

317.2

349.3

108.9

86

68

319

846.3

942.8

986.2

340

342

340

295.9

324.3

277.1

1,976

2,016

2,495

Total energy consumption within theorganization (GJ)

73,694,908

80,204,392

Energy intensity
Energy intensity ratio (GJ/Nm)
10

Organization-specific metric chosen
to calculate the intensity ratio: Total
Sailing Distance11 (Nautical Mile
[Nm])

17.30
6,023,833

15.79
6,579,066

Note: This data represents our entire shipping fleet (in-house and joint ventures).

14.90
7,378,156

Shipping

TOTAL ELECTRICITY CONSUMPTION (kWh) Corporate, N-KOM, QFAB
and NSWTOTAL ELECTRICITY CONSUMPTION (GJ) Corporate, N-KOM, QFAB, NSW

ScopeFuel consumption

Total energy consumption (electricity + fuel)

Energy intensity14 15
Energy intensity ratio (Electricity + Fuel consumption (GJ) / per employee)
Corporate
Organization-specific metric chosen to calculate the intensity ratio (average
number of employees) Corporate
Energy intensity ratio (Electricity + Fuel consumption (GJ) / employee
N-KOM
Organization-specific metric chosen to calculate the intensity ratio (average
number of employees) N-KOM
Energy intensity ratio Electricity + Fuel consumption (GJ) / per employee)
QFAB
Organization-specific metric chosen to calculate the intensity ratio (average
number of employees) QFAB
Energy intensity ratio (Electricity + Fuel consumption (GJ) / per employee)
NSW16
Organization-specific metric chosen to calculate the intensity ratio (average
number of employees) NSW
Total energy intensity ratio (Electricity Consumption + Fuel (GJ) / peremployee) Corporate, N-KOM, QFAB and NSW
Organization-specific metric chosen to calculate the intensity ratio (average
number of employees) corporate, N-KOM, QFAB, NSW
12

Non-Shipping2020 fuel figures are restated, and difference can be noted due to diesel oil consumption figures which are made available by N-KOM for 2019 onwards.

This is only non-shipping data under scope 1. Types of fuels included within figures: Diesel (Density-0.8213) and LPG (Conversion Factor-MJ to KG: 1 MJ = 0.02 kg of
LPG).
13

This is only shipping data under scope 1. Types of fuels included within figures: HFO, MGO, LNG.

14

All energy intensity ratios represent electricity and fuel usage, except for QFAB and NSW (see below).

For SHIPS: Energy Intensity = Total Energy/ Total sailing Distance. Intensity is declared in total.

15

Energy Intensity Ratio has been restated in GJ/No. of employee for alignment.

Total sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed.

16

NSW Electricity data not available in 2020 and so only fuel data used.

9

10
11

41

42

4.3 ENERGY EFFICIENCY AND WATER CONSUMPTION (continued)
Reduction of energy consumption

2020

NAKILAT ESG REPORT 2022

2021

2022

Scope

Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives (fuel and electricity)
Total energy reductions (GJ) Corporate

2,501

2,363

12,256

Total energy reductions (GJ) N-KOM

16,804

16,804

16,804

Total energy reductions (GJ) QFAB

26,85624,048n/aTotal energy reductions (GJ) NSW

n/a

n/a

n/a

46,161

43,112

29,060Total energy reductions (GJ) Corporate, N-KOM, QFAB and NSW

WATER CONSUMPTION
N-KOM’s CWTP plant facilitates contaminated water generated fromwashing of vessels at the dry docks to be filtered, purified, and tested
for conformance (as per Qatar’s Ministry of Environment and Climate
Change (MOECC) guidelines and parameters) before discharges ofwater are released into the sea as per the Consent to Operate (CTO)
certificate requirements. N-KOM also submits quarterly reports of
CWTP treatment to MOECC.

Non-Shipping

Electricity sold

2020

2021

2022

Total electricity sold (GJ)- (N-KOM)*

5,246

25,02915,930KPIs (Shipping)*Electricity sold to vessels in dock via metered connections.

Water

2020

2021

2022

25,056

24,959Scope

Water withdrawal and discharge

17Management Approach andProgress Shipping
Water is an essential element of life, and ensuring its availability
for everyone is a global challenge recognized by UN Sustainable
Development Goal (6). As a company operating in a water-stressedregion, Nakilat, through its ‘Commitment to Environment’ aims to
reduce water consumption with proper management and to thebest of its ability for the benefit of our operations as well as of theenvironment and community. We also support Qatar climate change
action plan 2030 to ensure sustainable and integrated managementof water resources exploring keys areas of opportunities to ensure
water security for our country and company.
Nakilat adopts a responsible and prudent approach to water
consumption. Our vessels do not withdraw or discharge any fresh
water, nor consume water from a third party. Fresh water is
produced on board from waste heat energy and water is discharged
back into sea through treatment systems. Water fountains are fitted
onboard. We have discontinued single-use plastic water bottles, andwater samples are regularly landed ashore for analysis to ensure
quality onboard.
In addition, all the company vessels closely monitor the electric
power consumption for the most efficient use and intervene todevise power management planning.

Total seawater
withdrawal(megaliters)

28,398

Total seawater
discharge(megaliters)

28,39825,056

24,959Note: This data represents our entire shipping fleet. The reported data
are aggregated values from wholly owned and JV vessels for seawaterused for ballasting the vessels. The ballast water figure that has beenused indicates that the ballast water has either been treated according
to IMO Ballast Water Convention D2 for vessels fitted with a treatment
system. For other vessels which are still to be fitted with a treatment
system the ballast water has been replenished through exchange during
the voyage as per IMO Ballast Water Convention D1. The same quantityof seawater that is loaded in discharge ports is discharged afterwards
in loading ports. Only seawater for ballasting is discharged. Calibrated
remote sounding system and approved ballast tank tables have beenused to calculate ballast water quantities declared. Seawater salinityand density is determined from international oceanographic tables.
At NSW (Nakilat SvitzerWijsmuller), encourages all vessels and shore
staff through a campaign to take the following measures and initiatives
to reduce or to help save water consumption.

•

Use water-efficient appliances: Water-efficient faucets andshowerheads in vessel accommodation can help reduce water
consumption significantly. These appliances are designed touse less water without sacrificing performance. Ensure that
all appliances are in good working order, and repair leaks
immediately to avoid wasting water.

•

Limit water usage or turn off the taps when you are not using
them. Encourage crew members to be mindful of their water
usage. Simple steps, such as turning off the water when brushingteeth or washing dishes, can go a long way in reducing water
consumption. When possible, wash dishes in a basin rather thanrunning the water continuously.

•

Only run washing machines when full: Running these appliances
when they are only partially full wastes water and energy.

Non-Shipping
Potable water for domestic use is supplied by Kahramaa to
Nakilat’s office, via Ras Laffan Industrial City infrastructure
controlled by QatarEnergy. All sewage water is discharged into
the municipal sewage system in accordance with Ministry ofEnvironment and Climate Change regulations. QatarEnergy provides
treated industrial water for the use of Nakilat’s operating units inindustrial processes. Industrial water runoff within the docks istreated via our Contaminated Water Treatment Plant (CWTP).

Shipping

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

43

44

4.3 ENERGY EFFICIENCY AND WATER CONSUMPTION (continued)

4.4 OCEAN HEALTH AND BIODIVERSITY•

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

•

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

NAKILAT ESG REPORT 2022

KPIs (Non-Shipping)
Water

2020

2021

2022

Freshwater/ Potable water consumption (megaliters) Corporate

0.73

0.61

1.28

Freshwater/ Potable water consumption (megaliters) NSW

11

11.49

11.58

Freshwater/ Potable water consumption (megaliters) N-KOM

248

304

444

Freshwater/ Potable water consumption (megaliters) QFAB

52.2

33.6

53.4

Total Freshwater/ Potable consumption

312

350

510

Industrial water consumption (megaliters) N-KOM

100

100

41

Industrial water consumption (megaliters) QFAB

52

0.03

0

Water consumption*Water is supplied by Kahramaa, a third-party.

Non-shipping

Management Approach and Progress
Biodiversity is a fundamental element of Qatar’s heritage, culture and future. It serves as the foundation for food security and for sustainableagriculture development. Nakilat actively participates in maintaining biodiversity in close liaison with its private and public stakeholders byactively participating in all the initiatives to preserve ocean health and biodiversity. Through its ‘Commitment to Environment’ and welldeveloped policies/procedures, Nakilat supports Qatar’s national biodiversity strategy and action plan based in Qatar National Vision 2030
which aims to prevent, minimize and offset potential damage to ecosystems while at the same time adapting biodiversity to climate change.

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

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

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

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

N-KOM’s Marine Water Quality Monitoring to Protect Ocean Health
N-KOM conducts water quality monitoring at five locations along its shore. Water samples from each location are tested for the same
parameters such as Total Suspended Solids (TSS) and pH value. On average, N-KOM’s TSS value did not cross 5.0 mg/l when compared with
the Ministry of Environment and Climate Change limit of 35 mg/l. Also, N-KOM pH value has always been within 6-9, as per Qatar’s Ministryof Environment and Climate Change (MOECC) regulation.
The full lists of limits are as follows: pH - 6.5 - 9.0; TSS - 400 mg/l; TDS - 1750 mg/l; BOD – 260 (average) – 400(max) mg/l; COD - 760 mg/l;
Oil & Grease - <10 mg/l; NH3-N- 40 mg/.

45

46

4.4 OCEAN HEALTH AND BIODIVERSITY (continued)

NAKILAT ESG REPORT 2022

KPIs (Non-Shipping)2022 Objectives and Targets (N-KOM):
EMP* Risk Focus Areas

Environmental Impact
Assessment (EIA)

Discharges to Sea

Objective
To ensure thatenvironmental
aspects of activities,
products and services
from the company
are controlled andmitigated so that
there is no potential
for adverse impacts
on the environment.

To filter waste /contaminants ofwater from dry docks
1&2

Target(a) To have zero highenvironmental impact
rated operational
activities.
(b) To reduce
environmental
impacts of highand medium rated
activities to as
low as reasonably
achievable.

To maintain the
discharged waterat environmentally
acceptable /regulatory limits
as per Ministry ofEnvironment andClimate Change(MOECC).

Negative Environmental Impact Mitigation Measures(a) EIA - covers all activities per production section(b) HSSE Audit - conducted annually for each production
sectionReference for (a)•IMS-HSSE-P-0003, identification and analysis ofenvironmental aspects and impacts procedure.

•

IMS-HSSE-F-0014, environmental aspects and impacts
identification and assessment form.

(a) Contaminated water from dry docks and Phase 5 washingbay undergo regular treatment at the Contaminated Water
Treatment Plant (CWTP). Within the CWTP contaminatedwater is processed through several stages of purifications.
(b) Treated water - Prior to discharge, samples are sent tothird-party laboratories for verification of water constituents.
Treated water is discharged to the sea only if the results arewithin the regulatory limits.

Description
Marine Water Quality Monitoring at Different Locations
To ensure concentrations of pH and Total Suspended Solids (TSS) of marine
water are within the Ministry of Environment and Climate Change (MOECC)
regulatory limits
Contaminated Water Treatment
To ensure that contaminated water from dry docks 1 and 2 are filtered ofwaste/contaminants before the water is released back into the sea

To maintain the discharged water at environmentally acceptable/regulatory
limits as per the Ministry of Environment and Climate Change (MOECC)

To ensure that contaminated water from dry docks 1 and 2 are filtered(c) Environmental monitoring report - Quarterly monitoring
requirements and respective limits are prescribed by the
Ministry of Environment and Climate Change (MOECC) andstated in the Consent to Operate (CTO) License granted to the
shipyard.
(a) Vessels are under RLC and N-KOM regulations – No
discharges allowed to sea other than treated ballast water.

Marine Water
Monitoring

To monitor marine
water quality at
different locations.

N-KOM only.
*Environmental Management Plan

47

To ensureconcentrations of pH
and Total Suspended
Solids (TSS) of themarine water are
within the Ministryof Environment andClimate Change(MOECC) regulatory
limits.

(b) Vessel activities which produce pollutants that cancontaminate marine environment and docks. Within the dry
docks, all liquid and semi-solid discharges are contained
within incorporated systems of the docks which either treator hold pollutants for collection.

To maintain the discharged water at environmentally acceptable/regulatory
limits as per the Ministry of Environment and Climate Change (MOECC)(c) Waste disposal requirements - managed via licensed
waste management contractors.
(d) Environmental monitoring report - Quarterly monitoring
requirements and respective limits are prescribed by the
Ministry of Environment and Climate Change (MOECC) andstated in the Consent to Operate (CTO) license granted to the
shipyard.

Target / KPI

2022 Performance

Levels should notcross:TSS = 35 (mg/l)

TSS = <5 (mg/l)(see note below)

pH: 6 - 9

pH = 8.0(see note below)

pH: 6 - 9

pH: 7.5(see note below)

BOD: 50

BOD: 24(see note below)

COD: 150

COD: 96(see note below)

TSS: 50

TSS: <3.5(see note below)

Oil and grease: 10

Oil & grease: <1(see note below)

Cd: 0.1

Cd: <0.02(see note below)

Pb: 0.1

Pb: <0.01(see note below)

Ni: 0.5

Ni: 0.04(see note below)

Cu: 0.5

Cu: 0.09(see note below)

Cr: 0.2

Cr: <0.001(see note below)

Fe: 1

Fe: 0.09(see note below)

Mn: 0.05

Mn: <0.01(see note below)

Phosphate: 30

Phosphate: 3.8(see note below)

Sulfide: 0.1

Sulfide: <0.1
(see note below)

N-KOM only.
Note: Monitoring requirements and the respective limits are prescribed by Qatar’s Ministry of Ministry of Environment and Climate Change(MOECC) and stated in the Consent to Operate (CTO) license granted to the Shipyard.
*PM10, SO2 and NOX - 99.7% of all daily measurements taken during the period of one calendar year**CO - 99.8% of all eight (8) hour measurements taken during the period of one calendar year***Aromatic Hydrocarbon - Ras Laffan Industrial City (RLIC) Standards for non-methane hydrocarbons****PM2.5 - United States Environmental Protection Agency (USEPA) Standards for PM2.5

48

4.4 OCEAN HEALTH AND BIODIVERSITY (continued)

4.5 WASTE MANAGEMENT AND SHIP RECYCLING

NAKILAT ESG REPORT 2022

Conserving our Environment
As part of our commitment to practice environmental conservation, our staff participated in 2 activities organized by QatarEnergy, Ras
Laffan Industrial City.
1. Beach Clean-Up 2022
On 9 March, N-KOM staff participated in marine life conservation through the ‘Turtle Beach Clean-Up’. The activity focused on ensuring that
the RLIC beach which is home to the Hawksbill Sea turtles could offer a conducive environment for them to nest.
The beach clean-up event is performed annually around the turtle nesting season to ensure that the nesting grounds are free from waste
and safe for the turtles to nest within, thus ensuring continued flourishing of the turtle species.

Management Approach and Progress
Making Ship Recycling Safer with Inventory Hazardous Materials (IHM)
The European Union (EU) pursues an ambitious policy to make ship recycling greener and safer. The EU legislation on Inventory Hazardous
Materials (IHM) came into force on 30th December 2020. IHM is a structured system to control hazardous materials onboard ships.
Occupational health risks can be identified during ship operations to inform crew, as well as repair and conversion yards about any
hazardous materials onboard for incident preparedness and response. This enables advanced planning to ensure that ship decontamination
activities must be conducted by trained workers, appropriate equipment and adequate plans for the removal and disposal of any hazardous
materials (HAZMATs). Nakilat has obtained the IHM certification and inventory of hazardous material for fleet vessels. Nakilat has also
conducted extensive surveys involving the assessment of the hazardous materials samples in the laboratories for potential risks.
In addition to all mandatory certifications, our vessels maintain voluntary compliance certification with Hong Kong International Convention
for the Safe and Environmentally Sound Recycling of Ships. Compliance with this requirement enables Nakilat to maintain a record of all
potentially hazardous materials onboard, which is maintained throughout the operational life of the ships.
2. Tree Planting Drive
On 6 March, Nakilat Shipyard, N-KOM staff volunteered for the ‘Tree Planting Drive’. The activity sought to develop the Ras Laffan Industrial
City (RLIC) boundaries with a ‘green belt’ of trees, thereby improving the air quality.
The purpose of the trees planted in this zone is to serve as an air purification system which maintains a clean quality of air and provides adegree of cooling to the general air temperature.
This green belt serves to enhance the air quality not only within RLIC but also in the public cities and zones neighboring RLIC.

Shipping (Onboard) Waste Management
Waste generation, and its subsequent impacts, are related to domestic waste generated by on board crew during the ship’s operational
activities, such as plastic, paper, metal, and food waste. The waste is collected onboard and segregated as per the approved vessel’s
garbage management plan. The data is then reported on the vessel’s flag approved garbage logbook maintained onboard. All the waste
generated onboard our vessels is segregated before being disposed of ashore to an approved facility. Only a fraction of this waste isincinerated onboard in an IMO-approved incinerator.
Chest freezers are provided for biodegradable materials for discharge outside Arabian Gulf in compliance with MARPOL Annex V.
No Single-use plastics (plastic bags and bottles) onboard.

Non-Shipping Waste Management
Nakilat has made conscious efforts to reuse and recycle waste where possible to reduce the amount of waste generated or disposed.
There are seven major types of waste generated by Nakilat and its local joint venture partners’ operational activities, which are categorized
as follows: General, wood, food, hazardous, metal, paper, electrical/electronic. Nakilat has a contractual agreement with approved local
contractors for the transportation and disposal of all types of waste. Recycling is in line with the local regulatory requirements.
At N-KOM, all major blasting activities are conducted at graving docks and floating dock; grit blasting is suspended during high wind speed
conditions above 25 knots to prevent the spread of grit dust. When grit blasting is performed on small vessels at the phase 5 washing bay
area, wet blasting technique is applied.
For blasting of loose items, outfitting and other small structures, blasting chamber facility is used while onsite ballasting operation of small
items requires encapsulation of the full structure along with engineering controls - dust collector, dehumidifier and vacuum machine thatare mandatory, as open blasting is not allowed.
N-KOM has a contract with the Ministry of Environment and Climate Change (MOECC) approved waste treatment factory to collect anddispose waste. As per the contract, the contractor is required to collect, transport, and dispose waste as per established local authority(MOECC) regulations. The respective N-KOM Sections’ person in charge are responsible for daily waste collection at yard and coordination
activities with the third-party contractors for waste disposal.
All wastewater from vessels washing at the shipyard is treated via the shipyard’s contaminated water treatment plant and returned to thesea within the regulatory limits. Monitoring of environmental parameters are performed for treated water, seawater, drinking water and air
quality. All analyses are performed and validated by third party contractors. All contractors to the company are pre-audited and assessed
based on set criteria covering necessary environmental certifications and compliance.
49

50

4.5 WASTE MANAGEMENT AND SHIP RECYCLING (continued)

NAKILAT ESG REPORT 2022

QFAB has implemented a waste management plan to specify a waste management system for all QFAB processes that produce waste toensure that the waste is effectively controlled, handled, transported, and responsibly disposed to protect and safeguard the environment
and to further reduce the risk of current and future liabilities. In all instances and in line with the QHSES policy and procedures, the mostenvironmental-friendly approach will be utilized as far as reasonably practicable. The fabrication operations general superintendent is
considered as the principal waste producer for all construction activities within QFAB and has a ‘Duty of Care’ to ensure that all waste
generated is properly handled and disposed complying with the applicable regulatory requirements.

KPIs (Non-Shipping)
Waste

NSW has implemented initiatives such as eliminating the use of single-use plastic water bottles and instead providing all employees withdedicated approved drinking bottles.
Total weight of waste
generated (m3 or tons), anda breakdown of this total bycomposition (CAT 22) of thewaste - N-KOM

At NSW18, all shipboard generated garbage, domestic waste, food waste, bilge waste and waste oil products are recorded and disposed in acontrolled, safe and legal manner.
In accordance with MARPOL Annex V, Garbage Management Plan is implemented onboard NSW vessel which provide guidance to themaster and crew on board the ship on the procedures for collecting, storing, processing and disposing of garbage, including the use of theequipment onboard. All vessels are equipped with adequate garbage storage in the designated color codes fire retardant bin for different
types of waste generated onboard vessels. Proper guidance been provided to crew on vessel in the form of placards/poster on garbage
disposal.

2021

202219Total = 6,879 m3
Cat 1 = 1,939 m3
Cat 2 = 326 m3
Cat 3 = 2,199 m3
Cat 4 = 161m3
Other = 2,254 m3

Total = 7,805 m3
Cat A = 1,984.08 m3
Cat B = 334.67 m3
Cat C = 2,534.57m3
Cat D = 1.20 m3
Cat E = 127.66 m3
Others = 2,822.86 m3

Total weight of waste generated (m3), and a
breakdown of this total by composition (CAT20)of the waste21

Total weight of waste
generated (m3 or tons), anda breakdown of this total
by composition (CAT) of thewaste - NSW

ScopeTotal weight of waste
generated (m3 or tons), anda breakdown of this total
by composition (CAT) of thewaste - QFAB

Waste disposal
Total = 6,895 m3
Cat 1 = 2,044 m3
Cat 2 = 333 m3
Cat 3 = 2,233 m3
Cat 4 = 155 m3
Other = 2,129 m3

Total = 6,879 m3
Cat 1 = 1,939 m3
Cat 2 = 326 m3
Cat 3 = 2,199 m3
Cat 4 = 161m3
Other = 2,254 m3

Total = 7,805 m3
Cat A = 1,984.08 m3
Cat B = 334.67 m3
Cat C = 2,534.57m3
Cat D = 1.20 m3
Cat E = 127.66 m3
Others = 2,822.86 m3

Incineration onsite (without energy recovery)
(m3)

775

1,061

1,545

Total waste disposal offsite (m3)23

6,120

5,818

6,261

Total weight of waste directed to disposal in
cubic meter, and a breakdown of this total bycomposition of the waste22

Total = 16,271 m3,
7,082 tons &365,000 gallons

Total = 19,200 m3& 9,681 tons

Total = 19,054 m3,
34,492 tons &1,195,790 gallons

Cat A, B, C & F(General) = 12,817 m3
Cat C & F = 2,360 m3
Cat C & F = 2,104 tons
Cat I = 12.62 tons

Cat A, B, C & F(General) = 13,566 m3

Shipping

Cat C: 4,620 m3

Cat C & F = 3,077 tons

Cat F: 2,301 tons

Cat I = 22.86 tons

Cat I: 25.13 tons

Other = 2,114.16 m3

Other: 211.15 tons

Other = 6,581.36 tons

Other: 31,836 tons
Other: 118.51 tons
Other: 1,195,790 gallons

Total = 67.86 m3

Total = 125.11 m3

Total = 173.26 m3

Cat C & F
(General) = 18.297 m3

Cat C & F
(General) = 30.691 m3

Cat C & F
(General) = 57.150 m3

Cat A (Plastic) = 4.361 m3

Cat A (Plastic) = 9.59 m3

Cat A = 12.783 m3

Others(Oily waste) = 45.20 m3

Others(Oily waste) = 84.825 m3

Others = 103.327 m3

Total = 48.98 m3 &2.85 tons

Total = 18.88 tons &264 Gallons

Total = 786.61 tons

Cat A, B, C & F(General) = 48.98 m3

Hazardous waste =2.16 tons

Cat C & F = 2.58 m3

CAT A & B
(General) = 10.785 tons

Cat C & F = 2.85 tons
Cat I = 0 tons
Other = 0 m3

Scope

Cat A, B: 14,434 m3

Cat C & F = 3,520 m3

Other = 365,000 gallons

Waste generated
Total = 6,895 m3
Cat 1 = 2,044 m3
Cat 2 = 333 m3
Cat 3 = 2,233 m3
Cat 4 = 155 m3
Other = 2,129 m3

2022

Other = 4,965 tons

KPIs (Shipping):
2020

2021

Other = 1,094 m3

NSW always ensures the compliance with OVMSA (Offshore Vessel Management and Self-Assessment) in the fleet and additionally drives
awareness coaching sessions with crew to ensure compliance with Garbage Management Plan and international/local maritime regulations.
To verify the regulatory compliance, vessels are being audited regularly by internal and external authorities.

Waste

2020

Nonshipping

CAT A & B
(General) = 158.652 tons
Cat C & F = 627.957 tons

Cat C & F = 5.94 tons
Other
(Oily waste) = 264.0 gallons

Other = 0 tons
Other = 0 gallons
Total weight of waste
generated (m3 or tons), anda breakdown of this total
by composition (CAT) of thewaste - Corporate

Note: This data represents our entire shipping fleet.
It is to be noted that 2020 data has been re-categorized between the Joint Venture partners to align with NSQL. Nevertheless, the total
waste generated remains the same.

Total = 2.73 m3

Total = 0.59 m3

Total = 0.27 m3

Cat C & F
(General) = 0.51 m3

Cat C & F
(General) = 0.56 m3

Cat A = 0.27 m3

Cat I = 2.22m3

Cat I = 0.012 m3
Hazardous waste =0.02 m3

Garbage on shore is classified into the following categories (CAT A & B: General; CAT C & F: Wood & Metal; CAT I: Batteries; CAT OTHER- Spent Grit, Paint Drums, Sludge,
Oily Water & Oily Rags)
24

NSW- Nakilat SvitzerWijsmuller

18

2022 onwards-Garbage on ships are classified into the following categories as per MARPOL Annex V:

19•

Category A: Plastics•

Category D: Cooking Oil•

Category B: Food Waste•

Category E: Incinerator Ashes•

Category C: Domestic Waste•

Category F: Operational Waste•

Category I: E-Waste

Until 2021-Garbage on ships is classified into the following categories (Cat): 1-Plastics; 2- Floating dunnage, lining, and packing material; 3- Ground down paper
products, rags, glass, metal bottles, and crockery; 4-Domestic waste; 5- Incinerator ash; 6- Normal paper products, rags, oily rags, glass, and metal scrap; 7-Operational
waste; 8- Animal Carcasses onboard livestock carrier; 9- E-Waste; 10- Cooking oil waste produced in the galley; 11- Cargo residues onboard ships carrying solid cargoin bulk which are not harmful to the marine environment (Non-HME); 12- Cargo residues onboard ships carrying solid cargo in bulk which are harmful to the marine
environment (HME); Others” encompass all what is not listed between cat 1 and cat 12.
20

Total waste (disposed to sea + incinerated + landed ashore) in m3. Data provided in cubic meter and not in tons as reported by the vessels and approved by the flag state.

21

Bilge doesn’t fall under garbage requirement.

22

The rest of the segregated waste is disposed to an approved shore facility for processing.

23

51

52

4.5 WASTE MANAGEMENT AND SHIP RECYCLING (continued)
Waste

2020

Total weight of waste diverted
from disposal in metric tons,
and a breakdown of this total
by composition of the waste.
- N-KOM

NA

Total weight of hazardous
waste diverted from disposal
in metric tons, and a
breakdown of this total by thefollowing recovery operations-SOLD- N-KOM

NA

Total weight of non-hazardous
waste diverted from disposal
in metric tons, and a
breakdown of this total by thefollowing recovery operations
SOLD- N-KOM

Total weight of waste directed
to disposal in metric tons, anda breakdown of this total bycomposition of the waste N-KOM

2021
Total = 3,099.86 tons
CAT C & F = 3,077 tons
CAT I = 22.86 tons

CAT I = 22.86 tons

2022
Total = 34,492 tons
Cat F: 2,301 tons
Cat I: 25.13 tons
Others: 32,166 tons

NA

CAT C & F= 3,077 tons

Cat F: 2,301 tons

Total = 16,271 m3,
7,082 tons &365,000 gallons

Total= 19,200.16 m3 &9,681.22 tons

Total: 19,054 m3,
34,492 tons &1,195,790 gallons

Cat A, B, C & F

Cat A, B, C & F(General) = 13,566 m3

Cat A, B: 14,434 m3(General) = 12,817 m3

Cat C & F = 3,520 m3

Cat C: 4,620 m3

Cat C & F = 2,360 m3

Cat C & F = 3,077 tons

Cat F: 2,301 tons

Cat C & F = 2,104 tons

Cat I = 22.86 tons

Cat I: 25.13 tons

Cat I = 12.62 tons

Other = 2,114.16 m3

Other: 211.15 tons

Other = 1,094 m3

Other = 6,581.36 tons

Other: 31,836 tons

Other = 4,965 tons

Other: 118.51 tons

Other = 365,000 gallons

Other:1,195,790 gallons

Other (Oily waste) =45.20 m3

Cat C & F
(General) = 30.691 m3
Cat A (Plastic) = 9.59 m3
Others(Oily waste) = 84.825 m3

Total = 173.26 m3
Cat C & F
(General) = 57.150 m3
Cat A = 12.783 m3
Others = 103.327 m3

Hazardous Waste =2.16 tons
NA

CAT A & B (General) =10.785 tons
Cat C & F= 5.94 tons

Total: 15,177 m3 &4,903 tons
General = 12,817 m3
Wood = 2,360 m3
Spent Grit = 4,903 tons

53

2020

2021

2022

Total waste disposal – landfill(m3 or tons) QFAB

NA

12.945 tons

203.147 tons

Total waste disposal –recycling (m3 or tons) QFAB

NA

60.225 tons

583.46 tons

Total waste disposal –recycling (m3 or tons) QFAB

NA

NA

0.84 tons (paper)

Scope

NonShipping

Total: 17,086 m3 &6,425.74 tons

EMP Risk Focus Areas*

Objective

TargetNegative environmental impact mitigation measures

Waste

To ensure that, in accordancewith legislation, waste will
be managed in a sustainable
manner following the wastehierarchy of prevention, reuse,recycling, and disposal toensure the reduction in waste issent to landfill.

To maintainbaseline waste
recycling rateof 80% forrecyclable waste.

Waste management plan:(a) Contracts - in place with licensed waste contractors
to dispose waste at government approved waste
treatments centres.
(b) Scrap metal - sold to interested companies forreuse.
(c) HSE walkthroughs and environmental Inspections conducted to ensure waste is managed in a sustainable
manner.
Reference

NonShipping

Total = 786.6 tons
Non-hazardous
Waste=786.6 tons

Total: 19,054 m3 &32,167 tons

CAT A, B, C & F(General) = 13,566 m3

Cat A, B & C: 19,054 m3

CAT C & F = 3,520 m3

Other: 32,167 tons•

IMS-HSSE-F-0120, Health and Safety Inspection
Record•IMS-HSSE-F-0131, Environmental Inspection
Report•IMS-HSSE-P-0004, Waste Management Procedure

N-KOM only
*Environmental management plan

Materials (Non-Shipping):
Nakilat’s facilities do not consume or use raw materials in its operations, given the nature of its business offerings. The recurring materials
employed are limited to corporate-use or specific material use. Materials are sourced from Original Equipment Manufacturers (OEMs) andother suppliers. These materials, such as paper, are used to support the retail and service nature of the entity operations.
Materials that have a high impact on the environment are monitored. Nakilat is constantly exploring more environmentally friendly products/
materials where available.
Materials

Other (Oily waste) =264.0 gallons

Total waste disposal – landfill(m3 or tons) N-KOM

Waste

Cat I: 25.13 tons

Total = 18.88 tons &264 gallons
Total weight of waste directed
to disposal in metric tons,
and a breakdown of this total
by composition of the waste- QFAB

Scope

2022 Objectives and Targets (N-KOM):

Total = 125.11 m3
Total weight of waste directed
to disposal in metric tons,
and a breakdown of this total
by composition of the waste- NSW

NAKILAT ESG REPORT 2022

2020

2021

2022

Paper (kg) - Corporate

2,216

1,248

2,515

Paper (kg) - N-KOM

6,394

6,475

9,962

Copper Slag (tons)-N-KOM

4,928

12,857

40,664

Steel (tons)-QFAB

n/a

n/a

18,000Paper (kg) - QFAB

n/a

570

5,050

Paper (kg) - NSW

n/a

n/a

1,400

Scope

Material used by weight and volume

Non-shipping

Note: Nakilat office, N-KOM, NSW and QFAB data only.

Other = 6,425.74 tons54

5. SOCIAL

NAKILAT ESG REPORT 2022

5.1 Health, Safety and Wellbeing

Safety Moments:

Management Approach and Progress

At Nakilat, HSE moments sessions are conducted at the commencement of each organizational meeting. These sessions involve brief safety
discussions aimed at increasing awareness of potential hazards and fostering a safe work environment and healthy practices. HSE moments
serve to prioritize safety and encourage employees to take personal responsibility for their wellbeing and that of their colleagues. They areheld not only at the beginning of meetings but also whenever employees gather together, reinforcing the significance of safety in all aspectsof our operations.

Nakilat and its joint ventures (JVs) are committed to health andsafety at the workplace for our employees, temporary personnel, andcontractors in line with the requirements established under Qatar
National Vision 2030 and Nakilat’s Safety, Health, Environment andQuality (SHEQ) policy. We ensure compliance with applicable legal andother requirements pertaining to health and safety in all our activities.
We spare no efforts to advance in strengthening safety in all ouroperations and thus reduce risks to our employees and workers. We
place consistent focus on injury prevention and seek to enhance oursafety culture through number of initiatives including an Incident andInjury Free (IIF) environment campaign continued in 2022 and Hand
and Finger Safety campaign started in 2022. The whole idea is to raiseawareness and change mindset about safety. It’s a way of thinking
that avoids incidents and injuries, making safety a high priority on
both a personal and organizational level.

PolicyHSE moments cover a range of topics, including workplace hazards, near misses, best practices for safe behavior, in addition to theimportance of following safety protocols, health, and environmental protection, among others. They are delivered in a variety of formats,such as stories, videos, or interactive discussions. The goal is to make the HSE moments engaging and relevant to the employees, so they
are more likely to remember the key messages.
In addition to raising awareness about health and safety, HSE moments also promote a culture of safety in the workplace. When employees
see that safety is a priority for the company, they are more likely to take safety seriously and to speak up when they see unsafe behavior orconditions.
To make safety moments effective, Nakilat SHEQ plans them in advance and makes them a regular part of the workplace routine. At Nakilat,
we believe that it is also important to create a safe and supportive environment where employees feel comfortable discussing safetyconcerns and sharing their experiences.
In 2022, more than 400 HSE moments were conducted covering a wide range of topics on health, safety, environment, and quality
management.

Conducted HSE Moments

For SHEQ policy, please refer to section 4.1 of this report.
We place SHEQ at the top of our agenda to ensure that we operate in a safe, reliable, and efficient manner within our society and naturalenvironment. The fundamentals of how we deliver safe and reliable operations remain our number one priority. We believe that all incidents
and injuries are preventable; hence we strive to create an Incident and Injury Free (IIF) environment, both at the workplace and at home. Our
SHEQ policy ensures the achievement of these commitments within the organization. It is accessible to all employees and contractors within
Nakilat through SharePoint, company website and is also physically displayed at several prominent locations within office premises. Nakilat
ensures the policy’s compliance, effectiveness, and suitability by continuously reviewing it during the management review meetings.

Governance
Nakilat’s SHEQ Committee, consisting of all department chiefs and the CEO, governs and oversees occupational health, safety, wellbeing,and Environment in the organization. The SHEQ Committee is responsible for decision-making and implementation of key OHS strategies
within the organization. Management teams maintain regular communication to ensure systems and processes in place are up to date andcapture all potential risks. Nakilat has an Occupational Health and Safety Management System (OHSMS) in place, and it is certified against
ISO 45001:2018 standard by Lloyd’s Register as a third-party certification body. The certificate is valid for 3 years with annual audits. Hazard
identification, incident investigation and risk assessments are carried out in accordance with a detailed procedure.
Regarding incident updates, Nakilat JV partners and NSQL share these updates on a weekly and on a monthly basis along with exposure
hours and other information related to near miss/unsafe act/condition reports in a running log. Nakilat’s SHEQ department is responsible forthe verification of incident information, categorization and follow-up on the incident investigation and for sharing the lessons learnt.
Additionally, the senior management Team (SMT), which includes all departments’ chiefs and the CEO, is responsible for following up on all
the HSE matters on a weekly basis and the actions taken as well as providing high-level guidance.
As for the safety performance, the SMT, headed by the CEO, conducts a performance review twice a year where the overall safety
performance is discussed and actions to be taken are identified to close the gaps as part of investigations. The board is then responsible forreviewing the safety performance which is presented to them on a quarterly basis including the follow-up actions that were taken duringthat period of time. The safety performance presented includes both overall performance and that of individual entities within Nakilat.

Q1

Q2

Q3

Q4

JAN

APR

JUL

OCT

Safety and Security in OfficePremises/Visitors

Health & Safety
During Ramadan

Heat Stress

Cybersecurity Awareness

FEB

MAY

AUG

NOV

First Aid/Medical Treatment

Incident & Injury Free
(IIF)

Travel Safety

Emergency Evacuation

MAR

JUN

SEP

DEC

CPAR/Near Miss Reporting

Green Habit to Save Planet

Workplace Communication

Personal Protective
Equipment (PPE)

Further, Nakilat underwent the British Safety Council’s Five Star OHS audit and achieved a 5-Star rating with a score of 96.39%. The
audit focused on key aspects of managing occupational health and safety in the workplace and offered a structured path for continual
improvement towards best practice status. This audit is the most comprehensive, contemporary, quantified audit process available, whichallows any organization to test its health and safety performance against the latest legislation, recognized standards and best practicetechniques. It provides a quantified outcome with detailed recommendations against a contemporary best practice specification (including
the requirements of ISO 45001) over and above the current Occupational Health and Safety Management Systems (OHSMS) standard
requirements.

55

56

5. SOCIAL (continued)

NAKILAT ESG REPORT 2022

Safety Performance Track Record for the Nakilat Group (Nakilat, NSQL, Shore and Fleet JVs and Nakilat wholly Owned Vessels)
Nakilat has made significant investments in our people, processes, and equipment, which directly impacts Nakilat’s safety performance.
We have witnessed a continuous improvement in our safety performance, leading to the achievement of better results in comparison to thebenchmarked average of our peer group and ITOSF.
LTIF (Lost Time Injury Frequency)

2020

2021

2022

Benchmark-ITOSF*

0.39

0.41

0.38

Nakilat - KPI**

0.43

0.41

0.31

Actual

0.39

0.19

0.37

TRCF (Total Recordable Case Frequency)

2020

2021

2022

Benchmark-ITOSF*

1.03

1.16

1.30

Nakilat - KPI**

1.21

1.15

1.09

Actual

0.63

1.11

1.14

Scope

Case Study: Cultivating IIF Culture
Nakilat and its JV partners continued with their commitment to implement the IIF campaign, a safety leadership program that empowers
people to foster a safer working environment.

•

Conducted online e-learning and training programs as part of the commitment towards being IIF. Six mandatory e-learning programs
were launched for shore-based employees which are regularly monitored and updated with new content.

•Training sessions to raise awareness of employees and to enhance their knowledge on the respective subjects:

All Nakilat and NAC and
Joint Ventures (JVs)

Scope
All Nakilat and NAC and
Joint Ventures (JVs)••

Understanding of health and safety risk assessment•

Difference between SHEQ audit and internal audit•

Familiarization of SHEQ mandatory trainings/programs

The company’s efforts at being IIF were recognized with Nakilat being awarded the Sword of Honor by the British Safety Council forthe fifth consecutive year. This award represents the pinnacle of achievement in the world of Health and Safety Management and isalso a recognition of the company’s commitment towards effectively managing its health and safety risks.

*ITOSF- Informal Tanker Operators’ Safety Forum**KPI- Key Performance Indicator
Key Safety Performance Highlights
The company’s solid safety performance reflects the effort and dedication of staff both at sea and ashore. Nakilat’s prime objective is toachieve an ‘Incident and Injury Free (IIF)’ work environment and our 2022 safety results greatly complement our commitment toward being
IIF. Nakilat’s wholly owned, joint venture and in-house operated vessels have demonstrated first-class operational and safety performancedespite the demanding operations worldwide. Key highlights of our industry-leading vessel safety performance are as follows:
0.37 LTIF and 1.14 TRCF
Nakilat’s Fleet

Nakilat’s Fleet achieved an overall LTIF of 0.37 and a TRCF of 1.14,
both below the benchmark averages of those metrics.
17 years LTI-freeNakilat Agency Company (NAC)

NAC continued its track record and remained LTI-free for 17 years
since its inception.
13.4 million safe man-hours

Nakilat Svitzer-Wijsmuller (NSW)57

NSW accumulated more than 13.4 million exposure hours with zero
LTIs and TRCs in 2022.

58

5. SOCIAL (continued)

NAKILAT ESG REPORT 2022

Case Study: Flu Vaccination Campaign

Caring for our Staff, Contributing to our Environment

Nakilat conducts flu vaccination campaign for its staff every year as it is important that people take suitable measures to protect
themselves and their families against the flu. Flu is a serious disease that can lead to hospitalization and sometimes, even death. The
annual seasonal flu vaccine is the best and safest way to reduce the chances of catching the flu and potentially spreading it to the families.
Vaccination to prevent influenza is particularly important for people who are at high risk for the flu and its complications. This includes theelderly, young children, pregnant women and people with certain medical conditions.

Nakilat’s JV company, N-KOM Recreation Committee (NKRC) organized a tree planting event at our workforce accommodation at the Ras
Laffan Global Village on 23rd September 2022. During the event, our staff and subcon volunteers had fun planting more than 150 trees
saplings along a green belt around the accommodation blocks. The aim behind this initiative was to demonstrate care for our staff andcontribute to our environment.

Case Study: Safety During FIFA
Nakilat conducted safety sessions for its employees in close coordination with Supreme Committee for Delivery and Legacy to ensure
safety and wellbeing of its employees. Given the huge influx of fans from all over the world for the FIFA World Cup, there were significant
disruptions in Qatar regarding traffic movement, and diversions along with specific restrictions.
Nakilat ensured that all its employees are made aware of such changes in order to maintain business continuity and their safety.

59

60

5. SOCIAL (continued)

NAKILAT ESG REPORT 2022

Case Study: Nakilat Safety Climate Survey 2022

Case Study: N-KOM Launches Monthly Stakeholder Incentive Program

Nakilat uses the United Kingdom (UK), Health and Safety Executive (HSE) to conduct the Safety Climate Survey tool. The safety climate
survey tool provides powerful insights into the safety climate of a workplace.

In 2022, N-KOM Management introduced the Monthly Stakeholder Incentive program.
The aim of this program is to accord company-level recognition to staff, sections/departments through the following monthly public incentivization/awards:

It is an essential tool for companies to evaluate their safety culture and identify areas that need improvement. It is a questionnaire that isdesigned to assess employees’ perceptions and attitudes towards health and safety in the workplace while guaranteeing anonymity within
an organization. This survey measures the employees’ understanding of safety policies, the level of communication about safety, and theemployees’ participation in safety activities. The safety climate tool delivers an objective measure of Nakilat’s safety culture - the ‘waythings are done’ in the organization when it comes to health and safety. This is a powerful tool to continually improve and raise standards.
The survey is conducted for shore employees as well as for ship crew at Nakilat by informing employees about the survey in advance,
providing them with an opportunity to ask questions, and ensuring that the survey is anonymous and confidential. Once the survey iscompleted, it generates a comprehensive report and provides guidance that helps Nakilat to develop action points for each factor andthe identified issues in collaboration with all department managers. The plan is communicated to all employees onshore and ashore.
Based on the result, a detailed presentation is drawn up along with an action plan to address areas where improvements can be made.
All employees are then given a proper cascade of the results and planned action which also includes action owner and timeline forcompletion.

•

Safe Worker•

Monthly Zone Champion•

Monthly Workshop Champion•

Best Worker - Blue-Collar Operations Staff
and White-Collar Staff from all Sections•

Best Department

This initiative to boost stakeholder recognition and engagement has received positive
feedback from the employees.

Monthly HSSE Meetings with Subcontractors
N-KOM regularized meetings with its contractors. The four-fold aim of monthly meetings
attended by subcontractors’ management and supervision are:•To align subcontractors’ occupational health and safety systems with N-KOM’s HSE
standards and practices•

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

To bring about tangible improvements across all sections employing subcontractors•

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

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

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

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

Celebrating Global Safety Day annually•‘Mariner of the Month’ program is in place to recognize crew members for their extraordinary efforts•

Organizing year ending celebration as crew welfare program promoting ‘Stop Work Authority’ culture through Safety posters
containing family members’ pictures

NSW annually conducts ‘Global Safety Day’ which is a yearly event to mark safety in an organisation, first initiated in 2013. ‘Global Safety
Day’ instigates an approach to managing safety, securing an aligned and companywide approach, formalizing, and adapting same tools
and methodologies across all operations, implementing ‘Harmonized Safety Management’,Through NSW’s safety management system, we have continuously applied further actions and initiatives to improve the safety culture.
‘Global Safety Day’ in 2022 was celebrated September 1st with theme ‘we learn and adapt’ and focused on our top and most critical risks
to our operations. Amongst others this addressed mooring operations, safe access, and personnel transfer at sea.
Adhering to COVID protocols, several sessions were conducted onboard vessels, as well as with shore-based teams, facilitated byonshore leadership team members establishing effective engagement and sharing of ideas and experiences on the topics.
To further engage our team members, NSW launched a competition inviting all to express their individual comprehension of what ‘Learn
and Adapt’ means to them, illustrating this with posters, slogans or by sharing stories/experiences. NSW’s team members showed great
engagement with high contribution to the competition, in turn recognized and appreciated by NSW, awarding prizes for contributions.

61

62

5. SOCIAL (continued)##Pictures
Pictures
NSW
SafetyDaycelebration
SafetyDay
Celebration
Picturesofof
ofNSW
NSW
SafetyDaycelebration

63

NAKILAT ESG REPORT 2022

NSW-Global Safety Day

NSW-Toolbox Talk with Workshop

NSW-Morning Toolbox Talk

NSW-Toolbox Talk on Vessel64

5. SOCIAL (continued)

NAKILAT ESG REPORT 2022

Customized E-Learning

Objectives and Targets

Using the existing partnership with external agencies, Nakilat has added more e-learning modules of established occupational health andsafety awareness programs for its employees.

KPI

Course modules that were added in 2021 include:•

Lifesaving rules•

Fire safety•

Integrated Management System (IMS)•Management of change

These training courses were introduced in a phased manner, through the company’s online learning module.

2020 Target

2021 Target

2022 Target

2023 Target

Loss Time Injury Frequency (LTIF)

0.43

0.41

0.31

0.31

Safety Climate Survey

3.85

3.90

3.95

3.85

Number of major safety incidents

0

0

0

0

Obtain BSC
Sword of Honour
and Globe of
Honour Award

Participate inRoyal Society
for Prevention of
Accidents Award
SchemeObtain BSC
Sword of Honour
and BSC Globe of
Honour Award

95%

95%

95%

BSC 5 Star rating– 96%
Percentage compliance with select international industry
standards (British Safety Council: membership, 5-starrating, Sword of Honour)Prepare for
Globe of Honour

Conducting Tabletop Exercises On COVID-19 Pandemic Response
A comprehensive tabletop exercise was conducted with all stakeholders involved in the pandemic response. The drill focused on business
continuity in the event of an outbreak. Actions assigned to each department were defined and established during the exercise. Specificmeasures tested and successfully implemented include:% of Number of completed recommendations on Nakilat
incidents, CPARS, and Audit

Identification and contact tracing of close contacts•

Disinfection routines•

Back-to-office guidelines

Occupational Health and Safety•

Fit to work screening post quarantine

For all employees and workers•

Awareness sessions for frontline staff (ex: housekeeping staff, security, IT service desk support staff, etc.)

2020

2021

2022

Number of lost time injuries25/incidents

10

5

11

Lost-time injury rate (LTIF)

0.39

0.19

0.37

26

Comprehensive Risk Assessments
Specific risk assessments were carried out to identify the risks arising as a result of the pandemic, and appropriate mitigation actions thatwere required to be implemented. A detailed action plan with timelines were assigned against each control. Risk assessments that were
undertaken include:
Risk assessment for Nakilat agents boarding vessels at Ras Laffan•

Review of biological risks in the wake of the pandemic•

Assessment on crew transfer between Doha and Ras Laffan and related transportation arrangements•

Evaluation of risks for operations and measures post de-escalation

100%

Nakilat SHEQ policy applies to all Nakilat personnel, including contractors and visitors on all our sites, without exceptions. Sites are audited
on a regular basis for compliance with health and safety regulations as well as policies. These audits are conducted by internal and thirdparty auditors. Lessons learned and best practices are shared across the wider business.

••

Obtain Sword of
HonourNumber of work-related fatalities

0

0

0

Number of recordable cases

16

29

34

0.63

1.11

1.14

Total Recordable Case Frequency (TRCF)
27

28

The main types of work-related injury

KPIs
With the help of the Lost Time Injury Frequency (LTIF) indicator, we are able to record the rate of work-related injuries or illnesses that
renders the injured person temporarily unable to perform his work on the day after the day on which the injury occurred. On the other hand,
the Total Reportable Case Frequency (TRCF) indicator allows us to record all work-related incidents. The latter is defined as injuries that
result from an event or exposure in the work environment and occurred during the course of work being done or aggravated a pre-existing
injury or illness. Work-related accidents are considered relevant if they occur on the vessels, on business premises or during businesstravel.

Minor Cuts andBruises/Sprains
and Strain/Foreign
Particle in eye

Caught in/Between, Caught in/Between,
Burn/ Rash, Caught
Cuts/Laceration/
in/Between, Strain/
Puncture, Heat
Sprain. Foreign
Exhaustion, Strain/
Particles andSprain and Struck
Struck by/ Against
by/ Against

Scope

All
Nakilatand NACand Joint
Ventures(JVs)

The number of hours worked29

25,526,586

26,027,630

29,940,323

403-10: Work related Ill Health

2020

2021

2022

Scope

Fatalities as a result of work-related ill health-Number

0

0

0

Fatalities as a result of work-related ill health-Rate

0

0

0

Recordable work-related ill health-Number

0

0

0

Recordable work-related ill health-Rate

0

0

0

All
Nakilatand NACand Joint
Ventures(JVs)

For all employees and workers

Main types of work-related ill health

There were no cases of work-related ill health reported

Nakilat has procedures in place for the ongoing identification of hazards, assessment of risks, and implementation of necessary control
measures. We proactively identify sources or situations arising from the company’s activities, procedures, and services, with potential
to cause work-related injury or ill health using proactive tools such as process hazard analysis, prestart-up safety review and job safety
analysis. Additionally, post-event hazard analysis is conducted using root cause analysis to identify action to prevent recurrence.
Nakilat maintains risk registers that document all identified hazards and responsible persons who ensure risks associated with each hazard
are managed to ‘As Low as Reasonably Practicable’ (ALARP).

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

65

66

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

NAKILAT ESG REPORT 2022

Life Saving Rules

Nakilat has revised lifesaving rules to align with the International Association of Oil & Gas Producers (IOGP) recommendations. IOGP
launches a simplified set of life-saving rules to provide workers in the industry with the actions they can take to protect themselves andtheir colleagues from fatalities. IOGP aims to improve the level of industry-wide adoption across the global oil and gas industry. They are formandatory compliance by all employee and contractors while on Nakilat business.
Nakilat safety scores are well below the industry average which is due to various measures being taken and maintained to manage
workplace hazards as below:

Bypassing Safety Controls

Confined Space

Obtain authorisation before overriding or
disabling safety controls

Obtain authorisation before entering a
confined space•

Health surveillance enhancement program•

Safety campaign: hand and finger safety and dropped object campaign•

Enhanced near miss reporting•

Enhanced quality of toolbox talks (TBT)° disabling or overriding safety•

HSE Training Programs - Risk assessment and risk management training, Control of Substances Hazardous to Health (COSHH)
assessment training and defensive driving training, to name a few° deviating from procedures•

Advanced firefighting training and basic life support/ first aid course/training (CPR, AED and First Aid) for HSSE personnel•

Development and sharing of heat index forecast followed by implementation of effective controls in the workplace•

HSSE inspections and walkthroughs•

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

Core HSE trainings to N-KOM identified workforce•

HSSE audits of departments/sections and contractors•

Safety campaigns/programs•

Health campaigns/programs•

Environment campaigns/programs•

Sharing lessons learnt and working on actions•

Visible felt leadership tours (senior management)••

I understand and use safety-criticalequipment and procedures which
apply to my task
I obtain authorisation before:
equipment° crossing a barrier

•
•
•
•
•
•

Energy Isolation
Verify isolation and zero energy before
work begins••

I have identified all energy sources•

I have checked there is zero energy
and tested for residual or stored
energyI confirm that hazardous energy
sources have been isolated, locked
and tagged

I confirm energy sources are
isolated
I confirm the atmosphere has beentested and is monitored
I check and use my breathingapparatus when required
I confirm there is an attendant
standing by
I confirm a rescue plan is in place

•
•
•

67

I confirm that the equipment andload have been inspected and are fit
for purpose
I only operate equipment that I am
qualified to use
I establish and obey barriers andexclusion zones
I never walk under a suspended
load

•
•

I always wear a seatbelt•

I do not use phones or operate
devises while driving••

Hot Work
Control flammables and ignition
sourcese••

I identify and control ignition
sources•

Before starting any hot work in ahazardous area I confirm:•••

Work Authorisation
Work with a valid permit when required

•
•
•
•
•

I have confirmed if a permit isrequired
I am authorised to perform thework
I understand the permit
I have confirmed that hazards arecontrolled and it is safe to startI stop and reassess if conditions
changeI am fit, rested and fully alert whiledriving
I follow journey management
requirements

Line of Fire

Before starting any hot work:° I obtain authorisation

I do not exceed the speed limit,
and reduce my speed for roadconditions

Keep yourself and others out of the lineof fireconfirm flammable material has° Ibeenremoved or isolated

Safe Mechanical Lifting•

Follow safe driving rules

I obtain authorisation to enter° a gas test has been completed° gas will be monitored continuallyPlan lifting operations and control thearea

Driving

I position myself to avoid:° moving objects° vehicles° pressure releases° dropped objects

I establish and obey barriers andexclusion zones
I take action to secure loose objects
and report potential dropped
objects

Working at Height
Protect yourself against a fall whenworking at height•••

I inspect my fall protection
equipment before use
I secure tools and work materials toprevent dropped objects
I tie off 100% to approved anchor
points while outside a protected
area

68

5. SOCIAL (continued)

NAKILAT ESG REPORT 2022

Occupational Health – Nakilat Shipyard - N-KOM
As part of N-KOM’s ongoing commitment to enhance all stakeholders’ health, safety
and wellbeing, a series of holistic occupational wellbeing studies were commenced
by the N-KOM medical team. Support was provided by QatarEnergy and N-KOM top
management. These studies included the identification of potential hazards that arise in
the business from workload, work activities, environmental heat stress factors, alongwith seasonal humidity. N-KOM IMS-HSSE-P-007 Rev 4 Hazard Identification and Risk
Assessment Procedure was utilized forthe identification of all of the above in so
far as mental health and wellbeing areconcerned. This formed the basis of thestudies.

Medical Examination
Health surveillance is provided for all trades which is detailed in N-KOM IMS- HSSE-P-0060 ‘Health Surveillance Procedure’. This procedure
facilitates monitoring for early signs of ill health, prevention and early diagnoses along with physical and mental health effects that may belinked to workplace hazards.
Medical screening includes an annual health surveillance, fatigue assessments, pre-employment fitness to work review and casemanagement. The ‘fitness to work’ examination procedure is in coordination with QatarEnergy Occupational Health.
In addition, the yard health facility with attached ambulance paramedic provides 24x7 walk-in health check for employees and contractors,
ensuring that all who need medical care are able to receive it immediately and will respond to medical emergencies within the KPI of
QatarEnergy, Ras Laffan.

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

Culture that Supports Good Mental Health
Nakilat shipyard, N-KOM top management identified and facilitated (through the BSC) Mental Health First Aid training for section managers
and Human Resources personnel. This training established a baseline understanding for recognition of the signs and symptoms of mental
health issues in the workplace and provided the skills for successful intervention.
A Health and Wellbeing Committee was formed within each section of the business with identified health champions nominated as
representatives. The Health and Wellbeing Committee meeting is conducted quarterly and is attended by section management, the seniornursing officer, and a member of top management.
The introduction of stress management training was identified during the assessment stage. The training was developed with medical andHR and is conducted by the N-KOM Training Center for all employees. In-house psychologist consultation service is available within theemployee accommodation - 6 days per week and is free to all.

Stress Management Workshop
Working together for a Safer and Healthier Shipyard - Nakilat
Health programs and initiatives are facilitated throughout the year and include: - Influenza and COVID-19 vaccines (for employees andsubcontractors), healthy lifestyle awareness programs such as diabetes, cancer, hand hygiene, smoking cessation awareness, mobile healthscreening, and others.
Health awareness campaigns are also communicated through posters, health alerts, electronic broadcasting through company emails, andcommunications translated into the main languages spoken in the shipyard (Tamil, Malayalam, Hindi, Bengali, and Tagalog).
Wellbeing objectives including a stand-alone health and wellbeing policy are being developed for inclusion in the 2023 objectives, targets and KPIs.

Health Champion Meeting69

70

5. SOCIAL (continued)

NAKILAT ESG REPORT 2022

Health KPI
To maintain the number of health surveillance conducted in 2021
All black trades/mechanical engineers are to undergo an annual Health surveillance
To conduct a healthy lifestyle program among employees by the end of Q3 2022
Includes smoking cessation, employee assistance programs and reduction of
alcohol consumption
To conduct a program for medical drills by the end of Q1 2022 includes
communicable diseases, heat stress, trauma and medical Illness
To enhance the staff health and welfare forum across all trades by Q2 2022
To be included the monthly department HSSE meeting and will include
subcontractors

Unit of Measure (UOM)2022

Number of health surveillance
conducted by health/medical team362

Number of healthy lifestyle program
conducted

12

Number of medical drills conducted

8

Number of staff health and welfare
forum/ health champion

3

Health and Safety Trainings

N-KOM - Confined Space Attendant Rescue
and Gas Meter Carrier Training

N-KOM - Shipyard Safety Training

N-KOM - Fire Watchman Training

Nakilat encourages employees to enhance their skills and knowledge with an extensive array of training courses. We provide our employeeswith several health and safety trainings to educate and empower them to ensure their behaviors are safe at all times, while present on
Nakilat’s premises. Please refer to the case study for more information on Nakilat’s N-KOM Shipyard training center.
Case Study: N-KOM Shipyard Training Center
The shipyard is a manpower-centric organization and training is a critical node in ensuring the desired safe performance of shipyard
activities.
The training center was established since the beginning of the shipyard, and it was revamped in 2019 as the Shipyard Training Center(STC). It delivers competency requirements for the organization, develops internal training contents on safety awareness and facilitatesskills training that are required to elevate the competence status of our workforce. STC continues to deliver health, safety and environment
training and other technical/ operational training to the employees. In addition, STC conducts safety induction on HSSE and International
Ship and Port Facility Security Code (ISPS) awareness for all newcomers to the shipyard including sub-contractors and business partners
engaged in our business.

NSW - Firefighting Training

N-KOM - Working at Height Training

Based on competency requirements identified annually by department managers and as per changing business requirements pertaining tohealth, safety and environment, trainings needs are identified and organized as per the below:
Total No. Trainings Conducted in 2022
N.

Type of Courses

Total Personnel Trained*

1

HSSE Induction and ISPS Awareness Training

6,423

2

Fire Watchman Training

1,159

3

Confined Space Attendant / Rescue and Gas Meter Carrier Training

1,320

4

Shipyard Safety Training

455

5Work at Height Training

555

6Fire Fighting Training

88

7

Hydrogen Sulphide / Breathing Apparatus Training (OPITO**)

33

8

Tropical - Basic Offshore Safety Induction Emergency Training (OPITO**)

44

9

Incident Injury Free (IIF) Training

203

10

Hazard Elimination & Reporting Programme

168

TOTAL TRAINEDNSW - Man Overboard Training

10,448*Including employees and sub-contractors**Offshore Petroleum Industry Training Organization (OPITO)

71

72

5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONSNAKILAT ESG REPORT 2022

Identification of
Critical Positions(1)

Nomination of
Successors(2)

Mapping Successors
to Critical
Positions (3)Facilitation of
Talent Forum(4)

Development of
Successors(5)

Key stakeholders:Management Approach and Progress
Employment – Attracting, Recruiting and Retaining Talent
Nakilat’s organizational values aptly reflect our belief that our employees are the most powerful asset, enabling Nakilat to achieve its
mission success. The multidisciplinary team of diverse, competent individuals across the organization, are the driving force behind thegrowth and impact of Nakilat. This requires us to not only retain our best talent, but to continue attracting young, dynamic, and further,experienced talent as needed.
The Human Resources (HR) department governs employment, and it is guided by the recruitment policy which covers the compensation,
allowances and benefits offered to its employees at all levels. Nakilat conducts reviews of policies, procedures, processes every three (3)years, in line with the company’s standard. Career plans are reviewed annually to achieve our commitment towards our employees. Thisapproach also guides our in-house recruitment team which is responsible for acquiring new talent through a robust recruitment processthat ensures hiring qualified, competent, skilled talent fairly and consistently, and reduce the risk of discrimination.
Nakilat believes that the retention of talent is paramount to its success, and it strives to surpass the career aspirations of its employees tosupport the achievement of its vision and mission to foster a positive work environment that values employee feedback and encourages
open communication between management and staff. We also strive to maintain a competitive position as the employer of choice for our
employees. Nakilat is committed to motivating and recognizing its employees for their contributions and commitments as well as aligning
their annual compensation with the company’s long-term interest. Retention is managed by implementing industry best practices, exposure
to cutting-edge projects and the latest technology systems, offering attractive and competitive salary packages and career progression,
enabled by systematic and transparent processes.
Nakilat extensively works on enhancing its Employer Value Proposition (EVP) by utilizing a combination of platforms to attract and hire thebest talents such as an internal talent pool, corporate website, online recruitment portals, newspapers, online media, social media, career
fairs, as well as employee referrals. Job applications are accepted all year round to maintain a strong pool of potential candidates.
Nakilat continues to invest in the development of its workforce, which is a critical aspect of any company’s growth and success, by providing
a plethora of interventions to address learning requirements and further development. With a total investment of QAR 3,781,137 invested in
2022, employees were provided with continuous training through various platforms such as e-learning, face-to-face training, and internalcoaching. Nakilat has also continued its investment in designing custom competency development plans for post holders and developees,
developing them towards continuous improvement and specific target positions respectively. By investing in the development of ourworkforce, Nakilat creates a culture of lifelong learning and growth; attracts and retains top talent; and positions for the company’s longterm success in a rapidly changing business environment.
Case Study: Nakilat’s Approach to Succession Planning

Phase 1:

•
•
•
•
•

Evaluate senior positions, specifically at Chief (N-1) and Manager (N-2) levels, to identify the critical positions by evaluating eachposition in terms of their business impact.

•
•
•
•

73

•
•
•
•

Facilitated by
Head of L&D and HRM
Head of L&D, and L&D team
HRM and Head of L&D
L&D specialist

Participants
Chiefs/Line manager
Chiefs/Line managers
ChiefsLine managers and employees

•
•
•
•

•

During 2022, the review of the progress and the development of nominated successors has continued as well as the continuation of
Phase 2 rollout to ensure the nomination of potential successors and mapping is complete.

•

During 2021, the implementation of succession planning continued in terms of assessing successors to identify development
needs and to generate comprehensive development plans to facilitate their growth and leverage their potential for possible future
opportunities. Based on the extensive analysis, the development of the nominated successors is ongoing and will continue with regularreviews and revalidations conducted to ensure readiness. Phase 2 of the rollout was also initiated in identifying potential successors
for additional roles in the organization.

KPIs
Total Number of Employees / Workforce

2020

2021

2022

Total number of employees

270

278(1)

272(1)

Full time

270

278

272

Part time

0

0

0

213
57

216
62(2)

210
62(2)

12

12

12

Scope

Breakdown by contract typeIndefinite or permanent contracts
Fixed-term or temporary contracts

All Nakilat and NAC
employees

Breakdown by career level
Senior management
Middle management

59

51

48

Non-management

199

215

212

(1) Total employees in Nakilat and NAC (direct hire and through third-party agency)(2) Secondees (6) to JVs are included

Employee Benefits
Nakilat provides its employees with competitive benefits in line with its HR – Rewards and Organizational Development (R&OD) policy tocompensate for their efforts and to ensure their commitment to achieving the company’s goals. These benefits include:•

Educational Assistance - The main objective of this benefit is to secure a level of schooling for all its employees (both nationals andexpats) with standards comparable to what the children would have received in their home country. Nakilat supports them financially inschool education and hostel facility dues.

These successors complete the development center’s assessments, including personality, ability, and competency-based
assessments.

•

Life Insurance is provided to all employees in both cases, death and disability.

In conjunction with the results of these assessments as well as the input from the learning needs analysis, development plans aredeveloped to address technical and behavioral competency gaps to facilitate their growth and leverage their potential for possible
future opportunities.

•

Health Insurance is provided to all employees and their dependents where they receive medical treatment/coverage.

•

Pension Contribution is provided to Qatari and GCC nationals within the company.

•

End of Service Benefits (EBS) are provided to both expatriate employees and national employees where upon termination,
expatriate employees are entitled to these benefits for all the years that they served in the company, whereas national employees areentitled to these benefits after completing 20 years of service. EBS is commonly known as a gratuity or severance payment, and it
is paid by Nakilat to its employees upon the completion of the work relationship where the leave and notice periods are inclusive ofwhether they were worked or not.

•Monetary and Non-Monetary Awards such as long service awards, team awards, outstanding achievement awards, etc.

•

Annual Merit and Performance Bonus are determined based on Nakilat’s performance in the qualifying year, employees’
performance, set budget and applicable eligibility criteria.

Screen and ratify the employees that were nominated.

Development is ongoing and will continue with regular reviews and revalidations to ensure readiness.

Phase 2:•

Activity/Step
Identification of critical positions
Nomination of potential successors and mapping
Talent forum
Development of successors and monitoring of
progress on development plans

This phase is for N-3 level positions where the latter were reviewed, and successors were nominated for these positions.

74

5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued)

NAKILAT ESG REPORT 2022

Notice Period

Parental Leave

The notice period for both the company and the employees, either due to resignation, or new acquisition and business restructuring isestablished contractually and in line with the recruitment policy. The established notice period, unless defined otherwise in the employment
contract, is as follows:

Nakilat offers maternity and paternity leaves for its female and male employees who demonstrates the company’s commitment tosupporting employees through major life events to improve employee morale and productivity. In the case of female employees, this leave isto enable their recovery following their delivery and to take proper care of their new-borns. Paternity leave, i.e., the parental leave for male
employees, is to support their family and their new-borns. In addition, Nakilat grants its female employees a one-hour nursing time daily
after getting back from their maternity leave for a period of one year.

•

On probation to 1 year of employment: Notice period of 1 month•

1 year and up to 5 years of employment: Notice period of 2 months•

Exceeding 5 years of employment: Notice period of 3 months

Nakilat grants its employees a maternity leave of 60 Calendar days and a paternity leave of 1 day.

KPIs

KPIs
During 2022, 34 new employees were hired, of which 85% were male, and 15% were females. In comparison to 2021, the total number of
new hires decreased by 21% due to a relatively stable workforce established and following optimization of manpower costs, few new roles
were introduced during 2022.
New Hires and Turnover

2020

2021

2022

Scope

Number of new hires1

Parental Leave

2020

2021

2022

Female

46

25(1)

34

Male

224

202

236

Female

5

3

4

Male

4

4

4

Female

5

3

4

Male

4

4

4

9

7

8

Scope

Number of employees that were entitled to parental leave
Breakdown by Gender(1)

Number of employees that took parental leave

Breakdown by Age
18-30 years old

3

3

7

31-50 years old

17

33

22

51+ years old

2

7

5

Male

19

43

29

Female305Total number of new hires*

22

43

34

Breakdown by Gender

Number of employees that returned to work after parental leave

Breakdown by Gender

Breakdown by Gender

Retention Rate

Number of employees leaving employment during the reporting period (voluntary and involuntary)

Total number of employees returned from parental leave who
were still employed twelve months after return to work

Breakdown by Age
18-30 years old

1

7

4

Return to work rate

100%

100%

100%

31-50 years old

19

20

26

Retention rate

100%

100%

100%

51+ years old

4

7

4

Male

18

30

24

FemaleBreakdown by Gender
6

4

10

Total number of employees leaving employment
during the reporting period (voluntary andinvoluntary)*

24

34

34

Employee turnover rate (voluntary and involuntary)

9%

12%

13%

All Nakilat and
NAC employees

All Nakilat and NAC
employees(1) The numbers are reported for all married employees only. Numbers reported in past years include all employees, irrespective of theirmarital status.

Number of employees leaving employment during the reporting period (voluntary)
Breakdown by Age
18-30 years old

0

3

14

31-50 years old

5

9

3

51+ years old

1

2

3

Male

4

11

15

FemaleBreakdown by Gender2

3

5

Total number of employees leaving employment
during the reporting period (voluntary)*

6

14

20

Employee turnover rate (voluntary)

2%

5%

7%

(1) Total employee in Nakilat and NAC (Direct hire and through third party agency, excluding outsourced*All Nakilat’s employees are based in the region of Middle East (Qatar)

75

76

5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued)

NAKILAT ESG REPORT 2022

Human Rights and Grievances

Learning and Development

Nakilat respects and upholds international standards on human rights and does not engage in any conduct that hinders or interferes withthem. Nakilat avoids infringing on the human rights of others and endeavors to address adverse impacts, which the company may be
associated with as part of its operations. Nakilat is committed to human rights where it will not engage, tolerate, or work with business
partners that employ children or minors or engage in human trafficking, forced, bonded or compulsory labor.

Nakilat is committed to developing and retaining talent and to fulfill employee potential that will support Nakilat in the achievement of its
strategic direction and operational requirements. All learning and development initiatives ensure and support the engagement, retention,and competence of employees as per the illustration below.

Nakilat also believes that its employees must be treated fairly and equally to achieve its commitments towards integrating a multinationalgroup of employees into a cohesive and effective workplace, establishing a healthy working environment and maximizing employees’
contribution to the efficiency and productivity of the company.
Nakilat’s Code of Business Ethics and Conduct ensures its commitment to human rights and summarizes the standards that guide ouractions towards achieving these commitments. These standards represent the company’s policy and establish conditions for Nakilat’s
employment. Additionally, Nakilat adopts a policy of fair dealing and integrity in all aspects of its business. It is the responsibility of Nakilat’s
employees to comply with human rights laws, behave with integrity, and treat all organizations and people in a fair and honest manner.
Nakilat’s suppliers and contractors are expected to adhere to the Code of Business Ethics and Conduct equivalent to the provisions of the
adopted policy. The Learning and Development Policy refers to the Grievance Policy under the Employee relations policy and procedures
manual for details on the grievance handling procedure.
In order to achieve fairness and equality among its employees, the company has established proper communication channels for dealing
with employees’ individual problems and grievances and has established a clear policy and procedure for corrective guidance anddisciplinary procedure, subject to a review once in 3 years.

Nakilat’s Learning and Development policy guides these initiatives by defining the processes related to performance management andlearning and development requirements of learning need analyses, annual training plans, certifications, management of training service
providers, training evaluations, and learning management systems. The policy is reviewed every 3 years by the Head of Learning andDevelopment and Human Resources Manager. Any changes to the policy are then managed and updated through the SHEQ MOC process.
The implementation of the policy is managed by the Learning and Development team and the Head of Learning and Development.

Employee Progression
Nationals with leadership capacity
and technical competence will
progress in Nakilat

At Nakilat, the performance management grievances are raised when any employee disagrees with the final ratings that have been provided
after the calibration process that is conducted with the divisional chiefs. To resolve these grievances, input is required from the employee
and the line manager to validate the ratings that have been provided and to clarify the differences in ratings. Recommendations are thenmade to Human Resources Manager (HRM) and Chief Administration Officer (CAO) to review the evidence before a final decision is made in
resolving the disagreement.

Leadership
Development

Nakilat always ensures to treat all employees fairly and equally. In 2022, no incident of discrimination has been reported.
Grievances*

2020

2021

2022

Number of grievances filed in the reporting period

5

6

1

Number of grievances addressed or resolved

5

6

1

Number of grievances filed prior to the reporting period thatwere resolved during the reporting period

0

0

0

Scope

Succession
Planning

Competence
Development
Plans

Competence
Development

Employee PerformanceHigh performance requires strong
technical competence combined withmotivation for future succession
opportunities

All Nakilat and
NAC employees*Grievances listed in the table are in relation to performance management grievances only and raised at the end of the performance
management cycle of each year (in December of each reporting year)

Security (Contractors)
Security services for Nakilat headquarters in Doha are outsourced to trusted third-party contractors through rigorous technical andcommercial exercises. Crisis communications response training and awareness session was conducted for all the security personnel to help
them in understanding their role, and to provide them with the necessary skills and knowledge to interact effectively with individuals fromdiverse backgrounds to ensure that any violations that do occur are addressed and remedied promptly. These contractors are managed by
the General Services Department within Nakilat.

77

Internal
Knowledge
Sharing

L&D

AnnualTraining Plan

Employee CompetenceTechnical competence is thecornerstone of performance

KPIs

Qatarization
Development

Accelerated
Devevelopment
Plans

We continuously monitor and track the effectiveness of our response regarding our final decision, with transparent reporting andcommunication on how impacts are addressed. To improve performance management with respect to decreasing the number of grievances,
we have planned for a whole company training on 'How to conduct Performance Management Effectively' before the mid-year process toensure that managers can develop their abilities to give effective feedback and measure performance accurately, with the aims of decreasing
the grievances raised due to mis-alignment of ratings. Furthermore, a year-end mandatory training is conducted to ensure that managers
and employees understand the performance management appraisal process and how to manage feedback discussions and provide fair andaccurate ratings.

Employee Engagement
Employees, especially Nationals, who are
possible successors and developed as
leaders will be highly engaged

To achieve these objectives, we provide our employees with world-class learning and development opportunities across all aspects ofour business. A foundational process in this regard is the learning needs analysis where we conduct a detailed gap analysis for both thetechnical and behavioral competencies of our staff. This analysis is conducted on an annual basis whereby line managers evaluate theproficiency level of the behavioral and technical competencies of our staff as defined by the employee’s job description. After identifying thesegaps, the development approach to address them is indicated by the line manager, and development interventions are defined accordingly
including training, coaching, and mentoring and/or on the job training. To further improve this analysis process, a learning needs analysis
training is provided to line managers to ensure they are able to provide effective input regarding the requirements for training.
Given Nakilat’s aim to develop a culture of high performance and continuous learning, this assessment of learning and development needs,
as well as additional mandatory business training requirements informs the customization of development opportunities to enhance
employee competencies for current and future organizational needs. In this regard, learning interventions align to the following framework.

78

5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued)
1.

Technical Training

2.

Behavioral and Interpersonal Skills Training

3.

Safety, Security and Compliance Training

4.

Induction, Orientation and New Joiner Mandatory Training

5.

Leadership and Personal Effectiveness Training

6.

Language Training

7.

Information Technology and Risk Management Training

8.

Internal Knowledge Sharing and Capabilities Training

Applicable
Population

Learning
Objectives

Assessment
MethodTechnical Training

All Staff

Technical
competencies foreach role are at therequired level

Learning Needs
SAP ADM328 HANA
Analysis/
Conversion, Certified
Development Centre Cloud Security
Professional, Financefor Non-Finance
Professionals, ISO
45001:2018 Lead
Auditor, E&Y IFRS
Update and many
more.

Safety, Security
and ComplianceTraining

79

Training
Categorization

Training
Categorization

Behavioral andInterpersonal
Skills Training

All Staff

All Staff

Behavioral
competencies foreach role are at therequired level

Ensure thecontinuation of an
Incident and Injury
Free workplace.
Compliance withsafety standards
and legislation

NAKILAT ESG REPORT 2022

Types of Trainings

Learning Needs
Soft skills andAnalysis /technical competence
Development Centre applications with eachrole.

Mandatory SHEQ
Training Curriculum

Health and safety
training programs,delivered by internal
trainers and external
consultants.

Applicable
Population

Learning
Objectives

Assessment
MethodNew Staff
Induction,
Orientationand new joiner
mandatory Training

Integration of newjoiners into theorganization culture
and familiarization
with critical training
programs

Mandatory Learning Health and safety
Foundations
training, courses forTraining Curriculum all new staff according
to their role andseniority.

Completed 24 newjoiners mandatory
training from ER,
as well as the
Learning Foundation
Programme.

Leadershipand Personal
EffectivenessTraining

Management
Grades (Managers/
Heads and highpotential managing
leaders)

Enhancement ofmanagement corecompetencies andthe developmentof leadershipcapabilities

Learning Needs
Analysis / SMT
Corporate Program

44 employees
successfullycompleted theLeadership
Development
Programme last Feb
2023. This leadershipdevelopment
programme waslaunched in 2021
and continues in
2022 and completed
2023. All threecohorts completed
the programmecompiled of facilitatedexperiential learningand executive
coaching.

Language Training

Non-Native English
Speakers

Competence inverbal and written
English language
skills to IELTS level
5.5

English Language
Learning Needs
courses
Analysis /Development Centre

Information
Technology and
Risk Management
Training

All Staff andSpecialist IT Staff

Ensure effective
use of IT systems
and programs, anddevelopment of thelatest technology
in support ofoperations

Learning Needs
Analysis / System
UpgradesInternal knowledge
sharing andcapabilities
Training

All Staff

Core Process
Cross-fertilization
and Procedureand transfer
Requirementsof knowledge
internally to create
greater synergy
among departments
and groups

2022 Update

Types of Trainings

Executive 1-2-1
coaching from a
professional coach.

- Delivered 67
technical training
programs to 81
employees with 127
training occurrences.
- Our Shipyard
Training Centredelivered technicaltraining programsfor staff working on
our shipping Joint
Venture companies
in areas such asmechanical, piping,electrical, welding andmaintenance.
285 courses were
offered in 2022 with
topics such as being
an effective teammember, public
relations foundations,
Microsoft powerapps feedback skills,
development of trust,communication skills,
project management
and personal
effectiveness, etc.
Delivered 20
mandatory courses
which equated tojust over 1100 hoursof training. Courses
included topics suchas defensive driving,incident and accident
reporting, lifesaving
rules, and information
security.

2022 Update

2 Nationals
completed English
Training.

SAP UX 100 SAP Fiori
Foundation, SAP
UX400 Developing
Uis with SAPUI5,
Comptia Project+,
Certified Secure
Software Lifecycle
Professional,
Microsoft Course
Identity with Windows
Server 2016

14 IT Courses weredelivered in 2022.

Nakilat Internal
Capabilities
Enhancement(NICE) program toshare knowledge
and insights related
to the different
business operations
and to enable theimprovement ofpresentation andpublic speaking skills.

Delivered 36 topics
with 38 NICE session
specialized trainings;
794 man-hours of
training conductedby our staff intheir respective
expertise areas oncommon processes
and practices that
could impact otheroperations.

80

5.2 HUMAN CAPITAL AND EMPLOYEE RELATIONS (continued)

NAKILAT ESG REPORT 2022

Enhancing Skills and Knowledge of Qatari Nationals to Access Jobs in the Shipping Industry
Nakilat is committed to enhancing the skills and knowledge of Qatari nationals as well as helping them access jobs within the shipping industry. Ourcommitments are achieved through raising awareness of the opportunities present within the industry, including raising awareness about career
paths and professional development opportunities within Nakilat.

Budget Spent on Learning and Development*
Thousands Qatari Riyal

Our annual internship program enables university and school students to get hands-on knowledge and an opportunity to learn from subject matter
experts in the business for a 6-week period. In 2022 we hosted 2 interns who were university students in the Finance and SHEQ departments
respectively. Furthermore, our recruitment program aims to raise awareness about the marine sector and available jobs in the sector and we
provide the opportunity for students to study as Marine Cadets on sponsorship where upon graduation, the marine cadets are certified to go on
deck ships and be part of the fleet on deck operating these vessels. Nakilat also provides customized development plans to ensure a structured andtailored approach to increasing their competencies and skills.

3,781

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

2,362

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

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

81

Learning and Development
Total training hours
Average training hours per employee
Breakdown by career level
Senior Management
Total training hours
Average training hours per employee
Middle Management
Total training hours
Average training hours per employee

2020
4,125
15

2021
7,438
27

2022
11,269
42

12
93
8
59
805
14

12
293
24
51
1,728
34

12
156
13
48
2,936
61

Non-management

199

215

210

Total training hours
Average training hours per employee
Breakdown by Gender
Male
Total training hours
Average training hours per employee
FemaleTotal training hours
Average training hours per employee
Performance reviews
Total number of employees receiving regular performance and careerdevelopment reviews
Percentage of employees receiving regular performance and careerdevelopment reviews (%)
Breakdown by Gender
Female
Male

3,227
16

5,417
25

8,177
39

3,228
14

5,725
24

9,064
38

897
19

1,712
41

2,205
65

220

229

226

81%

82%

84%

36
184

37
192

34
236

Scope

2020

2021

2022

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

All Nakilat and
NAC employees825.3 DIVERSITY AND INCLUSIONNAKILAT ESG REPORT 2022

Management Approach and ProgressFemale Employment

2020

2021

2022

Nakilat is committed to providing a workplace where our employees
are respected and treated fairly in line with our Code of Business
Ethics and Conduct.

Total number of employees with disabilities(number)000Total % of employees with disabilities (%)

0

0

0

Nakilat hires, evaluates, transfers, compensates, and promotes
employees based on skills and performance. Employees facing
discrimination have the right to voice their concerns to theirsupervisor, a member of the management, human resources
contact, or a member of the Ethics Committee. Reprisals or
retribution against an employee who lodges a complaint in goodfaith is not tolerated.

By career level
Number of female employees

0

0

0

Percentage of female employees

0%

0%

0%

Board of Directors

Senior management
Number of female employees

0

0

0

Percentage of female employees

0%

0%

0%

Number of female employees

7

6

3

Percentage of female employees

12%

12%

6%

Number of female employees

39

36

31

Percentage of female employees

19%

17%

15%

0.82 to 1

1.03 to 1

1.17 to 1

Nakilat’s approach to managing diversity in the workplace iswith actionable tips and advice, and by maintaining effective
communication with employees. Policies, procedures, safety
rules and other important information are designed to overcome
language and cultural barriers.

Middle management

Equal Pay

Non-management

The company conducts market surveys to ensure fair and competitive pay in comparison to its peers. The ratio of the entry-level wage isequal to 1 (as a minimum) or above the Qatar minimum wage, for both male and female employees. Nakilat conducts applicable reviews toensure compliance with this requirement and rectifies any cases if found.

KPIs
In 2022, the youth employment rate decreased by 2%, with six graduates and emerging talent joining the business. The female employment
rate decreased by 2% in 2022. Nakilat adopts an equal opportunity approach when hiring, and considers candidates based on their skills,
experience, and competencies to meet the job requirement.
Diversity and Inclusion (Employees)

2020

Scope

2021

2022

Scope

All Nakilat
and NAC
employees

Equal Pay
Gender pay ratio (Ratio of basic salary* andremuneration of women to men)

N-KOM andQFAB notincluded*Median male salary to median female salary
Nakilat ensures an alignment with the recruitment policy where it has a diverse workforce of 38 nationalities as represented in the table below.

Breakdown by age

Workforce Nationalities

No.

%

18-30 years old

45

35

31

Pakistani156%31-50 years old

199

209

196

Filipino

23

8%51+ years old

26

34

43

British

24

9%

11%

Qatari

56

21%

Other Nationalities

72

26%

Indian8030%Youth employment rate

17%

13%

Breakdown by gender
Male

224

236

236

Female46

42

34

Female employment rate

17%

15%

13%

34%

30%

30%

All Nakilat and
NAC employees

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

83

84

5.4 RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN

NAKILAT ESG REPORT 2022

Nakilat Supply Chain:
The stages of Liquefied Natural Gas (LNG) supply chain consist of natural gas production and exploration, liquefaction and storage, shipping
and receiving, regasification and distribution. Nakilat’s business and operations in the shipping services within the LNG supply chain play amajor role in providing the essential transportation link in Qatar’s LNG supply chain, enabling access to cleaner energy to various countries
around the world.

NATURAL GASLIQUEFIED NATURAL GASNATURAL GAS

Logistics

Teamwork

Quality
Awareness

The corporate products and services procured by Nakilat are:•IT products•

SHEQ products•

Various corporate products, including food, table and chairs•

Various corporate services, including rental of premises,
electricity and cleaning services

Distribution
Quality
Assurance

Objectives

Goods andServices

Cost

SavingStrategy

In addition to the services provided, the Supply department assists
with the following, as per the illustrative image on the right:
PRODUCTION

LIQUEFACTIONREGASIFICATION

TRANSPORTATION

Agreement

CONSUMPTIONINFRASTRUCTURE

Awareness

Nakilat Scope of Operations

Management Approach and Progress
Nakilat’s Supply department is one of the main stakeholders in various projects across our company as it provides a diverse range of spareparts and services to the end users, including Nakilat’s marine, corporate, and joint ventures.

Nakilat maintains close and mutually beneficial relationships with its suppliers and contractors as a direct result of our commitment tolong-term collaborations with business partners who share our values and commitment to rigorous ESG standards, maintaining a view onsafety, quality, business resilience, environmental emissions, and the ultimate goal of continuously improving our business operations andprocesses. We continue to support the local economy through procurement from local suppliers whenever possible.

IT Investments
Services

Products

Projects

Corporate
Services

Corporate
Materials

MEGL Buildings
Transition

MarineServices

JV Interface
Services

MarineProducts

VesselTransition

VSU
Services

Ship Chandery

VesselAcquisiton

Logistics
Services

IT Products

Deploying New
Process in SAP

TawteenSupplier
Relationships

SHEQ
Products

DryDocking

For the marine segment, Nakilat’s Supply department offers a variety of services, spares or consumables needed for our vessels to movecargo from the loading point to the discharging point and vice versa, including:•Marine services: maintenance and repairs, dry docking, classification societies, overhaul, and inspection•

Marine products: original equipment manufacturer spares for any type of machinery and equipment available on board•

Marine consumables and ship chandlery: safety equipment, lubricating oil, paint, chemical and gases, tools, gasket and food•Marine logistics: to supply the service and the goods to the vessel

IT infrastructure, enterprise applications, and communications are critical area of importance to Nakilat that enable the productivity of thecompany. Nakilat continues to invest in the latest technologies, such as cloud data centers, software services, and satellite communications
to meet market expectations. Through close collaboration with IT specialists, we take advantage of innovation, acquiring the latest and mostreliable software and hardware to facilitate our day-to-day activities. In 2021, we invested in Artificial Intelligence (AI) for invoice processing,robotics automation processing (RPA), and enterprise content management to meet the increased demand for fleets under Nakilat ship
management, thereby boosting our operational excellence. Our ERP system was migrated into the latest available edition to support the
new business demands. Our satellite communications onboard the vessels were upgraded with KA band capabilities and unlimited Fleet
Xpress connectivity solutions to improve the onboard experience, exemplified by our crew entertainment services with enhanced internet
speeds so that they can keep in contact with their loved ones. As a result, Nakilat’s IT expenses increased by 64% between 2021 and 2022,
reaching a total value of QAR 15.4 million.
Information Security and Data Privacy

2020

2021

2022

IT expenses (QAR millions)

7.9

9.3

15.4

Breaches of customer privacy and losses ofcustomer data (number)

0

0

0

Scope
Nakilat Group*Yearly average

IT Investments* (millions QAR)

15.4
9.3
7.9

2020

85

2021

2022

* Yearly average865.4 RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN (continued)

NAKILAT ESG REPORT 2022

Third-Party Code of Conduct

Supplier Environmental Assessment:

Nakilat has integrated a third-party supplier code of conduct in the template of its contracts, terms and conditions and invitation totender. Vendors are requested to provide a signed version of the document or to confirm their acceptance. The third-party code of conduct
encompasses social aspects, including human rights, labor laws, child labor, health, and safety matters. Additionally, our suppliers arerequested to provide their certifications, including ISO 14000 (Environmental Management), which is vetted for accuracy prior to the entity’s
registration as an approved supplier. To ensure their compliance with international standards, suppliers are also required to complete thevendor questionnaire which includes our ESG requirements.

Nakilat has in place a procedure for supplier assessment on environmental matters. Nakilat is responsible for effectively managing andoverseeing the performance of its suppliers. This includes establishing, controlling, and updating the approved suppliers used. By doing so,
Nakilat ensures that the anticipated value and benefits identified during the contracting strategy development phase are duly realized.

In a bid to support the company’s green procurement initiatives, Nakilat consolidates group demand, resulting in the maximization of work
efficiency and the minimization of paperwork and effort. In addition, we purchase products and services that support our sustainability vision.

KPIs (Shipping)

Local Procurement

Responsible Procurement and Supply Chain

As part of Nakilat’s ESG strategy, we engage responsibly and ethically with our suppliers to foster direct and indirect job creation andincrease shared value across the supply chain. Nakilat works with different suppliers and vendors, national as well as international fromboth emerging and developed economies. Our foreign suppliers include UK, USA, Singapore, Netherlands, South Korea, Norway, and othercountries from different regions.

Supplier environmental assessment

In 2022, Nakilat’s activities generated a wide range of direct and indirect jobs worldwide. In 2022, the company engaged 329 suppliers
globally, representing 56% of total suppliers. That same year, the value of purchased goods and services amounted to approximately USD
302 million, of which approximately 69% have been paid directly to foreign countries due to end-user requirements. The percentage of total
procurement from local suppliers increased by 36% in comparison to 2021 with a value of purchased goods and services amounting toapproximately USD 94 million.
Local Procurement
Year

2020

2021

2022

Scope

from local suppliers

80,204,110

69,194,899

94,050,214

from foreign suppliers

105,696,606

132,659,162

207,830,245

43.1%

34.2%

31.2%

Local

292

251

255

Foreign

300

326

329

Percentage of total procurement from local suppliers

Value of Goods and Services(Millions USD)

Nakilat and
NSQL

Number of Suppliers
208

292

300

251

326

255

329

133
106

2020

Suppliers identified as having significant actual and potential
negative environmental impacts (number)

2021

2022

100%

100%

100%

0

0

0

Scope

Shipping

KPIs (Non-Shipping)
N-KOM: Pre-qualification of all new suppliers includes environmental certification as part of the evaluation criteria
NSW: Vendor questionnaire updated to include ESG requirements. Pre-qualification of all new suppliers includes environmental certificationas part of the evaluation criteria
QFAB: Vendor questionnaire updated to include ESG requirements

No suppliers have been reported to have a significant actual or potential negative impact on the environment.

Number of suppliers

80

New suppliers assessed for environmental impacts (%)

2020

Corporate: The new vendor questionnaire has been updated to include the ESG requirements

Value of goods and services (USD)2021

Responsible Procurement and Supply Chain

2020

2021

2022

Suppliers assessed for environmental impacts (number)

10

20

18

Number of suppliers identified as having significant actual andpotential negative environmental impacts

0

0

0

Significant actual and potential negative environmental impacts
identified in the supply chain

0

0

0

Percentage of suppliers identified as having significant actual andpotential negative environmental impacts with which improvements
were agreed upon as a result of assessment

0

0

0

Percentage of suppliers identified as having significant actual andpotential negative environmental impacts with which relationships
were terminated as a result of assessment, and why

0

0

0

Scope

Supplier environmental assessment

Nonshipping

Note: The data in this table refers to N-KOM and QFAB only.

94
69

2022
QATAR

87

Implementing Supplier Performance Management (SPM) brings advantages to the business. These include enhanced Safety, Health, andEnvironment (SHE) practices, improved efficiency, higher quality standards, access to innovative technologies, increased competency, andcost savings. SPM plays a pivotal role in optimizing supplier relationships and driving overall performance excellence within Nakilat.

FOREIGN

2020

2021

2022
QATAR

FOREIGN88

5.5 COMMUNITY ENGAGEMENTManagement Approach and Progress

Community

Nakilat’s Corporate Social Responsibility (CSR) framework comprises of four key pillars: Education, Community, Health and Environment.
In the coming years, we aim to conduct social impact assessments across the four pillars, taking into consideration ethnic background,indigenous descent, gender, age, migrant status, socioeconomic status, literacy levels, disabilities, income level, infrastructure availability or
specific human health vulnerabilities which may exist within the stakeholder community.

Community is at the heart of our operations at Nakilat. In accordance with the Qatar National Vision 2030, Nakilat is focusing on community
development and engagement that facilitates the development of our people in Qatar; thus, promoting a prosperous society and achieving
the Vision’s goal of human development.

We are proud to increase our social and sports fund contribution in 2022 by 6% in comparison to 2021.

Education
Putting an emphasis on youth development, Nakilat launched a student outreach program targeting local school and university students.
The program aims to provide the students with career advice and guidance, as well as expose them to the growing maritime industry
in Qatar. In this program, students learn how to effectively write a professional Curriculum Vitae (CV) from the company’s Learningand Development (L&D) team. As part of the program, Nakilat representatives also regularly share their personal career journeys andexperiences through student engagement sessions, encouraging the students to adopt a lifelong learning approach towards achieving theirgoals in the future. However, as a result of the COVID-19 pandemic, this program has been concluded this reporting year.
We also have long-standing partnerships with different universities in Qatar including Qatar University (QU), Northwestern University (NUQ), Georgetown University (GU-Q), Carnegie Mellon University (CMU-Q) and Texas A&M University, extending support in the completion ofmanagement projects to final year students. Nakilat provides these students with relevant information on our management and operations,by revealing our company’s multiple facets; thus, fostering strong student relationships. In 2021, 3 students from CMU-Q studying Bachelorof Science Major in Information Systems were hosted at Nakilat where they had exposure to the Information Technology department for a
3-month internship.
In 2022, we continued working closely with Georgetown University Qatar (GU-Q) for the Leadership Development Program (LDP), which
gives us direct access to Qatar and USA faculty who teach the program. We strengthened our formal partnership agreement with GU-Q bylaunching our in-depth LDP for our management groups including Qataris and we agreed to support their undergraduate students in their
final year research projects. The 12-month program has been customized and tailor-made to develop and meet the Nakilat leadership’s
needs, including a one-to-one executive coaching embedded program. We consider this program an important point in its investment in thedevelopment of the human element.

89

NAKILAT ESG REPORT 2022

In 2022, the company worked closely with several organizations across Qatar to conduct a number of community outreach initiatives. We
collaborated with Earthna, a member of Qatar Foundation, and presented our contributions to a sustainable maritime sector at the Awsaj
Academy. The presentation discussed new technologies to achieve low emission targets, CSR initiatives and training and development in theworkplace. We continued association with Qatar Museums as a Patron Sponsor of the children’s adventure park at the National Museum of
Qatar.
A roadmap of life-balance success is yet another pillar to a successful employee engagement strategy. In 2022, Nakilat held its annual
Townhall, bringing together all employees across Nakilat and its joint ventures in person and in one place for the first time since the
COVID-19 pandemic, when the Townhall was last held virtually. The Townhall provided an excellent opportunity to recognize and award
longest-standing employees as well as engage in open dialogue and address questions to Nakilat’s Senior Management Team. Nakilat
also engaged its workforce through the celebration of the FIFA World Cup Qatar 2022, where it organized football-themed activities for its
employees.

HealthAs part of our CSR commitment towards championing the health of our workforce and the community, we conducted several activities inalignment with QNV 2030, to promote the creation of a healthy and sustainable population in the country.
The COVID-19 pandemic gave rise to many challenges to our business functions. The main priority of the company has been to safeguard
the health and safety of its people while maintaining safe and reliable operations. The COVID-19 Awareness and Prevention Plan and General
Guidelines were established to minimize the risk to our employees and operations. Nakilat successfully managed to navigate the pandemic
with minimum impact on our staff’s health and wellbeing. By July 2021, the company achieved a 95% staff vaccination rate. Nakilat ensured
continuity of its operations despite the logistical hurdles posed by the pandemic owing to the testing regime, travel restrictions andquarantine requirements.
Nakilat also conducted a seasonal ‘Flu Vaccination Drive’ at our corporate office and shipyard facility where we administered flu shots toall our staff in coordination with Ministry of Public Health (MoPH). The vaccination drive was extended to the families of our employees tosignificantly reduce the chances of getting the flu and thereby prevent it from spreading. Additionally, we organized a health and wellbeing
campaign in partnership with Naseem Medical; thus, allowing our employees to avail a basic medical check-up as part of our efforts topromote health and wellbeing amongst all staff. Check-ups included medical assessments, physician consultations, eye and ear checkup, dermatology and dental consultations. The campaign was organized by Nakilat HQ to encourage employees to take a moment forthemselves and monitor their own health and wellbeing.

905.5 COMMUNITY ENGAGEMENT (continued)
In 2022, Nakilat also conducted cancer awareness talk for all employees including JV
employees by a specialist speaker from Qatar Cancer society, informing employees about
the early signs and symptoms of cancer. Some cancer symptoms can be difficult to talkabout, so opening a conversation about them can help recognise the importance of early
detection and seeking medical advice, even if they feel embarrassed. By following theseguidelines, and being better informed about cancer, people can significantly reduce theirhealth risk, and enjoy a healthy and happy life.

your prediabetes diagnosis.

Adittionally in 2022, we also arrangedfor diabetic session for all our
employees in collaboration from Qatar
Diabetes society to raise awarenessabout the disease, as well as ensure
the employees have the necessary
knowledge, skills, and confidence tosuccessfully manage their diabetes andsupport those who care for a family
member with diabetes. The session
also talked about various programs tolower risk of having a heart attack or
stroke, improve your health, help you
feel more energetic, and even reverse

6. GOVERNANCE

NAKILAT ESG REPORT 2022

6.1 Corporate Governance, Compliance and Ethics
Management Approach and Progress
Corporate governance is described as the systems of rules, practies and processes by which companies are governed and ensures thatcompanies follow an appropriate and transparent decision-making process, and that the interests of all stakeholders and shareholderes areprotected. The company’s board of directors and executive senior management strives to build long-term relationships and commitment
among various Nakilat’s stakeholders to meet the company’s goals and objectives, and to stand in support of our sustainable success basedon strong principles of governance.
Nakilat believes that adopting best governance practices and standards will enable us to realize transparency, integrity, trust and enhance
the confidence of debtors, lenders, and shareholders in the company, as well as assist investors to make well-informed investment
decisions. Nakilat identifies governance as a framework to align the interests of all our stakeholders behind its purpose to unlock the power
to delivering clean and reliable energy to enhance quality of life for everyone around the world.

For the remainder of the year 2022, Nakilat ran a Hand and Finger Safety Campaign for
all its frontline workers both ashore and onboard in coordination with all its Joint venturecompanies.
At Nakilat, we also promote an active lifestyle among our employees and across
our community by launching different sports activities that help reduce their stress. As a result of this commitment, we established apartnership with Aspire Zone. This partnership provides access to sports infrastructure and facilities to communities in Qatar; thus, creatingand enabling sustainable lifestyles. We have an agreement with Aspire Zone where our employees are equipped with memberships toaccess their sporting facilities in Doha and participate in customized activities such as Marathons. Due to the COVID-19 pandemic andrestrictions on public gathering, this has been put on hold temporarily.
At Nakilat, employee safety is our top priority. We are committed to providing safe and healthy work environment, ensuring our employees
return home to their families safely.

Environment
At Nakilat, we aim to minimize the environmental impact of our operations and give back to the community by organizing outreachactivities such as tree planting and by engaging with students at local schools to raise awareness on the importance of trees, environmental
protection, and its role in protecting the earth. Supported by Qatar’s Ministry of municipality nursery and Ras Laffan Industrial Complex,
N-KOM participated in a tree plantation drive near Ras Laffan Complex buffer zone. Qatar Fabrication Company commemorated World
Cleanup Day by organizing a beach clean-up activity at the Al Khor beach, with over 100 staff and family members volunteering to create asustainable environment.
N-KOM also participated in the conservation of marine life through the ‘turtle beach clean-up’ initiative. The activity focused on ensuring thatthe beach could offer a conducive environment for the Hawksbill sea turtles to nest.

91

Recognizing the relationship between good governance and sound financial performance, Nakilat strives to adhere to leading and best
governance practices and complies with Qatar Financial Markets Authority (QFMA) governance code. Nakilat’s issued governance report has
been prepared in compliance with QFMA governance code reflecting Nakilat’s effort to meet all relevant regulatory requirements, and it isshared with all concerned stakeholders and the public on Nakilat’s webiste.

926.1 CORPORATE GOVERNANCE, COMPLIANCE AND ETHICS (continued)
Nominating and Selecting the Highest Governance Body

Remuneration

In addition to the Nomination Committee’s main duties reported in Nakilat’s Corporate Governance Report, the Nomination Committee also
recommends to the Board suitable candidates and ensures that the shareholders have criteria in place to help them in electing the mostsuitable candidates for board membership. The selection process considers the existing Board structure, size, composition, and diversity(including independence, skills, knowledge, educational backgrounds, and areas of expertise) and senior executives following Nakilat’s ESG
strategy. The Nomination Committee assesses the functional and operational skills required to be suitable for the position, including, but notlimited to, current or past ESG and sustainability experience. Regarding diversity in broader terms, Nakilat assesses the age of its executives
and directors, their leadership stability (represented by the frequency of executive and director turnover) their background and theirinternational exposure in different industries and sectors. The Nomination Committee conducts an annual self-assessment of the board’s
performance, and then presents its evaluation to the board, identifying gaps and areas of improvement, if any.

For the remuneration of senior executives, we follow the standard applicable policies and procedures of the company. There is acomprehensive policy and procedure in place for employees’ compensation, allowances and benefits at all levels including the executive
management.

Collective Knowledge of Economic, Environmental, and Social Topics
The board of directors has a balanced and right mixture of skillset, education, knowledge, and expertise to effectively manage and protect
the best interests of the company, partners, shareholders, and other stakeholders.
Nakilat’s corporate governance report presents a list of programs at Nakilat to enhance the executive and board-level collective knowledgeof economic, environmental, and social topics. In addition, regular awareness-raising programs are provided to the ESG Committee
members to hone their understanding and keep them up to date with the latest trends and emerging themes, whenever it is required,including, specific ‘Deep Dive’ presentations on ESG topics.
Furthermore, all Board members collectively have strong expertise in the oil and gas and marine transportation industry; as well as ESG
expertise, including risk management, through their current and past executive positions and serving on the Boards of large complex
multinational companies, including Nakilat.
For more information on our approach to corporate governance, please refer to Nakilat’s Code of Business Ethics and Conduct, Annual
Report and Corporate Governance Report.

Communicating Critical Concerns
Quarterly Performance Review (QPR) meetings are conducted with the CEO and the Senior Management Team (SMT) to review updates on
corporate and departmental KPI performance targets and corporate initiative progress. The focus of the meetings is to highlight any major
deviations from the target and review the mitigation plans being undertaken to get back on track. Major actions are captured and circulated
to the SMT and CEO for follow-up.
Nakilat complies with the laws of the State of Qatar and abides by all the applicable laws of the countries where it operates. Nakilat is listedon the Qatar Stock Exchange and complies with the Qatar Financial Markets Authority law and associated regulations. Nakilat’s compliancewith Qatar’s Financial Markets Authority (QFMA) governance code is audited by external auditors.
By the nature of its activities, Nakilat’s vessels operate in a highly regulated environment and comply with the requirements of the laws of
the Flag State and with the international declarations, conventions and treaties such as the International Convention for the Safety of Lifeat Sea (SOLAS, 1974, as amended) and the International Convention for the Prevention of Pollution from Ships, 1973, as modified by theProtocol of 1978 relating thereto and by the Protocol of 1997 (MARPOL), amongst others related to the transportation of LPG and LNG. In
addition, Nakilat complies with the requirements imposed by regulatory authorities, governmental organizations, classification societies andstandards imposed by our charterers that are applicable to Nakilat’s business.
Nakilat’s Code of Business Ethics and Conduct highlights the importance of compliance with laws and international standards concerning
the social and economic area, including accounting and prevention of tax fraud, corruption, bribery, ensuring and promoting fair competition,
the provision of products and services, and avoiding workplace discrimination, among others.
Compliance with Nakilat’s Code of Business Ethics and Conduct is of utmost importance. Any breach or potential breach is investigatedand may result in the termination of employment, or of the relationship with the concerned third parties including vendors, suppliers, andcontractors.
In 2022, we have not identified any non-compliance with any laws and/or regulations concerning the social and economic area.

93

NAKILAT ESG REPORT 2022

Nationals are eligible for pension upon their retirement, whereas expatriates are eligible for end-of-service.
The senior executives follow the same performance criteria applicable to other company employees, as per the learning and development
policies and procedures in place, which are linked with the remuneration policies and procedures in terms of merit, bonus, and other awards
eligibility.

Political Activities
Political activities that employees are prohibited from doing while acting on behalf of the company include:a.

Contributions of company funds, cash or in-kind, or other resources in support of political activities, organizations, political candidates,
parties or officials in the state of Qatar or anywhere else in the world, unless permitted by law and approved by the Board of Directors.

b.

Solicitation of political contributions from individual employees.

c.

Political activity in the countries in which he is not entitled to exercise civic rights.

d.

Contributions, donations or support to organizations that have social, cultural, educational or artistic missions are excluded from thisdefinition.

e.

Signing petitions, letters or statements, that would prejudice the reputation and prestige of the State of Qatar or adversely affectrelations with other countries.

f.

Inducing others to join in similar type pf political activities.

g.

Distributing flyers or other publications related to political messaging.

Ethics Committee
Ethics Committee (Constitution Mandate)
The Ethics Committee shall report directly to the Chief Executive Officer of the company. Its composition, responsibilities and procedures
shall be as follow:

Composition
Nakilat CEO shall appoint the voting members, consisting of six (6) Members; a chairman and five (5) other members.
Members of the Ethics Committee shall be company employees, who collectively have broad knowledge of and experience with thecompany’s business activities and discipline and occupy managerial positions to facilitate fair, objective and impartial judgment.
The members of the Ethics Committee cannot delegate their roles. Each Committee member is appointed for a term of four (4) years, whichis reviewed bi-annually. An appointment to the Ethics Committee may be revoked only by a written resolution of all the other Committee
members. A copy of any such resolution must be addressed to CEO for endorsement.
A quorum for the purpose of any meeting is as per the following schedules:
Number of Member

Quorum

4

3

5

3

6

4

In the event of a tied vote, the Chairman will cast the final vote.

946.1 CORPORATE GOVERNANCE, COMPLIANCE AND ETHICS (continued)

6.2 ANTI-BRIBERY, ANTI-CORRUPTION AND FAIR COMPETITION

Responsibilities

Management Approach and Progress

The Ethics Committee, which reports to CEO, shall deal with all questions related to the Code of Business Ethics and Conduct. Its major
responsibilities are:Anti-Bribery and Anti-Corruptiona.

Assist CEO and/or HR with reviewing and providing consultancy services to matters in violation to the Code of Business Ethics &Conduct as referred to by HR.

b.

Draw matters within its mandate to the attention of the CEO as occasion requires.

c.

Act where appropriate as the Disciplinary Hearings Committee.

d.

Review those cases reported through the anonymous reporting (whistleblowing) channels and referred to the Ethics Committee by the
Chief Internal Auditor.

e.

Conduct or authorize investigations into any matters as it shall deem appropriate, including the authority to request any Employee orexternal party working under an agreement with the company to meet with the Committee.

f.

Run periodical campaigns through publications to increase the level of awareness to the Code of Business Ethics and Conduct.

g.

Review and assess all the report periodically to ascertain campaigns are also designed on emphasizing cases of frequent breaches to
the Code of Business Ethics and Conduct.

Whistleblowing – Reporting Issues to Designated Authorities
All employees are expected to assume the responsibility, to ensure that any concerns and observations, which deviate from our values andcontradict to the code of Business Ethics and Conduct, shall be reported immediately to the designated authorities.
If any employee reasonably believes that any policy, procedure, practice, or action of the company or any of its employees is in violation of
the laws, regulations, or the Code of Business Ethics and Conduct, he or she should report the violation immediately.

NAKILAT ESG REPORT 2022

Nakilat is committed to conducting business in compliance with theprinciples established in its Code of Business Ethics and Conduct andthe laws and regulations applicable in the countries where it operates.
Likewise, the company is committed to the highest standard of ethicalbusiness conduct with zero tolerance for any form of bribery or
corruption. Nakilat works pro-actively to ensure that corruption does
not occur throughout its operations, both within the State of Qatar
and globally.
It is the policy of Nakilat that all employees, consultants and agent
are prohibited from offering, authorizing, giving, paying, soliciting,
accepting or receiving, either directly or indirectly, any bribe to orfrom any employee, official or agent of any government, public orcommercial entity, or individuals, in connection with the businessor activities of Nakilat. This includes the giving or receiving of an
improper advantage through undue influence, preferential treatment
or any other form of illegal payment. Nakilat wholly owned
subsidiaries must also comply with this requirement.
These prohibitions do not apply to the situations where an individual’s
health, life and liberty are at risk.

Anti-Corruption Laws

In the first instance, employees shall address the concern, to their manager, but if it is not feasible or employee is unsatisfied to approach
the manager (either line supervisor, department manager or group chief), then he/she shall approach Internal Audit department withinhuman resources department.

Anti-Corruption laws of most developed countries contain two important provisions: (1) that it is a crime to bribe any person anywhere in
the world to influence a decision to obtain or retain business or gain a business advantage; and (2) a requirement that companies must havegood accounting standards, accurately record transactions in their books and records, and maintain adequate internal controls.

Following are examples of issues, which shall be addressed to Head of HR Shared Services of his delegate:

Bribery is a crime in Qatar and the law imposes penalties for public officials convicted of taking action in return for monetary or personal
gain, or for other parties who take actions to influence or attempt to influence a public official through monetary or personal gain. The
current Penal Code governs corruption law and stipulates that individuals convicted of corruption may receive up to ten years’ imprisonment
and/or a fine of 5,000 Qatari riyals. Corruption investigations are handled by the Qatar State Security Bureau (QSS) and Public Prosecution,
which is under the Attorney General’s authority. Final judgments are made by the Criminal Court.

a.

Head of the department/section reporting about his direct subordinate.

b.

Employee who is the victim of misconduct/behavior from peers or other employee within the company.

c.

Employees observation with regards to the policy and procedure practices in the company, which violates any governmental
regulations of Code of Business Ethics and Conduct.

d.

Employee reasonably believed that an employee is involved in practices, which contravened to this policy.

e.

Employee is approached by external vendors, seeking favor or offering gifts.

If the employee is not satisfied with any of the above options, or if the employee wishes to make an anonymous report, then he shall reportthrough whistleblowing channels at: compliance_reporting@nakilat.com

As a member of the Qatar Exchange, Nakilat is bound to its Corporate Governance Code for Companies Listed in Markets Regulated by the
Qatar Financial Markets Authority. This code requires all companies to adopt good accounting standards in accordance with International
Financial Reporting Standards, accurately record all transactions in their books and records, and maintain adequate internal controls.

Anti-Money Laundering Laws
Nakilat is committed to comply with applicable anti-money laundry law and regulations wherever it conducts business. It will only perform
financial transactions with verified recipients and financial institutions for legitimate and substantiated expenses and in accordance withproperly executed contractual commitments.
Money laundering occurs when the proceeds of crime are hidden in legitimate business dealings, or when legitimate funds are used tosupport criminal activities, including terrorism. Nakilat employees, consultants and agents must be cognizant of suspicious transactions
involving numerous or unusual counter-parties and/or monetary transfers. It expects all such relationships and/or exchanges to undergoa rigorous review in accordance with Nakilat’s due diligence standards. This includes for all customers, suppliers, joint venture partners or
any other third parties, especially whereby unusual or suspicious monetary requests are sought.
Concerns around the source or use of funds, irregular payments or unusual transactions must be brought to the attention of Nakilat Legal
department as and when the concerns present themselves. This means that employees, consultants and agents need to be familiar with andunderstand the identity of the people and organizations with which Nakilat does business.

Fair Competition Laws
Competition or antitrust laws are designed to ensure a fair and competitive free-market system. While Nakilat will compete vigorously
in the marketplace, we will comply with the applicable competition and antitrust laws wherever we do business. This means that we willcompete on the merits of our products and services, the prices we charge and the customer loyalty we earn.
Some of the most serious competition offenses occur between competitors, such as agreements to fix prices or to divide customers,
territories or markets. It is therefore important to avoid discussions with competitors regarding pricing, terms and conditions, costs,
marketing or production plans, customers and any other proprietary or confidential information. Competition laws also may apply in othercircumstances, like benchmarking efforts, trade association meetings or strategic alliances involving competitors.

95

96

6.2 ANTI-BRIBERY, ANTI-CORRUPTION AND FAIR COMPETITION (continued)

6.3 RISK AND CRISIS MANAGEMENT

Be accurate and truthful with customers, and take particular care when describing the quality, features or availability of our products andservices. Be similarly careful if you describe a competitor’s products or services. It is unwise to criticize a competitor to a customer, and it isinappropriate to interfere with any contract between a competitor and a customer of the competitor.

Management Approach and Progress

Qatar has issued a law entitled Protection of Competition and Prohibition of Monopoly Practices, which deals with fair competition within
Qatar and stipulates any person who violates the provisions of this law shall be punished with a fine of not less than QAR 100,000 and not
more than QAR 5,000,000.

NAKILAT ESG REPORT 2022

Nakilat’s risk governance approach is continuously enhanced through the adoption of leading practices related to Enterprise Risk
Management (ERM), Information Security Management, Business Continuity Management (BCM), and Compliance. Having robust
governance enables Nakilat to shield the company from internal and external uncertainties and minimize any adverse impact or exposure on
the company’s performance. Nakilat aims to create a more risk-focused culture to provide reasonable assurance for the achievement of its
core strategic objectives.

All business partners are introduced to and are aware of Nakilat’s anti-corruption policies through the business code of ethics anddeclaration form that is signed by all employees annually. All business partners must complete the declaration form each January.

KPIs
Anti-Bribery and Anti-Corruption

2020

2021

2022

Total number and percentage of business partners that theorganization’s anti-corruption policies and procedures have beencommunicated to

100%

100%

100%

Total number and percentage of governance body members thathave received training on anti-corruption

No Anti Bribery
Corruption
Conducted for
Chiefs75%(9 Chiefs)

25%(3 Chiefs)

Total number and percentage of employees that have received
training on anti-corruption

3%(8 employees)

56%(156 employees)

32%(82 employees)

Confirmed incidents of corruption and actions taken

0

0

0

Number of legal actions pending or completed during thereporting period regarding anti-competitive behavior andviolations of anti-trust and monopoly legislation in which theorganization has been identified as a participant

0

0

0

Scope

ISO/IEC 27001 Certification Information
Security Management System

ISO 22301 Certification
Business Continuity Management•

Nakilat recertified••

NAC, NSW and QFAB certified

A recognition of our commitment towards
information security maturity and demonstrationof compliance according to best practices.
All Nakilat
and NAC
employees

Nakilat, NSQL and NAC certified reaffirm ourcommitment to comply with international best practices,
providing assurance to our stakeholders that we havethe appropriate business continuity arrangements inplace in mitigating the effects of any disruptive incidents.
This is especially important as we expand our in-house
fleet management, safeguarding the safety, reliability,
efficiency and continuity of our operations.

Business Continuity Management (BCM)
Nakilat’s BCM has been built and established at Nakilat to ensure organizational resiliency towards unexpected adverse events andopportunities, and excel in managing incidents, crises, and disasters. The Business Continuity Management System (BCMS) and Frameworkhas geared the organization by ensuring the continuity of business operations with minimal disruption and retain stakeholder’s confidence in
Nakilat’s services. This has been achieved by continuously evolving our BCM approach by identifying interdependencies among departments
to create end-to-end Business Continuity Plans.
Nakilat, Nakilat Shipping Qatar Ltd. (NSQL) and Nakilat Agency Company (NAC) have been certified for ISO 22301 Business Continuity
Management System (BCMS) awarded by Lloyd’s Register. The ISO 22301 is an international management systems standard that assistsorganizations to provide a systematic approach to strengthen the continuity and resilience of the company. This reaffirms our commitment
to comply with international best practices in business continuity management and recognizes the steps that Nakilat and its Subsidiaries
have taken to implement processes and standards which provide continuity and organizational resiliency.

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

9798

6.3 RISK AND CRISIS MANAGEMENT (continued)

NAKILAT ESG REPORT 2022

Compliance

Nakilat Risk Management Governance

Nakilat is dedicated towards compliance with applicable rules, laws, regulations, standards, to ensure our business activities are always
conducted in utmost conformity to avoid any potential negative impact on the company. Thus, Nakilat has established a compliance function
to provide holistic oversight of the compliance requirements in addition to existing risk disciplines such as Risk Management and Internal
Audit. The compliance function collaboratively works with all departments towards implementing the required measures, in order to identify
existing or foreseen compliance prerequisites to gain valuable insight and drive better detection and resolution of issues.

The Sub-Committees
will act as a second
level of filtration forrisks. Only the key risks
will be escalated to
the Risk Management
Committee

The Risk Management
Committee consists ofSenior Executives in orderto bring comprehensive
visibility and coordinatedresponse to Nakilat’s Top

Board of Directors

Risks

Risk Management
Committee

Nakilat Risk Management Framework
Business Strategy

Operational Risk
Sub-Committee

Financial Risk
Sub-Committee

Continuity Risk
Sub-Committee

The entities in scopeof sub-committee:

The entities in scopeof sub-committee:

The entities in scopeof sub-committee:

Fleet

Finance

Corporate Planning and Risk

SupplyTreasury

Information Technology

SHEQ

Commercial and Business

General Services

Legal and Insurance

Development

Human Resources

ERM Function

ERM

AS

RISK
SS
SE

RI
S

RISK
AT
RE

IDE

Awareness

T

Risk
ProfileRisk Profile

XT
NTE
CO

Risk Appetite

Nakilat Risk Management Framework

K

RISK
IFY
NT

Governance & Organization

Framework Policy

Shipyard

NAC

Metrics Reporting & Monitoring

Public Relations
Internal Audit

Compliance

Risk Governance
Nakilat has established a robust ERM governance structure thatconsists of four risk committees. Nakilat has an Operational
Risk Sub-Committee, a Financial Risk Sub-Committee, and aContinuity Risk Sub-Committee, all of which report to the main
Risk Management Committee chaired by Nakilat’s CEO. These
committees have clear roles and responsibilities that are detailed
in the Risk Committees Charter, which is part of the appendix in the
ERM manual. In addition, Nakilat reports its Top Risks on an annual
basis to the Board of Directors through the annual Business Plan.
We also have an established quarterly reporting cycle to the Boardof Directors on the progress and updates of the risk initiatives.
Below is the scope of activities of the committees:•

To review and approve the strategies, policies, frameworks,
and procedures in place•

To govern the risk identification, risk analyzation, risk
evaluation, risk treatment and risk monitoring processes in
Nakilat•99

To define and endorse the organization’s overall risk tolerance
and strategy relating to key risks, including strategic,
operational, business continuity, and financial risks, as wellas the guidelines, policies and processes for monitoring andmitigating such risks•

To monitor current and emerging risks and approve risktreatment plans for the identified risks•

To ensure that relevant risk treatment plans are implemented
on a timely basis, and are managed successfully for all Top
Risks

•

To review Nakilat’s Top Risks profile annually and update
them, when necessary, to ensure that key risks are identified,analyzed, evaluated, treated and monitored•

To promote a risk-aware culture and risk managementcompetence across Nakilat•

To ensure there is a system/process of risk assessment acrossthe organization on an ongoing basis•

To review reports on selected risk topics as the committees
deem appropriate from time to time

Nakilat’s Risk department frequently and regularly reports to the
Risk Management Committees where all types of risk assessments
whether departmental, ad-hoc/project based, or Top Risks arereported with assessments of performance. In addition, the Risk
Team reports on a quarterly basis to the Planning team on theperformance of the departmental objectives and KPIs, which
are then presented to Nakilat’s senior management team during
quarterly performance meetings.

The ERM function
will facilitate andconsolidate the risk
output of all the
department andcommittees

The Risk Champion is anindividual who supports andfacilitates the enterprise risk
management process in a
specific function/department of
Nakilat

The figure above illustrates Nakilat’s Risk Management Governance

Process for Assessing Key Impacts, Risks and Opportunities
The Top Risks assessment is an annual process where the Risk Team starts by mapping the corporate strategy with the identified risks
that can potentially hinder Nakilat’s ability to achieve its strategic objectives and ultimately, its vision to be a global leader. The Risk Teamthen starts developing the definitions for each Top Risk, as well as the quantification of the impact and likelihood ratings. This quantification
requires obtaining information from all departments, which the Risk Team then analyses, filters, draws conclusions from, and is utilized tosupport the Top Risks ranking and severity levels. This mapping, with all relevant data, is then presented to several subject matter experts
and the four Risk Committees in Nakilat, for their approval and endorsement. Once the Top Risks are approved, the Risk Team works withrespective risk owners to identify controls and develop treatment/mitigation plans. All this data is then consolidated and presented in a full
package to the four Risk Committees.
The Risk Committee role is to review the Top Risks identification, severity levels and mitigation plans from a holistic perspective, and provide
an unbiased opinion. The Risk Committees have the right to ask for any additional information deemed missing, and the Risk Team works
towards developing this information accordingly. After rounds of reviews and challenging discussions, the Risk Committees endorse the Top
Risks and the treatment plans on an annual basis. The final report on the Top Risks is then submitted to the Board of Directors for approval.

1006.3 RISK AND CRISIS MANAGEMENT (continued)

NAKILAT ESG REPORT 2022

Approach to Prioritizing Challenges and Opportunities

Nakilat ESG risks and opportunities

Nakilat has adopted the ISO 31000 Enterprise Risk Management (ERM) framework as a guideline for the basis of its framework andgovernance structure. The purpose of risk evaluation is to help Nakilat make decisions regarding how it will address the outcomes of risk
analysis. These decisions include determining which risks require treatment and determining the priority of treatment implementation.
Nakilat adopts a 5 by 5 matrix for the evaluation of the impact and likelihood of its risks, where residual risks rankings are then plotted on aheat map according to their agreed assessments and evaluations, ranking from low, to medium, high, or severe.

Nakilat ESG RISKS ANDOPPORTUNITIESERM is designed to provide a framework for adequate decision-making and to create value for shareholders, employees, customers, andthe organization. The Risk Management process involves seven steps through which risks are continuously identified, analyzed, evaluated,
treated, and monitored that ensures the management of risks and opportunities:

Nakilat Risk Assessment Process

Risk

Opportunity• Increasing pace of changes in• Reducing environmental impct (i.e.

emission rules

emissions during transport) to become
prefered service provider• Global decarbonization trend

07
Assess and Measure(Inherent)

01
Risk
Identification

03

04 Effectiveness06

Control

02

05

Linkage with
the Objective

Risk Severity Ratings

gas as transition fuelImpactTreatment
Options

Increase of operation’s complexity due to changing market patterns andchanges in technical requirements

Final
Destination

E(Residual)

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

S

Impact of ESG risks
Impacts on Nakilat from any perspective (financial, regulatory, business disruption, sustainability and reputational etc.) are defined as per
our departmental Risk Registers and the Top Risks.
The departmental Risk Registers process is similar to the Top Risks process, but instead of linking it to strategic objectives, it is linked todepartmental objectives, so they are more of operational risks. This exercise is done with all departments within Nakilat. The Risk Registers
are developed by the departments and are then reviewed and challenged by the Risk Team and the Risk Committees. Each department
has dedicated Risk Champions who have been trained and equipped to utilize the risk management tools provided. The departmental Risk
Registers are reviewed on a bi-annual basis to check the status of the treatment plans, and if there are any emerging or new risks thatshould be brought to the attention of the Risk Team. The purpose of the departmental risk registers is to ensure that any potential risk that
may hinder a department’s ability to achieve its objective is reduced to an acceptable level. The Risk Team has also created a synergy with
the Audit Team who utilize the departmental Risk Registers during their audits.

101• Mid-term demand increase for natural

reducing natural gas demand in thelong-term

Linkage with
the Top Risks

G

Risk

Risk

• Recruiting opportunities for and• Widening pace and spectrum ofOpportunity

Opportunity• Nationals to grow in the gas industry• Adhere to the most stringent

retention of national seafarers

rules and regional differences

regulations to be globally active andahead of the market

ImpactImpactAdditional activities required to meet
Qatar›s 2030 national vision and
Qatarization targets

Increased operational and financial
implications to ensure regulations
compliance102

6.3 RISK AND CRISIS MANAGEMENT (continued)

6.4 INFORMATION SECURITY AND DATA PRIVACY

Objectives and Targets

Management Approach and Progress

Nakilat has a corporate strategy in place that details the corporate objectives. The Risk Team has achieved all its objectives and targets
during 2018, 2019, 2020, 2021, and 2022. The performance of all KPIs and targets are under the custody of the Planning team.

Nakilat has maintained the Information
Security Management System (ISMS)
as a commitment to effectively
foster security consciousness using
internationally recognized standards
such as the ISO 27001. Nakilat andits joint ventures, N-KOM, QFAB,NSW and NAC have achieved theISO 27001 certification from Lloyd’s
Register Quality Assurance (LRQA),
which affirms our continuous efforts atmanaging information security risks andimplementation of appropriate controls
to collect, store and handle information,
which could help to prevent potential
data loss or information leakage.

Risk Team Objectives for 2018:
1- Eliminate obstacles: Assessed the risks related to opportunities i.e., process change, organizational change, infrastructure upgrades and others
2- Support any emerging projects by facilitating risk assessments
3- Facilitate the workshops with Chiefs and subject matter experts for top risks to identify further consequences, controls, and treatment plans
4- Establish risk response strategy implementation plan based on the Top Risks identified
5- Present Top Risks and treatment plans to Risk Management Committee for endorsement and approval

Risk Team Objectives for 2019:1- 100% readiness of the business continuity program as per the plan
2- 100% closure of information security observations in the OT-System as per the plan
3- 100% of treatment plans Top Risk successfully implemented as per the agreed plan

Risk Team Objectives for 2020:
1- 100% readiness of the business continuity program as per the plan
2- 100% closure of information security observations in the OT-System as per the plan
3- 100% of treatment plans Top Risk successfully implemented as per the agreed plan

NAKILAT ESG REPORT 2022

The implementation of the ISMS strives
to continuously provide assurance
that our business is running in a safe and secure environment by assuring the confidentiality, integrity, and availability of the company’s
information. Adherence to such internationally recognized standards sends a valuable boost of confidence to our shareholders, partners,
and clients, especially in these challenging times as the world shifts to a virtual working environment and information security becomes
more important than ever before.
Nakilat is committed to securing and protecting its customers’ and external parties’ data. For the last five years, no complaints werereported concerning breaches of customer privacy and losses of customer data.

Risk Team Objectives for 2021:
1- 100% readiness of the business continuity program as per the plan
2- 100% of treatment plans Top Risk successfully implemented as per the agreed plan
3- Risk and business continuity awareness sessions

Risk Team Objectives for 2022:
1- 100% readiness of the business continuity program as per the plan
2- 100% of treatment plans Top Risk successfully implemented as per the agreed plan
3- Risk and business continuity awareness sessions
4- Execution of business continuity drills and actioning lessons learn

103

104

6.5 TAX

7. ASSURANCE REPORTManagement Approach and Progress

NAKILAT ESG REPORT 2022

7.1 Independent Limited Assurance Statement

Nakilat takes a responsible and transparent approach to the
management and control of taxation issues by following both
Qatari and international tax laws.

We have been engaged by the Board of Directors of Qatar Gas Transport Company Ltd. (“Nakilat”) to provide limited assurance in respectof Nakilat’s Environmental and Social Performance Indicators as identified below for the year ended 31 December 2022. The Assured
Sustainability Indicators are included in Nakilat’s ESG Report for the year ended 31 December 2022 (the “ESG Report”).

As part of Nakilat’s compliance process, Nakilat abides andrespects all the required deadlines set by Qatar’s General Tax
Authority and other tax authorities relevant to the group’s
operations globally.

The environmental and social performance indicators covered by our Limited Assurance Engagement are:

In 2022, Nakilat paid QAR 4.1 million as withholding tax andpension payment. In the interest of transparency and fiscal
responsibility, Nakilat implements and maintains robust
whistleblowing channels for stakeholders to report misconduct,
unethical behavior, or any manner of concern relating to Nakilat’s
operations, functions, and safety. The same mechanisms areavailable to stakeholders to report any concerns with respect totaxation.

•

Disclosure 302-1: Energy consumption within the organization•

Disclosure 305-1: Direct (Scope 1) GHG emissions•

Disclosure 401-1: New employee hires and employee turnover•

Disclosure 403-9: Work-related injuries•

Disclosure 404-1: Average hours of training per year per employee

Our conclusion
Our conclusion has been formed on the basis of, and is subject to, the matters outlined in this report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Payments to Qatar General Tax Authority and Pension Authority and Social and Sports Fund Contribution
Financial Year (FY)

2020

2021

2022

Withholding tax and pension payment(Thousands QAR)

4,205

4,262

4,058

Social and Sports Fund Contribution(Thousand QAR)

29,00533,83735,97335,973
33,837

Based on the procedures performed and the evidence obtained, as described below, nothing has come to our attention that causes us tobelieve that the environmental and social performance indicators, as defined above, for the year ended 31 December 2022, have not in allmaterial respects, been prepared with reference to the Global Reporting Initiative (GRI) 2021 Standards.

Management’s responsibility
Management is responsible for the preparation of the Limited Assurance Environmental and Social Performance Indicators with reference to
the Global Reporting Initiative (GRI) 2021 Standards.
These responsibilities include establishing such internal controls as management determines are necessary to enable the preparation of
the Limited Assurance Environmental and Social Performance Indicators that are free from material misstatement whether due to fraud
or error and selecting Global Reporting Initiative (GRI) 2021 Standards, as the criteria against which to measure/evaluate the Sustainability
Parameters.
Management is responsible for preventing and detecting fraud and for identifying and ensuring that Nakilat complies with laws andregulations applicable to its activities.

29,005

Management is also responsible for ensuring that staff involved with the preparation of the description and ESG Report are properly trained,
information systems are properly updated and that any changes in reporting encompass all significant business units.

Our responsibility

4,205

4,262

2020

Our responsibility is to express a limited assurance conclusion on the preparation of the Limited Assurance Environmental and Social
Performance Indicators included in the ESG Report, as defined above.

4,058

We conducted our assurance engagement in accordance with International Standard on Assurance Engagements ISAE 3000 (Revised),
Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing andAssurance Standards Board.

2021

Withholding Tax and Pension Payment (Thousands QAR)
Social and Sports Fund Contribution (Thousand QAR)

2022

The firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal andregulatory requirements.
We have complied with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants,(including International Independence Standards) (IESBA Code), which is founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and professional behavior.

Financial Assistance Received from Government
In 2022, Nakilat did not receive any financial assistance from any government.

105

106

7. ASSURANCE REPORT (continued)

NAKILAT ESG REPORT 2022

ISAE 3000 (Revised) requires that we plan and perform the engagement to obtain limited assurance about
whether the Limited Assurance Environmental and Social Performance Indicators are free from material
misstatement.

Purpose of Our Report

A limited assurance engagement in accordance with IASE 3000 (Revised) involves assessing the risks of material misstatement of theLimited Assurance Environmental and Social Performance Indicators, whether due to fraud or error, responding to the assessed risks asnecessary in the circumstances of the engagement. The nature, timing and extent of procedures selected depend on our understanding of
the Limited Assurance Environmental and Social Performance Indicators and other engagement circumstances, and our consideration ofareas where material misstatements of the Limited Assurance Environmental and Social Performance Indicators are likely to arise.

Inherent Limitations

In developing our understanding of the Limited Assurance Environmental and Social Performance Indicators and other engagement
circumstances, we have considered the process used to prepare the Limited Assurance Environmental and Social Performance Indicatorsorder to design assurance procedures that are appropriate in the circumstances, but not for the purposes of expressing a conclusion as tothe effectiveness of Nakilat’s internal control over the preparation Limited Assurance Environmental and Social Performance Indicators.
Our engagement also included: assessing the appropriateness of the Limited Assurance Environmental and Social Performance Indicators,
the suitability of the criteria used by Nakilat in preparing the Limited Assured Sustainability Parameters in the circumstances of theengagement, evaluating the appropriateness of the quantification methods, reporting policies and procedures, and models used in the
preparation of the Limited Assurance Environmental and Social Performance Indicators and the reasonableness of estimates made by
Nakilat.

Procedures Performed
Our limited assurance engagement on the Limited Assurance Environmental and Social Performance Indicators consisted of making
enquiries, primarily of persons responsible for the preparation of the Limited Assurance Environmental and Social Performance Indicators,
and applying analytical and other procedures, as appropriate. These procedures were based on our professional judgement and included:•interviews with senior management and relevant staff at corporate and selected site level concerning sustainability strategy andpolicies for material issues, and the implementation of these across the business;•enquiries of management to gain an understanding of Nakilat’s processes for determining material issues for Nakilat’s key
stakeholder groups;•

enquiries of relevant staff at corporate and selected site level responsible for the preparation of the Limited Assurance Environmental
and Social Performance Indicators;•enquiries about the design and implementation of the systems and methods used to collect and report the Limited Assurance
Environmental and Social Performance Indicators, including the aggregation of the reported information;•comparing the Limited Assurance Environmental and Social Performance Indicators to relevant underlying sources on a sample basis
to determine whether all the relevant information has been appropriately included in the ESG Report;•

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

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

In accordance with the terms of our engagement, this assurance report has been prepared for Nakilat for the purpose of assisting Board of
Directors in determining whether Nakilat’s Limited Assurance Environmental and Social Performance Indicators are prepared with reference
to the Global Reporting Initiative (GRI) 2021 Standards, and for no other purpose or in any other context.

Due to the inherent limitations of any internal control structure, it is possible that errors or irregularities in the information presented in
the ESG Report may occur and not be detected. Our engagement is not designed to detect all weaknesses in the internal controls over the
preparation of the Report, as the engagement has not been performed continuously throughout the period and the procedures performed
were undertaken on a test basis.

Yacoub Hobeika
Audit Registry No. 289
KPMG Qatar
Date: 21 June 2023

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

107

108

8.1 ESG DATA SUMMARYNAKILAT ESG REPORT 2022

Climate Change and Emissions to Air

2020

2021

2022

Scope

EnergyGreenhouse Gas (GHG) emissions

2020

2021

2022

Total fuel consumption within the organization from
non-renewable sources (GJ)38

74,015,625

73,694,908

80,204,392

Total fuel consumption within the organization fromrenewable sources (GJ)

0

0

0

Total energy consumption within the organization (GJ)

74,015,625

73,694,908

80,204,392

17.30

15.79

14.90

6,023,833

6,579,066

7,378,156

Scope

Energy consumption

31

Gross direct (Scope 1) GHG emissions (TCO2)

32

5,564,216

5,353,949

5,812,436

1.26

1.12

1.06

5,493,714

6,579,066

7,378,156

GHG emissions intensity33 (TCO2/Nm)
Organization-specific metric chosen to calculate theintensity ratio: Total Sailing Distance34 (Nautical Mile [Nm])Nitrogen oxides (NOx), sulfur oxides (SOx), CH4 and other significant air emissions (tons)

Shipping

NOx138,610

128,659

138,404

Energy intensity

SOx

15,961

13,942

14,767

Energy intensity ratio39 (GJ/Nm)

Particulate matter

11,975

10,897

11,688CH4 (GRI 11-1- ref. Note-1)

466

433

466

Organization-specific metric chosen to calculate theintensity ratio: Total Sailing Distance40 (Nautical Mile
[Nm])

This data represents our entire shipping fleet (inhouse and joint venture). Our reported GHG emissions data are based on the GHG Protocol,
European Union (EU) Monitoring, Reporting and Verification (MRV) of CO2 emissions, and IMO Data Collection System (DCS) on fuel consumption.

The calculation of these data uses conversion factors from the following standards: IPCC 2006 / ENTEC / CORINAIR / MEPC 686 and ISO
conversion factors for Lower Calorific Value (LCV) indicated below: LCV MGO= 42.7GJ/T, LCV HFO= 40.6GJ/T, LCV Fuel Gas= 50.0GJ/T. The
GHG accounting and disclosure is based on equity share.
Climate Change and Emissions to Air

2020

2021

2022

Scope

Greenhouse Gas (GHG) emissions

Gross direct (Scope 1) GHG emissions (TCO2)

20,83435

22,935

Non-shipping

24,872

Note: This data represents emissions from fuel used by our non-vessel Joint ventures including fuel used for business purposes bycorporate office. The majority of non-shipping fuel is used by tugs for harbour operations and so the calculation of these data uses
conversion factors for MDO from the following standards: IPCC 2006** This is only non-shipping data under scope 1. Types of fuels included within figures: Diesel (Density-0.8213) and LPG (Conversion FactorMJ to KG: 1 MJ = 0.02 kg of LPG).
Emissions to Air

2020

2021

2022

MME Limits36

Scope

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions37
NOx

20.75 ug/m3

27.00 ug/m3

30.00 ug/m3

150 ug/m3

SOx

3

12.50 ug/m

324.75 ug/m

3

24.00 ug/m

365 ug/m

Particulate matter (PM2.5)

22.75 ug/m3

18.25 ug/m3

25.00 ug/m3

35 ug/m3

Particulate matter (PM10)

72.75 ug/m3

77.00 ug/m3

95.00 ug/m3

150 ug/m3

COn/a

423.5 ug/m3

467.25 ug/m3

10,000 ug/m3

VOC

n/a

11.75 ug/m3

11.00 ug/m3

160 ug/m3

Aromatic hydrocarbons

n/a

8.54 ug/m

7.00 ug/m

160 ug/m

33

Note: This data represents our entire shipping fleet. Data for mentioned year is restated following availability of missing data.
EnergyNote 1: Total CH4 emission data (as per above table) under SCOPE-1 are regarded as from fuel combustion process on ships.

2020

2021

2022

Total electricity consumption (kWh) Corporate

935,517

1,169,485

1,067,695

Total electricity consumption (kWh) N-KOM

63,400,000

69,400,000

72,830,000

Total electricity consumption (kWh) QFAB

7,460,000

6,505,700

8,173,611

Total electricity consumption (kWh) NSW

n/a1,956,150

2,260,278

71,795,517

79,030,635

84,331,584

Total electricity consumption (GJ) Corporate

3,368

4,210

3,844

Total electricity consumption (GJ) N-KOM

228,240

249,840

262,188

Total electricity consumption (GJ) QFAB

26,85623,41829,425

Total electricity consumption (GJ) NSW

n/a

7,042

8,137

258,464

284,510

303,594

Total fuel consumption (GJ) Corporate

734

329

190

Total fuel consumption (GJ) N-KOM

37,33943,14755,190Nonshipping

TOTAL ELECTRICITY CONSUMPTION (kWh) Corporate,
N-KOM, QFAB and NSW

TOTAL ELECTRICITY CONSUMPTION (GJ) Corporate,
N-KOM, QFAB, NSW

Total fuel consumption (GJ) QFAB

393

333

5,297

287,742

315,385

327,182

326,208

359,194

387,859

Total energy consumption (GJ) Corporate

4,102

4,539

4,034

Total energy consumption (GJ) N-KOM

265,579

292,987

317,378

Total energy consumption (GJ) QFAB

27,24923,751

34,722

Total energy consumption (GJ) NSW

287,742

322,428

335,319

TOTAL ENERGY CONSUMPTION (GJ) Corporate, N-KOM,
QFAB, NSW

584,672

643,705

691,453

Total fuel consumption (GJ) NSW
TOTAL FUEL CONSUMPTION (GJ) Corporate, N-KOM,
QFAB, NSW

3

Note: N-KOM data only. The source of NOx, SOx, PM, CO, VOC & Aromatic Hydrocarbon are due to air emissions from the shipyard’s operations.
Monitoring requirements and the respective limits are prescribed by the Qatar Ministry of Environment and Climate Change (MOECC).

It is to be noted that GHG emissions data for the mentioned years have been restated following availability of missing quantity.

31

Scope

Electricity consumption

Fuel consumption

3

Shipping

Non-Shipping

Total energy consumption (electricity + fuel)32
FShipping data is declared only under scope 1 as all GHG emissions are produced by the vessels when generating their own energy to sustain their respective operation.
Only CO2 is included in this calculation. Declaration is based on equity share.

For ships: Emissions Intensity = Total Emissions / Total Sailing Distance. Equity share doesn’t apply to intensity.

33

Total Sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed.

38

This is only shipping data under scope 1. Types of fuels included within figures: HFO, MGO, LNG.

39

For SHIPS: Energy Intensity = Total Energy/ Total sailing Distance. Intensity is declared in total.

40

Total sailing Distance SASB (TR-MT-000.B). Equity Share doesn’t apply to distance sailed.

34

Non-Shipping data shown separately under scope 1.

35

Ministry of Environment and Climate Change (MOECC).

36

Each parameter is averaged for the year 2020.

37

109

110

8.1 ESG DATA SUMMARY (continued)
EnergyNAKILAT ESG REPORT 2022

2020

Energy intensity
Energy intensity ratio (Electricity + Fuel consumption (GJ)/ per employee) Corporate
Organization-specific metric chosen to calculate theintensity ratio (average number of employees) Corporate
Energy intensity ratio (Electricity + Fuel consumption (GJ)
/ employee N-KOM
Organization-specific metric chosen to calculate theintensity ratio (average number of employees) N-KOM
Energy intensity ratio Electricity + Fuel consumption (GJ)/ per employee) QFAB
Organization-specific metric chosen to calculate theintensity ratio (average number of employees) QFAB
Energy intensity ratio (Electricity + Fuel consumption (GJ)/ per employee) NSW43
Organization-specific metric chosen to calculate theintensity ratio (average number of employees) NSW
Total energy intensity ratio (Electricity Consumption +Fuel (GJ) / per employee) Corporate, N-KOM, QFAB and
NSW
Organization-specific metric chosen to calculate theintensity ratio (average number of employees) corporate,
N-KOM, QFAB, NSW

2021

2022

Scope

Water

41 42

Reduction of Energy Consumption

2020

2021

2022

Water consumption
16.6

16.5

16.1

Freshwater/ Potable water consumption (megaliters)
Corporate

0.73

0.61

1.28

250

275

250

Freshwater/ Potable water consumption (megaliters)
NSW

11

11.49

11.58

204.3

225.4

200.1

248

304

444

1,300

1,300

1,586

Freshwater/ Potable water consumption (megaliters)
N-KOM

52.2

33.6

53.4

317.2

349.3

108.9

Freshwater/ Potable water consumption (megaliters)
QFAB
Total Freshwater/ Potable consumption

312

350

510

Industrial water consumption (megaliters) N-KOM

100

100

41

Industrial water consumption (megaliters) QFAB

52

0.03

0

86

68

319

846.3

942.8

986.2

340

342

340

295.9

324.3

277.1

1,976

2,016

2,495

2020

2021

2022

Non-Shipping

Non-shipping*Water is supplied by Kahramaa, a third-party.
Waste

2020

2021

202245

Total = 6,895 m3
Cat 1 = 2,044 m3
Cat 2 = 333 m3
Cat 3 = 2,233 m3
Cat 4 = 155 m3
Other = 2,129 m3

Total = 6,879 m3
Cat 1 = 1,939 m3
Cat 2 = 326 m3
Cat 3 = 2,199 m3
Cat 4 = 161m3
Other = 2,254 m3

Total = 7,805 m3
Cat A = 1,984.08 m3
Cat B = 334.67 m3
Cat C = 2,534.57m3
Cat D = 1.20 m3
Cat E = 127.66 m3
Others = 2,822.86 m3

Total = 6,895 m3
Cat 1 = 2,044 m3
Cat 2 = 333 m3
Cat 3 = 2,233 m3
Cat 4 = 155 m3
Other = 2,129 m3

Total = 6,879 m3
Cat 1 = 1,939 m3
Cat 2 = 326 m3
Cat 3 = 2,199 m3
Cat 4 = 161m3
Other = 2,254 m3

Total = 7,805 m3
Cat A = 1,984.08 m3
Cat B = 334.67 m3
Cat C = 2,534.57m3
Cat D = 1.20 m3
Cat E = 127.66 m3
Others = 2,822.86 m3

Scope

Waste generated

Total weight of waste generated (m3), anda breakdown of this total by composition(CAT46) of the waste47
Scope

Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives (fuel and electricity)

Waste disposal

Total energy reductions (GJ) Corporate

2,501

2,363

12,256

Total energy reductions (GJ) N-KOM

16,804

16,804

16,804

Total energy reductions (GJ) QFAB

26,85624,048n/aTotal energy reductions (GJ) NSW

n/a

n/a

n/a

46,161

43,112

29,060Electricity Sold

2020

2021

2022

Incineration onsite (without energy recovery)
(m3)

775

1,061

1,545

Total Electricity Sold (GJ)- (N-KOM)*

5,246

25,02915,930Total waste disposal offsite (m3)49

6,120

5,818

6,261

2020

2021

2022

Scope

Total seawater withdrawal (megaliters)

28,39825,056

24,959Total seawater discharge (megaliters)

28,39825,056

24,959Total energy reductions (GJ) Corporate, N-KOM, QFAB
and NSW

Scope

Total weight of waste directed to disposal in
cubic meter, and a breakdown of this total bycomposition of the waste48

Non-Shipping

Shipping*Electricity sold to vessels in dock via metered connections
Water
Water withdrawal and discharge

44

Shipping

Note: This data represents our entire shipping fleet (inhouse and Joint ventures). The reported data are aggregated values from wholly
owned and JV vessels for seawater used for ballasting the vessels. The ballast water used has either been treated according to IMO Ballast
Water Convention D2 for vessels fitted with a treatment system. For other vessels which are still to be fitted with a treatment system theballast water has been replenished through exchange during the voyage as per IMO Ballast Water Convention D1. The same quantity ofseawater that is loaded in discharge ports is discharged afterwards in loading ports. Only seawater for ballasting is discharged. Calibrated
remote sounding system and approved ballast tank tables have been used to calculate ballast water quantities declared. Seawater salinityand density is determined from international oceanographic tables.

45

G2022 onwards-Garbage on ships are classified into the following categories as per MARPOL Annex V:

•
•
•
•

Category A: Plastics
Category B: Food Waste
Category C: Domestic Waste•••

Category E: Incinerator Ashes
Category F: Operational Waste
Category I: E-Waste

Category D: Cooking Oil

Until 2021-Garbage on ships is classified into the following categories (Cat): 1-Plastics; 2- Floating dunnage, lining, and packing material; 3- Ground down paper
products, rags, glass, metal bottles, and crockery; 4-Domestic waste; 5- Incinerator ash; 6- Normal paper products, rags, oily rags, glass, and metal scrap; 7-Operational
waste; 8- Animal Carcasses onboard livestock carrier; 9- E-Waste; 10- Cooking oil waste produced in the galley; 11- Cargo residues onboard ships carrying solid cargoin bulk which are not harmful to the marine environment (Non-HME); 12- Cargo residues onboard ships carrying solid cargo in bulk which are harmful to the marine
environment (HME); Others” encompass all what is not listed between cat 1 and cat 12.
46

All energy intensity ratios represent electricity and fuel usage, except for QFAB and NSW (see below).

41

Energy Intensity Ratio has been restated in GJ/No. of employee for alignment.

47

Total waste (disposed to sea + incinerated + landed ashore) in m3. Data provided in cubic meter and not in tons as reported by the vessels and approved by the flag state.

NSW Electricity data not available in 2020 and so only fuel data used.

48

Bilge doesn’t fall under garbage requirement.

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

49

The rest of the segregated waste is disposed to an approved shore facility for processing.

42
43
44

111

112

8.1 ESG DATA SUMMARY (continued)
Waste

2020

NAKILAT ESG REPORT 2022

2021

2022

Scope

2020

2021

2022

Total weight of hazardous waste
diverted from disposal in metrictons, and a breakdown of thistotal by the following recovery
operations -SOLD- N-KOM

NA

CAT I = 22.86 tons

Cat I: 25.13 tons

Total weight of non-hazardous
waste diverted from disposal inmetric tons, and a breakdown of
this total by the following recovery
operations -SOLD- N-KOM

NA

CAT C & F= 3,077 tons

Cat F: 2,301 tons

Total= 19,200.16 m3 &9,681.22 tons

Other: 118.51 tons

Total = 16,271 m3,
7,082 tons &365,000 gallons

Other: 1,195,790 gallons

Cat A, B, C & F

Cat A, B, C & F(General) = 13,566 m3

Total: 19,054 m3,
34,492 tons &1,195,790 gallons
Cat A, B: 14,434 m3(General) = 12,817 m3

Cat C & F = 3,520 m3

Cat C: 4,620 m3

Cat C & F = 2,360 m3

Cat C & F = 3,077 tons

Cat F: 2,301 tons

Cat C & F = 2,104 tons

Cat I = 22.86 tons

Cat I: 25.13 tons

Cat I = 12.62 tons

Other = 2,114.16 m3

Other: 211.15 tons

Other = 1,094 m3

Other = 6,581.36 tons

Other: 31,836 tons

Waste generated

Cat A, B, C & F(General) = 12,817 m3
Cat C & F = 2,360 m3
Cat C & F = 2,104 tons
Cat I = 12.62 tons
Other = 1,094 m3
Other = 4,965 tons

Total = 19,200 m3 &9,681 tons

Total weight of waste generated(m3 or tons), and a breakdown of
this total by composition (CAT) of
the waste - QFAB

Total: 19,054 m3,
34,492 tons &1,195,790 gallons

Cat A, B, C & F(General) = 13,566 m3

Cat A, B: 14,434 m3

Cat C & F = 3,520 m3

Cat C: 4,620 m3

Cat C & F = 3,077 tons

Cat F: 2,301 tons

Cat I = 22.86 tons

Cat I: 25.13 tons

Other = 2,114.16 m3

Other: 211.15 tons

Other = 6,581.36 tons

Other: 31,836 tons

Other = 365,000 gallons

Total weight of waste generated(m3 or tons), and a breakdown of
this total by composition (CAT) of
the waste - NSW

Total = 67.86 m3

Total = 125.11 m3

Total = 173.26 m3

Cat C & F
(General) = 18.297 m3

Cat C & F
(General) = 30.691 m3

Cat C & F
(General) = 57.150 m3

Cat A (Plastic) = 4.361 m3

Cat A (Plastic) = 9.59 m3

Cat A = 12.783 m3

Others(Oily waste) = 45.20 m3

Others(Oily waste) = 84.825 m3

Others = 103.327 m3

Total = 48.98 m3 &2.85 tons

Total = 18.88 tons &264 gallons

Total = 786.61 tons

Cat A, B, C & F(General) = 48.98 m3

Hazardous waste =2.16 tons

Cat C & F = 2.58 m3
Cat C & F= 2.85 tons
Cat I = 0 tons
Other = 0 m3

CAT A & B
(General) = 10.785 tons

CAT A & B

Total weight of waste directed
to disposal in metric tons, anda breakdown of this total bycomposition of the waste - N-KOM

Nonshipping

Other = 4,965 tons

Other: 118.51 tons

Other = 365,000 gallons

Other: 1,195,790 gallons
Total = 125.11 m3(General) = 158.652 tons
Cat C & F = 627.957 tons

Cat C & F = 5.94 tons

Total weight of waste directed
to disposal in metric tons, anda breakdown of this total bycomposition of the waste - NSW

Other (Oily waste) =Cat C & F
(General) = 30.691 m3

45.20 m3

Cat A (Plastic) = 9.59 m3
Others(Oily waste) = 84.825 m3

Other(Oily waste) = 264 gallons

Othe r = 0 gallons

Total weight of waste diverted
from disposal in metric tons,
and a breakdown of this total bycomposition of the waste. - N-KOM

113

Hazardous Waste =2.16 tons

Total = 0.59 m3

Total = 0.27 m3

Cat C & F
(General) = 0.51 m3

Cat C & F
(General) = 0.56 m3

Cat A = 0.27 m3

Cat I = 2.22 m3

Cat I = 0.012 m3

Cat C & F = 5.94 tons

Hazardous waste =0.02 m3

Other (Oily waste) =NA

CAT C & F = 3,077 tons
CAT I = 22.86 tons

Cat F: 2,301 tons
Cat I: 25.13 tons

NA

Total: 15,177 m3 &4,903 tons

Total: 34,492 tons
Total waste disposal – landfill(m3 or tons) N-KOM

Others: 32,166 tons

Garbage on shore is classified into the following categories (CAT A & B: General; CAT C & F: Wood & Metal; CAT I: Batteries; CAT OTHER- Spent Grit, Paint Drums, Sludge,
Oily Water & Oily Rags).
50

Total weight of waste directed
to disposal in metric tons, anda breakdown of this total bycomposition of the waste - QFAB

Total = 2.73 m3

Total = 3,099.86 tons

Total = 173.26 m3
Cat C & F
(General) = 57.150 m3
Cat A = 12.783 m3

Nonshipping

Others = 103.327 m3

Total = 18.88 tons &264 gallons

Othe r = 0 tons

Total weight of waste generated(m3 or tons), and a breakdown of
this total by composition (CAT) of
the waste - Corporate

Scope

Waste generated
Total = 16,271 m3,
7,082 tons &365,000 gallons

Total weight of waste generated(m3 or tons), and a breakdown of
this total by composition (CAT50) of
the waste - N-KOM

Waste

General = 12,817 m3
Wood = 2,360 m3
Spent Grit = 4,903 tons

CAT A & B
(General) = 10.785 tons

Total: 17,086 m3 &6,425.74 tons

Total= 786.6 tons
Non- hazardous
Waste= 786.6 tons

CAT A, B, C & F

Total: 19,054 m3 &32,167 tons

(General) = 13,566 m3

Cat A, B & C: 19,054 m3

CAT C & F = 3,520 m3

Other: 32,167 tons

Other = 6,425.74 tons

Total waste disposal – landfill(m3 or tons) QFAB

NA

12.945 tons

203.147 tons

Total waste disposal – recycling(m3 or tons) QFAB

NA

60.225 tons

583.46 tons

Total waste disposal – recycling(m3 or tons) QFAB

NA

NA

0.84 tons (paper)114

8.1 ESG DATA SUMMARY (continued)

NAKILAT ESG REPORT 2022

Waste

2020

2021

2022

Total waste disposal – landfill(m3 or tons) QFAB

NA

12.945 tons

203.147 tons

Total waste disposal – recycling (m3 or tons)
QFAB

NA

60.225 tons

583.46 tons

Total waste disposal – recycling (m3 or tons)
QFAB

NA

NA

0.84 tons (paper)

LTIF (Lost Time Injury Frequency)

2020

2021

Scope

Non-Shipping

Benchmark-ITOSF*

0.39

0.41

0.38

0.43

0.41

0.31

Scope

Actual

0.39

0.19

0.38

2020

2021

2022

Benchmark-ITOSF*

1.03

1.16

1.30

Nakilat- KPI**

1.21

1.15

1.09

Actual

0.63

1.11

1.14

2022

Total number of employees

270

(1)

278

272

Full time

270

278

272

Part time000Indefinite or permanent contracts

213

216

210

Fixed-term or temporary contracts

57

62(2)

62(2)

Senior management

12

12

12

Middle management

59

51

48

Non-management

199

215

212

2021

2022

All Nakilat and NAC
employees(2) Secondees (6) to JVs are included

All Nakilat and NAC and Joint
Ventures (JVs)

New Hires and Turnover

2020

Scope

Number of new hires
Breakdown by Age**KPI- Key Performance IndicatorScope

18-30 years old

3

3

7

31-50 years old

17

33

22

51+ years old

2

7

5

2020

2021

2022

Number of lost time injuries51/incidents

10

5

11

Male

19

43

29

Lost-time injury rate (LTIF)

0.39

0.19

0.37

Female305Total number of new hires*

22

43

34

For all employees and workers

Breakdown by Gender52

Number of Work-related fatalities

0

0

0

Number of recordable Cases

16

29

34

Total Recordable Case Frequency53 (TRCF)54

0.63

1.11

1.14

Minor Cuts andBruises/Sprains
and Strain/
Foreign Particle
in eyeCaught in/Between,
Cuts/Laceration/
Puncture, Heat
Exhaustion, Strain/
Sprain and Struck by/
AgainstCaught in/Between,
Burn / Rash, Caught in/
Between, Strain/Sprain.
Foreign Particles andStruck by/Against

26,027,630

29,940,323

The main types of work-related injury

Scope

(1)

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

Scope*ITOSF- Informal Tanker Operators’ Safety Forum

Occupational Health and Safety

2021

Breakdown by career level

All Nakilat and NAC and Joint
Ventures (JVs)

TRCF (Total Recordable Case
Frequency)

2020

Breakdown by contract type

2022

Nakilat KPI**

Total Number of Employees / Workforce

The number of hours worked55

25,526,586

403-10: Work related Ill Health

2020

2021

2022

Fatalities as a result of work-related ill health-Number

0

0

0

Fatalities as a result of work-related ill health-Rate

0

0

0

Recordable work-related ill health-Number

0

0

0

Recordable work-related ill health-Rate

0

0

0

All Nakilat and
NAC and Joint
Ventures (JVs)

Breakdown by Age
18-30 years old

1

7

4

31-50 years old

19

20

26

51+ years old

4

7

4

Male

18

30

24

Female64

10Total number of employees leaving employment during
the reporting period (voluntary and involuntary)*

24

34

34

Employee turnover rate (voluntary and involuntary)

9%

12%

13%

Breakdown by Gender

Scope

For all employees and workers

Main types of work-related ill health

Number of employees leaving employment during the reporting period (voluntary and involuntary)

All Nakilat and
NAC and Joint
Ventures (JVs)

There were no cases of work-related ill health reported

All Nakilat and NAC
employees

Number of employees leaving employment during the reporting period (voluntary)
Breakdown by Age
18-30 years old

0

3

14

31-50 years old

5

9

3

51+ years old

1

2

3

Male

4

11

15

Female2

3

5Total number of employees leaving employment during the reporting
period (voluntary)*

6

14

20

Employee turnover rate (voluntary)

2%

5%

7%

Breakdown by Gender
Lost-time Injury represents the high-consequence work related injuries.

51

Injury Rate at 1,000,000 hours worked.

52

Excluding first-aid incidents as they do not result in more than one day of absence or do not impose restriction on working ability.

53

First-aid incidents are not included in the TRCF since these usually do not result in more than one day of missed work or impose any restriction on the working ability ofan employee.
54

Exposure hours shows the time an employee is exposed to work related hazards and risks. Data is submitted by each entity on monthly basis.

55

115

*All Nakilat’s employees are based in the region of Middle East (Qatar)1168.1 ESG DATA SUMMARY (continued)
Parental Leave

NAKILAT ESG REPORT 2022

2020

2021

2022

Scope

Number of employees that were entitled to parental leave
Breakdown by gender

Learning and Development

2020

2021

2022

Total training hours

4,125

7,438

11,269Average training hours per employee

15

27

42

Female

46

25(1)

34

Breakdown by career level

Male

224

202(1)

236

Senior management

12

12

12

Total training hours

93

293

156

Average training hours per employee

8

24

13

Middle management

59

51

48

Total training hours

805

1,728

2,936

Number of employees that took parental leave
Breakdown by gender
Female

5

3

4

Male

4

4

4

Number of employees that returned to work after parental leave
Breakdown by gender

All Nakilat and NAC
employees

Average training hours per employee

14

34

61

Non-management

199

215

210

Female5

3

4Total training hours

3,227

5,417

8,177

Male

4

4

4

Average training hours per employee

16

25

39

Retention rate
Total number of employees returned from parental leave who were still
employed twelve months after return to work

Breakdown by gender
97

8

Return to work rate

100%

100%

100%

Retention rate

100%

100%

100%

2020

2021

2022

Number of grievances filed in the reporting period

5

6

1

Number of grievances addressed or resolved

5

6

1

Number of grievances filed prior to the reporting period that wereresolved during the reporting period

0

0

0

All Nakilat and NAC
employees

Male
Total training hours

3,228

5,725

9,064

Average training hours per employee

14

24

38

Total training hours

897

1,712

2,205

Average training hours per employee

19

41

65

Total number of employees receiving regular performance and careerdevelopment reviews

220

229

226

Percentage of employees receiving regular performance and careerdevelopment reviews (%)

81%

82%

84%

Female

36

37

34

Male

184

192

236

Diversity and Inclusion (Employees)

2020

2021

2022

18-30 years old

45

35

31

31-50 years old

199

209

196

Female(1) The number are reported for all married employees only. Numbers reported in past years includes all employees, irrespective of theirmarital status.
Grievances*

Scope

Scope

Performance reviews

All Nakilat and NAC
employees*Grievances listed in the table are in relation to performance management grievances only and raised at the end of the performance
management cycle of each year (in December of each reporting year).

Breakdown by gender

Scope

Breakdown by age

51+ years old

26

34

43

Youth employment rate

17%

13%

11%

Male

224

236

236

Female46

42

34

Female employment rate

17%

15%

13%

34%

30%

30%

Breakdown by gender

All Nakilat and NAC
employees

Breakdown by nationality
Qatarization*

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

*

117

118

8.1 ESG DATA SUMMARY (continued)
Female Employment

NAKILAT ESG REPORT 2022

2020

2021

2022

Scope

Responsible Procurement and Supply Chain

2020

2021

2022

Scope

Supplier environmental assessment
Total number of employees with disabilities (number)

0

0

0

Suppliers assessed for environmental impacts (number)

10

20

18

Total % of employees with disabilities (%)

0

0

0

Number of suppliers identified as having significant actual and potential
negative environmental impacts

0

0

0

Significant actual and potential negative environmental impacts
identified in the supply chain

0

0

0

Percentage of suppliers identified as having significant actual andpotential negative environmental impacts with which improvements
were agreed upon as a result of assessment

0

0

0

Percentage of suppliers identified as having significant actual andpotential negative environmental impacts with which relationships were
terminated as a result of assessment, and why

0

0

0

Anti-Bribery and Corruption

2020

2021

2022

Total number and percentage of business partners that theorganization’s anti-corruption policies and procedures have beencommunicated to, broken down by type of business partner and region

100%

100%

100%

Total number and percentage of governance body members that havereceived training on anti-corruption, broken down by region

No Anti
Bribery
Corruption
Conducted
for Chiefs

75%(9 Chiefs)

25%(3 Chiefs)

By career level
Board of Directors
Number of female employees

0

0

0

Percentage of female employees

0%

0%

0%

Number of female employees

0

0

0

Percentage of female employees

0%

0%

0%

Number of female employees

7

6

3

Percentage of female employees

12%

12%

6%

Senior management

All Nakilat and NAC
employees

Middle management

Non-management
Number of female employees

39

36

31

Percentage of female employees

19%

17%

15%

Equal Pay
Gender pay ratio (Ratio of basic salary* and remuneration of
women to men)

0.82 to 1

1.03 to 1

1.17 to 1

N-KOM and QFAB not
includedNon-shipping*Median male salary to median female salary
Information Security and Data Privacy

2020

2021

2022

Scope

IT expenses (QAR millions)

7.9

9.3

16.4

Nakilat Group

2020

2021

2022

Scope

from local suppliers

80,204,110

69,194,899

94,050,214

from foreign suppliers

105,696,606

132,659,162

207,830,245

43.1%

34.2%

31.2%

Local Procurement
Year
Value of goods and services (USD)

Percentage of total procurement from local suppliers

Nakilat and NSQL

Number of suppliers

Total number and percentage of employees that have received training
on anti-corruption, broken down by employee category and region

3%

32%

56%

Scope

All Nakilat
and NAC
employees(8 employees) (156 employees) (82 employees)

Confirmed incidents of corruption and actions taken

0

0

0

Number of legal actions pending or completed during the reporting
period regarding anti-competitive behavior and violations of anti-trust
and monopoly legislation in which the organization has been identified
as a participant

0

0

0

Payments to Qatar General Tax Authority and Pension Authority and Social and Sports Fund Contribution
Financial Year (FY)

2020

2021

2022

Local

292

251

255

Withholding tax and pension payment (Thousands QAR)

4,205

4,262

4,058

Foreign

300

326

329

Social and Sports Fund Contribution (Thousand QAR)

29,00533,83735,973

Responsible Procurement and Supply Chain

2020

2021

2022

100%

100%

100%

0

0

0

Scope

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

119

Shipping

120

8.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEXNAKILAT ESG REPORT 2022

GRI STANDARD

GRI 2: General
Disclosures 2021

GRI 2: General Disclosures 2021

GRI 2: General
Disclosures 2021

The organization and its
reporting practices

Activities and workers

Indicator and Disclosure
2-1 Organizational details

1.1

01

2-2 Entities included in the organization’ssustainability reporting

2.1

05

2-3 Reporting period, frequency and contact
point

1.1

01

Omissions/ remarks

Governance

Report Section/ URL

Page
Number inthis Report2-19 Remuneration policies

5.2, 5.3

73, 832-20 Process to determine remuneration

5.2, 5.3

73, 83

2-21 Annual total compensation ratio

5.2, 5.3

73, 83

3.1

10

2-23 Policy commitments

4.1, 5.1, 5.2, 6.1

22, 55, 73, 92

2-22 Statement on sustainable development
strategy

Strategy, policies andpractices

2-4 Restatements of information

2.1

05

2-5 External assurance

2.1

05

2-6 Activities, value chain and otherbusiness relationships

1.2

03

2-7 Employees

5.2, 5.3

73, 83

2-8 Workers who are not employees

5.2, 5.3

73, 83

Stakeholder engagement

2-9 Governance structure and composition

6.1 - Corporate Governance Report
2022 - p31-32, 39, 51-53 (article 6,18) ESG Committee Charter92

GRI 3: Material Topics 2021

2-10 Nomination and selection of thehighest governance body

6.1 - Corporate Governance
Report 2022 - page 44 (8-8), 51-54(article18 & 19), 39 (article 6),
page 31-32

92

2-11 Chair of the highest governance body

Corporate Governance Report
2022 - page 31-32-

2-12 Role of the highest governance body inoverseeing the management of impacts

6.1, 3.4 - Corporate Governance
Report 2022 - p31-32, 39, 51-53(article 6, 18) ESG Committee
Charter

15, 922-13 Delegation of responsibility for
managing impacts

Corporate Governance Report
2022 - p31-32 Risk Committee:
Corporate Governance Report
2022p 36 (4-4), p41-42 (8-2-4),
p42-46 (8-10), p56 (22-1, 22-6)
ESG Committee Charter-2-14 Role of the highest governance body insustainability reporting

3.2

11

2-15 Conflicts of interest

6.1

92

2-16 Communication of critical concerns

6.1

92

2-17 Collective knowledge of the highest
governance body

Corporate Governance Report
2022 - Page 38-39 (5), p45 (9-4),
p44 (8-10)-

2-18 Evaluation of the performance of thehighest governance body

5.2, 5.3, 6.1

73, 83, 92

Governance

121

Report Section/ URL

Page
Numberin thisReportIndicator and Disclosure

2-24 Embedding policy commitments

4.1, 5.1, 5.2, 6.1

22, 55, 73, 92

2-25 Processes to remediate negative
impacts

4.1, 5.1, 5.2, 6.1

22, 55, 73, 92

2-26 Mechanisms for seeking advice andraising concerns

6.1

92

2-27 Compliance with laws and regulations

4.1, 5.1, 5.2, 6.1

22, 55, 73, 92

2-28 Membership associations
2-29 Approach to stakeholder engagement
2-30 Collective bargaining agreements

3.5

19

3.3, 3.4

13, 150% covered-

Report Section

Page
Number inthis Report

3-1 Process to determine material topics

3.4

15

3-2 List of material topics

3.4

15

Indicator and Disclosure

Omissions/ remarks

Omissions/ remarks

GRI 11: Oil and Gas Sector 2021
Likely Material Topics
Topic 11.1 GHG emissions

Topic 11.2 Climate adaptation, resilience,and transition

Report Section/Omissions /Remarks
4.2
Nakilat is closely coupled to Qatar’s Liquefied Gases value chain, which is a vital part of theeconomy. In all Qatar Energy scenarios, there will be an increased demand for Liquefied Gas
shipping. Nakilat continually evaluates further opportunities to diversify. Nakilat finds theRepresentative Concentration Pathways (RCP) and Shared Socioeconomic Pathways (SSP)
scenarios analysis in the International Maritime Organization 4th GHG study as a crediblereflection of increasing demand for Liquefied Gases shipping.

Topic 11.3 Air emissions

4.2

Topic 11.4 Biodiversity

4.4

Topic 11.5 Waste

Waste is not a material topic for Nakilat. Nakilat is not involved in the oil and gas extraction,
development, production and processing activities. The generated waste by the company's
activities is considered insignificant and does not have negative impacts on environment andhuman health.

Topic 11.6 Water and effluents

Water and effluents is not a material topic for Nakilat. The amount of water withdrawn andconsumed by Nakilat and the quality of its discharges does not have any significant longterm impacts on ecosystems and biodiversity, cause health and development problems forhumans, and impair food security. Water supply and discharge is governed by Qatar's Ministryof Environment and Climate Change regulations.

Topic 11.7 Closure and rehabilitation

Closure and rehabilitation is not a material topic for Nakilat. Nakilat is not expected to close
assets, facilities and rehabilitate operational sites. Furthermore, Nakilat does not haveoffshore structures to decommission and dismantle. In addition, Nakilat is not involved in oil
and gas fields and has no related impacts on impacts on the environment, local communities,
and workers.

1228.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX (continued)

NAKILAT ESG REPORT 2022

GRI 11: Oil and Gas Sector 2021
Likely Material Topics

Report Section/Omissions /Remarks

Topic 11.8 Asset integrity and criticalincident management

5.1, 5.5

Topic 11.9 Occupational health and safety

5.1

Topic 11.10 Employment practices

5.2

Topic 11.11 Non-discrimination and equal
opportunity
Topic 11.12 Forced labor and modern
slavery

Topic 11.13 Freedom of association andcollective bargaining

Forced labour and modern slavery is not a material topic for Nakilat. Nakilat's workers rights
are being respected and the company has never been involved on any violations of humanrights or other instances of exploitation. In addition, Nakilat has never been involved withany incidence of forced labor and modern slavery as a result of its joint ventures and otherbusiness relationships.
Freedom of association and collective bargaining is not a material topic for Nakilat. Nakilat's
workers rights are being respected and the company has never been involved in cases ofinterference with freedom of association and collective bargaining including, detention ofmanagers and other employees, invasion of privacy, not adhering to collective agreements,
and preventing trade union access to workplaces to assist workers.
5.4, 5.5

Topic 11.15 Local communities

5.5

Topic 11.16 Land and resource rights

Land and resource rights is not a material topic for Nakilat. Nakilat's projects are located inuninhabited areas, and there are no plans to start projects in new areas.

Topic 11.17 Rights of indigenous peoples

Rights of indigenous peoples is not a material topic for Nakilat. The company's businessactivities are not in proximity to indigenous communities.

Topic 11.18 Conflict and security

Conflict and security is not a material topic for Nakilat. The company does not operate inlocations and situations of conflict.

Topic 11.19 Anti-competitive behavior

6.2

Topic 11.21 Payments to governments

Payments to governments is not a material topic for Nakilat. Nakilat does not lack oftransparency about payments to governments. Nakilat is committed to abiding by the tax
law. Nakilat takes a responsible and transparent approach to the management and control oftaxation issues by following both Qatari and international tax laws.

Topic 11.22 Public policy

Public policy is not a material topic for Nakilat. The company does not participate in public
policy development, directly or through an intermediary organization, by means of lobbying or
making financial or in-kind contributions to political parties, politicians, or causes.

Economic Performance

202-1 Ratios of standard entry level wage by gendercompared to local minimum wage

5.3

83

202-2 Proportion of senior management hired from thelocal community

5.2

73

Indicator and Disclosure

Report Section

Page
Numberin thisReport203-1 Infrastructure investments and services supported

2.2, 5.2, 6.4

09, 73, 104

203-2 Significant indirect economic impacts

2.2, 5.2, 6.4

09, 73, 104

Indicator and Disclosure

Report Section

Page
Numberin thisReport204-1 Proportion of spending on local suppliers

5.4

85

Indicator and Disclosure

Report Section

Page
Numberin thisReport205-2 Communication and training about anticorruption
policies and procedures

6.2

96

205-3 Confirmed incidents of corruption and actions taken

6.2

96

Indicator and Disclosure

Report Section

Page
Numberin thisReport206-1 Legal actions for anti-competitive behavior, antitrust and monopoly practices

6.2

96

Indicator and Disclosure

Report Section

Page
Numberin thisReport207-1 Approach to tax

6.5

105

Management approach
disclosures

207-2 Tax governance, control, and risk management

6.5

105

207-3 Stakeholder engagement and management ofconcerns related to tax

6.5

105

Topic-specific disclosures

207-4 Country-by-country reporting

6.5

105

Indicator and Disclosure

Report Section

Page
Numberin thisReport301-1 Materials used by weight or volume

4.5

50

GRI 203: INDIRECTECONOMIC IMPACTS 2016
Indirect Economic Impacts

GRI 204: PROCUREMENT
PRACTICES 2016
Procurement practices

GRI 205: ANTI-CORRUPTION
2016

Anti-corruption

Anti-competitive behavior is not a material topic for Nakilat. Nakilat is not involved on actions
which may result in collusion with potential competitors, abuse of dominant market position
or exclusion of potential competitors, thereby limiting the effects of market competition.

Topic 11.20 Anti-corruption

GRI 201: ECONOMICPERFORMANCE 2016

Report Section

Market Presence

5.2, 5.3

Topic 11.14 Economic impacts

Indicator and Disclosure

Page
Numberin thisReportGRI 202: MARKETPRESENCE 2016

Indicator and Disclosure

Report Section

Page
Numberin thisReport201-1 Direct economic value generated and distributed

2.2, Nakilat
Annual Report09

201-3 Defined benefit plan obligations andother retirement plans

5.2

73

201-4 Financial assistance received from government

6.5

105

Omissions/ remarks

GRI 206: ANTI-COMPETITIVEBEHAVIOR 2016
Anti-competitive behavior

GRI 207: TAX 2019

GRI 301: MATERIALS 2016
Material

123

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks1248.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX (continued)

GRI 302: ENERGY 2016

EnergyGRI 303: WATER AND
EFFLUENTS 2018
Topic management disclosures

Topic disclosures

GRI 304:
BIODIVERSITY 2016

GRI 305: EMISSIONS 2016

GRI 306: WASTE 2020

Topic management disclosures

Topic disclosures

125

NAKILAT ESG REPORT 2022

Indicator and Disclosure

Report Section

Page
Numberin thisReport302-1 Energy consumption within the organization

4.3

39

302-3 Energy intensity

4.3

39

302-4 Reduction of energy consumption

4.3

39

302-5 Reductions in energy requirements of products
and services

4.3

39

Indicator and Disclosure

Report Section

Page
Numberin thisReport303-1 Interactions with water as a shared resource

4.3

39

303-2 Management of water discharge-related impacts

4.3

39

303-1 Water withdrawal by source

4.3

39

303-2 Water sources significantly affected by withdrawal of
water

4.3

39

303-3 Water recycled and reused

4.3

39

Report Section

Page
Numberin thisReportIndicator and Disclosure304-2 Significant impacts of activities, products,
and services on biodiversity

4.4

46

304-3 Habitats protected or restored

4.4

46

Indicator and Disclosure

Report Section

Page
Numberin thisReport305-1 Direct (Scope 1) GHG emissions

4.2

33

305-4 GHG emissions intensity

4.2

33

305-5 Reduction of GHG emissions

4.2

33

305-6 Emissions of ozone depleting substances (ODS)

4.2

33

305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions

4.2

33

Indicator and Disclosure

Report Section

Page
Numberin thisReport306-1 Waste generation and significant
waste-related impacts

4.5

50

306-2 Management of significant waste-related impacts

4.5

50

306-3 Waste generated

4.5

50

306-4 Waste diverted from disposal

4.5

50

306-5 Waste directed to disposal

4.5

50

Omissions/ remarks

GRI 308: SUPPLIERENVIRONMENTALASSESSMENT 2016
Supplier environmental
assessment

GRI 401: EMPLOYMENT 2016
Omissions/ remarks
Employment

Omissions/ remarks

Indicator and Disclosure

Report Section

Page
Numberin thisReport308-1 New suppliers that were screened using
environmental criteria

5.4

85

308-2 Negative environmental impacts in the supply chain
and actions taken

5.4

85

Indicator and Disclosure

Report Section

Page
Numberin thisReport401-1 New employee hires and employee turnover

5.2

73

401-2 Benefits provided to fulltime employees that are notprovided to temporary or part-time employees

5.2

73

401-3 Parental leave

5.2

73

GRI 402: LABOR /MANAGEMENT RELATIONS
2016

Indicator and Disclosure

Report Section

Page
Numberin thisReportLabor / management relations

402-1 Minimum notice periods regarding operationalchanges

5.2

73

Indicator and Disclosure

Report Section

Page
Numberin thisReport403-1 Occupational health and safety management system

5.1

55

403-2 Hazard identification, risk assessment, and incident
investigation

5.1

55

403-3 Occupational health services

5.1

55

403-4 Worker participation, consultation, andcommunication on occupational health and safety

5.1

55

403-5 Worker training on occupational health and safety

5.1

55

GRI 403: OCCUPATIONALHEALTH AND SAFETY 2018

Omissions/ remarks
Management approach
disclosures

Topic-specific disclosures
Omissions/ remarks
GRI 404: TRAINING AND
EDUCATION 2016

Training and education

403-6 Promotion of worker health

5.1

55

403-7 Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

5.1

55

403-8 Workers covered by an occupational health andsafety management system

5.1

55

403-9 Work-related injuries

5.1

55

403-10 Work-related ill health

5.1

55

Indicator and Disclosure

Report Section

Page
Numberin thisReport404-1 Average hours of training per year per employee

5.2

73

404-2 Programs for upgrading employee skills andtransition assistance programs

5.2

73

404-3 Percentage of employees receiving regularperformance and career development reviews

5.2

73

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks1268.2 GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX (continued)

GRI 405: DIVERSITY AND
EQUAL OPPORTUNITY 2016
Diversity and equal
opportunity

GRI 406: NONDISCRIMINATION 2016
Non-discrimination

GRI 408: CHILD LABOR 2016Child labor

Report Section

Page
Numberin thisReport405-1 Diversity of governance bodies and employees

5.3

83

405-2 Ratio of basic salary and remuneration of
women to men

5.3

83

Indicator and Disclosure406-1 Incidents of discriminationand corrective actions taken

Indicator and Disclosure408-1 Operations and suppliers at significant risk forincidents of child labor

Report Section

5.2

Report Section

Page
Numberin thisReportPage
Numberin thisReport5.4, Nakilat
Code of
Conduct andEthics85

NAKILAT ESG REPORT 2022

Human Rights
Principle

Relevant Report Section / Link

Principles 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; and5.2, 5.4

Principle 2: make sure that they are not complicit in human rights abuses.

5.2, 5.4

Labor

Omissions/ remarks

Principle

Relevant Report Section / Link

Principle 4: the elimination of all forms of forced and compulsory labor;

5.2, 5.4, Nakilat Code of Conduct and Ethics

Principle 5: the effective abolition of child labor; and5.2, 5.4, Nakilat Code of Conduct and Ethics

Principle 6: the elimination of discrimination in respect of employment andoccupation.

5.2, 5.4, Nakilat Code of Conduct and Ethics

Environment

Omissions/ remarks

Principle

Relevant Report Section / Link

Principle 7: Businesses should support a precautionary approach toenvironmental challenges;

4.1

Principle 8: undertake initiatives to promote greater environmental
responsibility; and4.1-4.5

Principle 9: encourage the development and diffusion of environmentallyfriendly technologies.

4.3

Anti-Corruption

GRI 410: SECURITY
PRACTICES 2016

Indicator and Disclosure

Report Section

Security practices

410-1 Security personnel trained in human rights policies
or procedures

5.2

73

GRI 413: LOCALCOMMUNITIES 2016

Indicator and Disclosure

Report Section

Page
Numberin thisReportLocal communities

413-1 Operations with local community engagement,
impact assessments and development programs

5.5

89

GRI 414: SUPPLIER SOCIALASSESSMENT 2016

Indicator and Disclosure

Report Section

Page
Numberin thisReportSupplier social assessment

414-1 New suppliers that were screenedusing social criteria

5.4

85

Indicator and Disclosure

Report Section

Page
Numberin thisReport418-1 Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

6.4

104

Customer privacy

Omissions/ remarks

73

Page
Numberin thisReportGRI 418: CUSTOMERPRIVACY 2016127

Indicator and Disclosure

8.3 UNITED NATIONS GLOBAL COMPACT

Omissions/ remarks

Principle

Relevant Report Section / Link

Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribe

6.2

Omissions/ remarks

Omissions/ remarks

Omissions/ remarks1288.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB)

NAKILAT ESG REPORT 2022

SASB Marine Transportation Disclosures – (Scope: Shipping)
Topic

Accounting Metric

Category

Units ofMeasureTR-MT- Greenhouse
110a.1 Gas Emissions

Gross global Scope 1
emissions

Quantitative

Metric tons (t)CO -e 2

TR-MT- Greenhouse
110a.2 Gas Emissions

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

Discussion
andAnalysis(1) Total energy
consumed,

Quantitative

Gigajoules(GJ)

74,015,625

73,847,933

80,204,392(2) percentage heavy
fuel oil

Quantitative

Percentage(%)

73.28%

68.23%

73.36%(3) percentage
renewable

Quantitative

Percentage
(%)

0%

0%

0%

Average Energy
Efficiency Design Index(EEDI) for new ships

Grams of CO2
per tonQuantitative
nautical
mile

5.371

Air emissions of thefollowing pollutants:- (1) NOx (excluding
N2O)

Quantitative Metric tons (t)138,610Air emissions of thefollowing pollutants:- (2) Sox

Quantitative Metric tons (t)15,961

13,942

14,767

Air emissions of thefollowing pollutants- (3) particulate matter(PM10)

Quantitative Metric tons (t)11,975

10,897

11,688

Shipping duration inmarine protected areasor areas of protectedconservation status

Quantitative

Percentage of fleet
implementing ballastwater- (1) exchange

Quantitative

Percentage of fleet
implementing ballastwater- (2) treatment

Quantitative

Code

TR-MT- Greenhouse
110a.3 Gas Emissions

TR-MT- Greenhouse
110a.4 Gas Emissions

TR-MTAir Quality
120a.1

TR-MT- Ecological160a.1 Impacts

TR-MT- Ecological160a.2 Impacts

n/a

2020

2021

2022

5,563,390

5,357,396

5,812,436-

Number of
travel days-

Percentage
(%)

77%

Percentage
(%)

23%

-

5.208

128,659

-

78%

22%

Comment

Code

Topic

TR-MT- Ecological160a.3 Impacts

Category(1) Number and (2)aggregate volume ofspills and releases tothe environment

Number,Quantitative Cubic meters
(m³)

70%

0

0

0

NSQL

0.36

0.27

0.26

STASCO

0.28

0

0

0

0

0

TK3

0

0

0

MOL
Quantitative
NYK1/ Rate
NYK2

0

0

0

0

0

0

1.01

1.01

0.98

KLINE

1.77

1.8

1.88

PRONAV

0.97

0

1.83

MGM

0.26

0

0

ILT3

0

0

TR-MT- Business510a.1 Ethics

0

0

0

TR-MT- Business510a.2 Ethics

Total amount ofmonetary losses
as a result of legal
proceedings associatedwith bribery or
corruption

Quantitative

Reportingcurrency000

Accident
TR-MTand Safety
540a.1
Management

Number of marine
casualties, percentage
classified as very
seriousNumber,Quantitative Percentage
(%)

0

0

0

Accident
TR-MTand Safety
540a.2
Management

Number of Conditionsof Class orRecommendations

Quantitative Number

0

0

4

Number NSQL

2

5

32

Number STASCO

0

2

2

Number NSQL

0

0

0

Number STASCO

0

0

0

  

  

2022

0

138,40430%

2021

Number of calls at ports
in countries that havethe 20 lowest rankings
Quantitative Numberin Transparency
International’s
Corruption Perception
Index

5.092

-

Lost time incident rate
(LTIR)

2020

TK2

-

Employee
TR-MTHealth and
320a.1
SafetyUnits ofMeasureAccounting Metric

Accident
TR-MTand Safety
540a.3
Management

Number of port state
control- (1) deficiencies
Number of port state
control- (2) detentions

Quantitative

Quantitative

Comment*Note: This data represents our entire shipping fleet.
**Shipping SASB- Energy and Fuel data for mentioned year is restated following availability of missing quantity.

129

130

8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued)

NAKILAT ESG REPORT 2022

SASB Activity Metrics Disclosures - (Scope: Shipping)

SASB - Industrial Machinery and Goods– (Scope: N-KOM)

Code

ACTIVITY METRICCATEGORY

UNIT OF MEASURE

2020

2021

2022

TR-MT-000.A

Number of shipboard
employees

Quantitative

Number

3,362

3,017

3,409

TR-MT-000.B

Total distancetravelled by vessels

Quantitative

Nautical miles (nm)5,493,714

6,579,066

7,378,156

TR-MT-000.C

Operating days

QuantitativeDays

26,583

26,605

13,296

TR-MT-000.D

Deadweight tonnage56

QuantitativeThousanddeadweight tons

7,878,487

7,974,870

8,076,621

TR-MT-000.E

Number of vessels in
total shipping fleet

Quantitative

Number

70

73

74

TR-MT-000.F

Number of vessel port
calls

Quantitative

Number

764

1,434

1,174

TR-MT-000.G

Twenty-footequivalent unit (TEU)
capacity

Quantitative

TEU

n/a

n/a

n/a

Comment

Code

RT-IG- Energy
130a.1 Management

Company
fleet does
not carry
containers

RT-IG320a.1*Note: This data represents our entire shipping fleet.
**Note: Deadweight tonnage data has been restated following the correct reporting from JV partners, there is no effect on any other value..

RT-IG410a.1

RT-IG410a.4

56

131

Topic

Accounting Metric(1) Total energy
consumed, (2)percentage
grid electricity,(3) percentage
renewable

Category

Quantitative

Employee
Health and
Safety(1) Total recordable
incident rate (TRIR),(2) fatality rate,
Quantitativeand (3) near missfrequency rate
(NMFR)

Fuel Economy
and Emissions in
Use-phase

Sales-weighted
fleet fuel efficiency
Quantitative
for medium- andheavy-duty vehicles

Fuel Economy
and Emissions in
Use-phase

Sales-weighted
emissions of: (1)nitrogen oxides(NOx) and (2)particulate matter(PM) for: (a) marine
diesel engines,(b) locomotive
diesel engines, (c)on-road mediumand heavy-duty
engines, and (d)other non-road
diesel engines2

Quantitative

Units ofMeasure

2021

2022

1) 292,987 GJ
2) 100%3) 0%1) Electricity- 262,188,000
MJ/262,188
GJ 1) Total:
LPG - 40,655L& Diesel 1,493,968 L)
2) 100%3) 0%1) 0.652) 0

1) 1.432) 0

1) 17 TRCs
(TRCF - 2.45;
TRIR - 0.49)
2) 0
3) NA

Gallons per
1,000 tonmiles

N-KOM does
not have any
medium andheavy-duty
vehicles in its
Inventory

N-KOM does
not have any
medium andheavy-duty
vehicles in its
Inventory

N-KOM does
not have any
medium andheavy-duty
vehicles in its
Inventory

Grams perkilowatthour

N-KOM does
not have (a), (b),(c) & (d) in its
Inventory

N-KOM does
not have (a), (b),(c) & (d) in its
Inventory

N-KOM P&M
does notmonitor fuelefficiency fornon- roadequipment

Gigajoules(GJ),
Percentage
(%)

Rate

2020

1) 265,579 GJ
2) 100%3) 0%Correction made on TR-MT-000.D data.

132

8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued)
Code

RT-IG440a.1

Topic

Materials
Sourcing

Accounting Metric

Description of the
management ofrisks associatedwith the use ofcriticalmaterials

Category

Discussion
andAnalysis

RT-IG440b.1

Revenue from
Remanufacturing remanufactured
Design andproducts andServicesremanufacturingservices

Quantitative

RT-IG000.B

Number of
employees

Quantitative

Quantitative

Units ofMeasureNAKILAT ESG REPORT 2022

2020

2021

2022

Pre-qualification
for the suppliers
includes theEnvironmental
Certification
criteria.
Furthermore,
stock
replenishments
for criticalmaterials
through Material
Resource
Planning system
also considered
to minimize
associated risks

Pre-qualification
for the suppliers
includesEnvironmental
Certification
criteria.
Furthermore,
stock
replenishments
for criticalmaterials
through Material
Resource
Planning
system arealso considered
to minimize
associated risks

Pre-qualification
for the suppliers
includes theEnvironmental
Certification
criteria.
Furthermore,
stock
replenishments
for criticalmaterials
through Material
Resource
Planning system
also considered
to minimize
associated risks

Reportingcurrency

N-KOM does
not engage inremanufactured
products andservices

N-KOM does
not engage inremanufactured
products andservices

N-KOM does
not engage inremanufactured
products &services

Number

1,300

1,300

1,586

n/a

SASB - Industrial Machinery and Goods– (Scope: QFAB)57

57

133

Topic

Accounting Metric

RT-IG-130a.1

EnergyManagement(1) Total energy consumed,(2) percentage grid
Quantitativeelectricity, (3) percentage
renewable

Gigajoules (GJ),
Percentage (%)

RT-IG-320a.1

Employee
Health and Safety(1) Total recordable
incident rate (TRIR),(2) fatality rate, and(3) near miss frequency
rate (NMFR)

Rate

RT-IG-410a.1

Fuel Economy
and Emissions in
Use-phase

Sales-weighted fleet fuelefficiency for medium- andheavy-duty vehicles

Fuel Economy
and Emissions in
Use-phase

Sales-weighted emissionsof: (1) nitrogen oxides(NOx) and (2) particulatematter (PM) for:(a) marine diesel engines,
Quantitative(b) locomotive diesel
engines, (c) on-road
medium- and heavy-duty
engines, and (d) other nonroad diesel engines2

RT-IG-410a.4

Category

Units ofMeasureCode

Quantitative

Quantitative

2022

1) 53,640 GJ
2) 100%3) 0%1) 34,722 GJ
2) 100%
3) 0%

1) 0
2) 0
3) 0

1) 0
2) 0
3) 2.34

Gallons per
1,000 ton-miles

QFAB does not
QFAB does nothave any medium have any medium
and heavy-duty
and heavy-duty
vehicles in its
vehicles in its
Inventory
Inventory

Grams perkilowatt-hour

QFAB does nothave (a), (b),(c) & (d) in its
Inventory

QFAB does nothave (a), (b),(c) & (d) in its
Inventoryn/aPre-qualification
for the suppliers
includesEnvironmental
Certification
criteria. QFAB
doesn’t procure
any criticalmaterial.

Pre-qualification
for the suppliers
includesEnvironmental
Certification
criteria. QFAB
doesn’t procure
any criticalmaterial.

QFAB does
not doremanufacturing
design andservices

QFAB does not
do remanufacturi
ng design andservices

90319

RT-IG-440a.1

Materials
Sourcing

Description of the
management of risks
associated with the use ofcritical materials

RT-IG-440b.1

Remanufacturing
Design andServices

Revenue fromremanufactured products
and remanufacturingservices

Quantitative

Reportingcurrency

RT-IG-000.B

Number of
employees

Quantitative

Quantitative

Number

Discussion
andAnalysis2021

2021 SASB is the First declaration from QFAB.

134

8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued)

NAKILAT ESG REPORT 2022

SASB - Oil and Gas – (Scope: NSW)58
Code

Topic

Accounting Metric

Category

Total fuel consumed usedin:(1) on-road equipment andvehiclesEM-SV110a.1

58

135

Emissions
Reduction
Servicesand Fuels
Management

Percentage renewable,
percentage used in:(1) on-road equipment andvehiclesUnits ofMeasureGigajoules (GJ),

Percentage (%)

2021

4,068

0

2022

Code

Topic

4,076

0

Quantitative

Total fuel consumed, usedin:(2) off-road equipment

Gigajoules (GJ),

n/a

n/a

Percentage renewable,
percentage used in:(2) off-road equipment

Percentage (%)

n/a

n/a

SMS 10-003
Environmental
management

SMS 10-003
Environmental
management

EM-SV110a.2

Emissions
Reduction
Servicesand Fuels
Management

Discussion of strategy orplans to address air
emissions-related risks,
opportunities, and impacts

Discussion
andAnalysis

EM-SV110a.3

Emissions
Reduction
Servicesand Fuels
Management

Percentage of engines inservice that meet Tier 4
compliance for non-road
diesel engine emissions

Quantitative

Percentage (%)

n/a

11,590EM-SV140a.1

Water
Management
Services(1) Total volume of
fresh water handled inoperations

QuantitativeThousand cubic
meters (m³),

11,4940Percentage (%)0n/a(2) percentage recycledn/aEM-SV140a.2

WaterManagement
Services

Discussion of strategy
or plans to address
water consumption anddisposal-related risks,
opportunities, and impacts

EM-SV150a.1

ChemicalsManagement

Volume of hydraulicfracturing fluid used,
percentage hazardous

QuantitativeThousand cubic
meters (m³),
Percentage (%)

n/a

n/a

EM-SV150a.2

ChemicalsManagement

Discussion of strategy
or plans to address
chemical-related risks,
opportunities, and impacts

Discussion
andAnalysis

n/a

n/a

n/a

EM-SV160a.1

Ecological
ImpactManagement

Average disturbed acreage
per (1) oil

Quantitative

Acres (ac)

n/a

n/a

Average disturbed acreage
per (2) gas well site

Quantitative

Acres (ac)

n/a

n/a

EM-SV160a.2

Ecological
ImpactManagement

Discussion of strategy orplan to address risks andopportunities related toecological impacts fromcore activities

Discussion
andAnalysis

n/a

n/a

0

Discussion
andAnalysis

n/a

n/a

n/a

EM-SV320a.1

EM-SV320a.2

EM-SV510a.1

Workforce
Health and Safety

Accounting Metric

Category

Units ofMeasure

2021

2022

(1) Total recordable
incident rate (TRIR)

Quantitative

Rate

0.68

0

(2) Fatality rate

Quantitative

Rate

0

0

(3) Near miss frequency
rate (NMFR)

Quantitative

Rate

0

0

(4) Total vehicle incident
rate (TVIR)

Quantitative

Rate

0

1,814

(5) Average hours ofhealth, safety, andemergency response
training for (a) full- time
employees,

Quantitative

Rate

1,595

n/a

Average hours of health,safety, and emergency
response training for (b)contract employees,

Quantitative

Rate

n/a

n/a

Average hours of health,safety, and emergency
response training for (c)short-service employees

Quantitative

Rate

n/a

n/a

Workforce
Health and Safety

Description ofmanagement systems
used to integrate a cultureof safety throughout thevalue chain and project
lifecycle

Discussion
andAnalysisn/aBusiness Ethics
and Payments
Transparency

Amount of net revenue
in countries that havethe 20 lowest rankingsin Transparency
International’s Corruption
Perception Index

Quantitative

Reportingcurrency

NSW is certified
NSW is certified
to the following
to the following
Integrated
Integrated
Management
Management
System (IMS)
System (IMS)
standards
standards
with GCL
with GCL
International.
International.
- ISO 9001:2015- ISO 9001:2015
Quality
Quality
Management
Management
SystemSystem- ISO 14001:2015 - ISO 14001:2015
Environmental
Environmental
Management
Management
System andSystem and- ISO 45001:2018 - ISO 45001:2018
Occupational
Occupational
Health and Safety Health and Safety
Management
Management
SystemSystemn/an/a2021 SASB is the first declaration from NSW.

136

8.4 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) (continued)
Code

EM-SV510a.2

EM-SV530a.1

Business Ethics
and Payments
Transparency

Managementof the Legaland Regulatory
Environment

Accounting Metric

Description of the
management system forprevention of corruption
and bribery throughout thevalue chain

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

Category

Discussion
andAnalysis

Discussion
andAnalysis

Units ofMeasuren/an/aDescription ofmanagement systems
used to identify andmitigate catastrophic andtail-end risks

Discussion
andAnalysisn/a

EM-SV-000.A -Number of active rig sites

Quantitative

EM-SV-000.B -Number of active well
sites

EM-SV-000.C-

EM-SV-000.D -EM-SV540a.1

137

Topic

Critical Incident
RiskManagement

8.5 VESSEL AER/EEOI DATA

2021

2022

NSW has definedits commitment
to excellencein Safety,
Environment
and Quality in
its Safety andSustainability
Policy. This is
supported by
the A.P. Moller– Maersk Core
Values and theAPMM Commit(governanceframework)

NSW has definedits commitment
to excellencein Safety,
Environment
and Quality in
its Safety andSustainability
Policy. This is
supported by
the A.P. Moller– Maersk Core
Values and theAPMM Commit(governanceframework)

IMO - MARPOL
convention andprotocols

IMO - MARPOL
convention andprotocols

SMS 09-15 Risk
Management Safe System ofWork

SMS 09-015 Risk
Management Safe System ofWork

Numbern/an/aQuantitative

Numbern/an/aTotal amount of drilling
performed

Quantitative

Meters(m)

n/a

n/a

Total number of hours
worked by all employees

Quantitative

Numbern/an/aVessel NameAAMIRA

Cargo
Propulsion Capacity
CBM
Motor

266,000

Year
built

NAKILAT ESG REPORT 2022

AnnualEfficiency
Technical
Nakilat’s
Ratio
management Ownership(AER)*
2020

2010

STASCO

100%

10.41

AnnualEfficiency
Ratio(AER)*
2021

AnnualEfficiency
Ratio(AER)*
2022

EEOI
EEOI
EEOI
(gr/ton (gr/ton (gr/ton
Cargo- Cargo- Cargonm) ** nm) ** nm) **
2020
2021
2022

8.89

10.17

23.43

20.00

22.90

AL AAMRIYA

Motor

210,168

2008

MOL

40%

9.20

9.52

9.20

24.57

25.44

24.58

AL AREESH

Steam

148,786

2007

TK

30%

13.11

12.21

11.87

36.77

34.25

33.27

AL BAHIYA

Motor

210,100

2009

STASCO

100%

8.86

8.71

9.60

23.67

23.29

25.65

AL DAAYEN

Steam

148,853

2007

TK

30%

13.29

13.03

11.96

37.25

36.52

33.52

AL DAFNA

Motor

266,366

2009

NSQL

100%

9.03

8.82

8.65

22.36

21.85

21.42

AL GATTARA

Motor

216,200

2007

NSQL

100%

10.39

10.19

11.06

25.09

24.61

26.70

AL GHARIYA

Motor

210,150

2008

PRONAV

45%

9.82

9.91

9.87

26.22

26.46

26.35

AL GHARRAFA

Motor

216,200

2008

NSQL

100%

10.27

9.70

9.93

24.85

23.47

24.01

AL GHASHAMIYA

Motor

217,591

2009

NSQL

100%

9.11

9.58

9.65

22.31

23.48

23.64

AL GHUWAIRIYA

Motor

263,300

2008

NSQL

100%

7.98

8.05

8.68

21.61

21.82

23.51

AL HAMLA

Motor

216,200

2008

NSQL

100%

11.10

10.64

10.69

26.80

25.68

25.80

AL HUWAILA

Motor

217,000

2008

TK

60%

12.11

10.90

11.35

28.13

25.32

26.38

AL JASSASIYA

Steam145,700

2006

MGM

40%

15.38

13.39

13.02

41.14

35.82

32.69

AL KARAANA

Motor

210,100

2009

STASCO

100%

9.14

8.89

9.07

24.46

23.78

24.27

AL KHARAITIYAT

Motor

216,300

2009

NSQL

100%

10.09

9.39

10.70

24.45

22.76

25.93

AL KHARSAAH

Motor

217,000

2008

TK

60%

10.57

11.77

10.71

24.55

27.34

24.88

AL KHATTIYA

Motor

210,150

2009

STASCO

100%

8.41

8.31

9.26

22.47

22.20

24.73

AL KHUWAIR

Motor

217,000

2008

TK

60%

11.08

10.64

9.63

25.76

24.73

22.39

AL MAFYAR

Motor

266,370

2009

NSQL

100%

8.79

8.44

9.07

21.78

20.90

22.46

AL MARROUNA

Steam

149,539

2006

TK

30%

12.40

13.54

11.12

34.61

37.78

31.04

AL MAYEDA

Motor

266,000

2009

NSQL

100%

9.22

8.59

9.10

22.84

21.28

22.53

AL NUAMAN

Motor

210,100

2009

STASCO

100%

8.40

9.37

9.42

22.43

25.02

25.16

AL ORAIQ

Motor

210,200

2008

KLINE

40%

8.91

9.43

9.65

23.84

25.21

25.82

AL REKAYYAT

Motor

216,293

2009

NSQL

100%

10.25

10.65

9.96

24.84

25.80

24.13

AL RUWAIS

Motor

210,150

2007

PRONAV

45%

9.83

10.07

9.18

26.23

26.87

24.50

AL SADD

Motor

210,200

2009

NSQL

100%

8.82

8.99

9.06

23.56

24.01

24.20

AL SAFLIYA

Motor

210,150

2007

PRONAV

45%

9.85

10.29

9.81

26.28

27.47

26.19

AL SAHLA

Motor

216,200

2008

NYK

40%

12.29

11.60

10.82

27.40

25.86

26.21

AL SAMRIYA

Motor

263,300

2009

NSQL

100%

7.90

6.50

8.06

21.41

17.62

21.83

AL SHAMAL

Motor

217,000

2008

TK

60%

10.68

11.72

11.34

24.82

27.22

26.34

AL SHEEHANIYA

Motor

210,200

2009

NSQL

100%

9.10

9.13

9.44

24.32

24.41

25.22

AL THUMAMA

Motor

216,200

2008

NYK

40%

12.74

12.14

11.15

28.40

27.08

24.86

AL UTOURIYA

Motor

215,000

2008

NYK

40%

11.03

12.92

11.28

24.70

28.93

25.25

138

8.5 VESSEL AER/EEOI DATA (continued)

Vessel Name

AL WUKIR**

Cargo
Propulsion Capacity
CBM
Motor

82,491

Year
built
2008

NAKILAT ESG REPORT 2022

AnnualEfficiency
Technical
Nakilat’s
Ratio
management Ownership(AER)*
2020
NSQL

50%

7.93

AnnualEfficiency
Ratio(AER)*
2021

AnnualEfficiency
Ratio(AER)*
2022

7.74

9.03

EEOI
EEOI
EEOI (gr/(gr/ton (gr/ton
ton CargoCargo- Cargonm) **nm) ** nm) **
2022
2020
2021

Vessel Name

18.05

20.53

TEMBEK

17.62

Cargo
Propulsion Capacity
CBM
Motor

216,200

Year
built

AnnualEfficiency
Technical
Nakilat’s
Ratio
management Ownership(AER)*
2020

2007

NSQL

100%

10.41

AnnualEfficiency
Ratio(AER)*
2021

AnnualEfficiency
Ratio(AER)*
2022

10.15

10.16

EEOI
EEOI
EEOI
(gr/ton (gr/ton (gr/ton
Cargo- Cargo- Cargonm) ** nm) ** nm) **
2020
2021
2022
25.14

24.50

24.54

ASEEM

DFDE

155,003

2009

ILT3

20%

10.48

8.76

8.74

26.97

22.54

22.51

UMM AL AMAD

Motor

210,200

2008

KLINE

40%

8.55

9.25

8.95

22.80

24.67

23.86

BU SAMRA

Motor

266,000

2009

NSQL

100%

8.97

8.41

9.38

22.29

20.91

23.30

UMM BABSteam

145,000

2005

MGM

40%

14.56

11.87

10.03

39.14

31.91

30.46

BU SIDRA**

Motor

82,419

2008

NSQL

50%

8.58

8.22

8.76

19.54

18.72

19.96

UMM LAQHAB

Motor

82,408

2008

NSQL

50%

8.18

8.51

8.64

24.93

25.92

26.34

DUHAIL

Motor

210,150

2008

PRONAV

45%

9.86

9.66

10.37

26.31

25.79

27.68

UMM SLAL

Motor

265,978

2008

NSQL

100%

8.99

8.53

9.18

16.66

15.81

17.01

EJNAN

Steam

145,000

2007

NYK

30%

14.43

15.67

12.44

35.93

39.00

30.97

EXQUISITE FSRU

DFDE

159,800

2013

MGM

40%

7.06

6.89

5.71

18.34

17.90

15.33

FSRU

83,163

2009

NSQL

55%

NA

NA

NA

NA

NA

NA

WOODSIDE
GOODE

FRAIHA

Motor

210,100

2008

MOL

40%

9.71

8.81

9.00

25.94

23.53

24.04

WOODSIDE
ROGERS

DFDE

159,800

2013

MGM

40%

7.50

8.22

7.90

19.48

21.40

21.17

GLOBAL ENERGY

MEGI

173,400

2020

NSQL

60%

11.74

6.88

6.47

29.52

17.30

16.27

ZARGA

Motor

266,000

2010

STASCO

100%

9.62

9.21

10.17

21.63

20.71

22.86

GLOBAL SEASPIRIT

XDF

173,400

2021

NSQL

60%

NA

5.89

6.21

NA

14.56

15.35

GLOBAL SEA
LINE

XDF

173,400

2022

NSQL

60%

NA

NA

5.14

NA

NA

12.64

*(AER) Annual Efficiency Ratio with Formula:

GLOBAL STAR

MEGI

173,400

2021

NSQL

60%

NA

6.60

5.81

NA

16.60

14.62

∑ (Total CO2 emissions in grams) / ∑ (Deadweight in tons x Distance in nm)

LIJMILIYA

Motor

263,300

2009

NSQL

100%

8.33

8.01

8.24

22.60

21.74

22.35

LUBARA**

Motor

82,452

2009

NSQL

50%

8.03

8.58

8.53

18.27

19.54

19.40

**(EEOI) The Energy Efficiency Operational Indicator (gr/ton Cargo-nm) with formula:

MARAN GASACHILLES

DFDE

174,000

2016

MGM

40%

6.46

6.17

8.29

15.84

15.13

17.48

MARAN GASALEXANDRIA

DFDE161,870

2015

MGM

40%

6.81

6.45

7.73

17.54

16.59

17.48

MARAN GASAPOLLONIA

DFDE

161,870

2014

MGM

40%

6.58

6.54

7.81

16.93

16.82

17.63

MARAN GASASCLEPIUS

Steam

145,822

2008

MGM

40%

17.07

12.36

10.36

45.64

33.03

30.51

MARAN GASCORONIS

Steam

145,700

2012

MGM

40%

13.25

12.29

11.22

35.50

32.92

32.81

MARAN GASDELPHI

DFDE

159,800

2014

MGM

40%

7.41

7.39

6.72

19.15

19.09

16.92

MARAN GASEFESSOSDFDE

159,800

2014

MGM

40%

6.76

6.97

7.19

17.48

18.01

19.31

MARAN GASLINDOS

DFDE

161,870

2014

MGM

40%

7.96

6.46

6.47

20.23

16.42

17.04

MARAN GASPOSIDONIA

DFDE

161,870

2014

MGM

40%

6.06

8.05

7.45

15.59

20.68

19.76

MARAN GASSPARTA

DFDE

159,800

2015

MGM

40%

6.46

7.03

6.63

16.83

18.30

17.62

MEKAINES

Motor

266,476

2009

NSQL

100%

8.58

9.09

9.13

21.19

22.46

22.56

Note:

MESAIMEER

Motor

216,312

2009

NSQL

100%

12.33

10.79

11.04

29.87

26.14

26.76

MOZAH

Motor

266,253

2008

NSQL

100%

9.24

8.89

9.17

22.88

22.02

22.72

MURWAB

Motor

210,100

2008

MOL

40%

9.32

8.96

9.92

24.89

23.94

26.48

ONAIZA

Motor

210,150

2009

NSQL

100%

8.42

8.34

8.49

25.27

25.02

25.49

RASHEEDA

Motor

266,276

2010

STASCO

100%

10.57

8.99

9.48

23.79

20.24

21.35

SHAGRA

Motor

266,276

2009

STASCO

100%

9.99

9.44

10.16

22.46

21.22

22.83

SIMAISMA

Steam

145,889

2006

MGM

40%

14.05

12.45

11.07

37.63

33.33

32.61

139

∑ (Total CO2 emissions in grams) / ∑ (98.5% Cargo capacity in tons x Distance in nm x 50%)
Denominator multiplied by 50% to make average adjustment for ballast voyages.
***EEOI Figures has been restated for year 2020 and 2021 using above EEOI formula.

1408.6 LIST OF ABBREVIATIONS AND DEFINITIONSNAKILAT ESG REPORT 2022

LIST OF ABBREVIATIONS

141

List of Abbreviations

ABC

Anti-Bribery and Corruption

IMO

International Maritime Organization

IFRS

International Financial Reporting Standards

SGMF

The Society for Gas as a Marine Fuel.

ABMS

Anti-Bribery Management System (ISO 37001:2016)

IMS

IMO Integrated Management System

IGC CodeIMO International Gas Carrier Code

SHI

Korean shipyard

ABS

American Bureau of Shipping

IOPP

International Oil Pollution Prevention

AGM

Annual General Meeting

ISO

International Organization for Standardization

IGF CodeInternational Code of Safety for Ships using Gases orother Low-flashpoint Fuels

SHEQ

Safety Health Environment Quality

AER

Annual Efficiency Ratio

ISM

IMO International Safety Management Code

IHM

Inventory of Hazardous Material

SIRE

Ship Inspection and Reporting acc. OCIMF system

API

American Petroleum Institute

ISPS

International Ship and Port Facility Security Code

ILO

International Labour Organization

SMART

BWM

Ballast water management

JV

Joint venture

Specific, Measurable, Achievable, Relevant, Time
Based

BWMS

Ballast Water Management System

KPI

Key performance indicator

IMCA

International Marine Contractors Association

STASCO

Shell Trading and Shipping Company

BWTS

Ballast Water Treatment System

LOPC

Loss of Primary Containment

Particulate Matter

STCW

Standards of Training, Certification and Watchkeeping

CAPEX

Capital expenditure

LNG

Liquefied natural gas

PM10 /
PM2. 5cbm

Cubic meter

LPG

Liquefied Petroleum Gas

SOx

Sulphur Oxides

TCO2

Tonnes CO2

CEO

Chief Executive Officer

LSA Code

IMO Life Saving Appliance CodeNOx

Nitrogen Oxides

TMSA

Tanker Management and Self-Assessment

CFO

Chief Finance Officer

LTI

Lost time injury

VOC

Volatile Organic Compounds

TRCF

Total recordable case frequency

CG

Corporate governance

LTIF

Lost time injury frequencydBA

Decibels, A weighted

UN

United Nations

COLREGIMO Collision Avoidance Regulations

MARPOLIMO Marine Pollution ConventionpH

potential of hydrogenug/m3

Micro gram per cubic meter

COO

Chief Operating Officer

MDO

Marine Diesel Oil

COD

Chemical Oxygen Demand

mg/lMilligram per liter

CWTP

Contaminated Water Treatment Plant

MGO

Marine Gas Oil

Pb

Lead

CO

Carbon Monoxide

DCS

Data Collection System

MGM

Maran Gas Maritime

Cu

CopperTSS

Total Suspended Solids

DFDE

Dual Fuel Diesel Electric

MRV

Monitoring, Reporting and Verification

Fe

Iron

BOD

Biological Oxygen Demand

DSME

Korean Shipyard

NGO

Non-Governmental Organisation

Cd

Cadmium

DWT

Deadweight tonnage

NSQL

Nakilat Shipping Qatar Ltd.

Ni

NickelECA

Emissions Control Area (designated by IMO)

OCIMF

Oil Companies International Marine Forum

Cr

Chromium

EEDI

IMO Energy Efficiency Design Index (New ship)

ODS

Ozone Depleting Substance

Mn

Manganese

EEOI

IMO Energy Efficiency Operational Index

OHS

Occupational Health and Safety

EEXI

IMO Energy Efficiency Design Index (Existing ship)

OWS

Oily Water Separator

EMS

Enterprise Management System

P&I

Protection and indemnity

EMSA

European Maritime Agency

PDPA

Personal Data Protection Act

ERMEnterprise Risk Management

PSC

Port State Control

ESG

Environmental, social and governance

QMS

Quality Management System

ETA

Estimated Time of Arrival

QMax/ QFlex

Size category of largest LNG ships in the worldEU

European Union

ROV

Remotely Operated Vehicle

FSS Code IMO Fire Safety System Code

RLIC

Ras Laffan Industrial City

GHG

Greenhouse gas

SECA

Special Emissions Control Area (designated by IMO)

HHI

Korean Shipyard

SOLAS

IMO Safety of Life at Sea Convention

HR

Human Resource

SCR

Selective Catalytic Reduction

HSE

Health, safety and environment

SDG

Sustainable Development Goal

HSSEQ

Health, safety, security, environment and Quality

SEEMP

IMO Shipboard Energy Efficiency Management Plan

142

8.6 LIST OF ABBREVIATIONS AND DEFINITIONS (continued)- KPI Definitions- KPI Definitions

Accidents:

An accident is an unplanned / unwanted event, resulting in loss to people, damage to property or process loss.
Almost every accident is the result of a combination of causes.

Environmental
Incident:

An unplanned event or chain of events that has or could have a negative impact on the Environment. For reporting
purposes following to be recorded:
Releases to shore, Oil & chemical releases of 10 kgs. and above;
Releases to sea, all releases, regardless of quantity;
Releases to air, gas releases of 10kgs and above (Refrigerant releases shall be recorded separately, reference as
below)

Exposure hours:

Exposure hours shows the time an employee is exposed to work-related hazards and risks. Exposure hours areused for the calculation of the safety performance indicators.

FAC (First Aid
Case):

This is any one-time treatment and subsequent observation or minor injuries such as bruises, scratches, cuts,
burns, splinters, etc. First aid may or may not be administered by a physician or registered professional.

FAT (Fatality):

A fatality is a death directly resulting from a work injury regardless of the length of time between the injury anddeath.
Note: Fatalities are included in the Lost Time Injury (6000 man-days lost for one fatality).

Incident

LTI (Lost Time
Injury)NM (Near Misses)

Any unexpected or undesired event or sequence of events that could have resulted in an incident involving injury,
illness, damage to assets, environment or Company reputation or consequential business loss, but did not.

Occupational Injury

Occupational injury is any injury such as a cut, fracture, sprain, amputation, etc., which results from a work
accident or from an exposure involving a single incident in the work environment.

Any abnormal condition or disorder, other than one resulting from an occupational injury, caused by exposure to
Occupational Illness environmental factors associated with employment. It includes acute and chronic illnesses or diseases which may
be caused by inhalation, absorption, ingestion, or direct contact.
Unsafe Acts:

It is the action of a person or persons that, if continued, might lead to an accident, incident or injury.

Unsafe Condition:

It is an existing physical condition in the workplace which, if not corrected, might lead to an accident, incident or
injury to personnel.

RWC (Restricted
Work Case)

This is an injury which results in an individual being unable to perform all normally assigned work functions duringa scheduled work shift or being assigned to another job on a temporary or permanent basis on the day following.

TRC (Total
Recordable Cases)

An incident is a general term of any unplanned event, or chain of events, which has, or could have caused, injury,
illness, damage or loss. It is used to include all accident and near misses.
Is any work-related injury or illness that renders the injured person temporarily unable to perform their work on
the day after the day on which the injury occurred. The day after includes rest day, weekend day, scheduled holiday,
public holiday or subsequent day after ceasing employment. For the purposes of classification an LTI includes
Fatalities (FAT), Permanent Partial Disabilities (PPD), Permanent Total Disabilities (PTD) and Lost Work Case
(LWC).
LTI = (FAT + PTD + PPD + LWC)
Note: if, in a single Incident 20 people receive lost time injuries, then it is accounted as 20 LTI’s (not 1 LTI)LTIF:

NAKILAT ESG REPORT 2022

TRCF

Total number of LTI’s X 1 Million
Total exposure hours

Oil Spill to Water

Total number of LTI’s X 1 Million
Total exposure hours

Number of oil spill incidents, any amount.

Annual Efficiency
Ratio (AER)
Where Ci is the carbon emissions computed using the fuel consumption and carbon factor for each type of fuel,dwt is the design deadweight of the vessel, and Di is the distance travelled in a year.

Major Incidents are defined as those that have been classified as Tier II or above, Major, such other classification, as defined in theorganisations Emergency Response Procedures / Plans. Such incidents would typically definedby:

Measurement of the fuel efficiency of a ship in operation. It is a carbon intensity indicator “CII” and represents thedemand for transport work.

Country or region wide with extended media coverage and interest.
Larger incident and requiring significant measures to bring under control, with a possibility of escalating further.
Site Equipment insufficient to deal with the incident. External aid and assistance are required to bring under control.
Not Restricted to Company/ Customer /contractor Property.
Incident will have an impact on organisations business functions, reputation or financial position.

MTC (Medical Treatment Case)
This is any work related loss of consciousness (unless due to ill health), injury or illness requiring more than First-Aid treatment by aphysician, dentist, surgeon or registered medical personnel, e.g., Nurse or paramedic, under standing orders of a physician.
MTC includes the following :143

Total Recordable Case Frequency (TRCF) is defined as the number of major HSE incidents (TRC’s) per million-man
hours. TRC’s are defined using a strict classification system and have major implications to fleet management.
Procedures and new initiatives are often introduced as a result of TRC’s in order to pursue the group objective ofGoal Zero.

The ratio of a ship’s carbon emissions per actual capacity- distance (e.g., dwt/nm sailed). The AER uses theparameters of fuelconsumption, distance travelled, and design deadweight tonnage.

Major Incidents (Other than personnel Injury)

•
•
•
•
•

(TRC’s = LTI’s + MTC’s + RWC’s)

TRCF =

Lost Time Incident Frequency (LTIF) is defined as the number of work-related injuries that have resulted in losttime.
LTIF =

It is the sum of all work related Lost Time Injuries (LTI’s), Restricted Work Cases (RWC’s) and Medical Treatment
Cases (MTC’s).

•

Injuries which result in loss of consciousness even if the individual resumes work after regaining consciousness (Note : This does
not cover loss of consciousness due to ill health)

•
•
•
•
•
•
•
•
•

Sutures for non-cosmetic purpose

Energy Efficiency
Operating Indicator(EEOI)

Calculation being done using simplified average approach for whole year.
Where:•

jis the fuel type;•

FCj is the mass of consumed fuel j ;•CFj is the fuel mass to CO2 mass conversion factor for fuel j;•mcargo is cargo carried (tonnes) basis 98.5% capacity of vessel.

•

D is the distance in nautical miles adjusted by 50% to make average adjustment for ballast voyages.

Use of casts, splints or other means of immobilisation
Any general surgical treatment
Removal of embedded objects from eye by surgical means
Use of a series of compressions for treatment of bruises, sprains or strains. MTC’s exclude the following:First Aid Cases, LTI’s and RWC’s.
Hospitalisation from observation without treatment.
One off tetanus injections.
Consultative visit to, or examination by a physician or registered professional for the purpose of a confirmatory check.
144